Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 85.1 | ||
Entity Common Stock, Shares Outstanding | 1,363,306,849 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission in connection with its annual meeting of shareholders expected to be held on May 17, 2023 are incorporated by reference into Part III hereof. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
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 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 238 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Income Statement [Abstract] | |||||
Net revenues | $ 31,496 | $ 28,720 | [1] | $ 26,581 | [1] |
Cost of sales | 20,184 | 17,466 | 16,135 | ||
Gross profit | 11,312 | 11,254 | 10,446 | ||
Selling, general and administrative expenses | 7,384 | 6,263 | 6,098 | ||
Asset impairment and exit costs | 262 | 212 | 301 | ||
Net gain on acquisition and divestitures | 0 | (8) | 0 | ||
Amortization of intangible assets | 132 | 134 | 194 | ||
Operating income | 3,534 | 4,653 | 3,853 | ||
Benefit plan non-service income | (117) | (163) | (138) | ||
Interest and other expense, net | 423 | 447 | 608 | ||
Earnings before income taxes | 3,228 | 4,369 | 3,383 | ||
Income tax provision | (865) | (1,190) | (1,224) | ||
Gain/(loss) on equity method investment transactions | (22) | 742 | 989 | ||
Equity method investment net earnings | 385 | 393 | 421 | ||
Net earnings | 2,726 | 4,314 | 3,569 | ||
Noncontrolling interest earnings | (9) | (14) | (14) | ||
Net earnings attributable to Mondelēz International | $ 2,717 | $ 4,300 | $ 3,555 | ||
Per share data: | |||||
Basic earnings per share attributable to Mondelēz International (in dollars per share) | $ 1.97 | $ 3.06 | $ 2.48 | ||
Diluted earnings per share attributable to Mondelēz International (in dollars per share) | $ 1.96 | $ 3.04 | $ 2.47 | ||
[1]Our snack product categories include biscuits & baked snacks, chocolate and gum & candy. During the first quarter of 2022, we realigned some of our products between our biscuits & baked snacks and chocolate categories; as such, we reclassified the product category net revenues on a basis consistent with the 2022 presentation. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 2,726 | $ 4,314 | $ 3,569 |
Other comprehensive earnings/(losses), net of tax: | |||
Currency translation adjustment | (725) | (458) | (322) |
Pension and other benefit plans | 274 | 495 | (153) |
Derivative cash flow hedges | 114 | 13 | 52 |
Total other comprehensive earnings/(losses) | (337) | 50 | (423) |
Comprehensive earnings | 2,389 | 4,364 | 3,146 |
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | (5) | (2) | 27 |
Comprehensive earnings attributable to Mondelēz International | $ 2,394 | $ 4,366 | $ 3,119 |
Consolidated Balance Sheets, as
Consolidated Balance Sheets, as of December 31 - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | ||
ASSETS | ||||
Cash and cash equivalents | $ 1,923 | $ 3,546 | ||
Trade receivables (net of allowances of $45 at December 31, 2022 and $37 at December 31, 2021) | 3,088 | 2,337 | ||
Other receivables (net of allowances of $59 at December 31, 2022 and $49 at December 31, 2021) | 819 | 851 | ||
Inventories, net | 3,381 | 2,708 | ||
Other current assets | 880 | 900 | ||
Total current assets | 10,091 | 10,342 | ||
Property, plant and equipment, net | 9,020 | 8,658 | ||
Operating lease right of use assets | 660 | 613 | ||
Goodwill | 23,450 | 21,978 | ||
Intangible assets, net | 19,710 | 18,291 | ||
Prepaid pension assets | 1,016 | 1,009 | ||
Deferred income taxes | 473 | 541 | ||
Equity method investments | [1] | 4,879 | 5,289 | |
Other assets | 1,862 | 371 | ||
TOTAL ASSETS | 71,161 | 67,092 | ||
LIABILITIES | ||||
Short-term borrowings | 2,299 | 216 | ||
Current portion of long-term debt | 383 | [2] | 1,746 | |
Accounts payable | 7,562 | 6,730 | ||
Accrued marketing | 2,370 | 2,097 | ||
Accrued employment costs | 949 | 822 | ||
Other current liabilities | 3,168 | 2,397 | ||
Total current liabilities | 16,731 | 14,008 | ||
Long-term debt | 20,251 | [2] | 17,550 | |
Long-term operating lease liabilities | 514 | 459 | ||
Deferred income taxes | 3,437 | 3,444 | ||
Accrued pension costs | 403 | 681 | ||
Accrued postretirement health care costs | 217 | 301 | ||
Other liabilities | 2,688 | 2,326 | ||
TOTAL LIABILITIES | 44,241 | 38,769 | ||
Commitments and Contingencies (Note 14) | ||||
EQUITY | ||||
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at December 31, 2022 and December 31, 2021) | 0 | 0 | ||
Additional paid-in capital | 32,143 | 32,097 | ||
Retained earnings | 31,481 | 30,806 | ||
Accumulated other comprehensive losses | (10,947) | (10,624) | ||
Treasury stock, at cost (630,646,687 shares at December 31, 2022 and 604,907,239 shares at December 31, 2021) | (25,794) | (24,010) | ||
Total Mondelēz International Shareholders’ Equity | 26,883 | 28,269 | ||
Noncontrolling interest | 37 | 54 | ||
TOTAL EQUITY | 26,920 | 28,323 | ||
TOTAL LIABILITIES AND EQUITY | $ 71,161 | $ 67,092 | ||
[1] Includes a basis difference of approximately $419 million as of December 31, 2022 and $475 million as of December 31, 2021 between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees’ equity. |
Consolidated Balance Sheets, _2
Consolidated Balance Sheets, as of December 31 (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 45 | $ 37 |
Other receivables, allowances | $ 59 | $ 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, shares (in shares) | 630,646,687 | 604,907,239 |
Consolidated Statements of Equi
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, 2019 | $ 27,317 | $ 0 | $ 32,019 | $ 26,615 | $ (10,254) | $ (21,139) | $ 76 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 3,569 | 3,555 | 14 | ||||
Other comprehensive earnings/ (losses), net of income taxes | (423) | (436) | 13 | ||||
Exercise of stock options and issuance of other stock awards | 328 | 51 | (59) | 336 | |||
Common Stock repurchased | (1,401) | (1,401) | |||||
Cash dividends declared per share | (1,718) | (1,718) | |||||
Dividends paid on noncontrolling interest and other activities | (18) | 9 | (27) | ||||
Balance at end of period at Dec. 31, 2020 | 27,654 | 0 | 32,070 | 28,402 | (10,690) | (22,204) | 76 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 4,314 | 4,300 | 14 | ||||
Other comprehensive earnings/ (losses), net of income taxes | 50 | 66 | (16) | ||||
Exercise of stock options and issuance of other stock awards | 283 | 27 | (34) | 290 | |||
Common Stock repurchased | (2,096) | (2,096) | |||||
Cash dividends declared per share | (1,867) | (1,867) | |||||
Dividends paid on noncontrolling interest and other activities | (15) | 5 | (20) | ||||
Balance at end of period at Dec. 31, 2021 | 28,323 | 0 | 32,097 | 30,806 | (10,624) | (24,010) | 54 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 2,726 | 2,717 | 9 | ||||
Other comprehensive earnings/ (losses), net of income taxes | (337) | (323) | (14) | ||||
Exercise of stock options and issuance of other stock awards | 242 | 46 | (20) | 216 | |||
Common Stock repurchased | (2,000) | (2,000) | |||||
Cash dividends declared per share | (2,025) | (2,025) | |||||
Dividends paid on noncontrolling interest and other activities | (9) | 3 | (12) | ||||
Balance at end of period at Dec. 31, 2022 | $ 26,920 | $ 0 | $ 32,143 | $ 31,481 | $ (10,947) | $ (25,794) | $ 37 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retained Earnings | |||
Cash dividends declared per share (in dollars per share) | $ 1.47 | $ 1.33 | $ 1.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | |||
Net earnings | $ 2,726 | $ 4,314 | $ 3,569 |
Adjustments to reconcile net earnings to operating cash flows: | |||
Depreciation and amortization | 1,107 | 1,113 | 1,116 |
Stock-based compensation expense | 120 | 121 | 126 |
Deferred income tax provision/(benefit) | (42) | 205 | (70) |
Asset impairments and accelerated depreciation | 233 | 128 | 136 |
Loss on early extinguishment of debt | 38 | 110 | 185 |
Net gain on acquisition and divestitures | 0 | (8) | 0 |
Loss/(gain) on equity method investment transactions | 22 | (742) | (989) |
Equity method investment net earnings | (385) | (393) | (421) |
Distributions from equity method investments | 184 | 172 | 246 |
Mark-to-market and other non-cash items, net | 426 | (230) | 243 |
Change in assets and liabilities, net of acquisitions and divestitures: | |||
Receivables, net | (719) | (197) | 59 |
Inventories, net | (635) | (170) | (24) |
Accounts payable | 715 | 702 | 436 |
Other current assets | (286) | (169) | (207) |
Other current liabilities | 630 | (502) | (208) |
Change in pension and postretirement assets and liabilities, net | (226) | (313) | (233) |
Net cash provided by operating activities | 3,908 | 4,141 | 3,964 |
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | |||
Capital expenditures | (906) | (965) | (863) |
Acquisitions, net of cash received | (5,286) | (833) | (1,136) |
Proceeds from divestitures including equity method investments | 601 | 1,539 | 2,489 |
Proceeds from derivative settlements and other | 703 | 233 | 10 |
Net cash (used in)/provided by investing activities | (4,888) | (26) | 500 |
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | |||
Issuances of commercial paper, maturities greater than 90 days | 0 | 0 | 677 |
Repayments of commercial paper, maturities greater than 90 days | 0 | 0 | (1,174) |
Net issuances/(repayments) of short-term borrowings | 1,914 | 194 | (2,116) |
Long-term debt proceeds | 4,490 | 5,921 | 7,213 |
Long-term debt repayments | (3,032) | (6,247) | (3,878) |
Repurchases of Common Stock | (2,017) | (2,110) | (1,390) |
Dividends paid | (1,985) | (1,826) | (1,678) |
Other | 174 | (1) | 131 |
Net cash used in financing activities | (456) | (4,069) | (2,215) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (169) | (143) | 73 |
Cash, cash equivalents and restricted cash: | |||
(Decrease)/increase | (1,605) | (97) | 2,322 |
Balance at beginning of period | 3,553 | 3,650 | 1,328 |
Balance at end of period | 1,948 | 3,553 | 3,650 |
Cash paid: | |||
Interest | 551 | 426 | 413 |
Income taxes | $ 1,103 | $ 1,556 | $ 1,264 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Description of Business: Mondelēz International, Inc. was incorporated in 2000 in the Commonwealth of Virginia. Mondelēz International, Inc., through its subsidiaries (collectively “Mondelēz International,” “we,” “us” and “our”), sells food and beverage products to consumers in over 150 countries. Principles of Consolidation: The 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 is no readily determinable fair value for the equity interests, these investments are carried at cost with changes in the investment recognized to the extent cash is received. Use of Estimates: We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require us to make estimates and assumptions that affect a number of amounts in our consolidated financial statements. Significant estimates include, valuation assumptions of goodwill and intangible assets, useful lives of long-lived assets, restructuring program liabilities, contingent consideration, marketing program accruals, insurance and self-insurance reserves, pension and benefit plan assumptions and income taxes. We base our estimates on historical experience, expectations of future impacts and other assumptions that we believe are reasonable. Given the uncertainty of the global economic environment, our estimates could be significantly different than future performance. If actual amounts differ from estimates, we include the updates in our consolidated results of operations in the period the actual amounts become known. War in Ukraine In February 2022, Russia began a military invasion of Ukraine and we closed our operations and facilities in Ukraine. In March 2022, our two Ukrainian manufacturing facilities in Trostyanets and Vyshhorod were significantly damaged. During the first quarter of 2022, we evaluated and impaired these and other related assets. We recorded $143 million of total expenses ($145 million after-tax) incurred as a direct result of the war, including $75 million recorded in asset impairment and exit costs , $44 million in cost of sales and $24 million in selling, general and administrative expenses. We recorded $75 million of property, plant and equipment impairments, $33 million of estimated inventory write-offs, $19 million of increased estimated allowances for trade receivables and $16 million in accrued expenses. During the remainder of 2022, we reversed approximately $22 million of previously recorded charges primarily as a result of higher than expected collection of trade receivables and inventory recoveries. 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 transactions in earnings. Highly inflationary accounting is triggered when a country’s three-year cumulative inflation rate exceeds 100%. It requires the remeasurement of financial statements of subsidiaries in the country, from the functional currency of the subsidiary to our U.S. dollar reporting currency, with currency remeasurement gains or losses recorded in earnings. At this time, within our consolidated entities, Argentina and Türkiye are accounted for as highly inflationary economies. Argentina and Türkiye represent 1.6% and 0.7% of our consolidated net revenues, with remeasurement losses of $39 million and $1 million in 2022, respectively. 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 had restricted cash within other current assets of $25 million as of December 31, 2022 and $7 million as of December 31, 2021. Total cash, cash equivalents and restricted cash was $1,948 million as of December 31, 2022 and $3,553 million as of December 31, 2021. Allowances for Credit Losses: 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, 2021 $ (42) $ (42) $ (12) Current period provision for expected credit losses (3) (13) — Write-offs charged against the allowance 5 3 2 Currency 3 3 — Balance at December 31, 2021 $ (37) $ (49) $ (10) Current period provision for expected credit losses (13) (14) (3) Write-offs charged against the allowance 2 3 — Currency 3 1 (1) Balance at December 31, 2022 $ (45) $ (59) $ (14) 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. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have nonrecourse factoring arrangements in which we sell eligible trade receivables primarily to banks in exchange for cash. We may 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 $516 million as of December 31, 2022, $761 million as of December 31, 2021 and $760 million as of December 31, 2020. The incremental costs of factoring receivables under these arrangements were not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the consolidated statements of cash flows. Inventories: We record our inventory using the average cost method and record inventory reserves for excess and obsolete inventory. Long-Lived Assets: Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets with the expense recorded in cost of sales or selling, general and administrative expenses depending on the nature of the long-lived assets. Machinery and equipment are depreciated over periods ranging from 3 to 20 years and buildings and building improvements over periods up to 40 years. We review long-lived assets, including definite-life intangible assets, for realizability on an ongoing basis. Changes in depreciation, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. We amortize definite-life intangible assets over their estimated useful lives and evaluate them for impairment as we do other long-lived assets. We review for impairment when conditions exist that indicate the carrying amount of the assets may not be fully recoverable. In those circumstances, we perform undiscounted operating cash flow analyses for asset and liability groups at the lowest level for which cash flows are separately identifiable to determine if an impairment exists. Any impairment loss is calculated as the excess of the asset’s carrying value over its estimated fair value. Fair value is estimated based on the discounted cash flows for the asset group over the remaining useful life or based on the expected cash proceeds for the asset less costs of disposal. Leases: We determine whether a contract is or contains a lease at contract inception. For short-term operating leases with terms of 12 months or less, we do not recognize right-of-use (“ROU”) assets and lease liabilities. ROU assets are recognized at commencement date at the value of the lease liability, adjusted for any prepayments, lease incentives received and initial direct costs incurred. Lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The non-recurring fair value measurement is classified as Level 3 as no fair value inputs are observable. As the implicit interest rate in the lease is not readily determinable, we use our country-specific incremental borrowing rate to discount the lease liabilities. Our leases may include options to extend or terminate the lease, which are included in the lease term when it is reasonably certain that we will exercise that option. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Many of our leases contain non-lease components (e.g. product costs, common-area or other maintenance costs) that relate to the lease components of the agreement. We account for lease and non-lease components as a single lease component. Amortization of ROU lease assets is calculated over the lease term with the expense recorded in cost of sales or selling, general and administrative expenses depending on the nature of the leased item. Interest expense is recorded over the lease term and is recorded in interest expense (based on a front-loaded interest expense pattern) for finance leases and is recorded in cost of sales or selling, general and administrative expenses for operating leases. Variable lease payments, which are primarily comprised of product costs, insurance and tax payments based on usage or output, are recognized when the expense is incurred. Finance lease ROU assets are presented in property, plant and equipment and the related finance lease liabilities are presented in the current portion of long-term debt and long-term debt. Software Costs: We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are included in property, plant and equipment and amortized on a straight-line basis over the estimated useful lives of the software, which do not exceed seven years. Goodwill and Indefinite-Life Intangible Assets: We test goodwill and indefinite-life intangible assets for impairment on an annual basis on July 1. We assess goodwill impairment risk throughout the year by performing a qualitative review of entity-specific, industry, market and general economic factors affecting our goodwill reporting units. Annually, we may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, we may elect to do quantitative testing instead. In our quantitative testing, we compare a reporting unit’s estimated fair value with its carrying value. We estimate a reporting unit’s fair value using a discounted cash flow method that incorporates planned growth rates, market-based discount rates and estimates of residual value. If the carrying value of a reporting unit’s net assets exceeds its fair value, we would recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. Annually, we assess indefinite-life intangible assets for impairment by performing a qualitative review and assessing events and circumstances that could affect the fair value or carrying value of these intangible assets. If significant potential impairment risk exists for a specific asset, we quantitatively test it for impairment by comparing its estimated fair value with its carrying value. During our annual testing, we use several accepted valuation methods, including Relief from Royalty, excess earnings and excess margin, that utilize estimates of future sales, earnings growth rates, royalty rates and discount rates in determining a brand’s global fair value. If the carrying value of the asset exceeds its fair value, we consider the asset impaired and reduce its carrying value to the estimated fair value. Held for Sale: Assets and liabilities to be disposed of by sale ("disposal groups") are reclassified into assets and liabilities held for sale on our consolidated balance sheets. The reclassification occurs when all the held for sale criteria have been met, including when management having the requisite authority have committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying value or fair value less costs to sell and are not depreciated or amortized. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value. Business Combinations: The assets acquired and liabilities assumed upon the acquisition or consolidation of a business are recorded at fair value, with the residual of the purchase price allocated to goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to assets acquired and liabilities assumed with the corresponding offset to goodwill. The results of operations of an acquired business are included in our operating results from the date of acquisition. Further, certain of our acquisitions may include earn-out provisions or other forms of contingent consideration. As of the acquisition date, we record contingent consideration, as applicable, at the estimated fair value of expected future payments associated with the earn-out. Any changes to the recorded fair value of contingent consideration will be recognized as expenses or earnings in the period in which they occur. Legal costs, due diligence costs, business valuation costs and all other business acquisition costs are expensed when incurred. 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. Insurance and Self-Insurance: We use a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability, product liability and our obligation for employee healthcare benefits. We estimate the liabilities associated with these risks on an undiscounted basis by evaluating and making judgments about historical claims experience and other actuarial assumptions and the estimated impact on future results. Revenue Recognition: We recognize revenue when control over the products transfers to our customers, which generally occurs upon delivery or shipment of the products. We account for product shipping, handling and insurance as fulfillment activities with revenues for these activities recorded within net revenue and costs recorded within cost of sales. Any taxes collected on behalf of government authorities are excluded from net revenues. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. We base these estimates of expected amounts principally on historical utilization and redemption rates. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one year or shorter duration. As such, we do not capitalize contract inception costs and we capitalize product fulfillment costs. Deferred revenues are not material and primarily include customer advance payments typically collected a few days before product delivery, at which time deferred revenues are reclassified and recorded as net revenues. We generally do not receive non-cash consideration for the sale of goods nor do we grant payment financing terms greater than one year. Marketing, Advertising and Research and Development: We promote our products with marketing and advertising programs. These programs include, but are not limited to, cooperative advertising, in-store displays and consumer marketing promotions. For interim reporting purposes, advertising, consumer promotion and marketing research expenses are charged to operations as a percentage of volume, based on estimated sales volume and estimated program spending. We do not defer costs on our year-end consolidated balance sheets and all marketing and advertising costs are recorded as an expense in the year incurred. Advertising expense was $1,670 million in 2022, $1,564 million in 2021 and $1,376 million in 2020. We expense product research and development costs as incurred. Research and development expense was $346 million in 2022, $347 million in 2021 and $332 million in 2020. We record marketing and advertising as well as research and development expenses within selling, general and administrative expenses. Stock-based Compensation: We maintain a share-based compensation plan, which authorizes the granting of various equity-based incentives, including stock options (including stock appreciation rights), deferred stock units (DSUs) and performance share units (PSUs). Stock compensation expense is amortized to expense over the vesting period, generally three years. Stock options are granted with an exercise price equal to the closing market price of our Common Stock on the grant date. Substantially all of the options become exercisable in three annual installments beginning a year from the grant date and generally expire 10 years from the grant date. We use the Black-Scholes Model to measure the fair value of stock options granted to employees. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. Expected stock price volatility is based on the implied and historical volatility of the Company’s stock. The expected dividend yield is based on the Company’s most recent annual dividend rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term equal to the expected life. DSUs are typically granted to selected management employees on an annual basis and vest over three years. Dividend equivalents are paid during the vesting period. The fair value of our DSUs and other stock-based awards is measured at the market price of our Common Stock on the grant date. PSUs vest based on varying performance, market and service conditions. Dividend equivalents accumulated over the vesting period are paid after vesting. The grant date fair value of PSUs is determined based on the Monte Carlo simulation model for the market-based component and the market price of our Common Stock on the grant date for performance-based components. The final award may equal 0-200 percent of the target grant, based on the achievement of the performance and market-based components . Forfeitures are estimated on the grant date for all of our stock-based compensation awards. Employee Benefit Plans: We provide a range of benefits to our current and retired employees including pension benefits, defined contribution plan benefits, postretirement health care benefits and postemployment primarily severance-related benefits depending upon local statutory requirements, employee tenure and service requirements as well as other factors. The cost for these plans is recognized in earnings primarily over the working life of the covered employee. Financial Instruments: We use financial instruments to manage our currency exchange rate, commodity price and interest rate risks. We monitor and manage these exposures as part of our overall risk management program, which focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results. A principal objective of our risk management strategies is to reduce significant, unanticipated earnings fluctuations that may arise from volatility in currency exchange rates, commodity prices and interest rates. When we use derivatives, we are exposed to credit and market risks. We reduce our credit risk by entering into transactions with counterparties with high quality, investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. We also maintain a policy of requiring that all significant, non-exchange traded derivative contracts with a duration of one year or longer are governed by an International Swaps and Derivatives Association master agreement. We manage derivative market risk by limiting the types of derivative instruments, derivative strategies we use, and the degree of market risk that we plan to hedge through the use of derivative instruments. We record derivative financial instruments on a gross basis in our consolidated balance sheets. The fair value of our instruments are recorded within other current assets, other assets, other current liabilities, and other liabilities in our consolidated balance sheets. Mark-to-market gains or losses related to our economic hedges are classified in the consolidated statements of cash flows in other non-cash items, net, within operating activities. Cash flows related to the settlement of derivative instruments designated as hedges of net investments in non-U.S. operations are classified in the consolidated statements of cash flows within investing activities. Cash flows related to derivative instruments that are designated or settled economic hedges are classified in the same line item as the cash flows of the related hedged item. Cash flows related to the settlement of all other free-standing derivative instruments are classified within investing activities. Commodity derivatives . We are exposed to price risk related to forecasted purchases of certain commodities that we primarily use as raw materials. We enter into commodity forward, futures and option contracts. Commodity forward contracts generally are not subject to the accounting requirements for derivative instruments and hedging activities under the normal purchases exception. We sell commodity futures to hedge future purchase commitments. We occasionally use related futures to cross-hedge a commodity exposure. We are not a party to leveraged derivatives and, by policy, do not use financial instruments for speculative purposes. Any mark-to-market gains or losses are recorded in earnings (see Note 10, Financial Instruments , for additional information). Currency exchange derivatives . We enter into currency exchange forward contracts, futures, options and swaps.to mitigate our exposure to changes in exchange rates from third-party and intercompany current and forecasted transactions. Any mark-to-market gains or losses are recorded in earnings (see Note 10, Financial Instruments , for additional information). Interest rate cash flow hedges . We manage interest rate volatility by modifying the pricing or maturity characteristics of certain liabilities so that the net impact on expense is not, on a material basis, adversely affected by movements in interest rates. We use derivative instruments, including interest rate swaps that have indices related to the pricing of specific liabilities as part of our interest rate risk management strategy. We use cross-currency interest rate swaps to hedge interest payments on newly issued debt denominated in a different currency than the functional currency of the borrowing entity. Substantially all of these derivative instruments are highly effective and qualify for hedge accounting treatment. Changes in the fair value of derivatives that are designated as a cash flow hedge, to the extent the hedge is effective, are recorded in accumulated other comprehensive earnings/(losses), net of deferred taxes, and reclassified to earnings when the hedged item affects earnings (see Note 10, Financial Instruments , for additional information). Hedges of net investments in non-U.S. operations . We have numerous investments outside the United States. The net assets of these subsidiaries are exposed to changes and volatility in currency exchange rates. We use local currency denominated debt to hedge our non-U.S. net investments against adverse movements in exchange rates. We may designate non-U.S. dollar-denominated borrowings in the U.S. as a net investment hedge of a portion of our overall non-U.S. operations. The gains and losses on our net investment in these designated non-U.S. operations are economically offset by losses and gains designated dollar-denominated borrowings. The revaluation of designated borrowings, net of deferred taxes, is recorded within currency translation adjustment in accumulated other comprehensive earnings/(losses) (see Note 10, Financial Instruments , for additional information). We use derivatives instruments to hedge certain investments in our non-U.S. operations against movements in exchange rates. These instruments may include cross-currency interest rate swaps, forwards and options. The after-tax gain/(loss) on these net investment hedge contracts, net of deferred taxes, is recorded within cumulative translation adjustment in accumulated other comprehensive earnings/(losses) (see Note 10, Financial Instruments , for additional information). Income Taxes: Our provision for income taxes includes amounts payable or refundable for the current year, the effects of deferred taxes and impacts from uncertain tax positions. We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of our assets and liabilities, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those differences are expected to reverse. The realization of certain deferred tax assets is dependent on generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. When assessing the need for a valuation allowance, we consider any carryback potential, future reversals of existing taxable temporary differences (including liabilities for unrecognized tax benefits), future taxable income and tax planning strategies. We recognize tax benefits in our financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained based on the technical merits of the position. The amount we recognize is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon resolution. Future changes related to the expected resolution of uncertain tax positions could affect tax expense in the period when the change occurs. We monitor for changes in tax laws and reflect the impacts of tax law changes in the period of enactment. When there is refinement to tax law changes in subsequent periods, we account for the new guidance in the period when it becomes known. 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 and December 2022, the FASB issued ASUs 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, 2024. We adopted this standard in the fourth quarter of 2022 and it did not have a material impact on our consolidated financial statements. In September 2022, the FASB issued an ASU which enhances the transparency of supplier finance programs by requiring additional disclosure about the key terms of these programs and a roll-forward of the related obligations to understand the effects of these programs on working capital, liquidity and cash flows. The ASU is effective for fiscal years beginning after December 15, 2022, except for the roll-forward requirement, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. We are currently assessing the impact on our consolidated financial statements and related disclosures. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Note 2. Acquisitions and Divestitures Acquisitions Ricolino We are working to complete the valuation of assets acquired and liabilities assumed and have recorded a preliminary purchase price allocation of: (in millions) Cash $ 22 Receivables 86 Inventory 70 Other current assets 3 Property, plant and equipment 144 Operating leases right of use assets 17 Definite life intangible assets 218 Indefinite life intangible assets 339 Goodwill 714 Assets acquired $ 1,613 Current liabilities 177 Deferred tax liability 77 Operating lease liabilities 17 Other liabilities 12 Total purchase price $ 1,330 Less: cash received (22) Net Cash Paid $ 1,308 Within indefinite-life intangible assets, we allocated $339 million to trade names. The fair value for the Ricolino, Dulces Vero, LaCorona and Coronado trade names were determined using the Relief from Royalty method, a form of the income approach, at the acquisition date. The fair value measurement of indefinite-life intangible assets are based on significant unobservable inputs, and thus represent Leve l 3 inputs. Significant assumptions used in assessing the fair values of intangible assets include estimates of future sales, discount and royalty rates. Goodwill was determined as the excess of the purchase price over the fair value of the net assets acquired and arises principally as a result of expansion opportunities and synergies across both new and legacy product categories in Mexico. None of the goodwill recognized is expected to be deductible for income tax purposes. All of the goodwill was assigned to the Latin American operating segment. Ricolino added incremental net revenues of $105 million and operating income of $1 million in 2022. In 2022, we recorded several items within acquisition-related costs that resulted in income of $64 million as realized gains related to hedging contracts associated with acquisition funds more than offset other acquisition transaction costs. We incurred acquisition integration costs of $11 million and an inventory step-up charge of $5 million in 2022. Clif Bar On August 1, 2022, we acquired 100% of the equity of Clif Bar & Company (“Clif Bar”), a leading U.S. maker of nutritious energy bars with organic ingredients. The acquisition expands our global snack bar business and complements our refrigerated snacking and performance nutrition bar portfolios. The total cash payment of $2.9 billion includes purchase price consideration of $2.6 billion, net of cash received, and one-time compensation expense of $0.3 billion related to the buyout of the non-vested employee stock ownership plan ("ESOP") shares. This compensation expense is considered an acquisition-related cost. The acquisition of Clif Bar includes a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain revenue and earnings targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price. The possible payments range from zero to a maximum total of $2.4 billion, with higher payouts requiring the achievement of targets that generate rates of returns in excess of the base financial projections. The estimated fair value of the contingent consideration obligation at the acquisition date was $440 million determined using a Monte Carlo simulation. Significant assumptions used in assessing the fair value of the liability include financial projections for net revenue, gross profit, and earnings before interest, tax, depreciation and amortization ("EBITDA"), as well as discount and volatility rates. We are working to complete the valuation of assets acquired and liabilities assumed and have recorded a preliminary purchase price allocation of: (in millions) Cash $ 99 Receivables 76 Inventory 124 Other current assets 9 Property, plant and equipment 186 Operating leases right of use assets 22 Deferred tax assets 92 Definite life intangible assets 200 Indefinite life intangible assets 1,450 Goodwill 1,020 Other assets 11 Assets acquired $ 3,289 Current liabilities 159 Contingent consideration 440 Other liabilities 15 Total purchase price $ 2,675 Less: cash received (99) Net Cash Paid $ 2,576 Within indefinite-life intangible assets, we allocated $1,450 million to trade names. The fair value for the Clif and Luna trade names were determined using the Relief from Royalty method, a form of the income approach, at the acquisition date. The fair value measurement of indefinite-life intangible assets are based on significant unobservable inputs, and thus represent Leve l 3 inputs. Significant assumptions used in assessing the fair values of intangible assets include estimates of future sales, discount and royalty rates. We expect to generate a meaningful cash tax benefit over time from the amortization of acquisition-related intangibles. Goodwill was determined as the excess of the purchase price over the fair value of the net assets acquired and arises principally as a result of expansion opportunities and synergies across the U.S. and other key markets. All of the goodwill was assigned to the North America operating segment. Tax deductible goodwill is estimated to be $1.4 billion and will be amortized. Clif Bar added incremental net revenues of $361 million and operating income of $13 million in 2022. We incurred an inventory step-up charge of $20 million and acquisition integration costs of $30 million in 2022. These acquisition integration costs include an increase to the contingent consideration liability due to changes to underlying assumptions. Refer to Note 10, Financial Instruments for additional information. We also incurred acquisition-related costs of $296 million in 2022. These acquisition-related costs are primarily related to the buyout of the non-vested ESOP shares. Chipita On January 3, 2022, we acquired 100% of the equity of Chipita Global S.A. (“Chipita”), a leading croissants and baked snacks company in the Central and Eastern European markets. The acquisition of Chipita offers a strategic complement to our existing portfolio and advances our strategy to become the global leader in broader snacking. The cash consideration paid for Chipita totaled €1.2 billion ($1.4 billion), net of cash received, plus the assumption of Chipita’s debt of €0.5 billion ($0.4 billion) for a total purchase price of €1.7 billion ($1.8 billion). We are working to complete the valuation of assets acquired and liabilities assumed and have recorded a preliminary purchase price allocation of: (in millions) Cash $ 52 Receivables 102 Inventory 60 Other current assets 3 Property, plant and equipment 379 Finance leases right of use assets 8 Definite life intangible assets 48 Indefinite life intangible assets 686 Goodwill 795 Other assets 77 Assets acquired $ 2,210 Current liabilities 133 Deferred tax liability 158 Finance lease liabilities 8 Other liabilities 21 Total purchase price $ 1,890 Less: long-term debt (436) Less: cash received (52) Net Cash Paid $ 1,402 Within indefinite-life intangible assets, we allocated $686 million to trade name. 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 indefinite-life 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 operating segment. Chipita added incremental net revenues of $651 million and operating income of $36 million in 2022. We incurred acquisition-related costs of $22 million in 2022 and $6 million in 2021. We incurred acquisition integration costs of $90 million in 2022 and $17 million in 2021. Other Acquisitions 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 $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. In 2022, through the one-year anniversary of the acquisition, Gourmet Food added incremental net revenues of $14 million, and operating income of $1 million. We incurred acquisition integration costs of $1 million in 2022. We incurred acquisition-related costs of $7 million in 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 market. We have recorded a purchase price allocation 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. In 2022, through the one-year anniversary of the acquisition, Grenade added incremental net revenues of $21 million, and operating income of $2 million. We incurred acquisition-related costs of $2 million in 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 offerings in the well-being category. The initial cash consideration paid was $229 million, net of cash received, and we may be required to pay additional contingent consideration. The estimated fair 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. During 2021, based on latest estimates, we recorded a $70 million reduction to the liability as recent economic and market conditions related to COVID-19 and supply chain challenges in the U.S. impacted the pace of growth. During 2022, we recorded an additional $7 million reduction to the liability due to further changes to forecasted future results. Refer to Note 10, Financial Instruments for additional information. 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 $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 $9 million in 2021. On April 1, 2020, we acquired a majority interest in Give & Go, a North American leader in fully-finished sweet baked goods and owner of the famous two-bite ® brand of brownies and the Create-A-Treat ® brand, known for cookie and gingerbread house decorating kits. The acquisition of Give & Go provides access to the in-store bakery channel and expands our position in broader snacking. The purchase consideration for Give & Go totaled $1,136 million, net of cash received. We have recorded a purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as follows: (in millions) Receivables $ 29 Inventory 38 Other current assets 6 Property, plant and equipment 136 Operating right of use assets 61 Definite-life intangible assets 511 Indefinite-life intangible assets 42 Goodwill 531 Assets acquired $ 1,354 Current liabilities 42 Deferred tax liabilities 92 Long-term operating lease liabilities 56 Long-term debt 6 Long-term other liabilities 19 Total purchase price $ 1,139 Less: cash received 3 Net Cash Paid $ 1,136 Within definite-life intangible assets, we allocated $416 million to customer relationships which have an estimated useful life of 17 years. Goodwill arises principally as a result of expansion opportunities and synergies across both new and legacy product categories. None of the goodwill recognized is expected to be deductible for income tax purposes. All of the goodwill was assigned to the North America operating segment. The fair value for customer relationships at the acquisition date was determined using the multi-period excess earnings method under the income approach. The fair value measurements of intangible assets are based on significant unobservable inputs, and thus represent Level 3 inputs. Significant assumptions used in assessing the fair values of intangible assets include discounted future cash flows, customer attrition rates and discount rates. Through the one-year anniversary of the acquisition, Give & Go added incremental net revenues of $106 million and operating income of $6 million during 2021. We incurred acquisition integration costs of $26 million in 2022. These acquisition integration costs are primarily related to an increase to the contingent consideration liability due to changes to forecasted future results. Refer to Note 10, Financial Instruments for additional information. We incurred acquisition integration costs of $6 million in 2021. Divestitures Developed Market Gum - Held for Sale On December 16, 2022, Mondelēz entered into an agreement to sell its developed market gum business in North America and Europe for $1.4 billion. It is expected to close in Q4 2023, subject to relevant antitrust approvals and closing conditions. In connection with these agreements, we have concluded that the disposal group has met the held for sale criteria as of December 31, 2022. The disposal group was included as part of the North America and Europe operating segments. Total assets and liabilities held for sale as of December 31, 2022 on the consolidated balance sheets are comprised of the following: (in millions) Inventories, net $ 79 Current assets held for sale (1) $ 79 Property, plant and equipment, net 159 Goodwill 292 Intangible assets, net 671 Noncurrent assets held for sale (2) $ 1,122 Accrued employment costs 4 Current liabilities held for sale (3) $ 4 Deferred income taxes 15 Noncurrent liabilities held for sale (4) $ 15 (1) Reported in Other current assets on the consolidated balance sheets. (2) Reported in Other assets on the consolidated balance sheets. (3) Reported in Other current liabilities on the consolidated balance sheets. (4) Reported in Other liabilities on the consolidated balance sheets. MaxFoods 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. The packaged seafood business added incremental net revenues of $35 million in 2021 and operating income of $5 million during 2021. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of December 31, 2022 2021 (in millions) Raw materials $ 1,031 $ 770 Finished product 2,501 2,054 3,532 2,824 Inventory reserves (151) (116) Inventories, net $ 3,381 $ 2,708 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 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 December 31, 2022 2021 (in millions) Land and land improvements $ 378 $ 379 Buildings and building improvements 3,250 3,139 Machinery and equipment 11,724 11,842 Construction in progress 879 732 16,231 16,092 Accumulated depreciation (7,211) (7,434) Property, plant and equipment, net $ 9,020 $ 8,658 Capital expenditures as presented on the statement of cash flow were approximately $0.9 billion, $1.0 billion and $0.9 billion for the years ending December 31, 2022, 2021 and 2020 and excluded $324 million, $249 million and $275 million for accrued capital expenditures not yet paid. 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 within asset impairment and exit costs on the consolidated statements of earnings and within the segment results as follows (refer to Note 8, Restructuring Program ): For the Years Ended December 31, 2022 2021 2020 (in millions) Latin America $ (3) $ 1 $ (12) AMEA 3 (15) (7) Europe 4 7 5 North America (1) 65 1 Corporate — — — Total $ 3 $ 58 $ (13) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases, Operating | Note 5. Leases We have operating and finance leases for manufacturing and distribution facilities, vehicles, equipment and office space. Our leases have remaining lease terms of 1 to 17 years, some of which include options to extend the leases for up to 6 years. The components of lease costs were as follows: For the Years Ended December 31, 2022 2021 (in millions) Operating lease cost $ 213 $ 228 Finance lease cost: Amortization of right-of-use assets 95 89 Interest on lease liabilities 8 7 Short-term lease cost 11 29 Variable lease cost 602 506 Sublease income (4) (6) Total lease cost $ 925 $ 853 Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, 2022 2021 (in millions) Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ (212) $ (229) Operating cash flows from finance leases (8) (8) Financing cash flows from finance leases (95) (88) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 220 $ 186 Finance leases 148 76 Supplemental balance sheet information related to leases was as follows: As of December 31, 2022 2021 (in millions) Operating Leases: Operating lease right-of-use assets, net of amortization $ 660 $ 613 Other current liabilities $ 166 $ 174 Long-term operating lease liabilities 514 459 Total operating lease liabilities $ 680 $ 633 Finance Leases: Finance leases, net of amortization (within property, plant and equipment) $ 287 $ 233 Current portion of long-term debt $ 95 $ 82 Long-term debt 198 157 Total finance lease liabilities $ 293 $ 239 Weighted Average Remaining Lease Term Operating leases 7.0 years 6.6 years Finance leases 4.1 years 3.9 years Weighted Average Discount Rate Operating leases 4.2 % 3.3 % Finance leases 4.0 % 2.9 % Maturities of lease liabilities were as follows: As of December 31, 2022 Operating Leases Finance Leases (in millions) Year Ending December 31: 2023 $ 195 $ 105 2024 142 85 2025 105 61 2026 70 38 2027 52 14 Thereafter 244 18 Total future undiscounted lease payments $ 808 $ 321 Less imputed interest (128) (28) Total reported lease liability $ 680 $ 293 On October 5, 2021, the Company closed an asset sale-leaseback transaction on a property in New Jersey. The Company received proceeds of approximately $142 million, net of selling costs for the property, which had a carrying value of $51 million, and resulted in an approximately $91 million gain on the sale transaction. The leaseback is accounted for as an operating lease. The leaseback is expected to end in 2023 and has three 90-day renewal options. |
Leases, Finance | Note 5. Leases We have operating and finance leases for manufacturing and distribution facilities, vehicles, equipment and office space. Our leases have remaining lease terms of 1 to 17 years, some of which include options to extend the leases for up to 6 years. The components of lease costs were as follows: For the Years Ended December 31, 2022 2021 (in millions) Operating lease cost $ 213 $ 228 Finance lease cost: Amortization of right-of-use assets 95 89 Interest on lease liabilities 8 7 Short-term lease cost 11 29 Variable lease cost 602 506 Sublease income (4) (6) Total lease cost $ 925 $ 853 Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, 2022 2021 (in millions) Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ (212) $ (229) Operating cash flows from finance leases (8) (8) Financing cash flows from finance leases (95) (88) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 220 $ 186 Finance leases 148 76 Supplemental balance sheet information related to leases was as follows: As of December 31, 2022 2021 (in millions) Operating Leases: Operating lease right-of-use assets, net of amortization $ 660 $ 613 Other current liabilities $ 166 $ 174 Long-term operating lease liabilities 514 459 Total operating lease liabilities $ 680 $ 633 Finance Leases: Finance leases, net of amortization (within property, plant and equipment) $ 287 $ 233 Current portion of long-term debt $ 95 $ 82 Long-term debt 198 157 Total finance lease liabilities $ 293 $ 239 Weighted Average Remaining Lease Term Operating leases 7.0 years 6.6 years Finance leases 4.1 years 3.9 years Weighted Average Discount Rate Operating leases 4.2 % 3.3 % Finance leases 4.0 % 2.9 % Maturities of lease liabilities were as follows: As of December 31, 2022 Operating Leases Finance Leases (in millions) Year Ending December 31: 2023 $ 195 $ 105 2024 142 85 2025 105 61 2026 70 38 2027 52 14 Thereafter 244 18 Total future undiscounted lease payments $ 808 $ 321 Less imputed interest (128) (28) Total reported lease liability $ 680 $ 293 On October 5, 2021, the Company closed an asset sale-leaseback transaction on a property in New Jersey. The Company received proceeds of approximately $142 million, net of selling costs for the property, which had a carrying value of $51 million, and resulted in an approximately $91 million gain on the sale transaction. The leaseback is accounted for as an operating lease. The leaseback is expected to end in 2023 and has three 90-day renewal options. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets Goodwill by operating segment was: As of December 31, 2022 2021 (in millions) Latin America $ 1,421 $ 674 AMEA 3,132 3,365 Europe 8,009 7,830 North America 10,888 10,109 Goodwill $ 23,450 $ 21,978 Intangible assets consisted of the following: As of December 31, 2022 2021 (in millions) Indefinite-life intangible assets $ 18,413 $ 17,299 Definite-life intangible assets 3,354 2,991 21,767 20,290 Accumulated amortization (2,057) (1,999) Intangible assets, net $ 19,710 $ 18,291 Indefinite-life intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the global LU biscuit business of Groupe Danone S.A., Cadbury Limited and Clif Bar. Definite-life intangible assets consist primarily of trademarks, customer-related intangibles, process technology, licenses and non-compete agreements. Amortization expense for intangible assets was $132 million in 2022, $134 million in 2021 and $194 million in 2020. For the next five years, we estimate annual amortization expense of approximately $150 million in 2023-2025, approximately $95 million in 2026 and approximately $90 million in 2027 (reflecting December 31, 2022 exchange rates). Changes in goodwill and intangible assets consisted of: 2022 2021 Goodwill Intangible Goodwill Intangible (in millions) Balance at January 1 $ 21,978 $ 20,290 $ 21,895 $ 20,399 Changes due to: Currency (757) (692) (464) (465) Acquisitions 2,529 2,941 547 405 Held for Sale (292) (671) — — Divestitures (8) — — (17) Asset impairments — (101) — (32) Balance at December 31 $ 23,450 $ 21,767 $ 21,978 $ 20,290 Changes to goodwill and intangibles were: • Acquisitions – In connection with our 2022 acquisitions, we recorded $1.0 billion to goodwill and $1.7 billion to intangible assets for Clif Bar, $795 million to goodwill and $734 million to intangible assets for Chipita, and $714 million to goodwill and $557 million to intangible assets for Ricolino as part of purchase accounting. In connection with our 2021 acquisitions of Gourmet Food, Grenade and the remaining interest in Hu, we recorded $547 million of goodwill and $405 million of intangible assets as part of purchase accounting. See Note 2, Acquisitions and Divestitures , for additional information. • Held for Sale - During the fourth quarter of 2022, we agreed to sell our gum business in North America and Europe. As a result, we reclassified $292 million of goodwill and $671 million of intangible assets to held for sale. See Note 2, Acquisitions and Divestitures , for additional information. • Divestitures – During 2022 and 2021, we made divestitures in Latin America and AMEA which were not material. • Asset impairments – As further discussed below, we recorded $101 million of intangible asset impairments in 2022 and $32 million in 2021. In 2022, 2021 and 2020, there were no goodwill impairments and each of our reporting units had sufficient fair value in excess of its carrying value. While all reporting units passed our annual impairment testing, if planned business performance expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then the estimated fair values of a reporting unit or reporting units might decline and lead to a goodwill impairment in the future. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 7. Equity Method Investments 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 December 31, 2022, we owned 19.7%, 5.3%, 50.0% and 49.0%, respectively, of these companies' outstanding shares. Our investments accounted for under the equity method of accounting totaled $4.9 billion as of December 31, 2022 and $5.3 billion as of December 31, 2021. We recorded equity earnings and cash dividends of $385 million and $184 million in 2022, equity earnings and cash dividends of $393 million and $172 million in 2021 and equity earnings and cash dividends of $421 million and $246 million in 2020. Based on the quoted closing prices as of December 31, 2022, the combined fair value of our publicly-traded investments in JDEP and KDP was $5.5 billion, and for each investment, there was no other than temporary impairment identified. JDE Peet’s Transactions: In 2022, we sold approximately 18.6 million of our JDE Peet’s shares back to JDE Peet’s, which reduced our ownership interest by approximately 3% to 19.8% of the total outstanding shares. We received €500 million ($529 million) of proceeds and recorded a loss of €8 million ($8 million) on this sale during the second quarter of 2022. In 2021, we issued €300 million exchangeable bonds, which are redeemable at maturity at their principal amount in cash or, at our option, through the delivery of an equivalent number of JDE Peet’s ordinary shares based on an initial exchange price of €35.40 and, as the case may be, an additional amount in cash. If all bonds were redeemed in exchange for JDE Peet's shares, this would represent approximately 8.5 million shares or approximately 9% of our equity interest in JDE Peet's. Refer to Note 10, Financial Instruments , for further details on this transaction. In 2020, JDE Peet’s B.V. (renamed JDE Peet’s N.V. immediately prior to Settlement (as defined below), “JDE Peet’s”) consummated the offering, listing and trading of its ordinary shares on Euronext Amsterdam, a regulated market operated by Euronext Amsterdam N.V. In connection with this transaction, JDE Peet’s and the selling shareholders, including us, agreed to sell at a price of €31.50 per ordinary share a total of approximately 82.1 million ordinary shares, including ordinary shares subject to an over-allotment option. The ordinary shares were listed and first traded on May 29, 2020, and payment for, and delivery of, the ordinary shares sold in the offering (excluding ordinary shares subject to the over-allotment option) took place on June 2, 2020 (“Settlement”). Prior to Settlement, we exchanged our 26.4% ownership interest in JDE for a 26.5% equity interest in JDE Peet’s. We did not invest new capital in connection with the transaction and the exchange was accounted for as a change in interest transaction. Upon Settlement, we sold approximately 9.7 million of our ordinary shares in JDE Peet’s in the offering for gross proceeds of €304 million ($343 million). We subsequently sold approximately 1.4 million additional shares and received gross proceeds of €46 million ($51 million) upon exercise of the over-allotment option. Following Settlement and the exercise of the over-allotment option, we held a 22.9% equity interest in JDE Peet’s. During the second quarter of 2020, we recorded a preliminary gain of $121 million, net of $33 million released from accumulated other comprehensive losses, and $48 million of transaction costs. During the third quarter of 2020, we increased our preliminary gain by $10 million to $131 million. As we continue to have significant influence, we continue to account for our investment in JDE Peet’s under the equity method, resulting in recognizing our share of their earnings within our earnings and our share of their dividends within our cash flows. We continue to have board representation with two directors on the JDE Peet's Board of Directors and have retained certain additional governance rights. Keurig Dr Pepper Transactions: In 2021, we sold approximately 42.7 million shares of KDP, which reduced our ownership interest by 3.0% to 5.3% of the total outstanding shares. We received $1,497 million of proceeds and recorded a pre-tax gain of $768 million (or $581 million after-tax) during 2021. In 2020, we sold approximately 73.4 million shares, which reduced our ownership interest by 5.2% to 8.4% of the total outstanding shares. We received $2,094 million of proceeds and recorded a pre-tax gain of $865 million (or $662 million after-tax) during 2020. As we continue to have significant influence, we continue to account for our investment in KDP under the equity method, resulting in recognizing our share of their earnings within our earnings and our share of their dividends within our cash flows. We continue to have board representation with one director on the KDP Board of Directors and have retained certain additional governance rights. Summary Financial Information for Equity Method Investments: Summarized financial information related to our equity method investments is reflected below. As of December 31, 2022 2021 (in millions) Current assets $ 8,740 $ 6,313 Noncurrent assets 71,375 71,949 Total assets $ 80,115 $ 78,262 Current liabilities $ 12,711 $ 11,105 Noncurrent liabilities 26,671 27,204 Total liabilities $ 39,382 $ 38,309 Equity attributable to shareowners of investees $ 40,596 $ 39,798 Equity attributable to noncontrolling interests 137 155 Total net equity of investees $ 40,733 $ 39,953 Mondelēz International ownership interests 5-50% 5-50% Equity method investments (1) $ 4,879 $ 5,289 For the Years Ended December 31, 2022 2021 2020 (in millions) Net revenues $ 23,518 $ 22,149 $ 20,112 Gross profit 10,738 10,804 9,856 Income from continuing operations 2,984 2,614 2,078 Net income 2,984 2,614 2,078 Net income attributable to investees $ 2,990 $ 2,618 $ 2,070 Mondelēz International ownership interests 5-50% 5-50% 8-50% Equity method investment net earnings $ 385 $ 393 $ 421 (1) Includes a basis difference of approximately $419 million as of December 31, 2022 and $475 million as of December 31, 2021 between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees’ equity. |
Restructuring Program
Restructuring Program | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Program | Note 8. 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 costs ($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 related 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 years ended December 31, 2022 and 2021 was: Severance Asset Write-downs and Other (1) Total (in millions) Liability Balance, January 1, 2021 $ 304 $ — $ 304 Charges (2) 86 68 154 Cash spent (3) (160) — (160) Non-cash settlements/adjustments (4) (5) (68) (73) Currency (14) — (14) Liability Balance, December 31, 2021 $ 211 $ — $ 211 Charges (2) 31 5 36 Cash spent (3) (69) (69) Non-cash settlements/adjustments (4) (3) (5) (8) Currency (6) (6) Liability balance, December 31, 2022 (5) $ 164 $ — $ 164 (1) Includes gains as a result of assets sold which are included in the restructuring program. (2) We recorded restructuring charges of $36 million in 2022, $154 million in 2021 and $156 million in 2020 within asset impairment and exit costs and benefit plan non-service income. (3) We spent $69 million in 2022 and $160 million in 2021 in cash severance and related costs. (4) In 2022, we recognized non-cash asset write-downs (including accelerated depreciation and other non-cash adjustments, including any gains on sale of assets, primarily real estate, included in the restructuring program totaling $8 million. In 2021, we recognized non-cash asset write-downs (including accelerated depreciation and asset impairments), non-cash pension settlement losses and other non-cash adjustments, partially offset by gains on sale of assets, primarily real estate, included in the restructuring program totaling $73 million. (5) At December 31, 2022, $126 million of our net restructuring liability was recorded within other current liabilities and $38 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 $87 million in 2022, $167 million in 2021 and $207 million in 2020. We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs in Operating Income: During 2022, 2021 and 2020, 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 Year Ended Restructuring Costs $ (6) $ 13 $ 16 $ 12 $ 1 $ 36 Implementation Costs 7 6 25 37 12 87 Total $ 1 $ 19 $ 41 $ 49 $ 13 $ 123 For the Year Ended Restructuring Costs $ 7 $ (17) $ 4 $ 153 $ 7 $ 154 Implementation Costs 9 10 33 97 18 167 Total $ 16 $ (7) $ 37 $ 250 $ 25 $ 321 For the Year Ended Restructuring Costs $ 30 $ 23 $ 67 $ 23 $ 13 $ 156 Implementation Costs 18 23 63 72 31 207 Total $ 48 $ 46 $ 130 $ 95 $ 44 $ 363 Total Project Restructuring Costs $ 548 $ 554 $ 1,163 $ 657 $ 150 $ 3,072 Implementation Costs 303 245 569 590 368 2,075 Total $ 851 $ 799 $ 1,732 $ 1,247 $ 518 $ 5,147 |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Borrowing Arrangements | Note 9. Debt and Borrowing Arrangements Short-Term Borrowings: Our short-term borrowings and related weighted-average interest rates consisted of: As of December 31, 2022 2021 Amount Weighted- Amount Weighted- (in millions) (in millions) Commercial paper $ 2,209 4.7 % $ 192 0.2 % Bank loans 90 9.1 % 24 8.6 % Total short-term borrowings $ 2,299 $ 216 Our uncommitted credit lines and committed credit lines available as of December 31, 2022 and December 31, 2021 include: As of December 31, 2022 2021 Facility Amount Borrowed Amount Facility Amount Borrowed Amount (in millions) Uncommitted credit facilities $ 1,335 $ 90 $ 1,367 $ 24 Credit facility expiry (1) (2) : February 23, 2022 — — 2,500 — February 22, 2023 2,500 — — — March 11, 2023 (3) 2,000 — — — February 27, 2024 — — 4,500 — July 29, 2025 (4) 2,000 2,000 — — February 23, 2027 4,500 — — — (1) We maintain a multi-year senior unsecured revolving credit facility for general corporate purposes, including working capital needs, and to support our commercial paper program. The revolving credit agreement includes a covenant that we maintain a minimum shareholders' equity of at least $25.0 billion, excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans. At December 31, 2022, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $37.8 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) Capitalizable financing costs are classified in long-term other assets and were immaterial for all periods presented. (3) On July 11, 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 eighteen months after the funding date of the applicable loan(s). (4) On March 31, 2022, we entered into a supplemental term loan credit facility that can be utilized for general corporate purposes, including acquisitions. Under this agreement we may draw up to a total of $2.0 billion in term loans from the facility. On July 29, 2022, we drew down $2.0 billion in term loans, due July 29, 2025, bearing interest at a variable annual rate based on SOFR plus an applicable margin. Long-Term Debt: Our long-term debt consisted of (interest rates are as of December 31, 2022): As of December 31, 2022 (1) 2021 (in millions) U.S. dollar notes and term loans, 0.750% to 7.000% (weighted-average effective rate 2.998%), due through 2050 $ 11,275 $ 9,280 Euro notes, 0.000% to 2.375% (weighted-average effective rate 0.712%), due through 2041 7,666 8,134 Pound sterling notes, 3.875% to 4.500% (weighted-average effective rate 4.151%), due through 2045 316 354 Swiss franc notes, 0.615% to 1.125% (weighted-average effective rate 1.011%), due through 2025 638 811 Canadian dollar notes, 3.250% (effective rate 3.377%), due through 2025 442 473 Finance leases and other 297 244 Total 20,634 19,296 Less current portion of long-term debt (383) (1,746) Long-term debt $ 20,251 $ 17,550 (1) Amounts are shown net of unamortized premiums, discounts and bank fees of $(149) million and imputed interest on finance leases of $(28) million, were (in millions): Over the next five years, aggregate principal maturities, including finance leases, of our term loans and long-term debt were (in millions): 2023 2024 2025 2026 2027 Thereafter Total $393 $2,041 $3,970 $1,149 $1,567 $11,691 $20,811 Tenders Offers: During 2022, we completed a tender offer in cash and redeemed $987 million of long term U.S. dollar-denominated notes for the following amounts (in millions): Interest Rate Tender Date Maturity Date Amount Repurchased 3.625% March 2022 February 2026 $130 4.125% March 2022 May 2028 $211 2.750% March 2022 April 2030 $500 6.500% March 2022 November 2031 $17 7.000% March 2022 August 2037 $10 6.875% March 2022 February 2038 $21 6.875% March 2022 January 2039 $8 6.500% March 2022 February 2040 $36 4.625% March 2022 May 2048 $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. Debt Redemptions: During 2022, we completed an early redemption of 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 During 2021 we completed an early redemption of euro and U.S. dollar denominated notes for the following amounts (in millions): Interest Rate Redemption Date Maturity Date Amount Redeemed USD Equivalent 2.000% September 2021 October 2021 $1,500 $1,500 3M LIBOR + 0.700% September 2021 October 2022 $500 $500 3M LIBOR + 0.800% September 2021 October 2024 $500 $500 1.000% March 2021 March 2022 €500 $587 1.625% March 2021 January 2023 €700 $821 2.125% March 2021 April 2023 $500 $500 4.000% March 2021 February 2024 $492 $492 We recorded an extinguishment loss of $137 million within interest and other expense Debt Repayments: During 2022, we repaid the following notes (in millions): Interest Rate Maturity Date Amount USD Equivalent 2.125% September 2022 (1) $500 $500 0.650% July 2022 Fr.150 $156 Various Various (2) €381 $431 (1) Repaid by Mondelez International Holdings Netherlands B.V. ("MIHN"), a wholly owned Dutch subsidiary of Mondelēz International, Inc. (2) 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 twelve months ended December 31, 2022. During 2021, we repaid the following notes or term loans (in millions): Interest Rate Maturity Date Amount USD Equivalent 0.625% December 2021 Fr.300 $327 2.375% January 2021 €679 827 Debt Issuances: During 2022, we issued the following notes (in millions): Issuance Date Interest Rate Maturity Date Gross Proceeds (1) Gross Proceeds USD Equivalent September 2022 (2) 4.250% September 2025 $500 $500 March 2022 2.125% March 2024 $500 $500 March 2022 2.625% March 2027 $750 $750 March 2022 3.000% March 2032 $750 $750 During 2021, we issued the following notes (in millions): Issuance Date Interest Rate Maturity Date Gross Proceeds (1) Gross Proceeds USD Equivalent September 2021 (2) 0.750% September 2024 $500 $500 September 2021 (2) 1.250% September 2026 $350 $350 September 2021 (2) (3) 0.000% September 2024 €300 $352 September 2021 (2) (4) 0.250% September 2029 €650 $769 September 2021 (2) (4) 0.625% September 2032 €650 $769 September 2021 (2) (4) 1.250% September 2041 €700 $828 March 2021 0.250% March 2028 €750 $896 March 2021 0.750% March 2033 €600 $717 March 2021 1.375% March 2041 €650 $777 (1) Represents gross proceeds from the issuance of notes excluding debt issuance costs, discounts and premiums. (2) Notes issued by Mondelez International Holdings Netherlands B.V. (“MIHN”), a wholly owned Dutch subsidiary of Mondelēz International, Inc. (3) Issuance of exchangeable bonds that were issued at 102% of their principal amount and are redeemable for cash or existing ordinary shares of JDE Peet's at our option (see Note 7, Equity Method Investments). Bondholders have an option to redeem bonds before maturity subject to exchange periods. We have identified our option to settle in either cash or existing ordinary shares of JDE Peet's as an embedded derivative that is bifurcated and accounted for separately from the bond. See Note 10, Financial Instruments. (4) Issuance of green bonds where we have committed to allocate an amount equal to the €1.97 billion total net proceeds from the offering over time to eligible projects that align with our sustainability priorities in the areas of building a thriving ingredient supply chain and reducing our environmental impact. Fair Value of Our Debt: The fair value of our short-term borrowings reflects current market interest rates and approximates the amounts we have recorded on our consolidated balance sheets. The fair value of our term loans was determined using quoted prices for similar instruments in markets that are not active (Level 2 valuation data) and approximates the amounts we have recorded on our consolidated balance sheets. The fair value of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations. As of December 31, 2022 2021 (in millions) Fair Value $ 20,217 $ 20,249 Carrying Value $ 22,933 $ 19,512 Interest and Other Expense, net: Interest and other expense, net within our results of continuing operations consisted of: For the Years Ended December 31, 2022 2021 2020 (in millions) Interest expense, debt $ 428 $ 365 $ 423 Loss on debt extinguishment and related expenses 129 137 185 Loss related to interest rate swaps — — 103 Other income, net (134) (55) (103) Interest and other expense, net $ 423 $ 447 $ 608 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 10. Financial Instruments Fair Value of Derivative Instruments: Derivative instruments were recorded at fair value in the consolidated balance sheets as follows: As of December 31, 2022 2021 Asset Liability Asset Liability (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 132 $ 35 $ 27 $ 17 Net investment hedge derivative contracts (1) 265 241 117 45 $ 397 $ 276 $ 144 $ 62 Derivatives not designated as Currency exchange contracts $ 185 $ 103 $ 156 $ 40 Commodity contracts 200 247 387 137 Interest rate contracts 8 — — — Equity method investment contracts (2) — 3 — 3 $ 393 $ 353 $ 543 $ 180 Total fair value $ 790 $ 629 $ 687 $ 242 (1) Net investment hedge contracts consist of cross-currency interest rate swaps and forward contracts. 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 9, 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 9, Debt and Borrowing Arrangements . Derivatives designated as accounting hedges above 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 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 December 31, 2022 Total Quoted Prices in Significant Significant (in millions) Currency exchange contracts $ 82 $ — $ 82 $ — Commodity contracts (47) (35) (12) — Interest rate contracts 105 — 105 — Net investment hedge contracts 24 — 24 — Equity method investment contracts (3) — (3) — Total derivatives $ 161 $ (35) $ 196 $ — 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 gross notional values of our derivative instruments were: Notional Amount As of December 31, 2022 2021 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 2,085 $ 1,891 Forecasted transactions 5,470 4,831 Commodity contracts 12,131 9,694 Interest rate contracts 4,147 1,850 Net investment hedges: Net investment hedge derivative contracts 7,319 3,915 Non-U.S. dollar debt designated as net investment hedges Euro notes 3,410 3,622 British pound sterling notes — 356 Swiss franc notes 638 811 Canadian dollar notes 443 475 Cash Flow Hedges: Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included: For the Years Ended December 31, 2022 2021 2020 (in millions) Accumulated (loss)/gain at beginning of period $ (148) $ (161) $ (213) Transfer of realized (gains)/losses in fair value to earnings (39) (155) 161 Unrealized gain/(loss) in fair value 153 168 (109) Accumulated (loss)/gain at end of period $ (34) $ (148) $ (161) After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were: For the Years Ended December 31, 2022 2021 2020 (in millions) Currency exchange contracts - forecasted transactions $ (8) $ — $ — Interest rate contracts $ 47 $ 155 $ (161) Total $ 39 $ 155 $ (161) After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Years Ended December 31, 2022 2021 2020 (in millions) Currency exchange contracts – forecasted transactions $ 8 $ — $ (2) Interest rate contracts 145 168 (107) Total $ 153 $ 168 $ (109) Cash flow hedge ineffectiveness was immaterial 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 $7 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. Cash Flow Hedge Coverage: As of December 31, 2022, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 3 years, 8 months. Hedges of Net Investments in International Operations: Net investment hedge (“NIH”) derivative contracts: We enter into cross-currency interest rate swaps and forwards to hedge certain investments in our non-U.S. operations against movements in exchange rates. As of December 31, 2022, the aggregate notional value of these NIH derivative contracts was $7.3 billion and their impact on other comprehensive earnings and net earnings during the years presented below were as follows: For the Years Ended December 31, 2022 2021 2020 (in millions) After-tax gain/(loss) on NIH contracts (1) $ 396 $ 63 $ (221) (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 consolidated statement of cash flows. For the Years Ended December 31, 2022 2021 2020 (in millions) Amounts excluded from the assessment of hedge effectiveness (1) $ 116 $ 75 $ 117 (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 Years Ended December 31, 2022 2021 2020 (in millions) Euro notes $ 162 $ 211 $ (251) British pound sterling notes 45 3 (8) Swiss franc notes 13 29 (82) Canadian notes 25 (3) (7) Economic Hedges: Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Years Ended December 31, Recognized 2022 2021 2020 (in millions) Currency exchange contracts: Intercompany loans and $ (14) $ 57 $ (70) Interest and other Forecasted transactions 117 80 41 Cost of sales Forecasted transactions 17 (1) (4) Interest and other Forecasted transactions (1) — (1) Selling, general Commodity contracts 157 385 4 Cost of sales Equity method investment contracts — 2 — Gain on equity method investment contracts Total $ 276 $ 523 $ (30) Fair Value of Contingent Consideration The following is a summary of our contingent consideration liability activity: For the Years Ended December 31, 2022 2021 2020 (in millions) Liability at the beginning of the period $ 159 $ 55 $ 14 Contingent consideration arising from acquisitions 440 145 17 Changes in fair value 44 (41) 24 Currency (1) — — Liability at the end of the period $ 642 $ 159 $ 55 Contingent consideration was recorded at fair value in the condensed consolidated balance sheets as follows: As of December 31, 2022 Total Fair Value of Liability Quoted Prices in Significant Significant (in millions) Clif Bar (1) $ 452 $ — $ — $ 452 Other (2) 190 — — 190 Total contingent consideration $ 642 $ — $ — $ 642 As of December 31, 2021 Total Fair Value of Liability Quoted Prices in Significant Significant (in millions) Other (2) $ 159 $ — $ — $ 159 Total contingent consideration $ 159 $ — $ — $ 159 (1) In connection with the Clif Bar acquisition, we entered into a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain net revenue, gross profit and EBITDA targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price. The other contingent consideration liabilities are recorded at fair value with $452 million classified as long term liabilities at December 31, 2022. The estimated fair value of the contingent consideration obligation at the acquisition date was determined using a Monte Carlo simulation and recorded in other liabilities. Significant assumptions used in assessing the fair value of the liability include financial projections for net revenue, gross profit, and EBITDA, as well as discount and volatility rates. Fair value adjustments are primarily recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. (2) The other contingent consideration liabilities are recorded at fair value, with $102 million classified as other current liabilities at December 31, 2022 and $88 million and $159 million classified as long term liabilities at December 31, 2022 and December 31, 2021. The estimated fair value of this contingent consideration was determined using a Monte Carlo valuation model based on Level 3 inputs, including management's latest estimate of forecasted future results. Other key assumptions included discount rate and volatility. Fair value adjustments are recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 11. Benefit Plans Pension Plans Obligations and Funded Status: The projected benefit obligations, plan assets and funded status of our pension plans were: U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 (in millions) Projected benefit obligation at January 1 $ 1,729 $ 1,887 $ 10,821 $ 11,658 Service cost 5 6 88 137 Interest cost 51 42 172 130 Benefits paid (39) (31) (461) (533) Settlements paid (71) (113) — — Actuarial (gains)/losses (482) (63) (2,844) (269) Acquisitions — — 18 — Currency — — (957) (308) Other — 1 41 6 Projected benefit obligation at December 31 1,193 1,729 6,878 10,821 Fair value of plan assets at January 1 1,826 1,959 11,021 10,972 Actual return on plan assets (455) 1 (2,388) 548 Contributions 4 10 211 292 Benefits paid (39) (31) (461) (533) Settlements paid (71) (113) — — Currency — — (992) (258) Other — — (2) — Fair value of plan assets at December 31 1,265 1,826 7,389 11,021 Net pension assets at December 31 $ 72 $ 97 $ 511 $ 200 The accumulated benefit obligation, which represents benefits earned to the measurement date, for U.S. pension plans was $1.2 billion at December 31, 2022 and $1.7 billion at December 31, 2021. The accumulated benefit obligation for non-U.S. pension plans was $6.8 billion at December 31, 2022 and $10.7 billion at December 31, 2021. The actuarial (gain) loss for all pension plans in 2022 and 2021 was primarily related to a change in the discount rate used to measure the benefit obligations of those plans. The combined U.S. and non-U.S. pension plans resulted in a net pension asset of $583 million at December 31, 2022 and a net pension asset of $297 million at December 31, 2021. We recognized these amounts in our consolidated balance sheets as follows: As of December 31, 2022 2021 (in millions) Prepaid pension assets $ 1,016 $ 1,009 Other current liabilities (30) (31) Accrued pension costs (403) (681) $ 583 $ 297 Certain of our U.S. and non-U.S. plans are underfunded with accumulated benefit obligations in excess of plan assets. For these plans, the projected benefit obligations, accumulated benefit obligations and the fair value of plan assets were: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2022 2021 2022 2021 (in millions) Projected benefit obligation $ 31 $ 42 $ 531 $ 1,889 Accumulated benefit obligation 31 42 492 1,805 Fair value of plan assets 2 3 135 1,223 We used the following weighted-average assumptions to determine our benefit obligations under the pension plans: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2022 2021 2022 2021 Discount rate 5.55 % 3.01 % 4.51 % 1.73 % Expected rate of return on plan assets 6.25 % 4.50 % 5.41 % 3.44 % Rate of compensation increase 4.00 % 4.00 % 3.22 % 2.83 % Year-end discount rates for our U.S., Canadian, Eurozone and U.K. plans were developed from a model portfolio of high quality, fixed-income debt instruments with durations that match the expected future cash flows of the benefit obligations. Year-end discount rates for our remaining non-U.S. plans were developed from local bond indices that match local benefit obligations as closely as possible. Changes in our discount rates were primarily the result of changes in bond yields year-over-year. We determine our expected rate of return on plan assets from the plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term returns by asset class. For the periods presented, we measure service and interest costs by applying the specific spot rates along a yield curve used to measure plan obligations to the plans’ liability cash flows. We believe this approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. Components of Net Periodic Pension Cost: Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2022 2021 2020 2022 2021 2020 (in millions) Service cost $ 5 $ 6 $ 6 $ 88 $ 137 $ 121 Interest cost 51 42 49 172 130 149 Expected return on plan assets (79) (72) (77) (353) (419) (400) Amortization: Net loss/(gain) 6 17 17 57 130 118 Prior service cost/(benefit) 1 1 1 (2) (6) (7) Curtailment expense/(credit) (1) — — — 8 (17) — Settlement losses and other expenses 14 19 18 2 3 4 Net periodic pension cost $ (2) $ 13 $ 14 $ (28) $ (42) $ (15) (1) During the third quarter of 2021, we terminated our Defined Benefit Pension Scheme in Nigeria. During the second quarter of 2021, we made a decision to freeze our Defined Benefit Pension Scheme in the United Kingdom. As a result, we recognized curtailment credits of ($17 million) in 2021 recorded within benefit plan non-service income. In connection with the United Kingdom plan freeze, we also incurred incentive payment charges and other expenses of $48 million in 2021 included in operating income. For the U.S. plans, we determine the expected return on plan assets component of net periodic benefit cost using a calculated market return value that recognizes the cost over a four-year period. For our non-U.S. plans, we utilize a similar approach with varying cost recognition periods for some plans, and with others, we determine the expected return on plan assets based on asset fair values as of the measurement date. We used the following weighted-average assumptions to determine our net periodic pension cost: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2022 2021 2020 2022 2021 2020 Discount rate 3.01 % 2.73 % 3.44 % 1.74 % 1.33 % 1.74 % Expected rate of return 4.50 % 4.50 % 5.00 % 3.44 % 3.90 % 4.20 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 2.84 % 3.16 % 3.17 % Plan Assets: The fair value of pension plan assets was determined using the following fair value measurements: As of December 31, 2022 Asset Category Total Fair Quoted Prices Significant Significant (in millions) U.S. equity securities $ 3 $ 3 $ — $ — Non-U.S. equity securities 1 1 — — Pooled funds - equity securities 960 906 54 — Total equity securities 964 910 54 — Government bonds 2,495 48 2,447 — Pooled funds - fixed-income securities 560 453 107 — Corporate bonds and other 2,296 144 612 1,540 Total fixed-income securities 5,351 645 3,166 1,540 Real estate 221 152 — 69 Private equity 4 — — 4 Cash 4 3 — 1 Other 102 97 5 — Total assets in the fair value hierarchy $ 6,646 $ 1,807 $ 3,225 $ 1,614 Investments measured at net asset value 1,892 Total investments at fair value $ 8,538 As of December 31, 2021 Asset Category Total Fair Quoted Prices Significant Significant (in millions) U.S. equity securities $ 4 $ 4 $ — $ — Non-U.S. equity securities 3 3 — — Pooled funds - equity securities 1,545 1,084 461 — Total equity securities 1,552 1,091 461 — Government bonds 3,777 56 3,721 — Pooled funds - fixed-income securities 648 449 199 — Corporate bonds and other 3,943 139 1,415 2,389 Total fixed-income securities 8,368 644 5,335 2,389 Real estate 251 179 — 72 Private equity 4 — — 4 Cash 5 4 — 1 Other 162 157 5 — Total assets in the fair value hierarchy $ 10,342 $ 2,075 $ 5,801 $ 2,466 Investments measured at net asset value 2,382 Total investments at fair value $ 12,724 We excluded plan assets of $117 million at December 31, 2022 and $124 million at December 31, 2021 from the above tables related to certain insurance contracts as they are reported at contract value, in accordance with authoritative guidance. Fair value measurements • Level 1 – includes primarily U.S and non-U.S. equity securities and government bonds valued using quoted prices in active markets. • Level 2 – includes primarily pooled funds, including assets in real estate pooled funds, valued using net asset values of participation units held in common collective trusts, as reported by the managers of the trusts and as supported by the unit prices of actual purchase and sale transactions. Level 2 plan assets also include corporate bonds and other fixed-income securities, valued using independent observable market inputs, such as matrix pricing, yield curves and indices. • Level 3 – includes investments valued using unobservable inputs that reflect the plans’ assumptions that market participants would use in pricing the assets, based on the best information available. • Fair value estimates for pooled funds are calculated by the investment advisor when reliable quotations or pricing services are not readily available for certain underlying securities. The estimated value is based on either cost or last sale price for most of the securities valued in this fashion. • Fair value estimates for private equity investments are calculated by the general partners using the market approach to estimate the fair value of private investments. The market approach utilizes prices and other relevant information generated by market transactions, type of security, degree of liquidity, restrictions on the disposition, latest round of financing data, company financial statements, relevant valuation multiples and discounted cash flow analyses. • Fair value estimates for private debt placements are calculated using standardized valuation methods, including but not limited to income-based techniques such as discounted cash flow projections or market-based techniques utilizing public and private transaction multiples as comparables. • Fair value estimates for real estate investments are calculated by investment managers using the present value of future cash flows expected to be received from the investments, based on valuation methodologies such as appraisals, local market conditions, and current and projected operating performance. • Fair value estimates for fixed-income securities that are buy-in annuity policies are calculated on a replacement policy value basis by discounting the projected cash flows of the plan members using a discount rate based on risk-free rates and adjustments for estimated levels of insurer pricing. • Net asset value – primarily includes equity funds, fixed income funds, real estate funds, hedge funds and private equity investments for which net asset values are normally used. Changes in our Level 3 plan assets, which are recorded in other comprehensive earnings/(losses), included: Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Corporate bond and other $ 2,387 $ (450) $ (148) $ — $ (249) $ 1,540 Real estate 74 3 (1) — (6) 70 Private equity and other 5 — — — (1) 4 Total Level 3 investments $ 2,466 $ (447) $ (149) $ — $ (256) $ 1,614 Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Corporate bond and other $ 1,791 $ (178) $ 784 $ — $ (10) $ 2,387 Real estate 70 7 1 — (4) 74 Private equity and other 4 1 — — — 5 Total Level 3 investments $ 1,865 $ (170) $ 785 $ — $ (14) $ 2,466 The decrease in level 3 pension plan investments during 2022 was related to rising bond yields, benefits paid and currency impact. The increase in Level 3 pension plan investments during 2021 was primarily due to purchases of corporate bond, annuity contracts and other fixed income securities. The percentage of fair value of pension plan assets was: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, Asset Category 2022 2021 2022 2021 Equity securities 15% 15% 16% 17% Fixed-income securities 85% 85% 63% 62% Real estate — — 3% 3% Buy-in annuity policies — — 17% 17% Cash — — 1% 1% Total 100% 100% 100% 100% For our U.S. plans, our investment strategy is to reduce our funded status risk in part through appropriate asset allocation within our plan assets. We attempt to maintain our target asset allocation by rebalancing between asset classes as we make monthly benefit payments. The strategy involves using indexed U.S. equity and international equity securities and actively managed U.S. investment grade fixed-income securities (which constitute 95% or more of fixed-income securities) with smaller allocations to high yield fixed-income securities. For our non-U.S. plans, the investment strategy is subject to local regulations and the asset/liability profiles of the plans in each individual country. In aggregate, the asset allocation targets of our non-U.S. plans are broadly characterized as a mix of approximately 15% equity securities, 61% fixed-income securities, 20% buy-in annuity policies and 4% real estate. Employer Contributions: In 2022, we contributed $4 million to our U.S. pension plans and $190 million to our non-U.S. pension plans. In addition, employees contributed $21 million to our non-U.S. plans. We make contributions to our pension plans in accordance with local funding arrangements and statutory minimum funding requirements. Discretionary contributions are made to the extent that they are tax deductible and do not generate an excise tax liability. In 2023, we estimate that our pension contributions will be $6 million to our U.S. plans and $119 million to our non-U.S. plans based on current tax laws. 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. Future Benefit Payments: The estimated future benefit payments from our pension plans at December 31, 2022 were (in millions): 2023 2024 2025 2026 2027 2028-2032 U.S. Plans $147 $89 $92 $91 $90 $442 Non-U.S. Plans 404 395 401 414 419 2,157 Multiemployer Pension Plans: In accordance with obligations we have under collective bargaining agreements, we made contributions to multiemployer pension plans for continuing participation and these amounts were not material. Our contributions are based on our contribution rates under our collective bargaining agreements, the number of our eligible employees and fund surcharges. On July 11, 2019, we received an undiscounted withdrawal liability assessment from the Fund totaling $526 million requiring pro-rata monthly payments over 20 years. We began making monthly payments during the third quarter of 2019. Within selling, general and administrative expenses, we recorded a $35 million ($26 million net of tax) adjustment related to the discounted withdrawal liability. Within interest and other expense, net, we recorded accreted interest of $11 million in 2022, $11 million in 2021 and $11 million in 2020. As of December 31, 2022, the remaining discounted withdrawal liability was $344 million, with $15 million recorded in other current liabilities and $329 million recorded in long-term other liabilities. Other Costs: We sponsor and contribute to employee defined contribution plans. These plans cover eligible salaried, non-union and union employees. Our contributions and costs are determined by the matching of employee contributions, as defined by the plans. Amounts charged to expense in continuing operations for defined contribution plans totaled $66 million in 2022, $73 million in 2021 and $83 million in 2020. Postretirement Benefit Plans Obligations: Our postretirement health care plans are not funded. The changes in and the amount of the accrued benefit obligation were: As of December 31, 2022 2021 (in millions) Accrued benefit obligation at January 1 $ 317 $ 361 Service cost 2 4 Interest cost 9 8 Benefits paid (15) (15) Plan amendments — (1) Currency (5) (1) Actuarial losses/(gains) (75) (39) Accrued benefit obligation at December 31 $ 233 $ 317 The current portion of our accrued postretirement benefit obligation of $16 million at December 31, 2022 and $16 million at December 31, 2021 was included in other current liabilities. The actuarial (gain) for all postretirement plans in 2021 and 2022 was driven by gains related to assumption changes partially offset by losses related to a change in the discount rate used to measure the benefit obligations of those plans. We used the following weighted-average assumptions to determine our postretirement benefit obligations: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2022 2021 2022 2021 Discount rate 5.53 % 2.96 % 6.07 % 3.81 % Health care cost trend rate assumed for next year 7.00 % 5.50 % 5.98 % 5.72 % Ultimate trend rate 5.00 % 5.00 % 4.70 % 4.47 % Year that the rate reaches the ultimate trend rate 2031 2024 2040 2040 Year-end discount rates for our U.S., Canadian and U.K. plans were developed from a model portfolio of high quality, fixed-income debt instruments with durations that match the expected future cash flows of the benefit obligations. Year-end discount rates for our remaining non-U.S. plans were developed from local bond indices that match local benefit obligations as closely as possible. Changes in our discount rates were primarily the result of changes in bond yields year-over-year. Our expected health care cost trend rate is based on historical costs. For the periods presented, we measure service and interest costs for other postretirement benefits by applying the specific spot rates along a yield curve used to measure plan obligations to the plans’ liability cash flows. We believe this approach provides a good measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. Components of Net Periodic Postretirement Health Care Costs: Net periodic postretirement health care costs consisted of the following: For the Years Ended December 31, 2022 2021 2020 (in millions) Service cost $ 2 $ 4 $ 5 Interest cost 9 8 12 Amortization: Net loss/(gain) 1 2 7 Prior service credit — — (30) Net periodic postretirement health care costs/(benefit) $ 12 $ 14 $ (6) We used the following weighted-average assumptions to determine our net periodic postretirement health care cost: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2022 2021 2020 2022 2021 2020 Discount rate 2.96% 2.68% 3.41% 3.81% 3.35% 3.86% Health care cost trend rate 5.50% 5.75% 6.00% 5.72% 5.66% 5.42% Future Benefit Payments: Our estimated future benefit payments for our postretirement health care plans at December 31, 2022 were (in millions): 2023 2024 2025 2026 2027 2028-2032 U.S. Plans $11 $12 $11 $11 $11 $49 Non-U.S. Plans 4 5 5 5 5 28 Other Costs: We made contributions to multiemployer medical plans totaling $17 million in 2022, $19 million in 2021 and $20 million in 2020. These plans provide medical benefits to active employees and retirees under certain collective bargaining agreements. Postemployment Benefit Plans Obligations: Our postemployment plans are not funded. The changes in and the amount of the accrued benefit obligation at December 31, 2022 and 2021 were: As of December 31, 2022 2021 (in millions) Accrued benefit obligation at January 1 $ 56 $ 65 Service cost 4 6 Interest cost 2 3 Benefits paid (14) (12) Actuarial losses/(gains) (1) (6) Accrued benefit obligation at December 31 $ 47 $ 56 The accrued benefit obligation was determined using a weighted-average discount rate of 6.3% in 2022 and 4.3% in 2021, an assumed weighted-average ultimate annual turnover rate of 0.4% in 2022 and 2021, assumed compensation cost increases of 4.0% in 2022 and 2021 and assumed benefits as defined in the respective plans. Postemployment costs arising from actions that offer employees benefits in excess of those specified in the respective plans are charged to expense when incurred. Components of Net Periodic Postemployment Costs: Net periodic postemployment costs consisted of the following: For the Years Ended December 31, 2022 2021 2020 (in millions) Service cost $ 4 $ 6 $ 6 Interest cost 2 3 3 Amortization of net gains (6) (4) (2) Net periodic postemployment costs $ — $ 5 $ 7 As of December 31, 2022, the estimated net gain for the postemployment benefit plans that we expect to amortize from accumulated other comprehensive earnings/(losses) into net periodic postemployment costs during 2023 is approximately $3 million. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Plans | Note 12. Stock Plans Under our Amended and Restated 2005 Performance Incentive Plan (the “2005 Plan”), we are authorized through May 21, 2024 to issue a maximum of 243.7 million shares of our Class A common stock (“Common Stock”) to employees and non-employee directors. As of December 31, 2022, there were 45.5 million shares available to be granted under the 2005 Plan. Stock Options: We recorded compensation expense related to stock options held by our employees of $20 million in 2022, $23 million in 2021 and $28 million in 2020 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $3 million in 2022, $4 million in 2021 and $5 million in 2020. The unamortized compensation expense related to our employee stock options was $21 million at December 31, 2022 and is expected to be recognized over a weighted-average period of 1.6 years. Our weighted-average Black-Scholes Model fair value assumptions were: Risk-Free Expected Life Expected Expected Fair Value 2022 1.87% 5 years 22.05% 2.13% $11.24 2021 0.57% 5 years 23.45% 2.20% $9.08 2020 1.34% 5 years 19.64% 2.06% $8.61 The risk-free interest rate represents the constant maturity U.S. government treasuries rate with a remaining term equal to the expected life of the options. The expected life is the period over which our employees are expected to hold their options. Volatility reflects historical movements in our stock price for a period commensurate with the expected life of the options. The dividend yield reflects the dividend yield in place at the time of the historical grants. Stock option activity is reflected below: Shares Subject Weighted- Average Aggregate Balance at January 1, 2020 33,855,948 $ 36.19 $ 640 million Annual grant to eligible employees 2,280,440 59.04 Additional options issued 136,360 49.48 Total options granted 2,416,800 58.50 Options exercised (1) (7,847,964) 30.55 $ 205 million Options cancelled (672,890) 44.94 Balance at December 31, 2020 27,751,894 39.51 $ 527 million Annual grant to eligible employees 2,412,710 56.13 Additional options issued 160,640 58.17 Total options granted 2,573,350 56.26 Options exercised (1) (6,249,330) 33.68 $ 169 million Options cancelled (572,155) 49.65 Balance at December 31, 2021 23,503,759 42.65 $ 556 million Annual grant to eligible employees 2,180,540 64.65 Additional options issued 63,490 64.39 Total options granted 2,244,030 64.64 Options exercised (1) (4,780,086) 35.96 $ 142 million Options cancelled (477,453) 55.89 Balance at December 31, 2022 20,490,250 46.31 5 years $ 417 million Exercisable at December 31, 2022 16,350,018 42.62 4 years $ 393 million (1) Cash received from options exercised was $158 million in 2022, $206 million in 2021 and $236 million in 2020. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $22 million in 2022, $24 million in 2021 and $27 million in 2020. Deferred Stock Units, Performance Share Units and Other Stock-Based Awards: We recorded compensation expense related to DSUs, PSUs and other stock-based awards of $100 million in 2022, $98 million in 2021 and $98 million in 2020 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $17 million in 2022, $16 million in 2021 and $15 million in 2020. The unamortized compensation expense related to our DSUs, PSUs and other stock-based awards was $113 million at December 31, 2022 and is expected to be recognized over a weighted-average period of 0.9 years. Our PSU, DSU and other stock-based award activity is reflected below: Number Grant Date Weighted-Average Weighted-Average Balance at January 1, 2020 5,661,945 $ 46.90 Annual grant to eligible employees: Feb. 20, 2020 Performance share units 825,230 65.83 Deferred stock units 545,550 59.04 Additional shares granted (1) 390,730 Various 56.90 Total shares granted 1,761,510 61.75 $ 109 million Vested (2) (3) (2,051,054) 42.87 $ 88 million Forfeited (2) (475,411) 48.24 Balance at December 31, 2020 4,896,990 53.80 Annual grant to eligible employees: Feb. 18, 2021 Performance share units 903,250 59.35 Deferred stock units 550,090 56.13 Additional shares granted (1) 1,163,644 Various 53.76 Total shares granted 2,616,984 56.19 $ 147 million Vested (2) (3) (2,459,427) 49.59 $ 122 million Forfeited (2) (386,501) 57.52 Balance at December 31, 2021 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) 836,117 Various 59.37 Total shares granted 2,147,797 61.55 $ 132 million Vested (2) (3) (1,925,556) 54.13 $ 104 million Forfeited (2) (438,613) 60.68 Balance at December 31, 2022 4,451,674 60.12 (1) Includes PSUs and DSUs. (2) Includes PSUs, DSUs and other stock-based awards. (3) The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $5 million in 2022, $6 million in 2021 and $5 million in 2020. (4) The grant date fair value of PSUs is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. 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. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2022 | |
Common Stock | |
Class of Stock [Line Items] | |
Capital Stock | Note 13. Capital Stock Our amended and restated articles of incorporation authorize 5.0 billion shares of Common Stock and 500 million shares of preferred stock. There were no preferred shares issued and outstanding at December 31, 2022, 2021 and 2020. Shares of Common Stock issued, in treasury and outstanding were: Shares Issued Treasury Shares Shares Balance at January 1, 2020 1,996,537,778 (561,531,524) 1,435,006,254 Shares repurchased — (25,071,845) (25,071,845) Exercise of stock options and issuance of — 9,239,812 9,239,812 Balance at December 31, 2020 1,996,537,778 (577,363,557) 1,419,174,221 Shares repurchased — (35,384,366) (35,384,366) Exercise of stock options and issuance of — 7,840,684 7,840,684 Balance at December 31, 2021 1,996,537,778 (604,907,239) 1,391,630,539 Shares repurchased — (31,556,510) (31,556,510) Exercise of stock options and issuance of — 5,817,062 5,817,062 Balance at December 31, 2022 1,996,537,778 (630,646,687) 1,365,891,091 Stock plan awards to employees and non-employee directors are issued from treasury shares. At December 31, 2022, 70.4 million shares of Common Stock held in treasury were reserved for stock options and other stock awards. Share Repurchase Program: |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies Legal Proceedings: We routinely are involved in various pending or threatened legal proceedings, claims, disputes, regulatory matters and governmental inquiries, inspections or investigations arising in the ordinary course of or incidental to our business, including those noted below in this section. We record provisions in the consolidated financial statements for pending legal matters when we determine that an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. For matters we have not provided for that are reasonably possible to result in an unfavorable outcome, management is unable to estimate the possible loss or range of loss or such amounts have been determined to be immaterial. At present we believe that the ultimate outcome of these legal proceedings and regulatory and governmental matters, individually and in the aggregate, will not materially harm our financial position, results of operations or cash flows. However, legal proceedings and regulatory and governmental matters are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial fines, civil or criminal penalties, and other expenditures. In addition, in matters for which conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices or requiring other equitable remedies. An unfavorable outcome might result in a material adverse impact on our business, results of operations or financial position. On April 1, 2015, the U.S. Commodity Futures Trading Commission ("CFTC") filed a complaint against Kraft Foods Group and Mondelēz Global LLC (“Mondelēz Global”) in the U.S. District Court for the Northern District of Illinois (the "District Court"), Eastern Division (the “CFTC action”) following its investigation of activities related to the trading of December 2011 wheat futures contracts that occurred prior to the spin-off of Kraft Foods Group. The complaint alleged that Kraft Foods Group and Mondelēz Global (1) manipulated or attempted to manipulate the wheat markets during the fall of 2011; (2) violated position limit levels for wheat futures; and (3) engaged in non-competitive trades by trading both sides of exchange-for-physical Chicago Board of Trade wheat contracts. The CFTC sought civil monetary penalties of either triple the monetary gain for each violation of the Commodity Exchange Act (the “Act”) or $1 million for each violation of Section 6(c)(1), 6(c)(3) or 9(a)(2) of the Act and $140,000 for each additional violation of the Act, plus post-judgment interest; an order of permanent injunction prohibiting Kraft Foods Group and Mondelēz Global from violating specified provisions of the Act; disgorgement of profits; and costs and fees. On May 13, 2022, the District Court approved a settlement agreement between the CFTC and Mondelēz Global. The terms of the settlement, which are available in the District Court’s docket, had an immaterial impact on our financial position, results of operations and cash flows and did not include an admission by Mondelēz Global. Several class action complaints also were filed against Kraft Foods Group and Mondelēz Global in the District Court by investors in wheat futures and options on behalf of themselves and others similarly situated. The complaints make similar allegations as those made in the CFTC action, and the plaintiffs are seeking monetary damages, interest and unjust enrichment; costs and fees; and injunctive, declaratory and other unspecified relief. In June 2015, these suits were consolidated in the United States District Court for the Northern District of Illinois as case number 15-cv-2937, Harry Ploss et al. v. Kraft Foods Group, Inc. and Mondelēz Global LLC . On January 3, 2020, the District Court granted plaintiffs' request to certify a class. It is not possible to predict the outcome of these matters; however, based on our Separation and Distribution Agreement with Kraft Foods Group dated as of September 27, 2012, we expect to bear any monetary penalties or other payments in connection with the class action. Although the CFTC action and the class action complaints involve the same alleged conduct, the resolution of the CFTC matter may not be dispositive as to the outcome of the class action. As previously disclosed, in November 2019, the European Commission informed us that it initiated an investigation into our alleged infringement of European Union competition law through certain practices allegedly restricting cross-border trade within the European Economic Area. On January 28, 2021, the European Commission announced it had taken the next procedural step in its investigation and opened formal proceedings. We have been cooperating with the investigation and in the fourth quarter of 2022 discussions with the European Commission progressed in an effort to reach a negotiated, proportionate resolution to this matter. In view of the developments in this period, within other current liabilities in the consolidated balance sheets as of December 31, 2022 and selling, general and administrative expenses in the consolidated statement of earnings for 2022, we have determined to record an accrual in accordance with U.S. GAAP of €300 million ($318 million) as an estimate of the possible cost to resolve this matter. It is not possible to predict if our discussions will result in a negotiated resolution, or result in a negotiated resolution in a higher amount, or when we will have clarity on the ultimate outcome of these discussions. If our discussions do not result in a negotiated resolution, we expect that the European Commission will pursue proceedings against the Company, including the imposition of a fine, and we would defend against any allegations made in such proceedings. There is a possibility that the final liability could be materially higher than the amount accrued. However, due to the inherent uncertainty of the discussions and possible outcomes, any possible loss or range of loss different from the amount accrued is not reasonably estimable at this time. 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 December 31, 2022, we had no material third-party guarantees recorded on our consolidated balance sheets. 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 | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Reclassifications from Accumulated Other Comprehensive Income | Note 15. Reclassifications from Accumulated Other Comprehensive Income The following table summarizes the changes in the accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net losses/(gains) of $21 million in 2022, $(44) million in 2021 and $285 million in 2020. For the Years Ended December 31, 2022 2021 2020 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (9,097) $ (8,655) $ (8,320) Currency translation adjustments (659) (481) (398) Reclassification to earnings related to: Equity method investment transactions (1) — — 29 Tax (expense)/benefit (66) 23 47 Other comprehensive earnings/(losses) (725) (458) (322) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 14 16 (13) Balance at end of period (9,808) (9,097) (8,655) Pension and Other Benefit Plans: Balance at beginning of period $ (1,379) $ (1,874) $ (1,721) Net actuarial gain/(loss) arising during period 149 398 (187) Tax (expense)/benefit on net actuarial gain/(loss) (37) (80) 38 Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (2) 57 140 104 Settlement losses and other expenses (1) 16 22 22 Curtailment credit (2) 8 (17) — Tax (benefit) on reclassifications (3) (21) (34) (31) Currency impact 102 66 (99) Other comprehensive earnings/(losses) 274 495 (153) Balance at end of period (1,105) (1,379) (1,874) Derivative Cash Flow Hedges: Balance at beginning of period $ (148) $ (161) $ (213) Net derivative gains/(losses) 160 163 (132) Tax (expense)/benefit on net derivative gain/(loss) (13) — 27 Losses/(gains) reclassified into net earnings: Currency exchange contracts (4) 8 — — Interest rate contracts (1) (4) (30) (152) 189 Tax (benefit) on reclassifications (3) (17) (3) (28) Currency impact 6 5 (4) Other comprehensive earnings/(losses) 114 13 52 Balance at end of period (34) (148) (161) Accumulated other comprehensive income attributable to Balance at beginning of period $ (10,624) $ (10,690) $ (10,254) Total other comprehensive earnings/(losses) (337) 50 (423) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 14 16 (13) Other comprehensive earnings/(losses) attributable to Mondelēz International (323) 66 (436) Balance at end of period $ (10,947) $ (10,624) $ (10,690) (1) Includes equity method investment transactions recorded within gain/(loss) on equity method investment transactions. (2) These reclassified losses are included in net periodic benefit costs disclosed in Note 11, Benefit Plans . (3) Taxes reclassified to earnings are recorded within the provision for income taxes. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16. Income Taxes Earnings/(losses) from continuing operations before income taxes and the provision for income taxes consisted of: For the Years Ended December 31, 2022 2021 2020 (in millions) Earnings/(losses) from continuing operations before income taxes: United States $ 463 $ 519 $ 514 Outside United States 2,765 3,850 2,869 $ 3,228 $ 4,369 $ 3,383 Provision for income taxes: United States federal: Current $ 187 $ 297 $ 440 Deferred (17) (31) (82) 170 266 358 State and local: Current 78 89 98 Deferred 2 9 (7) 80 98 91 Total United States 250 364 449 Outside United States: Current 642 599 756 Deferred (27) 227 19 Total outside United States 615 826 775 Total provision for income taxes $ 865 $ 1,190 $ 1,224 The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate as follows: For the Years Ended December 31, 2022 2021 2020 U.S. federal statutory rate 21.0% 21.0% 21.0% Increase/(decrease) resulting from: State and local income taxes, net of federal tax benefit 1.6% 1.1% 1.6% Tax impacts from our foreign operations 2.0% (1.6)% 1.1% Changes in judgment on realizability of deferred tax assets (1.1)% 0.1% (2.2)% Reversal of other tax accruals no longer required (1.4)% (0.5)% (0.8)% Tax accrual on investment in KDP (including tax impact of 0.5% 4.7% 6.7% Excess tax benefits from equity compensation (0.8)% (0.7)% (1.0)% Tax legislation 0.5% 2.3% 1.0% Business sales (including tax impact from JDE Peet's transaction) 0.1% —% 7.4% Foreign tax provisions under TCJA (GILTI, FDII and BEAT) (1) 0.1% 0.8% 1.1% Non-deductible expenses, including buyout of Clif Bar ESOP and European Commission legal matter 4.1% 0.1% 0.1% Other 0.2% (0.1)% 0.2% Effective tax rate 26.8% 27.2% 36.2% (1) The Tax Cuts and Jobs Act of 2017 (“TCJA”) established the Global Intangible Low-Tax Income (“GILTI”) provision, which taxes U.S. allocated expenses and certain income from foreign operations; the Foreign-Derived Intangible Income (“FDII”) provision, which allows a deduction against certain types of U.S. taxable income resulting in a lower effective U.S. tax rate on such income; and the Base Erosion Anti-abuse Tax (“BEAT”), which is a minimum tax based on cross-border service payments by U.S. entities. Our 2022 effective tax rate of 26.8% was higher due to the buyout of the Clif Bar ESOP that was recorded to earnings before income taxes and the European Commission legal matter, for which there is no associated income tax benefits. Excluding these impacts, our effective tax rate was 22.6%, which reflects unfavorable provisions from the U.S. tax code and the establishment of a valuation allowance related to a deferred tax asset arising from the 2022 Ukraine loss, largely offset by favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions. The 22.6% includes a favorable discrete net tax benefit of $96 million, driven by a $72 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 $51 million net benefit from the Chipita acquisition, partially offset by $17 million expense from tax law changes in various jurisdictions. Our 2021 effective tax rate of 27.2% was higher due to the $187 million net tax expense incurred in connection with the KDP share sales during the second and third quarters. Excluding this impact, our effective tax rate was 23.0%, which reflects unfavorable provisions from the 2017 U.S. tax reform and taxes on earnings from equity method investments (these earnings are reported separately on our consolidated statements of earnings and not within earnings before income taxes), largely offset by favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions. The 23.0% includes a discrete net tax benefit of $2 million, primarily driven by a $47 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 $44 million benefit from two U.S. tax returns amended to reflect new guidance from the U.S. Treasury Department, offset by $100 million net tax expense from the increase of our deferred tax liabilities resulting from enacted tax legislation (mainly in the United Kingdom). Our 2020 effective tax rate of 36.2% was higher due to the $452 million net tax expense incurred in connection with the JDE Peet's transaction and four KDP share sales that occurred during 2020 (the related gains were reported as gains on equity method investments). Excluding these impacts, our effective tax rate was 22.8%, which reflects unfavorable provisions from U.S. tax reform and taxes on earnings from equity method investments (these earnings are reported separately on our consolidated statements of earnings and not within earnings before income taxes), largely offset by favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions and discrete net tax benefits of $119 million. The discrete net benefits were primarily driven by the $70 million net benefit from the release of the China valuation allowance and a $50 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. Tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of: As of December 31, 2022 2021 (in millions) Deferred income tax assets: Accrued postretirement and postemployment benefits $ 83 $ 114 Other employee benefits 156 150 Accrued expenses 649 454 Loss carryforwards 664 685 Tax credit carryforwards 786 786 Other 481 468 Total deferred income tax assets 2,819 2,657 Valuation allowance (1,257) (1,280) Net deferred income tax assets $ 1,562 $ 1,377 Deferred income tax liabilities: Intangible assets, including impact from Swiss tax reform $ (3,279) $ (3,214) Property, plant and equipment (708) (638) Accrued pension costs (57) 23 Other (482) (451) Total deferred income tax liabilities (4,526) (4,280) Net deferred income tax liabilities $ (2,964) $ (2,903) Our significant valuation allowances are in the U.S. and Switzerland. The U.S. valuation allowance mainly relates to excess foreign tax credits generated by the deemed repatriation under U.S. tax reform while the Swiss valuation allowance brings the allowed step-up of intangible assets recorded under Swiss tax reform to the amount more likely than not to be realized. Our total valuation allowance was $1,280 million as of January 1, 2022 and $1,257 million as of December 31, 2022. The $23 million net change consisted of $79 million additions less $102 million reductions. At December 31, 2022, the Company has tax-effected loss carryforwards of $664 million, of which $34 million will expire at various dates between 2023 and 2042 and the remaining $630 million can be carried forward indefinitely. As of December 31, 2022, the company is indefinitely reinvested in unremitted earnings of approximately $4.4 billion, of which approximately $1.2 billion has already been subject to U.S. tax but would incur approximately $90 million of local costs if repatriated, which has not been recognized in our financial statements. It is not practicable to quantify the total U.S. tax impact from all our indefinitely reinvested earnings. Future tax law changes or changes in the needs of our non-U.S. subsidiaries could require us to recognize deferred tax liabilities on a portion, or all, of our accumulated earnings that are currently indefinitely reinvested. The changes in our unrecognized tax benefits were: For the Years Ended December 31, 2022 2021 2020 (in millions) January 1 $ 446 $ 442 $ 426 Increases from positions taken during prior periods 16 31 35 Decreases from positions taken during prior periods (9) (21) (17) Increases from positions taken during the current period 48 47 48 Decreases relating to settlements with taxing authorities (54) (13) (27) Reductions resulting from the lapse of the applicable statute of limitations (22) (26) (29) Currency/other (1) (14) 6 December 31 $ 424 $ 446 $ 442 As of January 1, 2022, our unrecognized tax benefits were $446 million. If we had recognized all of these benefits, the net impact on our income tax provision would have been $372 million. Our unrecognized tax benefits were $424 million at December 31, 2022, and if we had recognized all of these benefits, the net impact on our income tax provision would have been $352 million. Within the next 12 months, our unrecognized tax benefits could increase by approximately $40 million due to unfavorable audit developments or decrease by approximately $70 million due to audit settlements and the expiration of statutes of limitations in various jurisdictions. We include accrued interest and penalties related to uncertain tax positions in our tax provision. We had accrued interest and penalties of $173 million as of January 1, 2022 and $162 million as of December 31, 2022. Our 2022 provision for income taxes included $1 million expense for interest and penalties. In connection with the 2017 enacted U.S. tax reform, we recorded a $1.3 billion transition tax liability that is payable in installments through 2026. As of December 31, 2022, the remaining liability was approximately $570 million. Our income tax filings are regularly examined by federal, state and non-U.S. tax authorities. U.S. federal, state and non-U.S. jurisdictions have statutes of limitations generally ranging from three to five years; however, these statutes are often extended by mutual agreement with the tax authorities. The earliest year still open to examination by U.S. federal and state tax authorities is 2016 and years still open to examination by non-U.S. tax authorities in major jurisdictions include (earliest open tax year in parentheses): India (2005), Switzerland (2018), China (2012), the United Kingdom (2015), and Greece (2017). |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 17. Earnings per Share Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Years Ended December 31, 2022 2021 2020 (in millions, except per share data) Net earnings $ 2,726 $ 4,314 $ 3,569 Noncontrolling interest earnings (9) (14) (14) Net earnings attributable to Mondelēz International $ 2,717 $ 4,300 $ 3,555 Weighted-average shares for basic EPS 1,378 1,403 1,431 Plus incremental shares from assumed conversions 7 10 10 Weighted-average shares for diluted EPS 1,385 1,413 1,441 Basic earnings per share attributable to $ 1.97 $ 3.06 $ 2.48 Diluted earnings per share attributable to $ 1.96 $ 3.04 $ 2.47 We exclude antidilutive Mondelēz International stock options and long-term incentive plan shares from our calculation of weighted-average shares for diluted EPS, which are 3.0 million for the year ended December 31, 2022, 3.1 million for the year ended December 31, 2021 and 3.6 million for the year ended December 31, 2020. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 18. Segment Reporting We manufacture and market primarily snack food products, including chocolate, biscuits and baked snacks, as well as gum & candy, cheese & grocery and powdered beverages. We manage our global business and report operating results through geographic units. We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise across our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions. 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 intangible assets, gains and losses on divestitures and acquisitions 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, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2022 2021 2020 (in millions) Net revenues: Latin America $ 3,629 $ 2,797 $ 2,477 AMEA 6,767 6,465 5,740 Europe 11,420 11,156 10,207 North America 9,680 8,302 8,157 Net revenues $ 31,496 $ 28,720 $ 26,581 Earnings before income taxes: Operating income: Latin America $ 388 $ 261 $ 189 AMEA 929 1,054 821 Europe 1,481 2,092 1,775 North America 1,769 1,371 1,587 Unrealized gains/(losses) on hedging activities (326) 279 16 General corporate expenses (245) (253) (326) Amortization of intangible assets (132) (134) (194) Gain on acquisition — 8 — Acquisition-related costs (330) (25) (15) Operating income 3,534 4,653 3,853 Benefit plan non-service income 117 163 138 Interest and other expense, net (423) (447) (608) Earnings before income taxes $ 3,228 $ 4,369 $ 3,383 Items impacting our segment operating results are discussed in Note 1, Summary of Significant Accounting Policies , Note 2, Acquisitions and Divestitures, Note 4, Property, Plant and Equipment, Note 6, Goodwill and Intangible Assets, Note 8, Restructuring Program , and Note 14, Commitments and Contingencies . Also see Note 9, Debt and Borrowing Arrangements , and Note 10, Financial Instruments, for more information on our interest and other expense, net for each period. Total assets, depreciation expense and capital expenditures by segment, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2022 2021 2020 (in millions) Total assets: Latin America (1) $ 6,164 $ 4,106 $ 4,181 AMEA (1) 9,882 10,386 9,997 Europe (1) 22,713 20,927 21,442 North America (1) 26,603 23,321 23,297 Equity method investments 4,879 5,289 6,036 Unallocated assets and adjustments (2) 920 3,063 2,857 Total assets $ 71,161 $ 67,092 $ 67,810 (1) Segment assets do not reflect outstanding intercompany asset balances that have been eliminated at a segment level. (2) Unallocated assets consist primarily of cash and cash equivalents, deferred income taxes, centrally held property, plant and equipment, prepaid pension assets and derivative financial instrument balances. Final adjustments for jurisdictional netting of deferred tax assets and liabilities is done at a consolidated level. For the Years Ended December 31, 2022 2021 2020 (in millions) Depreciation expense (1) : Latin America $ 117 $ 105 $ 101 AMEA 169 173 159 Europe 256 257 238 North America 148 148 154 Total depreciation expense $ 690 $ 683 $ 652 (1) Includes depreciation expense related to owned property, plant and equipment. Does not include amortization of intangible assets or leased assets. Refer to the consolidated statement of cash flows for total depreciation and amortization expenses. For the Years Ended December 31, 2022 2021 2020 (in millions) Capital expenditures: Latin America $ 113 $ 165 $ 219 AMEA 229 208 177 Europe 355 409 295 North America 209 183 172 Total capital expenditures $ 906 $ 965 $ 863 Geographic data for net revenues (recognized in the countries where products are sold from) and long-lived assets, excluding deferred taxes, goodwill, intangible assets and equity method investments, were: For the Years Ended December 31, 2022 2021 2020 (in millions) Net revenues: United States $ 8,315 $ 7,146 $ 7,130 Other 23,181 21,574 19,451 Total net revenues $ 31,496 $ 28,720 $ 26,581 As of December 31, 2022 2021 2020 (in millions) Long-lived assets: United States $ 2,740 $ 1,851 $ 1,956 United Kingdom 932 1,125 888 Other 8,886 7,675 7,784 Total long-lived assets $ 12,558 $ 10,651 $ 10,628 Net revenues by product category, reflecting our current segment structure for all periods presented, were: For the Year Ended December 31, 2022 Latin AMEA Europe North Total (in millions) Biscuits & Baked Snacks $ 1,013 $ 2,515 $ 3,818 $ 8,262 $ 15,608 Chocolate 1,003 2,520 5,646 317 9,486 Gum & Candy 840 780 691 1,101 3,412 Beverages 409 572 119 — 1,100 Cheese & Grocery 364 380 1,146 — 1,890 Total net revenues $ 3,629 $ 6,767 $ 11,420 $ 9,680 $ 31,496 For the Year Ended December 31, 2021 (1) Latin AMEA Europe North Total (in millions) Biscuits & Baked Snacks $ 799 $ 2,254 $ 3,354 $ 7,145 $ 13,552 Chocolate 758 2,395 5,836 282 9,271 Gum & Candy 567 816 614 875 2,872 Beverages 359 550 126 — 1,035 Cheese & Grocery 314 450 1,226 — 1,990 Total net revenues $ 2,797 $ 6,465 $ 11,156 $ 8,302 $ 28,720 For the Year Ended December 31, 2020 (1) Latin AMEA Europe North Total (in millions) Biscuits & Baked Snacks $ 669 $ 2,045 $ 3,058 $ 7,024 $ 12,796 Chocolate 609 2,019 5,268 253 8,149 Gum & Candy 474 696 612 880 2,662 Beverages 403 544 102 — 1,049 Cheese & Grocery 322 436 1,167 — 1,925 Total net revenues $ 2,477 $ 5,740 $ 10,207 $ 8,157 $ 26,581 (1) Our snack product categories include biscuits & baked snacks, chocolate and gum & candy. During the first quarter of 2022, we realigned some of our products between our biscuits & baked snacks and chocolate categories; as such, we reclassified the product category net revenues on a basis consistent with the 2022 presentation. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business: Mondelēz International, Inc. was incorporated in 2000 in the Commonwealth of Virginia. Mondelēz International, Inc., through its subsidiaries (collectively “Mondelēz International,” “we,” “us” and “our”), sells food and beverage products to consumers in over 150 countries. |
Principles of Consolidation | Principles of Consolidation: The 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 is no readily determinable fair value for the equity interests, these investments are carried at cost with changes in the investment recognized to the extent cash is received. |
Use of Estimates | Use of Estimates:We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require us to make estimates and assumptions that affect a number of amounts in our consolidated financial statements. Significant estimates include, valuation assumptions of goodwill and intangible assets, useful lives of long-lived assets, restructuring program liabilities, contingent consideration, marketing program accruals, insurance and self-insurance reserves, pension and benefit plan assumptions and income taxes. We base our estimates on historical experience, expectations of future impacts and other assumptions that we believe are reasonable. Given the uncertainty of the global economic environment, our estimates could be significantly different than future performance. If actual amounts differ from estimates, we include the updates in our consolidated results of operations in the period the actual amounts become known. |
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 transactions in earnings. Highly inflationary accounting is triggered when a country’s three-year cumulative inflation rate exceeds 100%. It requires the remeasurement of financial statements of subsidiaries in the country, from the functional currency of the subsidiary to our U.S. dollar reporting currency, with currency remeasurement gains or losses recorded in earnings. At this time, within our consolidated entities, Argentina and Türkiye are accounted for as highly inflationary economies. Argentina and Türkiye represent 1.6% and 0.7% of our consolidated net revenues, with remeasurement losses of $39 million and $1 million in 2022, respectively. |
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. |
Allowance for Credit Losses | Allowances for Credit Losses: 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. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have nonrecourse factoring arrangements in which we sell eligible trade receivables primarily to banks in exchange for cash. We may 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 $516 million as of December 31, 2022, $761 million as of December 31, 2021 and $760 million as of December 31, 2020. The incremental costs of factoring receivables under these arrangements were not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the consolidated statements of cash flows. |
Inventories | Inventories: We record our inventory using the average cost method and record inventory reserves for excess and obsolete inventory. |
Long-Lived Assets | Long-Lived Assets: Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets with the expense recorded in cost of sales or selling, general and administrative expenses depending on the nature of the long-lived assets. Machinery and equipment are depreciated over periods ranging from 3 to 20 years and buildings and building improvements over periods up to 40 years. We review long-lived assets, including definite-life intangible assets, for realizability on an ongoing basis. Changes in depreciation, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. We amortize definite-life intangible assets over their estimated useful lives and evaluate them for impairment as we do other long-lived assets. We review for impairment when conditions exist that indicate the carrying amount of the assets may not be fully recoverable. In those circumstances, we perform undiscounted operating cash flow analyses for asset and liability groups at the lowest level for which cash flows are separately identifiable to determine if an impairment exists. Any impairment loss is calculated as the excess of the asset’s carrying value over its estimated fair value. Fair value is estimated based on |
Leases | Leases: We determine whether a contract is or contains a lease at contract inception. For short-term operating leases with terms of 12 months or less, we do not recognize right-of-use (“ROU”) assets and lease liabilities. ROU assets are recognized at commencement date at the value of the lease liability, adjusted for any prepayments, lease incentives received and initial direct costs incurred. Lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The non-recurring fair value measurement is classified as Level 3 as no fair value inputs are observable. As the implicit interest rate in the lease is not readily determinable, we use our country-specific incremental borrowing rate to discount the lease liabilities. Our leases may include options to extend or terminate the lease, which are included in the lease term when it is reasonably certain that we will exercise that option. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Many of our leases contain non-lease components (e.g. product costs, common-area or other maintenance costs) that relate to the lease components of the agreement. We account for lease and non-lease components as a single lease component. |
Software Costs | Software Costs: We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are included in property, plant and equipment and amortized on a straight-line basis over the estimated useful lives of the software, which do not exceed seven years. |
Goodwill and Indefinite-Life Intangible Assets | Goodwill and Indefinite-Life Intangible Assets: We test goodwill and indefinite-life intangible assets for impairment on an annual basis on July 1. We assess goodwill impairment risk throughout the year by performing a qualitative review of entity-specific, industry, market and general economic factors affecting our goodwill reporting units. Annually, we may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, we may elect to do quantitative testing instead. In our quantitative testing, we compare a reporting unit’s estimated fair value with its carrying value. We estimate a reporting unit’s fair value using a discounted cash flow method that incorporates planned growth rates, market-based discount rates and estimates of residual value. If the carrying value of a reporting unit’s net assets exceeds its fair value, we would recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. Annually, we assess indefinite-life intangible assets for impairment by performing a qualitative review and assessing events and circumstances that could affect the fair value or carrying value of these intangible assets. If significant potential impairment risk exists for a specific asset, we quantitatively test it for impairment by comparing its estimated fair value with its carrying value. During our annual testing, we use several accepted valuation methods, including Relief from Royalty, excess earnings and excess margin, that utilize estimates of future sales, earnings growth rates, royalty rates and discount rates in determining a brand’s global fair value. If the carrying value of the asset exceeds its fair value, we consider the asset impaired and reduce its carrying value to the estimated fair value. |
Held for Sale | Held for Sale: Assets and liabilities to be disposed of by sale ("disposal groups") are reclassified into assets and liabilities held for sale on our consolidated balance sheets. The reclassification occurs when all the held for sale criteria have been met, including when management having the requisite authority have committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying value or fair value less costs to sell and are not depreciated or amortized. The fair value of a disposal group, less any costs to sell, is assessed each reporting |
Business Combinations | Business Combinations: The assets acquired and liabilities assumed upon the acquisition or consolidation of a business are recorded at fair value, with the residual of the purchase price allocated to goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to assets acquired and liabilities assumed with the corresponding offset to goodwill. The results of operations of an acquired business are included in our operating results from the date of acquisition. Further, certain of our acquisitions may include earn-out provisions or other forms of contingent consideration. As of the acquisition date, we record contingent consideration, as applicable, at the estimated fair value of expected future payments associated with the earn-out. Any changes to the recorded fair value of contingent consideration will be recognized as expenses or earnings in the period in which they occur. Legal costs, due diligence costs, business valuation costs and all other business acquisition costs are expensed when incurred. |
Equity Method Investments | 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. |
Insurance and Self-Insurance | Insurance and Self-Insurance: We use a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability, product liability and our obligation for employee healthcare benefits. We estimate the liabilities associated with these risks on an undiscounted basis by evaluating and making judgments about historical claims experience and other actuarial assumptions and the estimated impact on future results. |
Revenue Recognition | Revenue Recognition: We recognize revenue when control over the products transfers to our customers, which generally occurs upon delivery or shipment of the products. We account for product shipping, handling and insurance as fulfillment activities with revenues for these activities recorded within net revenue and costs recorded within cost of sales. Any taxes collected on behalf of government authorities are excluded from net revenues. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. We base these estimates of expected amounts principally on historical utilization and redemption rates. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one year or shorter duration. As such, we do not capitalize contract inception costs and we capitalize product fulfillment costs. Deferred revenues are not material and primarily include customer advance payments typically collected a few days before product delivery, at which time deferred revenues are reclassified and recorded as net revenues. We generally do not receive non-cash consideration for the sale of goods nor do we grant payment financing terms greater than one year. |
Marketing, Advertising and Research and Development | Marketing, Advertising and Research and Development: We promote our products with marketing and advertising programs. These programs include, but are not limited to, cooperative advertising, in-store displays and consumer marketing promotions. For interim reporting purposes, advertising, consumer promotion and marketing research expenses are charged to operations as a percentage of volume, based on estimated sales volume and estimated program spending. We do not defer costs on our year-end consolidated balance sheets and all marketing and advertising costs are recorded as an expense in the year incurred. Advertising expense was $1,670 million in 2022, $1,564 million in 2021 and $1,376 million in 2020. We |
Stock-based Compensation | Stock-based Compensation: We maintain a share-based compensation plan, which authorizes the granting of various equity-based incentives, including stock options (including stock appreciation rights), deferred stock units (DSUs) and performance share units (PSUs). Stock compensation expense is amortized to expense over the vesting period, generally three years. Stock options are granted with an exercise price equal to the closing market price of our Common Stock on the grant date. Substantially all of the options become exercisable in three annual installments beginning a year from the grant date and generally expire 10 years from the grant date. We use the Black-Scholes Model to measure the fair value of stock options granted to employees. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. Expected stock price volatility is based on the implied and historical volatility of the Company’s stock. The expected dividend yield is based on the Company’s most recent annual dividend rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term equal to the expected life. DSUs are typically granted to selected management employees on an annual basis and vest over three years. Dividend equivalents are paid during the vesting period. The fair value of our DSUs and other stock-based awards is measured at the market price of our Common Stock on the grant date. PSUs vest based on varying performance, market and service conditions. Dividend equivalents accumulated over the vesting period are paid after vesting. The grant date fair value of PSUs is determined based on the Monte Carlo simulation model for the market-based component and the market price of our Common Stock on the grant date for performance-based components. The final award may equal 0-200 percent of the target grant, based on the achievement of the performance and market-based components . Forfeitures are estimated on the grant date for all of our stock-based compensation awards. |
Employee Benefit Plans | Employee Benefit Plans: We provide a range of benefits to our current and retired employees including pension benefits, defined contribution plan benefits, postretirement health care benefits and postemployment primarily severance-related benefits depending upon local statutory requirements, employee tenure and service requirements as well as other factors. The cost for these plans is recognized in earnings primarily over the working life of the covered employee. |
Financial Instruments | Financial Instruments: We use financial instruments to manage our currency exchange rate, commodity price and interest rate risks. We monitor and manage these exposures as part of our overall risk management program, which focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results. A principal objective of our risk management strategies is to reduce significant, unanticipated earnings fluctuations that may arise from volatility in currency exchange rates, commodity prices and interest rates. When we use derivatives, we are exposed to credit and market risks. We reduce our credit risk by entering into transactions with counterparties with high quality, investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. We also maintain a policy of requiring that all significant, non-exchange traded derivative contracts with a duration of one year or longer are governed by an International Swaps and Derivatives Association master agreement. We manage derivative market risk by limiting the types of derivative instruments, derivative strategies we use, and the degree of market risk that we plan to hedge through the use of derivative instruments. We record derivative financial instruments on a gross basis in our consolidated balance sheets. The fair value of our instruments are recorded within other current assets, other assets, other current liabilities, and other liabilities in our consolidated balance sheets. Mark-to-market gains or losses related to our economic hedges are classified in the consolidated statements of cash flows in other non-cash items, net, within operating activities. Cash flows related to the settlement of derivative instruments designated as hedges of net investments in non-U.S. operations are classified in the consolidated statements of cash flows within investing activities. Cash flows related to derivative instruments that are designated or settled economic hedges are classified in the same line item as the cash flows of the related hedged item. Cash flows related to the settlement of all other free-standing derivative instruments are classified within investing activities. Commodity derivatives . We are exposed to price risk related to forecasted purchases of certain commodities that we primarily use as raw materials. We enter into commodity forward, futures and option contracts. Commodity forward contracts generally are not subject to the accounting requirements for derivative instruments and hedging activities under the normal purchases exception. We sell commodity futures to hedge future purchase commitments. We occasionally use related futures to cross-hedge a commodity exposure. We are not a party to leveraged derivatives and, by policy, do not use financial instruments for speculative purposes. Any mark-to-market gains or losses are recorded in earnings (see Note 10, Financial Instruments , for additional information). Currency exchange derivatives . We enter into currency exchange forward contracts, futures, options and swaps.to mitigate our exposure to changes in exchange rates from third-party and intercompany current and forecasted transactions. Any mark-to-market gains or losses are recorded in earnings (see Note 10, Financial Instruments , for additional information). Interest rate cash flow hedges . We manage interest rate volatility by modifying the pricing or maturity characteristics of certain liabilities so that the net impact on expense is not, on a material basis, adversely affected by movements in interest rates. We use derivative instruments, including interest rate swaps that have indices related to the pricing of specific liabilities as part of our interest rate risk management strategy. We use cross-currency interest rate swaps to hedge interest payments on newly issued debt denominated in a different currency than the functional currency of the borrowing entity. Substantially all of these derivative instruments are highly effective and qualify for hedge accounting treatment. Changes in the fair value of derivatives that are designated as a cash flow hedge, to the extent the hedge is effective, are recorded in accumulated other comprehensive earnings/(losses), net of deferred taxes, and reclassified to earnings when the hedged item affects earnings (see Note 10, Financial Instruments , for additional information). Hedges of net investments in non-U.S. operations . We have numerous investments outside the United States. The net assets of these subsidiaries are exposed to changes and volatility in currency exchange rates. We use local currency denominated debt to hedge our non-U.S. net investments against adverse movements in exchange rates. We may designate non-U.S. dollar-denominated borrowings in the U.S. as a net investment hedge of a portion of our overall non-U.S. operations. The gains and losses on our net investment in these designated non-U.S. operations are economically offset by losses and gains designated dollar-denominated borrowings. The revaluation of designated borrowings, net of deferred taxes, is recorded within currency translation adjustment in accumulated other comprehensive earnings/(losses) (see Note 10, Financial Instruments , for additional information). We use derivatives instruments to hedge certain investments in our non-U.S. operations against movements in exchange rates. These instruments may include cross-currency interest rate swaps, forwards and options. The after-tax gain/(loss) on these net investment hedge contracts, net of deferred taxes, is recorded within cumulative translation adjustment in accumulated other comprehensive earnings/(losses) (see Note 10, Financial Instruments , for additional information). |
Income Taxes | Income Taxes: Our provision for income taxes includes amounts payable or refundable for the current year, the effects of deferred taxes and impacts from uncertain tax positions. We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of our assets and liabilities, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those differences are expected to reverse. The realization of certain deferred tax assets is dependent on generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. When assessing the need for a valuation allowance, we consider any carryback potential, future reversals of existing taxable temporary differences (including liabilities for unrecognized tax benefits), future taxable income and tax planning strategies. We recognize tax benefits in our financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained based on the technical merits of the position. The amount we recognize is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon resolution. Future changes related to the expected resolution of uncertain tax positions could affect tax expense in the period when the change occurs. We monitor for changes in tax laws and reflect the impacts of tax law changes in the period of enactment. When there is refinement to tax law changes in subsequent periods, we account for the new guidance in the period when it becomes known. |
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 and December 2022, the FASB issued ASUs 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, 2024. We adopted this standard in the fourth quarter of 2022 and it did not have a material impact on our consolidated financial statements. In September 2022, the FASB issued an ASU which enhances the transparency of supplier finance programs by requiring additional disclosure about the key terms of these programs and a roll-forward of the related obligations to understand the effects of these programs on working capital, liquidity and cash flows. The ASU is effective for fiscal years beginning after December 15, 2022, except for the roll-forward requirement, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. We are currently assessing the impact on our consolidated financial statements and related disclosures. |
Segment Reporting | 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 intangible assets, gains and losses on divestitures and acquisitions 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 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, 2021 $ (42) $ (42) $ (12) Current period provision for expected credit losses (3) (13) — Write-offs charged against the allowance 5 3 2 Currency 3 3 — Balance at December 31, 2021 $ (37) $ (49) $ (10) Current period provision for expected credit losses (13) (14) (3) Write-offs charged against the allowance 2 3 — Currency 3 1 (1) Balance at December 31, 2022 $ (45) $ (59) $ (14) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 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 of assets acquired and liabilities assumed and have recorded a preliminary purchase price allocation of: (in millions) Cash $ 22 Receivables 86 Inventory 70 Other current assets 3 Property, plant and equipment 144 Operating leases right of use assets 17 Definite life intangible assets 218 Indefinite life intangible assets 339 Goodwill 714 Assets acquired $ 1,613 Current liabilities 177 Deferred tax liability 77 Operating lease liabilities 17 Other liabilities 12 Total purchase price $ 1,330 Less: cash received (22) Net Cash Paid $ 1,308 We are working to complete the valuation of assets acquired and liabilities assumed and have recorded a preliminary purchase price allocation of: (in millions) Cash $ 99 Receivables 76 Inventory 124 Other current assets 9 Property, plant and equipment 186 Operating leases right of use assets 22 Deferred tax assets 92 Definite life intangible assets 200 Indefinite life intangible assets 1,450 Goodwill 1,020 Other assets 11 Assets acquired $ 3,289 Current liabilities 159 Contingent consideration 440 Other liabilities 15 Total purchase price $ 2,675 Less: cash received (99) Net Cash Paid $ 2,576 We are working to complete the valuation of assets acquired and liabilities assumed and have recorded a preliminary purchase price allocation of: (in millions) Cash $ 52 Receivables 102 Inventory 60 Other current assets 3 Property, plant and equipment 379 Finance leases right of use assets 8 Definite life intangible assets 48 Indefinite life intangible assets 686 Goodwill 795 Other assets 77 Assets acquired $ 2,210 Current liabilities 133 Deferred tax liability 158 Finance lease liabilities 8 Other liabilities 21 Total purchase price $ 1,890 Less: long-term debt (436) Less: cash received (52) Net Cash Paid $ 1,402 (in millions) Receivables $ 29 Inventory 38 Other current assets 6 Property, plant and equipment 136 Operating right of use assets 61 Definite-life intangible assets 511 Indefinite-life intangible assets 42 Goodwill 531 Assets acquired $ 1,354 Current liabilities 42 Deferred tax liabilities 92 Long-term operating lease liabilities 56 Long-term debt 6 Long-term other liabilities 19 Total purchase price $ 1,139 Less: cash received 3 Net Cash Paid $ 1,136 |
Schedule Assets and Liabilities Held-for-Sale | Total assets and liabilities held for sale as of December 31, 2022 on the consolidated balance sheets are comprised of the following: (in millions) Inventories, net $ 79 Current assets held for sale (1) $ 79 Property, plant and equipment, net 159 Goodwill 292 Intangible assets, net 671 Noncurrent assets held for sale (2) $ 1,122 Accrued employment costs 4 Current liabilities held for sale (3) $ 4 Deferred income taxes 15 Noncurrent liabilities held for sale (4) $ 15 (1) Reported in Other current assets on the consolidated balance sheets. (2) Reported in Other assets on the consolidated balance sheets. (3) Reported in Other current liabilities on the consolidated balance sheets. (4) Reported in Other liabilities on the consolidated balance sheets. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | Inventories consisted of the following: As of December 31, 2022 2021 (in millions) Raw materials $ 1,031 $ 770 Finished product 2,501 2,054 3,532 2,824 Inventory reserves (151) (116) Inventories, net $ 3,381 $ 2,708 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 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 December 31, 2022 2021 (in millions) Land and land improvements $ 378 $ 379 Buildings and building improvements 3,250 3,139 Machinery and equipment 11,724 11,842 Construction in progress 879 732 16,231 16,092 Accumulated depreciation (7,211) (7,434) Property, plant and equipment, net $ 9,020 $ 8,658 |
Schedule of Changes Related to Property in Connection with Restructuring Program | 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 within asset impairment and exit costs on the consolidated statements of earnings and within the segment results as follows (refer to Note 8, Restructuring Program ): For the Years Ended December 31, 2022 2021 2020 (in millions) Latin America $ (3) $ 1 $ (12) AMEA 3 (15) (7) Europe 4 7 5 North America (1) 65 1 Corporate — — — Total $ 3 $ 58 $ (13) During 2022, 2021 and 2020, 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 Year Ended Restructuring Costs $ (6) $ 13 $ 16 $ 12 $ 1 $ 36 Implementation Costs 7 6 25 37 12 87 Total $ 1 $ 19 $ 41 $ 49 $ 13 $ 123 For the Year Ended Restructuring Costs $ 7 $ (17) $ 4 $ 153 $ 7 $ 154 Implementation Costs 9 10 33 97 18 167 Total $ 16 $ (7) $ 37 $ 250 $ 25 $ 321 For the Year Ended Restructuring Costs $ 30 $ 23 $ 67 $ 23 $ 13 $ 156 Implementation Costs 18 23 63 72 31 207 Total $ 48 $ 46 $ 130 $ 95 $ 44 $ 363 Total Project Restructuring Costs $ 548 $ 554 $ 1,163 $ 657 $ 150 $ 3,072 Implementation Costs 303 245 569 590 368 2,075 Total $ 851 $ 799 $ 1,732 $ 1,247 $ 518 $ 5,147 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Costs and Supplemental Cash Flow Information | The components of lease costs were as follows: For the Years Ended December 31, 2022 2021 (in millions) Operating lease cost $ 213 $ 228 Finance lease cost: Amortization of right-of-use assets 95 89 Interest on lease liabilities 8 7 Short-term lease cost 11 29 Variable lease cost 602 506 Sublease income (4) (6) Total lease cost $ 925 $ 853 Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, 2022 2021 (in millions) Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ (212) $ (229) Operating cash flows from finance leases (8) (8) Financing cash flows from finance leases (95) (88) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 220 $ 186 Finance leases 148 76 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: As of December 31, 2022 2021 (in millions) Operating Leases: Operating lease right-of-use assets, net of amortization $ 660 $ 613 Other current liabilities $ 166 $ 174 Long-term operating lease liabilities 514 459 Total operating lease liabilities $ 680 $ 633 Finance Leases: Finance leases, net of amortization (within property, plant and equipment) $ 287 $ 233 Current portion of long-term debt $ 95 $ 82 Long-term debt 198 157 Total finance lease liabilities $ 293 $ 239 Weighted Average Remaining Lease Term Operating leases 7.0 years 6.6 years Finance leases 4.1 years 3.9 years Weighted Average Discount Rate Operating leases 4.2 % 3.3 % Finance leases 4.0 % 2.9 % |
Schedule of Future Maturity of Operating Lease Liabilities | Maturities of lease liabilities were as follows: As of December 31, 2022 Operating Leases Finance Leases (in millions) Year Ending December 31: 2023 $ 195 $ 105 2024 142 85 2025 105 61 2026 70 38 2027 52 14 Thereafter 244 18 Total future undiscounted lease payments $ 808 $ 321 Less imputed interest (128) (28) Total reported lease liability $ 680 $ 293 |
Schedule of Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows: As of December 31, 2022 Operating Leases Finance Leases (in millions) Year Ending December 31: 2023 $ 195 $ 105 2024 142 85 2025 105 61 2026 70 38 2027 52 14 Thereafter 244 18 Total future undiscounted lease payments $ 808 $ 321 Less imputed interest (128) (28) Total reported lease liability $ 680 $ 293 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Operating Segment | Goodwill by operating segment was: As of December 31, 2022 2021 (in millions) Latin America $ 1,421 $ 674 AMEA 3,132 3,365 Europe 8,009 7,830 North America 10,888 10,109 Goodwill $ 23,450 $ 21,978 |
Schedule of Intangible Assets | Intangible assets consisted of the following: As of December 31, 2022 2021 (in millions) Indefinite-life intangible assets $ 18,413 $ 17,299 Definite-life intangible assets 3,354 2,991 21,767 20,290 Accumulated amortization (2,057) (1,999) Intangible assets, net $ 19,710 $ 18,291 |
Schedule of Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: 2022 2021 Goodwill Intangible Goodwill Intangible (in millions) Balance at January 1 $ 21,978 $ 20,290 $ 21,895 $ 20,399 Changes due to: Currency (757) (692) (464) (465) Acquisitions 2,529 2,941 547 405 Held for Sale (292) (671) — — Divestitures (8) — — (17) Asset impairments — (101) — (32) Balance at December 31 $ 23,450 $ 21,767 $ 21,978 $ 20,290 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Summarized Financial Information of Equity Method Investments | Summarized financial information related to our equity method investments is reflected below. As of December 31, 2022 2021 (in millions) Current assets $ 8,740 $ 6,313 Noncurrent assets 71,375 71,949 Total assets $ 80,115 $ 78,262 Current liabilities $ 12,711 $ 11,105 Noncurrent liabilities 26,671 27,204 Total liabilities $ 39,382 $ 38,309 Equity attributable to shareowners of investees $ 40,596 $ 39,798 Equity attributable to noncontrolling interests 137 155 Total net equity of investees $ 40,733 $ 39,953 Mondelēz International ownership interests 5-50% 5-50% Equity method investments (1) $ 4,879 $ 5,289 For the Years Ended December 31, 2022 2021 2020 (in millions) Net revenues $ 23,518 $ 22,149 $ 20,112 Gross profit 10,738 10,804 9,856 Income from continuing operations 2,984 2,614 2,078 Net income 2,984 2,614 2,078 Net income attributable to investees $ 2,990 $ 2,618 $ 2,070 Mondelēz International ownership interests 5-50% 5-50% 8-50% Equity method investment net earnings $ 385 $ 393 $ 421 (1) Includes a basis difference of approximately $419 million as of December 31, 2022 and $475 million as of December 31, 2021 between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees’ equity. |
Restructuring Program (Tables)
Restructuring Program (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Program Liability | The Simplify to Grow Program liability activity for the years ended December 31, 2022 and 2021 was: Severance Asset Write-downs and Other (1) Total (in millions) Liability Balance, January 1, 2021 $ 304 $ — $ 304 Charges (2) 86 68 154 Cash spent (3) (160) — (160) Non-cash settlements/adjustments (4) (5) (68) (73) Currency (14) — (14) Liability Balance, December 31, 2021 $ 211 $ — $ 211 Charges (2) 31 5 36 Cash spent (3) (69) (69) Non-cash settlements/adjustments (4) (3) (5) (8) Currency (6) (6) Liability balance, December 31, 2022 (5) $ 164 $ — $ 164 (1) Includes gains as a result of assets sold which are included in the restructuring program. (2) We recorded restructuring charges of $36 million in 2022, $154 million in 2021 and $156 million in 2020 within asset impairment and exit costs and benefit plan non-service income. (3) We spent $69 million in 2022 and $160 million in 2021 in cash severance and related costs. (4) In 2022, we recognized non-cash asset write-downs (including accelerated depreciation and other non-cash adjustments, including any gains on sale of assets, primarily real estate, included in the restructuring program totaling $8 million. In 2021, we recognized non-cash asset write-downs (including accelerated depreciation and asset impairments), non-cash pension settlement losses and other non-cash adjustments, partially offset by gains on sale of assets, primarily real estate, included in the restructuring program totaling $73 million. (5) At December 31, 2022, $126 million of our net restructuring liability was recorded within other current liabilities and $38 million was recorded within other long-term liabilities. |
Schedule of Restructuring and Implementation Costs | 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 within asset impairment and exit costs on the consolidated statements of earnings and within the segment results as follows (refer to Note 8, Restructuring Program ): For the Years Ended December 31, 2022 2021 2020 (in millions) Latin America $ (3) $ 1 $ (12) AMEA 3 (15) (7) Europe 4 7 5 North America (1) 65 1 Corporate — — — Total $ 3 $ 58 $ (13) During 2022, 2021 and 2020, 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 Year Ended Restructuring Costs $ (6) $ 13 $ 16 $ 12 $ 1 $ 36 Implementation Costs 7 6 25 37 12 87 Total $ 1 $ 19 $ 41 $ 49 $ 13 $ 123 For the Year Ended Restructuring Costs $ 7 $ (17) $ 4 $ 153 $ 7 $ 154 Implementation Costs 9 10 33 97 18 167 Total $ 16 $ (7) $ 37 $ 250 $ 25 $ 321 For the Year Ended Restructuring Costs $ 30 $ 23 $ 67 $ 23 $ 13 $ 156 Implementation Costs 18 23 63 72 31 207 Total $ 48 $ 46 $ 130 $ 95 $ 44 $ 363 Total Project Restructuring Costs $ 548 $ 554 $ 1,163 $ 657 $ 150 $ 3,072 Implementation Costs 303 245 569 590 368 2,075 Total $ 851 $ 799 $ 1,732 $ 1,247 $ 518 $ 5,147 |
Debt and Borrowing Arrangemen_2
Debt and Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings | Our short-term borrowings and related weighted-average interest rates consisted of: As of December 31, 2022 2021 Amount Weighted- Amount Weighted- (in millions) (in millions) Commercial paper $ 2,209 4.7 % $ 192 0.2 % Bank loans 90 9.1 % 24 8.6 % Total short-term borrowings $ 2,299 $ 216 |
Schedule of Uncommitted and Committed Credit Lines Available | Our uncommitted credit lines and committed credit lines available as of December 31, 2022 and December 31, 2021 include: As of December 31, 2022 2021 Facility Amount Borrowed Amount Facility Amount Borrowed Amount (in millions) Uncommitted credit facilities $ 1,335 $ 90 $ 1,367 $ 24 Credit facility expiry (1) (2) : February 23, 2022 — — 2,500 — February 22, 2023 2,500 — — — March 11, 2023 (3) 2,000 — — — February 27, 2024 — — 4,500 — July 29, 2025 (4) 2,000 2,000 — — February 23, 2027 4,500 — — — (1) We maintain a multi-year senior unsecured revolving credit facility for general corporate purposes, including working capital needs, and to support our commercial paper program. The revolving credit agreement includes a covenant that we maintain a minimum shareholders' equity of at least $25.0 billion, excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans. At December 31, 2022, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $37.8 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) Capitalizable financing costs are classified in long-term other assets and were immaterial for all periods presented. (3) On July 11, 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 eighteen months after the funding date of the applicable loan(s). (4) On March 31, 2022, we entered into a supplemental term loan credit facility that can be utilized for general corporate purposes, including acquisitions. Under this agreement we may draw up to a total of $2.0 billion in term loans from the facility. On July 29, 2022, we drew down $2.0 billion in term loans, due July 29, 2025, bearing interest at a variable annual rate based on SOFR plus an applicable margin. |
Schedule of Long-Term Debt | Our long-term debt consisted of (interest rates are as of December 31, 2022): As of December 31, 2022 (1) 2021 (in millions) U.S. dollar notes and term loans, 0.750% to 7.000% (weighted-average effective rate 2.998%), due through 2050 $ 11,275 $ 9,280 Euro notes, 0.000% to 2.375% (weighted-average effective rate 0.712%), due through 2041 7,666 8,134 Pound sterling notes, 3.875% to 4.500% (weighted-average effective rate 4.151%), due through 2045 316 354 Swiss franc notes, 0.615% to 1.125% (weighted-average effective rate 1.011%), due through 2025 638 811 Canadian dollar notes, 3.250% (effective rate 3.377%), due through 2025 442 473 Finance leases and other 297 244 Total 20,634 19,296 Less current portion of long-term debt (383) (1,746) Long-term debt $ 20,251 $ 17,550 (1) Amounts are shown net of unamortized premiums, discounts and bank fees of $(149) million and imputed interest on finance leases of $(28) million, were (in millions): |
Schedule of Aggregate Maturities of Debt and Finance Leases | Over the next five years, aggregate principal maturities, including finance leases, of our term loans and long-term debt were (in millions): 2023 2024 2025 2026 2027 Thereafter Total $393 $2,041 $3,970 $1,149 $1,567 $11,691 $20,811 |
Schedule of Tender Offers and Debt Redemptions | During 2022, we completed a tender offer in cash and redeemed $987 million of long term U.S. dollar-denominated notes for the following amounts (in millions): Interest Rate Tender Date Maturity Date Amount Repurchased 3.625% March 2022 February 2026 $130 4.125% March 2022 May 2028 $211 2.750% March 2022 April 2030 $500 6.500% March 2022 November 2031 $17 7.000% March 2022 August 2037 $10 6.875% March 2022 February 2038 $21 6.875% March 2022 January 2039 $8 6.500% March 2022 February 2040 $36 4.625% March 2022 May 2048 $54 During 2022, we completed an early redemption of 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 During 2021 we completed an early redemption of euro and U.S. dollar denominated notes for the following amounts (in millions): Interest Rate Redemption Date Maturity Date Amount Redeemed USD Equivalent 2.000% September 2021 October 2021 $1,500 $1,500 3M LIBOR + 0.700% September 2021 October 2022 $500 $500 3M LIBOR + 0.800% September 2021 October 2024 $500 $500 1.000% March 2021 March 2022 €500 $587 1.625% March 2021 January 2023 €700 $821 2.125% March 2021 April 2023 $500 $500 4.000% March 2021 February 2024 $492 $492 |
Schedule of Debt Repayments | During 2022, we repaid the following notes (in millions): Interest Rate Maturity Date Amount USD Equivalent 2.125% September 2022 (1) $500 $500 0.650% July 2022 Fr.150 $156 Various Various (2) €381 $431 (1) Repaid by Mondelez International Holdings Netherlands B.V. ("MIHN"), a wholly owned Dutch subsidiary of Mondelēz International, Inc. (2) 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 twelve months ended December 31, 2022. During 2021, we repaid the following notes or term loans (in millions): Interest Rate Maturity Date Amount USD Equivalent 0.625% December 2021 Fr.300 $327 2.375% January 2021 €679 827 |
Schedule of Debt Issuances | During 2022, we issued the following notes (in millions): Issuance Date Interest Rate Maturity Date Gross Proceeds (1) Gross Proceeds USD Equivalent September 2022 (2) 4.250% September 2025 $500 $500 March 2022 2.125% March 2024 $500 $500 March 2022 2.625% March 2027 $750 $750 March 2022 3.000% March 2032 $750 $750 During 2021, we issued the following notes (in millions): Issuance Date Interest Rate Maturity Date Gross Proceeds (1) Gross Proceeds USD Equivalent September 2021 (2) 0.750% September 2024 $500 $500 September 2021 (2) 1.250% September 2026 $350 $350 September 2021 (2) (3) 0.000% September 2024 €300 $352 September 2021 (2) (4) 0.250% September 2029 €650 $769 September 2021 (2) (4) 0.625% September 2032 €650 $769 September 2021 (2) (4) 1.250% September 2041 €700 $828 March 2021 0.250% March 2028 €750 $896 March 2021 0.750% March 2033 €600 $717 March 2021 1.375% March 2041 €650 $777 (1) Represents gross proceeds from the issuance of notes excluding debt issuance costs, discounts and premiums. (2) Notes issued by Mondelez International Holdings Netherlands B.V. (“MIHN”), a wholly owned Dutch subsidiary of Mondelēz International, Inc. (3) Issuance of exchangeable bonds that were issued at 102% of their principal amount and are redeemable for cash or existing ordinary shares of JDE Peet's at our option (see Note 7, Equity Method Investments). Bondholders have an option to redeem bonds before maturity subject to exchange periods. We have identified our option to settle in either cash or existing ordinary shares of JDE Peet's as an embedded derivative that is bifurcated and accounted for separately from the bond. See Note 10, Financial Instruments. (4) Issuance of green bonds where we have committed to allocate an amount equal to the €1.97 billion total net proceeds from the offering over time to eligible projects that align with our sustainability priorities in the areas of building a thriving ingredient supply chain and reducing our environmental impact. |
Schedule of Fair Value of Debt | The fair value of our term loans was determined using quoted prices for similar instruments in markets that are not active (Level 2 valuation data) and approximates the amounts we have recorded on our consolidated balance sheets. The fair value of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations. As of December 31, 2022 2021 (in millions) Fair Value $ 20,217 $ 20,249 Carrying Value $ 22,933 $ 19,512 |
Schedule of Interest and Other Expense, Net | Interest and other expense, net within our results of continuing operations consisted of: For the Years Ended December 31, 2022 2021 2020 (in millions) Interest expense, debt $ 428 $ 365 $ 423 Loss on debt extinguishment and related expenses 129 137 185 Loss related to interest rate swaps — — 103 Other income, net (134) (55) (103) Interest and other expense, net $ 423 $ 447 $ 608 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Effects of Derivative Instruments | After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Years Ended December 31, 2022 2021 2020 (in millions) Currency exchange contracts – forecasted transactions $ 8 $ — $ (2) Interest rate contracts 145 168 (107) Total $ 153 $ 168 $ (109) Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Years Ended December 31, Recognized 2022 2021 2020 (in millions) Currency exchange contracts: Intercompany loans and $ (14) $ 57 $ (70) Interest and other Forecasted transactions 117 80 41 Cost of sales Forecasted transactions 17 (1) (4) Interest and other Forecasted transactions (1) — (1) Selling, general Commodity contracts 157 385 4 Cost of sales Equity method investment contracts — 2 — Gain on equity method investment contracts Total $ 276 $ 523 $ (30) |
Schedule of Contingent Consideration | The following is a summary of our contingent consideration liability activity: For the Years Ended December 31, 2022 2021 2020 (in millions) Liability at the beginning of the period $ 159 $ 55 $ 14 Contingent consideration arising from acquisitions 440 145 17 Changes in fair value 44 (41) 24 Currency (1) — — Liability at the end of the period $ 642 $ 159 $ 55 Contingent consideration was recorded at fair value in the condensed consolidated balance sheets as follows: As of December 31, 2022 Total Fair Value of Liability Quoted Prices in Significant Significant (in millions) Clif Bar (1) $ 452 $ — $ — $ 452 Other (2) 190 — — 190 Total contingent consideration $ 642 $ — $ — $ 642 As of December 31, 2021 Total Fair Value of Liability Quoted Prices in Significant Significant (in millions) Other (2) $ 159 $ — $ — $ 159 Total contingent consideration $ 159 $ — $ — $ 159 (1) In connection with the Clif Bar acquisition, we entered into a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain net revenue, gross profit and EBITDA targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price. The other contingent consideration liabilities are recorded at fair value with $452 million classified as long term liabilities at December 31, 2022. The estimated fair value of the contingent consideration obligation at the acquisition date was determined using a Monte Carlo simulation and recorded in other liabilities. Significant assumptions used in assessing the fair value of the liability include financial projections for net revenue, gross profit, and EBITDA, as well as discount and volatility rates. Fair value adjustments are primarily recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. (2) The other contingent consideration liabilities are recorded at fair value, with $102 million classified as other current liabilities at December 31, 2022 and $88 million and $159 million classified as long term liabilities at December 31, 2022 and December 31, 2021. The estimated fair value of this contingent consideration was determined using a Monte Carlo valuation model based on Level 3 inputs, including management's latest estimate of forecasted future results. Other key assumptions included discount rate and volatility. Fair value adjustments are recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. |
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 Years Ended December 31, 2022 2021 2020 (in millions) Accumulated (loss)/gain at beginning of period $ (148) $ (161) $ (213) Transfer of realized (gains)/losses in fair value to earnings (39) (155) 161 Unrealized gain/(loss) in fair value 153 168 (109) Accumulated (loss)/gain at end of period $ (34) $ (148) $ (161) |
Schedule of Effects of Derivative Instruments | After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were: For the Years Ended December 31, 2022 2021 2020 (in millions) Currency exchange contracts - forecasted transactions $ (8) $ — $ — Interest rate contracts $ 47 $ 155 $ (161) Total $ 39 $ 155 $ (161) |
Net Investment Hedging | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Hedges of Net Investments in International Operations | As of December 31, 2022, the aggregate notional value of these NIH derivative contracts was $7.3 billion and their impact on other comprehensive earnings and net earnings during the years presented below were as follows: For the Years Ended December 31, 2022 2021 2020 (in millions) After-tax gain/(loss) on NIH contracts (1) $ 396 $ 63 $ (221) (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 consolidated statement of cash flows. For the Years Ended December 31, 2022 2021 2020 (in millions) Amounts excluded from the assessment of hedge effectiveness (1) $ 116 $ 75 $ 117 (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 Years Ended December 31, 2022 2021 2020 (in millions) Euro notes $ 162 $ 211 $ (251) British pound sterling notes 45 3 (8) Swiss franc notes 13 29 (82) Canadian notes 25 (3) (7) |
Derivatives | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value of Derivative Instruments | Derivative instruments were recorded at fair value in the consolidated balance sheets as follows: As of December 31, 2022 2021 Asset Liability Asset Liability (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 132 $ 35 $ 27 $ 17 Net investment hedge derivative contracts (1) 265 241 117 45 $ 397 $ 276 $ 144 $ 62 Derivatives not designated as Currency exchange contracts $ 185 $ 103 $ 156 $ 40 Commodity contracts 200 247 387 137 Interest rate contracts 8 — — — Equity method investment contracts (2) — 3 — 3 $ 393 $ 353 $ 543 $ 180 Total fair value $ 790 $ 629 $ 687 $ 242 (1) Net investment hedge contracts consist of cross-currency interest rate swaps and forward contracts. 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 9, 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 9, 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 December 31, 2022 Total Quoted Prices in Significant Significant (in millions) Currency exchange contracts $ 82 $ — $ 82 $ — Commodity contracts (47) (35) (12) — Interest rate contracts 105 — 105 — Net investment hedge contracts 24 — 24 — Equity method investment contracts (3) — (3) — Total derivatives $ 161 $ (35) $ 196 $ — 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 gross notional values of our derivative instruments were: Notional Amount As of December 31, 2022 2021 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 2,085 $ 1,891 Forecasted transactions 5,470 4,831 Commodity contracts 12,131 9,694 Interest rate contracts 4,147 1,850 Net investment hedges: Net investment hedge derivative contracts 7,319 3,915 Non-U.S. dollar debt designated as net investment hedges Euro notes 3,410 3,622 British pound sterling notes — 356 Swiss franc notes 638 811 Canadian dollar notes 443 475 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans | The projected benefit obligations, plan assets and funded status of our pension plans were: U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 (in millions) Projected benefit obligation at January 1 $ 1,729 $ 1,887 $ 10,821 $ 11,658 Service cost 5 6 88 137 Interest cost 51 42 172 130 Benefits paid (39) (31) (461) (533) Settlements paid (71) (113) — — Actuarial (gains)/losses (482) (63) (2,844) (269) Acquisitions — — 18 — Currency — — (957) (308) Other — 1 41 6 Projected benefit obligation at December 31 1,193 1,729 6,878 10,821 Fair value of plan assets at January 1 1,826 1,959 11,021 10,972 Actual return on plan assets (455) 1 (2,388) 548 Contributions 4 10 211 292 Benefits paid (39) (31) (461) (533) Settlements paid (71) (113) — — Currency — — (992) (258) Other — — (2) — Fair value of plan assets at December 31 1,265 1,826 7,389 11,021 Net pension assets at December 31 $ 72 $ 97 $ 511 $ 200 |
Schedule of Pension Plans Resulted in Net Pension Asset (Liability) | The combined U.S. and non-U.S. pension plans resulted in a net pension asset of $583 million at December 31, 2022 and a net pension asset of $297 million at December 31, 2021. We recognized these amounts in our consolidated balance sheets as follows: As of December 31, 2022 2021 (in millions) Prepaid pension assets $ 1,016 $ 1,009 Other current liabilities (30) (31) Accrued pension costs (403) (681) $ 583 $ 297 |
Schedule of Projected Benefit Obligations, Accumulated Benefit Obligations and Fair Value of Plan Assets | Certain of our U.S. and non-U.S. plans are underfunded with accumulated benefit obligations in excess of plan assets. For these plans, the projected benefit obligations, accumulated benefit obligations and the fair value of plan assets were: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2022 2021 2022 2021 (in millions) Projected benefit obligation $ 31 $ 42 $ 531 $ 1,889 Accumulated benefit obligation 31 42 492 1,805 Fair value of plan assets 2 3 135 1,223 |
Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations | We used the following weighted-average assumptions to determine our benefit obligations under the pension plans: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2022 2021 2022 2021 Discount rate 5.55 % 3.01 % 4.51 % 1.73 % Expected rate of return on plan assets 6.25 % 4.50 % 5.41 % 3.44 % Rate of compensation increase 4.00 % 4.00 % 3.22 % 2.83 % We used the following weighted-average assumptions to determine our net periodic pension cost: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2022 2021 2020 2022 2021 2020 Discount rate 3.01 % 2.73 % 3.44 % 1.74 % 1.33 % 1.74 % Expected rate of return 4.50 % 4.50 % 5.00 % 3.44 % 3.90 % 4.20 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 2.84 % 3.16 % 3.17 % |
Schedule of Components of Net Costs | Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2022 2021 2020 2022 2021 2020 (in millions) Service cost $ 5 $ 6 $ 6 $ 88 $ 137 $ 121 Interest cost 51 42 49 172 130 149 Expected return on plan assets (79) (72) (77) (353) (419) (400) Amortization: Net loss/(gain) 6 17 17 57 130 118 Prior service cost/(benefit) 1 1 1 (2) (6) (7) Curtailment expense/(credit) (1) — — — 8 (17) — Settlement losses and other expenses 14 19 18 2 3 4 Net periodic pension cost $ (2) $ 13 $ 14 $ (28) $ (42) $ (15) (1) During the third quarter of 2021, we terminated our Defined Benefit Pension Scheme in Nigeria. During the second quarter of 2021, we made a decision to freeze our Defined Benefit Pension Scheme in the United Kingdom. As a result, we recognized curtailment credits of ($17 million) in 2021 recorded within benefit plan non-service income. In connection with the United Kingdom plan freeze, we also incurred incentive payment charges and other expenses of $48 million in 2021 included in operating income. |
Schedule of Fair Values of Pension Plan Assets | The fair value of pension plan assets was determined using the following fair value measurements: As of December 31, 2022 Asset Category Total Fair Quoted Prices Significant Significant (in millions) U.S. equity securities $ 3 $ 3 $ — $ — Non-U.S. equity securities 1 1 — — Pooled funds - equity securities 960 906 54 — Total equity securities 964 910 54 — Government bonds 2,495 48 2,447 — Pooled funds - fixed-income securities 560 453 107 — Corporate bonds and other 2,296 144 612 1,540 Total fixed-income securities 5,351 645 3,166 1,540 Real estate 221 152 — 69 Private equity 4 — — 4 Cash 4 3 — 1 Other 102 97 5 — Total assets in the fair value hierarchy $ 6,646 $ 1,807 $ 3,225 $ 1,614 Investments measured at net asset value 1,892 Total investments at fair value $ 8,538 As of December 31, 2021 Asset Category Total Fair Quoted Prices Significant Significant (in millions) U.S. equity securities $ 4 $ 4 $ — $ — Non-U.S. equity securities 3 3 — — Pooled funds - equity securities 1,545 1,084 461 — Total equity securities 1,552 1,091 461 — Government bonds 3,777 56 3,721 — Pooled funds - fixed-income securities 648 449 199 — Corporate bonds and other 3,943 139 1,415 2,389 Total fixed-income securities 8,368 644 5,335 2,389 Real estate 251 179 — 72 Private equity 4 — — 4 Cash 5 4 — 1 Other 162 157 5 — Total assets in the fair value hierarchy $ 10,342 $ 2,075 $ 5,801 $ 2,466 Investments measured at net asset value 2,382 Total investments at fair value $ 12,724 The percentage of fair value of pension plan assets was: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, Asset Category 2022 2021 2022 2021 Equity securities 15% 15% 16% 17% Fixed-income securities 85% 85% 63% 62% Real estate — — 3% 3% Buy-in annuity policies — — 17% 17% Cash — — 1% 1% Total 100% 100% 100% 100% |
Schedule of Changes in Level 3 Plan Assets | Changes in our Level 3 plan assets, which are recorded in other comprehensive earnings/(losses), included: Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Corporate bond and other $ 2,387 $ (450) $ (148) $ — $ (249) $ 1,540 Real estate 74 3 (1) — (6) 70 Private equity and other 5 — — — (1) 4 Total Level 3 investments $ 2,466 $ (447) $ (149) $ — $ (256) $ 1,614 Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Corporate bond and other $ 1,791 $ (178) $ 784 $ — $ (10) $ 2,387 Real estate 70 7 1 — (4) 74 Private equity and other 4 1 — — — 5 Total Level 3 investments $ 1,865 $ (170) $ 785 $ — $ (14) $ 2,466 |
Schedule of Estimated Future Benefit Payments | The estimated future benefit payments from our pension plans at December 31, 2022 were (in millions): 2023 2024 2025 2026 2027 2028-2032 U.S. Plans $147 $89 $92 $91 $90 $442 Non-U.S. Plans 404 395 401 414 419 2,157 |
Postretirement Health Care Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations | We used the following weighted-average assumptions to determine our net periodic postretirement health care cost: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2022 2021 2020 2022 2021 2020 Discount rate 2.96% 2.68% 3.41% 3.81% 3.35% 3.86% Health care cost trend rate 5.50% 5.75% 6.00% 5.72% 5.66% 5.42% |
Schedule of Components of Net Costs | Net periodic postretirement health care costs consisted of the following: For the Years Ended December 31, 2022 2021 2020 (in millions) Service cost $ 2 $ 4 $ 5 Interest cost 9 8 12 Amortization: Net loss/(gain) 1 2 7 Prior service credit — — (30) Net periodic postretirement health care costs/(benefit) $ 12 $ 14 $ (6) |
Schedule of Estimated Future Benefit Payments | Our estimated future benefit payments for our postretirement health care plans at December 31, 2022 were (in millions): 2023 2024 2025 2026 2027 2028-2032 U.S. Plans $11 $12 $11 $11 $11 $49 Non-U.S. Plans 4 5 5 5 5 28 |
Schedule of Changes in Accumulated Postemployment Benefit Obligations | Our postretirement health care plans are not funded. The changes in and the amount of the accrued benefit obligation were: As of December 31, 2022 2021 (in millions) Accrued benefit obligation at January 1 $ 317 $ 361 Service cost 2 4 Interest cost 9 8 Benefits paid (15) (15) Plan amendments — (1) Currency (5) (1) Actuarial losses/(gains) (75) (39) Accrued benefit obligation at December 31 $ 233 $ 317 |
Schedule of Weighted-Average Assumptions to Determine Benefit Obligations | We used the following weighted-average assumptions to determine our postretirement benefit obligations: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2022 2021 2022 2021 Discount rate 5.53 % 2.96 % 6.07 % 3.81 % Health care cost trend rate assumed for next year 7.00 % 5.50 % 5.98 % 5.72 % Ultimate trend rate 5.00 % 5.00 % 4.70 % 4.47 % Year that the rate reaches the ultimate trend rate 2031 2024 2040 2040 |
Postemployment Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Our postemployment plans are not funded. The changes in and the amount of the accrued benefit obligation at December 31, 2022 and 2021 were: As of December 31, 2022 2021 (in millions) Accrued benefit obligation at January 1 $ 56 $ 65 Service cost 4 6 Interest cost 2 3 Benefits paid (14) (12) Actuarial losses/(gains) (1) (6) Accrued benefit obligation at December 31 $ 47 $ 56 |
Schedule of Changes in Accumulated Postemployment Benefit Obligations | Net periodic postemployment costs consisted of the following: For the Years Ended December 31, 2022 2021 2020 (in millions) Service cost $ 4 $ 6 $ 6 Interest cost 2 3 3 Amortization of net gains (6) (4) (2) Net periodic postemployment costs $ — $ 5 $ 7 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Weighted-Average Black-Scholes Fair Value Assumptions | Our weighted-average Black-Scholes Model fair value assumptions were: Risk-Free Expected Life Expected Expected Fair Value 2022 1.87% 5 years 22.05% 2.13% $11.24 2021 0.57% 5 years 23.45% 2.20% $9.08 2020 1.34% 5 years 19.64% 2.06% $8.61 |
Schedule of Stock Options Activity | Stock option activity is reflected below: Shares Subject Weighted- Average Aggregate Balance at January 1, 2020 33,855,948 $ 36.19 $ 640 million Annual grant to eligible employees 2,280,440 59.04 Additional options issued 136,360 49.48 Total options granted 2,416,800 58.50 Options exercised (1) (7,847,964) 30.55 $ 205 million Options cancelled (672,890) 44.94 Balance at December 31, 2020 27,751,894 39.51 $ 527 million Annual grant to eligible employees 2,412,710 56.13 Additional options issued 160,640 58.17 Total options granted 2,573,350 56.26 Options exercised (1) (6,249,330) 33.68 $ 169 million Options cancelled (572,155) 49.65 Balance at December 31, 2021 23,503,759 42.65 $ 556 million Annual grant to eligible employees 2,180,540 64.65 Additional options issued 63,490 64.39 Total options granted 2,244,030 64.64 Options exercised (1) (4,780,086) 35.96 $ 142 million Options cancelled (477,453) 55.89 Balance at December 31, 2022 20,490,250 46.31 5 years $ 417 million Exercisable at December 31, 2022 16,350,018 42.62 4 years $ 393 million (1) Cash received from options exercised was $158 million in 2022, $206 million in 2021 and $236 million in 2020. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $22 million in 2022, $24 million in 2021 and $27 million in 2020. |
Deferred units, performance share units and other stock-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Deferred Stock Units, Performance Share Units and Restricted Stock Activity | Our PSU, DSU and other stock-based award activity is reflected below: Number Grant Date Weighted-Average Weighted-Average Balance at January 1, 2020 5,661,945 $ 46.90 Annual grant to eligible employees: Feb. 20, 2020 Performance share units 825,230 65.83 Deferred stock units 545,550 59.04 Additional shares granted (1) 390,730 Various 56.90 Total shares granted 1,761,510 61.75 $ 109 million Vested (2) (3) (2,051,054) 42.87 $ 88 million Forfeited (2) (475,411) 48.24 Balance at December 31, 2020 4,896,990 53.80 Annual grant to eligible employees: Feb. 18, 2021 Performance share units 903,250 59.35 Deferred stock units 550,090 56.13 Additional shares granted (1) 1,163,644 Various 53.76 Total shares granted 2,616,984 56.19 $ 147 million Vested (2) (3) (2,459,427) 49.59 $ 122 million Forfeited (2) (386,501) 57.52 Balance at December 31, 2021 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) 836,117 Various 59.37 Total shares granted 2,147,797 61.55 $ 132 million Vested (2) (3) (1,925,556) 54.13 $ 104 million Forfeited (2) (438,613) 60.68 Balance at December 31, 2022 4,451,674 60.12 (1) Includes PSUs and DSUs. (2) Includes PSUs, DSUs and other stock-based awards. (3) The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $5 million in 2022, $6 million in 2021 and $5 million in 2020. (4) The grant date fair value of PSUs is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. 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. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Authorized Common Stock Repurchase Programs | Shares of Common Stock issued, in treasury and outstanding were: Shares Issued Treasury Shares Shares Balance at January 1, 2020 1,996,537,778 (561,531,524) 1,435,006,254 Shares repurchased — (25,071,845) (25,071,845) Exercise of stock options and issuance of — 9,239,812 9,239,812 Balance at December 31, 2020 1,996,537,778 (577,363,557) 1,419,174,221 Shares repurchased — (35,384,366) (35,384,366) Exercise of stock options and issuance of — 7,840,684 7,840,684 Balance at December 31, 2021 1,996,537,778 (604,907,239) 1,391,630,539 Shares repurchased — (31,556,510) (31,556,510) Exercise of stock options and issuance of — 5,817,062 5,817,062 Balance at December 31, 2022 1,996,537,778 (630,646,687) 1,365,891,091 |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Earnings/(Losses) | The following table summarizes the changes in the accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net losses/(gains) of $21 million in 2022, $(44) million in 2021 and $285 million in 2020. For the Years Ended December 31, 2022 2021 2020 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (9,097) $ (8,655) $ (8,320) Currency translation adjustments (659) (481) (398) Reclassification to earnings related to: Equity method investment transactions (1) — — 29 Tax (expense)/benefit (66) 23 47 Other comprehensive earnings/(losses) (725) (458) (322) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 14 16 (13) Balance at end of period (9,808) (9,097) (8,655) Pension and Other Benefit Plans: Balance at beginning of period $ (1,379) $ (1,874) $ (1,721) Net actuarial gain/(loss) arising during period 149 398 (187) Tax (expense)/benefit on net actuarial gain/(loss) (37) (80) 38 Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (2) 57 140 104 Settlement losses and other expenses (1) 16 22 22 Curtailment credit (2) 8 (17) — Tax (benefit) on reclassifications (3) (21) (34) (31) Currency impact 102 66 (99) Other comprehensive earnings/(losses) 274 495 (153) Balance at end of period (1,105) (1,379) (1,874) Derivative Cash Flow Hedges: Balance at beginning of period $ (148) $ (161) $ (213) Net derivative gains/(losses) 160 163 (132) Tax (expense)/benefit on net derivative gain/(loss) (13) — 27 Losses/(gains) reclassified into net earnings: Currency exchange contracts (4) 8 — — Interest rate contracts (1) (4) (30) (152) 189 Tax (benefit) on reclassifications (3) (17) (3) (28) Currency impact 6 5 (4) Other comprehensive earnings/(losses) 114 13 52 Balance at end of period (34) (148) (161) Accumulated other comprehensive income attributable to Balance at beginning of period $ (10,624) $ (10,690) $ (10,254) Total other comprehensive earnings/(losses) (337) 50 (423) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 14 16 (13) Other comprehensive earnings/(losses) attributable to Mondelēz International (323) 66 (436) Balance at end of period $ (10,947) $ (10,624) $ (10,690) (1) Includes equity method investment transactions recorded within gain/(loss) on equity method investment transactions. (2) These reclassified losses are included in net periodic benefit costs disclosed in Note 11, Benefit Plans . (3) Taxes reclassified to earnings are recorded within the provision for income taxes. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | Earnings/(losses) from continuing operations before income taxes and the provision for income taxes consisted of: For the Years Ended December 31, 2022 2021 2020 (in millions) Earnings/(losses) from continuing operations before income taxes: United States $ 463 $ 519 $ 514 Outside United States 2,765 3,850 2,869 $ 3,228 $ 4,369 $ 3,383 Provision for income taxes: United States federal: Current $ 187 $ 297 $ 440 Deferred (17) (31) (82) 170 266 358 State and local: Current 78 89 98 Deferred 2 9 (7) 80 98 91 Total United States 250 364 449 Outside United States: Current 642 599 756 Deferred (27) 227 19 Total outside United States 615 826 775 Total provision for income taxes $ 865 $ 1,190 $ 1,224 |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate as follows: For the Years Ended December 31, 2022 2021 2020 U.S. federal statutory rate 21.0% 21.0% 21.0% Increase/(decrease) resulting from: State and local income taxes, net of federal tax benefit 1.6% 1.1% 1.6% Tax impacts from our foreign operations 2.0% (1.6)% 1.1% Changes in judgment on realizability of deferred tax assets (1.1)% 0.1% (2.2)% Reversal of other tax accruals no longer required (1.4)% (0.5)% (0.8)% Tax accrual on investment in KDP (including tax impact of 0.5% 4.7% 6.7% Excess tax benefits from equity compensation (0.8)% (0.7)% (1.0)% Tax legislation 0.5% 2.3% 1.0% Business sales (including tax impact from JDE Peet's transaction) 0.1% —% 7.4% Foreign tax provisions under TCJA (GILTI, FDII and BEAT) (1) 0.1% 0.8% 1.1% Non-deductible expenses, including buyout of Clif Bar ESOP and European Commission legal matter 4.1% 0.1% 0.1% Other 0.2% (0.1)% 0.2% Effective tax rate 26.8% 27.2% 36.2% (1) The Tax Cuts and Jobs Act of 2017 (“TCJA”) established the Global Intangible Low-Tax Income (“GILTI”) provision, which taxes U.S. allocated expenses and certain income from foreign operations; the Foreign-Derived Intangible Income (“FDII”) provision, which allows a |
Schedule of Deferred Tax Assets and Liabilities Temporary Differences | Tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of: As of December 31, 2022 2021 (in millions) Deferred income tax assets: Accrued postretirement and postemployment benefits $ 83 $ 114 Other employee benefits 156 150 Accrued expenses 649 454 Loss carryforwards 664 685 Tax credit carryforwards 786 786 Other 481 468 Total deferred income tax assets 2,819 2,657 Valuation allowance (1,257) (1,280) Net deferred income tax assets $ 1,562 $ 1,377 Deferred income tax liabilities: Intangible assets, including impact from Swiss tax reform $ (3,279) $ (3,214) Property, plant and equipment (708) (638) Accrued pension costs (57) 23 Other (482) (451) Total deferred income tax liabilities (4,526) (4,280) Net deferred income tax liabilities $ (2,964) $ (2,903) |
Schedule of Changes in Unrecognized Tax Benefit | The changes in our unrecognized tax benefits were: For the Years Ended December 31, 2022 2021 2020 (in millions) January 1 $ 446 $ 442 $ 426 Increases from positions taken during prior periods 16 31 35 Decreases from positions taken during prior periods (9) (21) (17) Increases from positions taken during the current period 48 47 48 Decreases relating to settlements with taxing authorities (54) (13) (27) Reductions resulting from the lapse of the applicable statute of limitations (22) (26) (29) Currency/other (1) (14) 6 December 31 $ 424 $ 446 $ 442 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Years Ended December 31, 2022 2021 2020 (in millions, except per share data) Net earnings $ 2,726 $ 4,314 $ 3,569 Noncontrolling interest earnings (9) (14) (14) Net earnings attributable to Mondelēz International $ 2,717 $ 4,300 $ 3,555 Weighted-average shares for basic EPS 1,378 1,403 1,431 Plus incremental shares from assumed conversions 7 10 10 Weighted-average shares for diluted EPS 1,385 1,413 1,441 Basic earnings per share attributable to $ 1.97 $ 3.06 $ 2.48 Diluted earnings per share attributable to $ 1.96 $ 3.04 $ 2.47 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Net Revenues by Segment | Our segment net revenues and earnings, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2022 2021 2020 (in millions) Net revenues: Latin America $ 3,629 $ 2,797 $ 2,477 AMEA 6,767 6,465 5,740 Europe 11,420 11,156 10,207 North America 9,680 8,302 8,157 Net revenues $ 31,496 $ 28,720 $ 26,581 |
Schedule of Earnings Before Income Taxes by Segment | Earnings before income taxes: Operating income: Latin America $ 388 $ 261 $ 189 AMEA 929 1,054 821 Europe 1,481 2,092 1,775 North America 1,769 1,371 1,587 Unrealized gains/(losses) on hedging activities (326) 279 16 General corporate expenses (245) (253) (326) Amortization of intangible assets (132) (134) (194) Gain on acquisition — 8 — Acquisition-related costs (330) (25) (15) Operating income 3,534 4,653 3,853 Benefit plan non-service income 117 163 138 Interest and other expense, net (423) (447) (608) Earnings before income taxes $ 3,228 $ 4,369 $ 3,383 |
Schedule of Total Assets, Depreciation Expense and Capital Expenditure by Segment | Total assets, depreciation expense and capital expenditures by segment, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2022 2021 2020 (in millions) Total assets: Latin America (1) $ 6,164 $ 4,106 $ 4,181 AMEA (1) 9,882 10,386 9,997 Europe (1) 22,713 20,927 21,442 North America (1) 26,603 23,321 23,297 Equity method investments 4,879 5,289 6,036 Unallocated assets and adjustments (2) 920 3,063 2,857 Total assets $ 71,161 $ 67,092 $ 67,810 (1) Segment assets do not reflect outstanding intercompany asset balances that have been eliminated at a segment level. (2) Unallocated assets consist primarily of cash and cash equivalents, deferred income taxes, centrally held property, plant and equipment, prepaid pension assets and derivative financial instrument balances. Final adjustments for jurisdictional netting of deferred tax assets and liabilities is done at a consolidated level. For the Years Ended December 31, 2022 2021 2020 (in millions) Depreciation expense (1) : Latin America $ 117 $ 105 $ 101 AMEA 169 173 159 Europe 256 257 238 North America 148 148 154 Total depreciation expense $ 690 $ 683 $ 652 (1) Includes depreciation expense related to owned property, plant and equipment. Does not include amortization of intangible assets or leased assets. Refer to the consolidated statement of cash flows for total depreciation and amortization expenses. For the Years Ended December 31, 2022 2021 2020 (in millions) Capital expenditures: Latin America $ 113 $ 165 $ 219 AMEA 229 208 177 Europe 355 409 295 North America 209 183 172 Total capital expenditures $ 906 $ 965 $ 863 |
Schedule of Net Revenues by Geographic Area | Geographic data for net revenues (recognized in the countries where products are sold from) and long-lived assets, excluding deferred taxes, goodwill, intangible assets and equity method investments, were: For the Years Ended December 31, 2022 2021 2020 (in millions) Net revenues: United States $ 8,315 $ 7,146 $ 7,130 Other 23,181 21,574 19,451 Total net revenues $ 31,496 $ 28,720 $ 26,581 |
Schedule of Long-lived Assets by Geographic Area | As of December 31, 2022 2021 2020 (in millions) Long-lived assets: United States $ 2,740 $ 1,851 $ 1,956 United Kingdom 932 1,125 888 Other 8,886 7,675 7,784 Total long-lived assets $ 12,558 $ 10,651 $ 10,628 |
Schedule of Net Revenues by Product Category | Net revenues by product category, reflecting our current segment structure for all periods presented, were: For the Year Ended December 31, 2022 Latin AMEA Europe North Total (in millions) Biscuits & Baked Snacks $ 1,013 $ 2,515 $ 3,818 $ 8,262 $ 15,608 Chocolate 1,003 2,520 5,646 317 9,486 Gum & Candy 840 780 691 1,101 3,412 Beverages 409 572 119 — 1,100 Cheese & Grocery 364 380 1,146 — 1,890 Total net revenues $ 3,629 $ 6,767 $ 11,420 $ 9,680 $ 31,496 For the Year Ended December 31, 2021 (1) Latin AMEA Europe North Total (in millions) Biscuits & Baked Snacks $ 799 $ 2,254 $ 3,354 $ 7,145 $ 13,552 Chocolate 758 2,395 5,836 282 9,271 Gum & Candy 567 816 614 875 2,872 Beverages 359 550 126 — 1,035 Cheese & Grocery 314 450 1,226 — 1,990 Total net revenues $ 2,797 $ 6,465 $ 11,156 $ 8,302 $ 28,720 For the Year Ended December 31, 2020 (1) Latin AMEA Europe North Total (in millions) Biscuits & Baked Snacks $ 669 $ 2,045 $ 3,058 $ 7,024 $ 12,796 Chocolate 609 2,019 5,268 253 8,149 Gum & Candy 474 696 612 880 2,662 Beverages 403 544 102 — 1,049 Cheese & Grocery 322 436 1,167 — 1,925 Total net revenues $ 2,477 $ 5,740 $ 10,207 $ 8,157 $ 26,581 (1) Our snack product categories include biscuits & baked snacks, chocolate and gum & candy. During the first quarter of 2022, we realigned some of our products between our biscuits & baked snacks and chocolate categories; as such, we reclassified the product category net revenues on a basis consistent with the 2022 presentation. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 USD ($) facility | Dec. 31, 2022 USD ($) installment country | Dec. 31, 2022 USD ($) installment country | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of countries in which products are sold (over) | country | 150 | 150 | ||||
Inventory valuation reserves | $ 151 | $ 151 | $ 116 | |||
Restricted cash within other current assets | 25 | 25 | 7 | |||
Total cash, cash equivalents and restricted cash | 1,948 | 1,948 | 3,553 | $ 3,650 | $ 1,328 | |
Outstanding principal amount of receivables sold under factoring arrangement | $ 516 | 516 | 761 | 760 | ||
Advertising expense | 1,670 | 1,564 | 1,376 | |||
Research and development expense | $ 346 | $ 347 | $ 332 | |||
Award vesting period | 3 years | |||||
Stock options | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of annual installments of stock options | installment | 3 | 3 | ||||
Stock options expiration term | 10 years | |||||
Deferred stock units | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Award vesting period | 3 years | |||||
War in 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, net of tax | 145 | |||||
Tangible asset impairment charges | 75 | |||||
Inventory valuation reserves | 33 | |||||
Accounts receivable, allowance for credit loss, period increase (decrease) | 19 | |||||
Accrued liabilities | 16 | |||||
Accounts receivable credit loss reversal and inventory recoveries | $ 22 | |||||
Minimum | Performance share units | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of performance share units vest ranges | 0% | |||||
Maximum | Performance share units | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of performance share units vest ranges | 200% | |||||
Machinery and equipment | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life of long-lived assets | 3 years | |||||
Machinery and equipment | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life of long-lived assets | 20 years | |||||
Buildings and building improvements | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life of long-lived assets | 40 years | |||||
Software | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life of long-lived assets | 7 years | |||||
Türkiye | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of consolidated net revenues | 0.70% | |||||
Argentina | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of consolidated net revenues | 1.60% | |||||
Restructuring, Settlement And Impairment Provisions | War in Ukraine | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Incremental costs due to war in Ukraine, before tax | 75 | |||||
Cost of sales | War in Ukraine | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Incremental costs due to war in Ukraine, before tax | 44 | |||||
General and Administrative Expense | War in Ukraine | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Incremental costs due to war in Ukraine, before tax | $ 24 | |||||
Selling, general and administrative expenses | Türkiye | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Remeasurement (loss) gain due to inflationary accounting | $ (1) | |||||
Selling, general and administrative expenses | Argentina | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Remeasurement (loss) gain due to inflationary accounting | $ (39) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Changes in Allowances for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for Trade Receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at January 1 | $ (37) | $ (42) |
Current period provision for expected credit losses | (13) | (3) |
Write-offs charged against the allowance | 2 | 5 |
Currency | 3 | 3 |
Balance at December 31 | (45) | (37) |
Allowance for Other Current Receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at January 1 | (49) | (42) |
Current period provision for expected credit losses | (14) | (13) |
Write-offs charged against the allowance | 3 | 3 |
Currency | 1 | 3 |
Balance at December 31 | (59) | (49) |
Allowance for Long-Term Receivables | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at January 1 | (10) | (12) |
Current period provision for expected credit losses | (3) | 0 |
Write-offs charged against the allowance | 0 | 2 |
Currency | (1) | 0 |
Balance at December 31 | $ (14) | $ (10) |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) £ in Millions, $ in Millions, € in Billions, $ in Billions | 12 Months Ended | ||||||||||||||||
Nov. 01, 2022 USD ($) | Nov. 01, 2022 MXN ($) | Aug. 01, 2022 USD ($) | Jan. 03, 2022 USD ($) | Jan. 03, 2022 EUR (€) | Nov. 01, 2021 USD ($) | Nov. 01, 2021 AUD ($) | Apr. 01, 2021 USD ($) | Apr. 01, 2021 AUD ($) | Mar. 25, 2021 USD ($) | Mar. 25, 2021 GBP (£) | Jan. 04, 2021 USD ($) | Apr. 01, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 16, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||||||||||||
Business combination, acquisition related costs | $ 330,000,000 | $ 25,000,000 | $ 15,000,000 | ||||||||||||||
Payment to acquire business, net of cash received | 5,286,000,000 | 833,000,000 | 1,136,000,000 | ||||||||||||||
Goodwill | 23,450,000,000 | 21,978,000,000 | $ 21,895,000,000 | ||||||||||||||
Held for Sale | Developed-market Gum Business | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Expected sale price | $ 1,400,000,000 | ||||||||||||||||
Ricolino | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Percentage of interests acquired | 100% | ||||||||||||||||
Closing cash consideration | $ 1,300,000,000 | $ 26 | |||||||||||||||
Indefinite-life intangible assets | 339,000,000 | ||||||||||||||||
Incremental net revenues from acquisition | 105,000,000 | ||||||||||||||||
Incremental operating income (loss) from acquisition | 1,000,000 | ||||||||||||||||
Business combination, acquisition related costs | 64,000,000 | ||||||||||||||||
Business combination, inventory step-up charge | 5,000,000 | ||||||||||||||||
Acquisition integration costs | 11,000,000 | ||||||||||||||||
Payment to acquire business, net of cash received | 1,308,000,000 | ||||||||||||||||
Goodwill | 714,000,000 | ||||||||||||||||
Property, plant and equipment | 144,000,000 | ||||||||||||||||
Inventory | 70,000,000 | ||||||||||||||||
Receivables | 86,000,000 | ||||||||||||||||
Operating leases right of use assets | 17,000,000 | ||||||||||||||||
Other current assets | 3,000,000 | ||||||||||||||||
Current liabilities | 177,000,000 | ||||||||||||||||
Definite-life intangible assets | 218,000,000 | ||||||||||||||||
Deferred tax liabilities | 77,000,000 | ||||||||||||||||
Long-term other liabilities | $ 12,000,000 | ||||||||||||||||
Clif Bar | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Percentage of interests acquired | 100% | ||||||||||||||||
Incremental net revenues from acquisition | 361,000,000 | ||||||||||||||||
Incremental operating income (loss) from acquisition | 13,000,000 | ||||||||||||||||
Business combination, acquisition related costs | 296,000,000 | ||||||||||||||||
Business combination, inventory step-up charge | 20,000,000 | ||||||||||||||||
Acquisition integration costs | 30,000,000 | ||||||||||||||||
Payments to acquire businesses and other related costs | $ 2,900,000,000 | ||||||||||||||||
Payment to acquire business, net of cash received | 2,576,000,000 | ||||||||||||||||
Business combination, payment of employee stock ownership plan expense | 300,000,000 | ||||||||||||||||
Contingent consideration | 440,000,000 | 452,000,000 | |||||||||||||||
Goodwill expected to be deductible for income tax purposes | 1,400,000,000 | ||||||||||||||||
Goodwill | 1,020,000,000 | ||||||||||||||||
Property, plant and equipment | 186,000,000 | ||||||||||||||||
Inventory | 124,000,000 | ||||||||||||||||
Receivables | 76,000,000 | ||||||||||||||||
Operating leases right of use assets | 22,000,000 | ||||||||||||||||
Other current assets | 9,000,000 | ||||||||||||||||
Current liabilities | 159,000,000 | ||||||||||||||||
Definite-life intangible assets | 200,000,000 | ||||||||||||||||
Long-term other liabilities | 15,000,000 | ||||||||||||||||
Clif Bar | Brands | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Indefinite-life intangible assets | 1,450,000,000 | ||||||||||||||||
Clif Bar | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business combination, contingent consideration arrangements, range of outcomes, value, low | 0 | ||||||||||||||||
Clif Bar | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business combination, contingent consideration arrangements, range of outcomes, value, high | $ 2,400,000,000 | ||||||||||||||||
Chipita | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Percentage of interests acquired | 100% | ||||||||||||||||
Closing cash consideration | $ 1,400,000,000 | € 1.2 | |||||||||||||||
Incremental net revenues from acquisition | 651,000,000 | ||||||||||||||||
Incremental operating income (loss) from acquisition | 36,000,000 | ||||||||||||||||
Business combination, acquisition related costs | 22,000,000 | 6,000,000 | |||||||||||||||
Acquisition integration costs | 90,000,000 | 17,000,000 | |||||||||||||||
Payment to acquire business, net of cash received | 1,402,000,000 | ||||||||||||||||
Debt assumed | 436,000,000 | 0.5 | |||||||||||||||
Total purchase price | 1,800,000,000 | € 1.7 | |||||||||||||||
Goodwill | 795,000,000 | ||||||||||||||||
Property, plant and equipment | 379,000,000 | ||||||||||||||||
Inventory | 60,000,000 | ||||||||||||||||
Receivables | 102,000,000 | ||||||||||||||||
Other current assets | 3,000,000 | ||||||||||||||||
Current liabilities | 133,000,000 | ||||||||||||||||
Definite-life intangible assets | 48,000,000 | ||||||||||||||||
Deferred tax liabilities | 158,000,000 | ||||||||||||||||
Long-term other liabilities | 21,000,000 | ||||||||||||||||
Chipita | Brands | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Indefinite-life intangible assets | $ 686,000,000 | ||||||||||||||||
Gourmet Food | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Closing cash consideration | $ 343,000,000 | $ 450 | |||||||||||||||
Indefinite-life intangible assets | 41,000,000 | ||||||||||||||||
Incremental net revenues from acquisition | 14,000,000 | ||||||||||||||||
Incremental operating income (loss) from acquisition | 1,000,000 | ||||||||||||||||
Business combination, acquisition related costs | 1,000,000 | 7,000,000 | |||||||||||||||
Goodwill | 164,000,000 | ||||||||||||||||
Property, plant and equipment | 19,000,000 | ||||||||||||||||
Inventory | 18,000,000 | ||||||||||||||||
Receivables | 25,000,000 | ||||||||||||||||
Other assets | 12,000,000 | ||||||||||||||||
Operating leases right of use assets | 5,000,000 | ||||||||||||||||
Other current assets | 3,000,000 | ||||||||||||||||
Current liabilities | 19,000,000 | ||||||||||||||||
Long-term operating lease liabilities | 5,000,000 | ||||||||||||||||
Definite-life intangible assets | $ 80,000,000 | ||||||||||||||||
Gourmet Food | Divestitures | MaxFoods Pty Ltd. | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Incremental net revenues from acquisition | 35,000,000 | ||||||||||||||||
Incremental operating income (loss) from acquisition | 5,000,000 | ||||||||||||||||
Proceeds from divestiture of businesses, net of cash divested | $ 41,000,000 | $ 57 | |||||||||||||||
Grenade | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Indefinite-life intangible assets | $ 82,000,000 | ||||||||||||||||
Incremental net revenues from acquisition | 21,000,000 | ||||||||||||||||
Incremental operating income (loss) from acquisition | 2,000,000 | ||||||||||||||||
Business combination, acquisition related costs | 2,000,000 | ||||||||||||||||
Payment to acquire business, net of cash received | 261,000,000 | £ 188 | |||||||||||||||
Goodwill | 181,000,000 | ||||||||||||||||
Property, plant and equipment | 1,000,000 | ||||||||||||||||
Inventory | 11,000,000 | ||||||||||||||||
Receivables | 18,000,000 | ||||||||||||||||
Current liabilities | 25,000,000 | ||||||||||||||||
Definite-life intangible assets | 28,000,000 | ||||||||||||||||
Deferred tax liabilities | 20,000,000 | ||||||||||||||||
Long-term other liabilities | $ 15,000,000 | ||||||||||||||||
Hu | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Percentage of interests acquired | 93% | ||||||||||||||||
Indefinite-life intangible assets | $ 123,000,000 | ||||||||||||||||
Business combination, acquisition related costs | 9,000,000 | ||||||||||||||||
Payment to acquire business, net of cash received | 229,000,000 | ||||||||||||||||
Contingent consideration | 132,000,000 | ||||||||||||||||
Goodwill | 202,000,000 | ||||||||||||||||
Property, plant and equipment | 1,000,000 | ||||||||||||||||
Inventory | 2,000,000 | ||||||||||||||||
Receivables | 4,000,000 | ||||||||||||||||
Current liabilities | 5,000,000 | ||||||||||||||||
Definite-life intangible assets | 51,000,000 | ||||||||||||||||
Long-term other liabilities | 132,000,000 | ||||||||||||||||
Reduction to contingent consideration liability | 7,000,000 | 70,000,000 | |||||||||||||||
Pre-tax gain to step up investment to fair value and consolidate the company | 9,000,000 | ||||||||||||||||
After-tax gain to step up investment to fair value and consolidate the company | 7,000,000 | ||||||||||||||||
Amount of equity in the acquiree held by immediately before the acquisition date | $ 8,000,000 | ||||||||||||||||
Percentage of equity in the acquiree held immediately before the acquisition date | 7% | ||||||||||||||||
Give & Go | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Indefinite-life intangible assets | $ 42,000,000 | ||||||||||||||||
Incremental net revenues from acquisition | 106,000,000 | ||||||||||||||||
Incremental operating income (loss) from acquisition | 6,000,000 | ||||||||||||||||
Acquisition integration costs | $ 26,000,000 | $ 6,000,000 | |||||||||||||||
Payment to acquire business, net of cash received | 1,136,000,000 | ||||||||||||||||
Total purchase price | 1,139,000,000 | ||||||||||||||||
Goodwill | 531,000,000 | ||||||||||||||||
Property, plant and equipment | 136,000,000 | ||||||||||||||||
Inventory | 38,000,000 | ||||||||||||||||
Receivables | 29,000,000 | ||||||||||||||||
Operating leases right of use assets | 61,000,000 | ||||||||||||||||
Other current assets | 6,000,000 | ||||||||||||||||
Current liabilities | 42,000,000 | ||||||||||||||||
Long-term operating lease liabilities | 56,000,000 | ||||||||||||||||
Definite-life intangible assets | 511,000,000 | ||||||||||||||||
Deferred tax liabilities | 92,000,000 | ||||||||||||||||
Long-term other liabilities | 19,000,000 | ||||||||||||||||
Give & Go | Customer Relationships | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Goodwill expected to be deductible for income tax purposes | 0 | ||||||||||||||||
Definite-lived intangible assets acquired | $ 416,000,000 | ||||||||||||||||
Estimated useful life of definite-lived intangible assets acquired | 17 years |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Purchase Price Allocation of Net Tangible and Intangible Assets Acquired and Liabilities Assumed - Ricolino (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Nov. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 23,450 | $ 21,978 | $ 21,895 | |
Net Cash Paid | $ 5,286 | $ 833 | $ 1,136 | |
Ricolino | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 22 | |||
Receivables | 86 | |||
Inventory | 70 | |||
Other current assets | 3 | |||
Property, plant and equipment | 144 | |||
Operating leases right of use assets | 17 | |||
Definite-life intangible assets | 218 | |||
Indefinite-life intangible assets | 339 | |||
Goodwill | 714 | |||
Assets acquired | 1,613 | |||
Current liabilities | 177 | |||
Deferred tax liabilities | 77 | |||
Finance lease liabilities | 17 | |||
Long-term other liabilities | 12 | |||
Total purchase price | 1,330 | |||
Less: cash received | (22) | |||
Net Cash Paid | $ 1,308 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Purchase Price Allocation of Net Tangible and Intangible Assets Acquired and Liabilities Assumed - Cliff Bar & Company (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Aug. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 23,450 | $ 21,978 | $ 21,895 | |
Net Cash Paid | 5,286 | $ 833 | $ 1,136 | |
Clif Bar | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 99 | |||
Receivables | 76 | |||
Inventory | 124 | |||
Other current assets | 9 | |||
Property, plant and equipment | 186 | |||
Operating leases right of use assets | 22 | |||
Deferred tax assets | 92 | |||
Definite-life intangible assets | 200 | |||
Goodwill | 1,020 | |||
Other assets | 11 | |||
Assets acquired | 3,289 | |||
Current liabilities | 159 | |||
Contingent consideration | 440 | $ 452 | ||
Long-term other liabilities | 15 | |||
Total purchase price | 2,675 | |||
Less: cash received | (99) | |||
Net Cash Paid | 2,576 | |||
Clif Bar | Brands | ||||
Business Acquisition [Line Items] | ||||
Indefinite-life intangible assets | $ 1,450 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Purchase Price Allocation of Net Tangible and Intangible Assets Acquired and Liabilities Assumed - Chipita, S.A. (Details) $ in Millions, € in Billions | 12 Months Ended | ||||
Jan. 03, 2022 USD ($) | Jan. 03, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 23,450 | $ 21,978 | $ 21,895 | ||
Net Cash Paid | $ 5,286 | $ 833 | $ 1,136 | ||
Chipita | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 52 | ||||
Receivables | 102 | ||||
Inventory | 60 | ||||
Other current assets | 3 | ||||
Property, plant and equipment | 379 | ||||
Finance leases right of use assets | 8 | ||||
Definite-life intangible assets | 48 | ||||
Goodwill | 795 | ||||
Other assets | 77 | ||||
Assets acquired | 2,210 | ||||
Current liabilities | 133 | ||||
Deferred tax liabilities | 158 | ||||
Finance lease liabilities | 8 | ||||
Long-term other liabilities | 21 | ||||
Total purchase price | 1,890 | ||||
Less: long-term debt | (436) | € (0.5) | |||
Less: cash received | (52) | ||||
Net Cash Paid | 1,402 | ||||
Chipita | Brands | |||||
Business Acquisition [Line Items] | |||||
Indefinite-life intangible assets | $ 686 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Purchase Price Allocation of Net Tangible and Intangible Assets Acquired and Liabilities Assumed - Give & Go (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 23,450 | $ 21,978 | $ 21,895 | |
Net Cash Paid | $ 5,286 | $ 833 | $ 1,136 | |
Give & Go | ||||
Business Acquisition [Line Items] | ||||
Receivables | $ 29 | |||
Inventory | 38 | |||
Other current assets | 6 | |||
Property, plant and equipment | 136 | |||
Operating right of use assets | 61 | |||
Definite-life intangible assets | 511 | |||
Indefinite-life intangible assets | 42 | |||
Goodwill | 531 | |||
Assets acquired | 1,354 | |||
Current liabilities | 42 | |||
Deferred tax liabilities | 92 | |||
Long-term operating lease liabilities | 56 | |||
Long-term debt | 6 | |||
Long-term other liabilities | 19 | |||
Total purchase price | 1,139 | |||
Less: cash received | 3 | |||
Net Cash Paid | $ 1,136 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Schedule of Assets and Liabilities Held-for-Sale (Details) - Held for Sale - Developed-market Gum Business $ in Millions | Dec. 31, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventories, net | $ 79 | |
Current assets held for sale | 79 | [1] |
Property, plant and equipment, net | 159 | |
Goodwill | 292 | |
Intangible assets, net | 671 | |
Noncurrent assets held for sale | 1,122 | [2] |
Accrued employment costs | 4 | |
Current liabilities held for sale | 4 | [3] |
Deferred income taxes | 15 | |
Noncurrent liabilities assets held for sale | $ 15 | [4] |
[1]Reported in Other current assets on the consolidated balance sheets.[2]Reported in Other assets on the consolidated balance sheets.[3]Reported in Other current liabilities on the consolidated balance sheets.[4]Reported in Other liabilities on the consolidated balance sheets. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,031 | $ 770 |
Finished product | 2,501 | 2,054 |
Inventories, gross | 3,532 | 2,824 |
Inventory reserves | (151) | (116) |
Inventories, net | $ 3,381 | $ 2,708 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 16,231 | $ 16,092 |
Accumulated depreciation | (7,211) | (7,434) |
Property, plant and equipment, net | 9,020 | 8,658 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 378 | 379 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,250 | 3,139 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 11,724 | 11,842 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 879 | $ 732 |
Property, Plant and Equipment -
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Total capital expenditures | $ 906 | $ 965 | $ 863 |
Accrued capital expenditures unpaid | $ 324 | $ 249 | $ 275 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Asset Impairment and Exit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Total | $ 233 | $ 128 | $ 136 |
Simplify to Grow Program | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Total | 3 | 58 | (13) |
Simplify to Grow Program | Corporate | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Total | 0 | 0 | 0 |
Simplify to Grow Program | Latin America | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Total | (3) | 1 | (12) |
Simplify to Grow Program | AMEA | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Total | 3 | (15) | (7) |
Simplify to Grow Program | Europe | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Total | 4 | 7 | 5 |
Simplify to Grow Program | North America | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Total | $ (1) | $ 65 | $ 1 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | |
Oct. 05, 2021 USD ($) renewalOption | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Option to extend leases | 6 years | |
Proceeds received on sale-leaseback transaction, net of selling costs | $ 142 | |
Carrying amount of property sold in sale-leaseback transaction | 51 | |
Sale and leaseback transaction, gain (loss), net | $ 91 | |
Number of renewal options of sale-leaseback transaction | renewalOption | 3 | |
Renewal option period of sale-leaseback transaction | 90 days | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining term of leases | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining term of leases | 17 years |
Leases - Operating Lease Costs
Leases - Operating Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 213 | $ 228 |
Amortization of right-of-use assets | 95 | 89 |
Interest on lease liabilities | 8 | 7 |
Short-term lease cost | 11 | 29 |
Variable lease cost | 602 | 506 |
Sublease income | (4) | (6) |
Total lease cost | $ 925 | $ 853 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ (212) | $ (229) |
Operating cash flows from finance leases | (8) | (8) |
Financing cash flows from finance leases | (95) | (88) |
Operating leases | 220 | 186 |
Finance leases | $ 148 | $ 76 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets, net of amortization | $ 660 | $ 613 |
Other current liabilities | 166 | 174 |
Long-term operating lease liabilities | 514 | 459 |
Total operating lease liabilities | 680 | 633 |
Finance leases, net of amortization (within property, plant and equipment) | 287 | 233 |
Current portion of long-term debt | 95 | 82 |
Long-term debt | 198 | 157 |
Total finance lease liabilities | $ 293 | $ 239 |
Operating leases, weighted average remaining lease term | 7 years | 6 years 7 months 6 days |
Finance leases, weighted average remaining lease term | 4 years 1 month 6 days | 3 years 10 months 24 days |
Operating leases, weighted average discount rate | 4.20% | 3.30% |
Finance leases, weighted average discount rate | 4% | 2.90% |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 195 | |
2024 | 142 | |
2025 | 105 | |
2026 | 70 | |
2027 | 52 | |
Thereafter | 244 | |
Total future undiscounted lease payments | 808 | |
Less imputed interest | (128) | |
Total operating lease liabilities | 680 | $ 633 |
Finance Leases | ||
2023 | 105 | |
2024 | 85 | |
2025 | 61 | |
2026 | 38 | |
2027 | 14 | |
Thereafter | 18 | |
Total future undiscounted lease payments | 321 | |
Less imputed interest | (28) | |
Total finance lease liabilities | $ 293 | $ 239 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill by Operating Segment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | |||
Goodwill | $ 23,450 | $ 21,978 | $ 21,895 |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 1,421 | 674 | |
AMEA | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 3,132 | 3,365 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 8,009 | 7,830 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 10,888 | $ 10,109 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Indefinite-life intangible assets | $ 18,413 | $ 17,299 | |
Definite-life intangible assets | 3,354 | 2,991 | |
Total intangible assets, gross | 21,767 | 20,290 | $ 20,399 |
Accumulated amortization | (2,057) | (1,999) | |
Intangible assets, net | $ 19,710 | $ 18,291 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) brand | Dec. 31, 2022 USD ($) brand | Dec. 31, 2021 USD ($) brand | Dec. 31, 2020 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense for intangible assets | $ 132,000,000 | $ 134,000,000 | $ 194,000,000 | |
Estimated amortization expense for intangible assets next year | $ 150,000,000 | 150,000,000 | ||
Estimated amortization expense for intangible assets in year two | 150,000,000 | 150,000,000 | ||
Estimated amortization expense for intangible assets in year three | 150,000,000 | 150,000,000 | ||
Estimated amortization expense for intangible assets in year four | 95,000,000 | 95,000,000 | ||
Estimated amortization expense for intangible assets in year five | 90,000,000 | 90,000,000 | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Goodwill acquired | 2,529,000,000 | 547,000,000 | ||
Intangible assets acquired | 2,941,000,000 | 405,000,000 | ||
Intangible asset impairment | 101,000,000 | 32,000,000 | ||
Impairment of goodwill | 0 | 0 | $ 0 | |
Held for Sale | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Goodwill reclassified | 292,000,000 | 292,000,000 | 0 | |
Intangible assets divested | 671,000,000 | 671,000,000 | 0 | |
Brands | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Book value of trademarks with fair value in excess of book value, 10% or less | $ 1,500,000,000 | $ 1,500,000,000 | ||
Brands | AMEA | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Number of trademarks with fair value in excess of book value, 10% or less | brand | 8 | 8 | ||
Brands | Biscuits & Baked Snacks | AMEA | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Intangible asset impairment | $ 101,000,000 | |||
Number of impaired trademarks | brand | 2 | 2 | ||
Brands | Biscuits & Baked Snacks | North America | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Intangible asset impairment | $ 32,000,000 | |||
Number of impaired trademarks | brand | 1 | |||
Clif Bar | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Goodwill acquired | $ 1,000,000,000 | |||
Intangible assets acquired | 1,700,000,000 | |||
Chipita | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Goodwill acquired | 795,000,000 | |||
Intangible assets acquired | 734,000,000 | |||
Ricolino | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Goodwill acquired | 714,000,000 | |||
Intangible assets acquired | $ 557,000,000 | |||
Gourmet Food, Hu and Grenade | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Goodwill acquired | $ 547,000,000 | |||
Intangible assets acquired | $ 405,000,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Goodwill and Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | ||||
Balance at January 1 | $ 21,978,000,000 | $ 21,895,000,000 | ||
Currency | (757,000,000) | (464,000,000) | ||
Acquisitions | 2,529,000,000 | 547,000,000 | ||
Asset impairments | 0 | 0 | $ 0 | |
Balance at December 31 | $ 23,450,000,000 | 23,450,000,000 | 21,978,000,000 | 21,895,000,000 |
Intangible Assets, at cost | ||||
Balance at January 1 | 20,290,000,000 | 20,399,000,000 | ||
Currency | (692,000,000) | (465,000,000) | ||
Acquisitions | 2,941,000,000 | 405,000,000 | ||
Asset impairments | (101,000,000) | (32,000,000) | ||
Balance at December 31 | 21,767,000,000 | 21,767,000,000 | 20,290,000,000 | $ 20,399,000,000 |
Held for Sale | ||||
Goodwill | ||||
Held for Sale and Divestitures | (292,000,000) | (292,000,000) | 0 | |
Intangible Assets, at cost | ||||
Held for Sale and Divestitures | $ (671,000,000) | (671,000,000) | 0 | |
Divestitures | ||||
Goodwill | ||||
Held for Sale and Divestitures | (8,000,000) | 0 | ||
Intangible Assets, at cost | ||||
Held for Sale and Divestitures | $ 0 | $ (17,000,000) |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) € / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
May 08, 2022 | Jun. 02, 2020 USD ($) shares | Jun. 02, 2020 EUR (€) shares | Jun. 01, 2020 USD ($) shares | Jun. 01, 2020 EUR (€) shares | May 29, 2020 € / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Sep. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) director shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | May 09, 2022 | Dec. 31, 2021 EUR (€) € / shares | Sep. 20, 2021 EUR (€) | ||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Equity method investments | [1] | $ 4,879 | $ 5,289 | ||||||||||||||
Equity method investment net earnings | 385 | 393 | $ 421 | ||||||||||||||
Cash dividends received from equity method investments | 184 | 172 | 246 | ||||||||||||||
Pre-tax gain (loss) on equity method investment transaction | $ (22) | $ 742 | 989 | ||||||||||||||
Exchangeable Notes | 0.000% Notes Due September 2024 | |||||||||||||||||
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 | 8,500,000 | ||||||||||||||||
Debt convertible into equity interest, percentage | 0.09 | ||||||||||||||||
JDEP | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Equity method investment, ownership interest | 22.90% | 22.90% | 19.70% | 19.80% | |||||||||||||
Number of shares of equity method investment sold (in shares) | shares | 9,700,000 | 9,700,000 | 82,100,000 | 18,600,000 | |||||||||||||
Decrease in equity method investment ownership percentage | 3% | ||||||||||||||||
Proceeds from sale of equity method investment | $ 529 | € 500,000,000 | |||||||||||||||
Pre-tax gain (loss) on sale of equity method investment | $ (8) | € (8,000,000) | |||||||||||||||
Stock sale price (in EUR per share) | € / shares | € 31.50 | ||||||||||||||||
Percentage of equity method investment ownership after the settlement | 26.50% | 26.50% | |||||||||||||||
Gross proceeds from equity method investment transaction | $ 343 | € 304,000,000 | |||||||||||||||
Number of director positions | director | 2 | ||||||||||||||||
JDEP | Over-allotment option | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Number of shares of equity method investment sold (in shares) | shares | 1,400,000 | 1,400,000 | |||||||||||||||
Gross proceeds from equity method investment transaction | $ 51 | € 46,000,000 | |||||||||||||||
Pre-tax gain (loss) on equity method investment transaction | $ 10 | $ 121 | $ 131 | ||||||||||||||
Losses/(gains) reclassified into net earnings | 33 | ||||||||||||||||
Equity method investment transaction costs | $ 48 | ||||||||||||||||
KDP | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Equity method investment, ownership interest | 5.30% | 5.30% | 8.40% | 5.30% | |||||||||||||
Number of shares of equity method investment sold (in shares) | shares | 42,700,000 | 73,400,000 | |||||||||||||||
Decrease in equity method investment ownership percentage | 3% | 5.20% | |||||||||||||||
Proceeds from sale of equity method investment | $ 1,497 | $ 2,094 | |||||||||||||||
Pre-tax gain (loss) on sale of equity method investment | 768 | 865 | |||||||||||||||
Number of director positions | director | 1 | ||||||||||||||||
After-tax gain on sale of equity method investment | $ 581 | $ 662 | |||||||||||||||
Dong Suh Foods Corporation | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Equity method investment, ownership interest | 50% | ||||||||||||||||
Dong Suh Oil & Fats Co. Ltd. | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Equity method investment, ownership interest | 49% | ||||||||||||||||
JDEP and KDP | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Quoted market price of ownership interest in equity method investment | $ 5,500 | ||||||||||||||||
JDE | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Percentage of equity method investment exchanged | 26.40% | 26.40% | |||||||||||||||
[1] Includes a basis difference of approximately $419 million as of December 31, 2022 and $475 million as of December 31, 2021 between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees’ equity. |
Equity Method Investments - Sum
Equity Method Investments - Summarized Financial Information of Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Summary Balance Sheet for Equity Method Investments | |||||||
Current assets | $ 10,091 | $ 10,342 | |||||
TOTAL ASSETS | 71,161 | 67,092 | $ 67,810 | ||||
Current liabilities | 16,731 | 14,008 | |||||
TOTAL LIABILITIES | 44,241 | 38,769 | |||||
Equity attributable to shareowners of investees | 26,883 | 28,269 | |||||
Equity attributable to noncontrolling interests | 37 | 54 | |||||
TOTAL EQUITY | 26,920 | 28,323 | 27,654 | $ 27,317 | |||
Equity method investments | [1] | 4,879 | 5,289 | ||||
Net revenues | 31,496 | 28,720 | [2] | 26,581 | [2] | ||
Gross profit | 11,312 | 11,254 | 10,446 | ||||
Operating income | 3,534 | 4,653 | 3,853 | ||||
Net earnings | 2,726 | 4,314 | 3,569 | ||||
Net earnings attributable to Mondelēz International | 2,717 | 4,300 | 3,555 | ||||
Equity method investment net earnings | 385 | 393 | $ 421 | ||||
Adjustment Due to Change in Accounting Basis | |||||||
Summary Balance Sheet for Equity Method Investments | |||||||
Difference between U.S. GAAP accounting basis for equity method investments and the investees' equity | $ 419 | $ 475 | |||||
Minimum | Equity Method Investments, Investees | |||||||
Summary Balance Sheet for Equity Method Investments | |||||||
Mondelēz International ownership interests | 5% | 5% | 8% | ||||
Maximum | Equity Method Investments, Investees | |||||||
Summary Balance Sheet for Equity Method Investments | |||||||
Mondelēz International ownership interests | 50% | 50% | 50% | ||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||||
Summary Balance Sheet for Equity Method Investments | |||||||
Current assets | $ 8,740 | $ 6,313 | |||||
Noncurrent assets | 71,375 | 71,949 | |||||
TOTAL ASSETS | 80,115 | 78,262 | |||||
Current liabilities | 12,711 | 11,105 | |||||
Noncurrent liabilities | 26,671 | 27,204 | |||||
TOTAL LIABILITIES | 39,382 | 38,309 | |||||
Equity attributable to shareowners of investees | 40,596 | 39,798 | |||||
Equity attributable to noncontrolling interests | 137 | 155 | |||||
TOTAL EQUITY | 40,733 | 39,953 | |||||
Net revenues | 23,518 | 22,149 | $ 20,112 | ||||
Gross profit | 10,738 | 10,804 | 9,856 | ||||
Operating income | 2,984 | 2,614 | 2,078 | ||||
Net earnings | 2,984 | 2,614 | 2,078 | ||||
Net earnings attributable to Mondelēz International | $ 2,990 | $ 2,618 | $ 2,070 | ||||
[1] Includes a basis difference of approximately $419 million as of December 31, 2022 and $475 million as of December 31, 2021 between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees’ equity. |
Restructuring Program - Narrati
Restructuring Program - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | 104 Months Ended | ||||||||||
Oct. 21, 2021 | Sep. 06, 2018 | Aug. 31, 2016 | May 06, 2014 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |||||
2014-2018 Restructuring Program | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Approved restructuring program costs | $ 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] | ||||||||||||
Capital expenditures, authorized amount | 1,600 | $ 2,200 | ||||||||||
2014-2018 Restructuring Program | Program charges | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Approved restructuring program costs | 4,100 | |||||||||||
2014-2018 Restructuring Program | Cash costs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Approved restructuring program costs | 3,100 | |||||||||||
2014-2018 Restructuring Program | Non-cash costs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Approved restructuring program costs | $ 1,000 | |||||||||||
Simplify to Grow Program | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Approved restructuring program costs | $ 7,700 | |||||||||||
Restructuring and related cost, cost incurred | $ 123 | $ 321 | $ 363 | $ 5,147 | ||||||||
Restructuring charges | 36 | [1] | 154 | [1] | 156 | 3,072 | ||||||
Cash severance and related costs | [2] | 69 | 160 | |||||||||
Non-cash asset write-downs | 8 | |||||||||||
Non-cash adjustments | [3] | (8) | (73) | |||||||||
Restructuring reserve | 164 | [4] | 211 | 304 | 164 | [4] | ||||||
Implementation costs | 87 | $ 167 | $ 207 | 2,075 | ||||||||
Simplify to Grow Program | Maximum | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Capital expenditures, authorized amount | 2,300 | |||||||||||
Increase in restructuring program costs | $ 1,300 | |||||||||||
Increase in capital expenditures | $ 700 | |||||||||||
Simplify to Grow Program | Other current liabilities | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring reserve | 126 | 126 | ||||||||||
Simplify to Grow Program | Other long-term liabilities | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring reserve | $ 38 | $ 38 | ||||||||||
Simplify to Grow Program | Program charges | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Approved restructuring program costs | 5,400 | |||||||||||
Simplify to Grow Program | Cash costs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Approved restructuring program costs | 4,100 | |||||||||||
Simplify to Grow Program | Non-cash costs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Approved restructuring program costs | $ 1,300 | |||||||||||
[1]We recorded restructuring charges of $36 million in 2022, $154 million in 2021 and $156 million in 2020 within asset impairment and exit costs and benefit plan non-service income.[2]We spent $69 million in 2022 and $160 million in 2021 in cash severance and related costs.[3]In 2022, we recognized non-cash asset write-downs (including accelerated depreciation and other non-cash adjustments, including any gains on sale of assets, primarily real estate, included in the restructuring program totaling $8 million. In 2021, we recognized non-cash asset write-downs (including accelerated depreciation and asset impairments), non-cash pension settlement losses and other non-cash adjustments, partially offset by gains on sale of assets, primarily real estate, included in the restructuring program totaling $73 million.[4]At December 31, 2022, $126 million of our net restructuring liability was recorded within other current liabilities and $38 million was recorded within other long-term liabilities. |
Restructuring Program - Restruc
Restructuring Program - Restructuring Liability Activity (Details) - Simplify to Grow Program - USD ($) $ in Millions | 12 Months Ended | 104 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Liability Balance, January 1 | $ 211 | $ 304 | ||||||
Charges (2) | 36 | [1] | 154 | [1] | $ 156 | $ 3,072 | ||
Cash spent (3) | [2] | (69) | (160) | |||||
Non-cash adjustments | [3] | (8) | (73) | |||||
Currency | (6) | (14) | ||||||
Liability Balance, December 31 | 164 | [4] | 211 | 304 | 164 | [4] | ||
Severance and related costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Liability Balance, January 1 | 211 | 304 | ||||||
Charges (2) | [1] | 31 | 86 | |||||
Cash spent (3) | [2] | (69) | (160) | |||||
Non-cash adjustments | [3] | (3) | (5) | |||||
Currency | (6) | (14) | ||||||
Liability Balance, December 31 | 164 | [4] | 211 | 304 | 164 | [4] | ||
Asset write-down and other | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Liability Balance, January 1 | [5] | 0 | 0 | |||||
Charges (2) | [1],[5] | 5 | 68 | |||||
Cash spent (3) | [2],[5] | 0 | ||||||
Non-cash adjustments | [3],[5] | (5) | (68) | |||||
Currency | [5] | 0 | ||||||
Liability Balance, December 31 | [5] | $ 0 | [4] | $ 0 | $ 0 | $ 0 | [4] | |
[1]We recorded restructuring charges of $36 million in 2022, $154 million in 2021 and $156 million in 2020 within asset impairment and exit costs and benefit plan non-service income.[2]We spent $69 million in 2022 and $160 million in 2021 in cash severance and related costs.[3]In 2022, we recognized non-cash asset write-downs (including accelerated depreciation and other non-cash adjustments, including any gains on sale of assets, primarily real estate, included in the restructuring program totaling $8 million. In 2021, we recognized non-cash asset write-downs (including accelerated depreciation and asset impairments), non-cash pension settlement losses and other non-cash adjustments, partially offset by gains on sale of assets, primarily real estate, included in the restructuring program totaling $73 million.[4]At December 31, 2022, $126 million of our net restructuring liability was recorded within other current liabilities and $38 million was recorded within other long-term liabilities.[5]Includes gains as a result of assets sold which are included in the restructuring program. |
Restructuring Program - Restr_2
Restructuring Program - Restructuring and Implementation Costs (Details) - Simplify to Grow Program - USD ($) $ in Millions | 12 Months Ended | 104 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | $ 36 | [1] | $ 154 | [1] | $ 156 | $ 3,072 |
Implementation Costs | 87 | 167 | 207 | 2,075 | ||
Total | 123 | 321 | 363 | 5,147 | ||
Operating Segments | Latin America | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | (6) | 7 | 30 | 548 | ||
Implementation Costs | 7 | 9 | 18 | 303 | ||
Total | 1 | 16 | 48 | 851 | ||
Operating Segments | AMEA | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 13 | (17) | 23 | 554 | ||
Implementation Costs | 6 | 10 | 23 | 245 | ||
Total | 19 | (7) | 46 | 799 | ||
Operating Segments | Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 16 | 4 | 67 | 1,163 | ||
Implementation Costs | 25 | 33 | 63 | 569 | ||
Total | 41 | 37 | 130 | 1,732 | ||
Operating Segments | North America | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 12 | 153 | 23 | 657 | ||
Implementation Costs | 37 | 97 | 72 | 590 | ||
Total | 49 | 250 | 95 | 1,247 | ||
Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 1 | 7 | 13 | 150 | ||
Implementation Costs | 12 | 18 | 31 | 368 | ||
Total | $ 13 | $ 25 | $ 44 | $ 518 | ||
[1]We recorded restructuring charges of $36 million in 2022, $154 million in 2021 and $156 million in 2020 within asset impairment and exit costs and benefit plan non-service income. |
Debt and Borrowing Arrangemen_3
Debt and Borrowing Arrangements - Short-Term Borrowings and Related Weighted-Average Interest Rates (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 2,299 | $ 216 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 2,209 | $ 192 |
Weighted- Average Rate | 4.70% | 0.20% |
Bank loans | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 90 | $ 24 |
Weighted- Average Rate | 9.10% | 8.60% |
Debt and Borrowing Arrangemen_4
Debt and Borrowing Arrangements - Uncommitted and Committed Credit Lines Available (Details) - USD ($) | Jul. 11, 2022 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Amount Outstanding | $ 2,299,000,000 | $ 216,000,000 | |||
Bank loans | Credit Facility Expiring March 11, 2023 | |||||
Debt Instrument [Line Items] | |||||
Facility Amount | $ 2,000,000,000 | ||||
Debt term | 18 months | ||||
Bank loans | Credit Facility Expiring February 27, 2024 | |||||
Debt Instrument [Line Items] | |||||
Facility Amount | [1],[2] | 0 | 4,500,000,000 | ||
Borrowed Amount | [1],[2] | 0 | 0 | ||
Bank loans | Credit Facility Expiring July 29, 2025 | |||||
Debt Instrument [Line Items] | |||||
Facility Amount | [1],[2],[3] | 2,000,000,000 | 0 | ||
Borrowed Amount | [1],[2],[3] | 2,000,000,000 | 0 | ||
Bank loans | Credit Facility Expiring February 23, 2027 | |||||
Debt Instrument [Line Items] | |||||
Facility Amount | [1],[2] | 4,500,000,000 | 0 | ||
Borrowed Amount | [1],[2] | 0 | 0 | ||
Bank loans | Multi-year Senior Unsecured Revolving Credit Facility | Revolving Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Total shareholders' equity, excluding accumulated other comprehensive earnings / (losses) | 37,800,000,000 | ||||
Bank loans | Multi-year Senior Unsecured Revolving Credit Facility | Revolving Credit Agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Total shareholders' equity, excluding accumulated other comprehensive earnings / (losses) | 25,000,000,000 | ||||
Bank loans | |||||
Debt Instrument [Line Items] | |||||
Amount Outstanding | 90,000,000 | 24,000,000 | |||
Bank loans | Uncommitted credit facilities | |||||
Debt Instrument [Line Items] | |||||
Facility Amount | 1,335,000,000 | 1,367,000,000 | |||
Amount Outstanding | 90,000,000 | 24,000,000 | |||
Bank loans | Credit Facility Expiring February 23, 2022 | |||||
Debt Instrument [Line Items] | |||||
Facility Amount | [1],[2] | 0 | 2,500,000,000 | ||
Amount Outstanding | [1],[2] | 0 | 0 | ||
Bank loans | Credit Facility Expiring February 22, 2023 | |||||
Debt Instrument [Line Items] | |||||
Facility Amount | [1],[2] | 2,500,000,000 | 0 | ||
Amount Outstanding | [1],[2] | 0 | 0 | ||
Bank loans | Credit Facility Expiring March 11, 2023 | |||||
Debt Instrument [Line Items] | |||||
Facility Amount | [1],[2],[4] | 2,000,000,000 | 0 | ||
Amount Outstanding | [1],[2],[4] | 0 | $ 0 | ||
Bank loans | Credit Facility Expiring July 29, 2025 | |||||
Debt Instrument [Line Items] | |||||
Facility Amount | $ 2,000,000,000 | ||||
Borrowed Amount | $ 2,000,000,000 | ||||
[1]Capitalizable financing costs are classified in long-term other assets and were immaterial for all periods presented.[2]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 December 31, 2022, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $37.8 billion. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security[3]On March 31, 2022, we entered into a supplemental term loan credit facility that can be utilized for general corporate purposes, including acquisitions. Under this agreement we may draw up to a total of $2.0 billion in term loans from the facility. On July 29, 2022, we drew down $2.0 billion in term loans, due July 29, 2025, bearing interest at a variable annual rate based on SOFR plus an applicable margin.[4]On July 11, 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 $2.0 billion in term loans from the facility. The maturity dates of any loans drawn under this facility will be eighteen months after the funding date of the applicable loan(s). |
Debt and Borrowing Arrangemen_5
Debt and Borrowing Arrangements - Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | |||
Finance leases and other | $ 297 | [1] | $ 244 |
Total | 20,634 | [1] | 19,296 |
Less current portion of long-term debt | (383) | [1] | (1,746) |
Long-term debt | 20,251 | [1] | 17,550 |
Unamortized non-cash bond premiums, discounts, bank fees and mark-to-market adjustments | (149) | ||
Imputed interest on finance leases | $ (28) | ||
U.S. dollar notes | |||
Debt Instrument [Line Items] | |||
Maturity date | 2050 | ||
Notes payable | $ 11,275 | [1] | 9,280 |
U.S. dollar notes | Minimum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 0.75% | ||
U.S. dollar notes | Maximum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 7% | ||
U.S. dollar notes | Weighted Average | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 2.998% | ||
Euro notes | |||
Debt Instrument [Line Items] | |||
Maturity date | 2041 | ||
Notes payable | $ 7,666 | [1] | 8,134 |
Euro notes | Minimum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 0% | ||
Euro notes | Maximum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 2.375% | ||
Euro notes | Weighted Average | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 0.712% | ||
Pound sterling notes | |||
Debt Instrument [Line Items] | |||
Maturity date | 2045 | ||
Notes payable | $ 316 | [1] | 354 |
Pound sterling notes | Minimum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 3.875% | ||
Pound sterling notes | Maximum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.50% | ||
Pound sterling notes | Weighted Average | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.151% | ||
Swiss franc notes | |||
Debt Instrument [Line Items] | |||
Maturity date | 2025 | ||
Notes payable | $ 638 | [1] | 811 |
Swiss franc notes | Minimum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 0.615% | ||
Swiss franc notes | Maximum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 1.125% | ||
Swiss franc notes | Weighted Average | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 1.011% | ||
Canadian dollar notes | |||
Debt Instrument [Line Items] | |||
Maturity date | 2025 | ||
Notes payable | $ 442 | [1] | $ 473 |
Canadian dollar notes | Minimum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 3.25% | ||
Canadian dollar notes | Maximum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 3.377% | ||
[1]Amounts are shown net of unamortized premiums, discounts and bank fees of $(149) million and imputed interest on finance leases of $(28) million, were (in millions): |
Debt and Borrowing Arrangemen_6
Debt and Borrowing Arrangements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Loss on debt extinguishment and related expenses | $ 129 | $ 137 | $ 185 |
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||
Loss on early extinguishment of debt | 38 | $ 110 | $ 185 |
Foreign currency derivative loss related to redemption payment at time of extinguishment of debt | $ 91 | $ 27 |
Debt and Borrowing Arrangemen_7
Debt and Borrowing Arrangements - Aggregate Maturities of Debt and Finance Leases (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 393 |
2024 | 2,041 |
2025 | 3,970 |
2026 | 1,149 |
2027 | 1,567 |
Thereafter | 11,691 |
Total | $ 20,811 |
Debt and Borrowing Arrangemen_8
Debt and Borrowing Arrangements - Tender Offers (Details) - Loans Payable - USD ($) $ in Millions | Dec. 31, 2022 | Mar. 17, 2022 |
Debt Instrument [Line Items] | ||
Amount Repurchased | $ 987 | |
3.625% Notes Due February 2026 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.625% | |
Amount Repurchased | $ 130 | |
4.125% Notes Due May 2028 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.125% | |
Amount Repurchased | $ 211 | |
2.750% Notes Due April 2030 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.75% | |
Amount Repurchased | $ 500 | |
6.500% Notes Due November 2031 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.50% | |
Amount Repurchased | $ 17 | |
7.000% Notes Due August 2037 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7% | |
Amount Repurchased | $ 10 | |
6.875% Notes Due February 2038 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.875% | |
Amount Repurchased | $ 21 | |
6.875% Notes Due January 2039 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.875% | |
Amount Repurchased | $ 8 | |
6.500% Notes Due February 2040 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.50% | |
Amount Repurchased | $ 36 | |
4.625% Notes Due May 2048 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.625% | |
Amount Repurchased | $ 54 |
Debt and Borrowing Arrangemen_9
Debt and Borrowing Arrangements - Debt Redemptions (Details) - Loans Payable € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Mar. 17, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Amount Redeemed | $ 987 | ||
2.000% Notes Due September 2021 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2% | 2% | |
Amount Redeemed | $ 1,500 | ||
Term Loan Due September 2021 3M LIBOR + 0.70% | |||
Debt Instrument [Line Items] | |||
Amount Redeemed | $ 500 | ||
Term Loan Due September 2021 3M LIBOR + 0.70% | 3M LIBOR | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 0.70% | ||
Term Loan Due September 2021 3M LIBOR + 0.80% | |||
Debt Instrument [Line Items] | |||
Amount Redeemed | $ 500 | ||
Term Loan Due September 2021 3M LIBOR + 0.80% | 3M LIBOR | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 0.80% | ||
1.000% Notes Due March 2022 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1% | 1% | |
Amount Redeemed | $ 587 | € 500 | |
1.625% Notes Due January 2023 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.625% | 1.625% | |
Amount Redeemed | $ 821 | € 700 | |
2.125% Notes Due April 2023 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.125% | 2.125% | |
Amount Redeemed | $ 500 | ||
4.000% Notes Due February 2024 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4% | 4% | |
Amount Redeemed | $ 492 | ||
0.625% Notes Due July 2022 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 0.625% | 0.625% | |
Amount Redeemed | $ 1,000 |
Debt and Borrowing Arrangeme_10
Debt and Borrowing Arrangements - Debt Repayments (Details) € in Millions, SFr in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CHF (SFr) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CHF (SFr) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 USD ($) | ||
Debt Instrument [Line Items] | ||||||||
Repayments of long-term debt | $ 3,032 | $ 6,247 | $ 3,878 | |||||
Business Combination, Debt Assumed | Chipita | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of assumed debt | $ 400 | € 400 | ||||||
Loans Payable | 2.125% Notes Due September 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1] | 2.125% | 2.125% | 2.125% | ||||
Repayments of long-term debt | [1] | $ 500 | ||||||
Loans Payable | 0.650% Notes Due July 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 0.65% | 0.65% | 0.65% | |||||
Repayments of long-term debt | $ 156 | SFr 150 | ||||||
Loans Payable | Variable Rate Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of long-term debt | [2] | $ 431 | € 381 | |||||
Loans Payable | 0.625% Notes Due December 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 0.625% | 0.625% | 0.625% | |||||
Repayments of long-term debt | $ 327 | SFr 300 | ||||||
Loans Payable | 2.375% Notes Due September 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 2.375% | 2.375% | 2.375% | |||||
Repayments of long-term debt | $ 827 | € 679 | ||||||
[1]Repaid by Mondelez International Holdings Netherlands B.V. ("MIHN"), a wholly owned Dutch subsidiary of Mondelēz International, Inc.[2]On January 3, 2022, we closed on our acquisition of Chipita and assumed and entirely paid down €0.4 billion ($0.4 billion) of Chipita's debt during the twelve months ended December 31, 2022. |
Debt and Borrowing Arrangeme_11
Debt and Borrowing Arrangements - Debt Issuances (Details) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) | Sep. 20, 2021 EUR (€) | |||
Loans Payable | 4.250% Notes Due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1] | 4.25% | 4.25% | |||||
Gross Proceeds | [1],[2] | $ 500,000,000 | ||||||
Loans Payable | 2.125% Notes Due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1] | 2.125% | 2.125% | |||||
Gross Proceeds | [1],[2] | $ 500,000,000 | ||||||
Loans Payable | 2.625% Notes Due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1],[3] | 2.625% | 2.625% | |||||
Gross Proceeds | [1],[3] | € 750,000,000 | [2] | $ 750,000,000 | ||||
Loans Payable | 3.000% Notes Due 2032 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1],[4] | 3% | 3% | |||||
Gross Proceeds | [1],[4] | € 750,000,000 | [2] | $ 750,000,000 | ||||
Loans Payable | 0.750% Notes Due September 2024 | MIHN | Subsidiary Issuer | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1] | 0.75% | 0.75% | |||||
Gross Proceeds | [1],[2] | $ 500,000,000 | ||||||
Loans Payable | 1.250% Notes Due September 2026 | MIHN | Subsidiary Issuer | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1] | 1.25% | 1.25% | |||||
Gross Proceeds | [1],[2] | $ 350,000,000 | ||||||
Loans Payable | 0.250% Notes Due September 2029 | MIHN | Subsidiary Issuer | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1],[4] | 0.25% | 0.25% | |||||
Gross Proceeds | [1],[4] | € 650,000,000 | $ 769,000,000 | |||||
Loans Payable | 0.625% Notes Due September 2032 | MIHN | Subsidiary Issuer | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1],[4] | 0.625% | 0.625% | |||||
Gross Proceeds | [1],[4] | € 650,000,000 | [2] | $ 769,000,000 | ||||
Loans Payable | 1.250% Notes Due September 2041 | MIHN | Subsidiary Issuer | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1],[4] | 1.25% | 1.25% | |||||
Gross Proceeds | [1],[4] | € 700,000,000 | [2] | $ 828,000,000 | ||||
Loans Payable | 0.250% Notes due 2028 | MIHN | Subsidiary Issuer | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 0.25% | 0.25% | ||||||
Gross Proceeds | € 750,000,000 | [2] | $ 896,000,000 | |||||
Loans Payable | 0.750% Notes due 2033 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 0.75% | 0.75% | ||||||
Gross Proceeds | € 600,000,000 | [2] | $ 717,000,000 | |||||
Loans Payable | 1.375% Notes due 2041 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 1.375% | 1.375% | ||||||
Gross Proceeds | € 650,000,000 | [2] | $ 777,000,000 | |||||
Loans Payable | Green Bonds | MIHN | Subsidiary Issuer | ||||||||
Debt Instrument [Line Items] | ||||||||
Gross Proceeds | € | € 1,970,000,000 | |||||||
Exchangeable Notes | 0.000% Notes Due September 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Gross Proceeds | € | € 300,000,000 | € 300,000,000 | ||||||
Exchangeable Notes | 0.000% Notes Due September 2024 | MIHN | Subsidiary Issuer | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | [1],[3] | 0% | 0% | |||||
Gross Proceeds | [1],[3] | € 300,000,000 | $ 352,000,000 | |||||
Debt premium percentage | 1.02 | 1.02 | ||||||
[1]Notes issued by Mondelez International Holdings Netherlands B.V. (“MIHN”), a wholly owned Dutch subsidiary of Mondelēz International, Inc.[2]Represents gross proceeds from the issuance of notes excluding debt issuance costs, discounts and premiums.[3]Issuance of exchangeable bonds that were issued at 102% of their principal amount and are redeemable for cash or existing ordinary shares of JDE Peet's at our option (see Note 7, Equity Method Investments). Bondholders have an option to redeem bonds before maturity subject to exchange periods. We have identified our option to settle in either cash or existing ordinary shares of JDE Peet's as an embedded derivative that is bifurcated and accounted for separately from the bond. See Note 10, Financial Instruments.[4]Issuance of green bonds where we have committed to allocate an amount equal to the €1.97 billion total net proceeds from the offering over time to eligible projects that align with our sustainability priorities in the areas of building a thriving ingredient supply chain and reducing our environmental impact. |
Debt and Borrowing Arrangeme_12
Debt and Borrowing Arrangements - Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 20,217 | $ 20,249 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 22,933 | $ 19,512 |
Debt and Borrowing Arrangeme_13
Debt and Borrowing Arrangements - Interest and Other Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Interest expense, debt | $ 428 | $ 365 | $ 423 |
Loss on debt extinguishment and related expenses | 129 | 137 | 185 |
Loss related to interest rate swaps | 0 | 0 | 103 |
Other income, net | (134) | (55) | (103) |
Interest and other expense, net | $ 423 | $ 447 | $ 608 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Instruments (Details) $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) | Sep. 20, 2021 EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | $ 790 | $ 687 | |||
Liability Derivatives | 629 | 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 | 397 | 144 | |||
Liability Derivatives | 276 | 62 | |||
Derivatives designated as accounting hedges | Interest rate contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 132 | 27 | |||
Liability Derivatives | 35 | 17 | |||
Derivatives designated as accounting hedges | Net investment hedge contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | [1] | 265 | 117 | ||
Liability Derivatives | [1] | 241 | 45 | ||
Derivatives not designated as accounting hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 393 | 543 | |||
Liability Derivatives | 353 | 180 | |||
Derivatives not designated as accounting hedges | Interest rate contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 8 | 0 | |||
Liability Derivatives | 0 | 0 | |||
Derivatives not designated as accounting hedges | Currency exchange contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 185 | 156 | |||
Liability Derivatives | 103 | 40 | |||
Derivatives not designated as accounting hedges | Commodity contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 200 | 387 | |||
Liability Derivatives | 247 | 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 contracts consist of cross-currency interest rate swaps and forward contracts. 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 9, 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. 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 9, Debt and Borrowing Arrangements |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Fair Value and Measurement Inputs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Total derivatives | $ 161 | $ 445 |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 82 | 116 |
Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | (47) | 251 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 105 | 10 |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Total derivatives | 24 | 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 | (35) | 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 | (35) | 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 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 | 196 | 284 |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 82 | 116 |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | (12) | 90 |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 105 | 10 |
Significant Other Observable Inputs (Level 2) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Total derivatives | 24 | 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 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 - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net investment hedge contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 7,319 | $ 3,915 |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 4,147 | $ 1,850 |
Cash Flow Hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Expected losses for interest rate cash flow hedges expected to be transferred to earnings during the next 12 months | $ 7 | |
Hedged forecasted transaction period | 3 years 8 months | |
Net Investment Hedging | Net investment hedge contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 7,300 |
Financial Instruments - Notiona
Financial Instruments - Notional Values of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Euro notes | Net Investment Hedging | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,410 | $ 3,622 |
British pound sterling notes | Net Investment Hedging | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 356 |
Swiss franc notes | Net Investment Hedging | ||
Derivative [Line Items] | ||
Notional Amount | 638 | 811 |
Canadian dollar notes | Net Investment Hedging | ||
Derivative [Line Items] | ||
Notional Amount | 443 | 475 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | ||
Derivative [Line Items] | ||
Notional Amount | 2,085 | 1,891 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 5,470 | 4,831 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 12,131 | 9,694 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 4,147 | 1,850 |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Notional Amount | 7,319 | $ 3,915 |
Net investment hedge contracts | Net Investment Hedging | ||
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 Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Balance at beginning of period | $ 28,323 | $ 27,654 | $ 27,317 |
Transfer of realized (gains)/losses in fair value to earnings | 21 | (44) | 285 |
Balance at end of period | 26,920 | 28,323 | 27,654 |
Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Unrealized gain/(loss) in fair value | 153 | 168 | (109) |
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) | (213) |
Balance at end of period | (34) | (148) | (161) |
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) | (213) |
Transfer of realized (gains)/losses in fair value to earnings | (39) | (155) | 161 |
Unrealized gain/(loss) in fair value | 153 | 168 | (109) |
Balance at end of period | $ (34) | $ (148) | $ (161) |
Financial Instruments - Cash _2
Financial Instruments - Cash Flow Hedges After-tax Gains/(Losses) (Details) - Cash Flow Hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains (losses) reclassified from accumulated other comprehensive income into earnings/(losses) | $ 39 | $ 155 | $ (161) |
After-tax gains (losses) reclassified from accumulated other comprehensive income/(loss) | 153 | 168 | (109) |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains (losses) reclassified from accumulated other comprehensive income into earnings/(losses) | 47 | 155 | (161) |
After-tax gains (losses) reclassified from accumulated other comprehensive income/(loss) | 145 | 168 | (107) |
Currency exchange contracts | Forecasted transactions | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains (losses) reclassified from accumulated other comprehensive income into earnings/(losses) | (8) | 0 | 0 |
After-tax gains (losses) reclassified from accumulated other comprehensive income/(loss) | $ 8 | $ 0 | $ (2) |
Financial Instruments - Net Inv
Financial Instruments - Net Investment Hedge Derivative Contracts (Details) - Net Investment Hedging - Net investment hedge contracts - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Derivative [Line Items] | ||||
After-tax gain/(loss) on NIH contracts | [1] | $ 396 | $ 63 | $ (221) |
Amounts excluded from the assessment of hedge effectiveness | [2] | $ 116 | $ 75 | $ 117 |
[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 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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Euro notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains/(losses) related to hedges of net investments in international operations | $ 162 | $ 211 | $ (251) |
British pound sterling notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains/(losses) related to hedges of net investments in international operations | 45 | 3 | (8) |
Swiss franc notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains/(losses) related to hedges of net investments in international operations | 13 | 29 | (82) |
Canadian dollar notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains/(losses) related to hedges of net investments in international operations | $ 25 | $ (3) | $ (7) |
Financial Instruments - Economi
Financial Instruments - Economic Hedges (Details) - Not Designated as Hedging Instrument, Economic Hedge - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | $ 276 | $ 523 | $ (30) |
Currency exchange contracts | Intercompany loans and forecasted interest payments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | (14) | 57 | (70) |
Currency exchange contracts | Forecasted transactions | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | 117 | 80 | 41 |
Currency exchange contracts | Forecasted transactions | Interest and other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | 17 | (1) | (4) |
Currency exchange contracts | Forecasted transactions | Selling, general and administrative expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | (1) | 0 | (1) |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | 157 | 385 | 4 |
Equity method investment contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | $ 0 | $ 2 | $ 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Contingent Consideration Liability (Details) - Contingent Consideration - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contingent Consideration Liability Activity [Roll Forward] | |||
Liability at the beginning of the period | $ 159 | $ 55 | $ 14 |
Contingent consideration arising from acquisitions | 440 | 145 | 17 |
Changes in fair value | 44 | (41) | 24 |
Currency | (1) | 0 | 0 |
Liability at the end of the period | $ 642 | $ 159 | $ 55 |
Financial Instruments - Fair _2
Financial Instruments - Fair Value of Contingent Consideration Liability (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Aug. 01, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||||
Contingent consideration, fair value | $ 642 | $ 159 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | 642 | 159 | ||
Clif Bar | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [1] | 452 | ||
Contingent consideration, liability, noncurrent | 452 | $ 440 | ||
Clif Bar | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [1] | 0 | ||
Clif Bar | Significant Other Observable Inputs (Level 2) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [1] | 0 | ||
Clif Bar | Significant Unobservable Inputs (Level 3) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [1] | 452 | ||
Other | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [2] | 190 | 159 | |
Contingent consideration, current liability | 102 | |||
Contingent consideration, liability, noncurrent | 88 | 159 | ||
Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [2] | 0 | 0 | |
Other | Significant Other Observable Inputs (Level 2) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [2] | 0 | 0 | |
Other | Significant Unobservable Inputs (Level 3) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [2] | $ 190 | $ 159 | |
[1] In connection with the Clif Bar acquisition, we entered into a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain net revenue, gross profit and EBITDA targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price. The other contingent consideration liabilities are recorded at fair value with $452 million classified as long term liabilities at December 31, 2022. The estimated fair value of the contingent consideration obligation at the acquisition date was determined using a Monte Carlo simulation and recorded in other liabilities. Significant assumptions used in assessing the fair value of the liability include financial projections for net revenue, gross profit, and EBITDA, as well as discount and volatility rates. Fair value adjustments are primarily recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. |
Benefit Plans - Projected Benef
Benefit Plans - Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1 | $ 12,724 | ||
Fair value of plan assets at December 31 | 8,538 | $ 12,724 | |
U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at January 1 | 1,729 | 1,887 | |
Service cost | 5 | 6 | $ 6 |
Interest cost | 51 | 42 | 49 |
Benefits paid | (39) | (31) | |
Settlements paid | (71) | (113) | |
Actuarial (gains)/losses | (482) | (63) | |
Acquisitions | 0 | 0 | |
Currency | 0 | 0 | |
Other | 0 | 1 | |
Projected benefit obligation at December 31 | 1,193 | 1,729 | 1,887 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1 | 1,826 | 1,959 | |
Actual return on plan assets | (455) | 1 | |
Contributions | 4 | 10 | |
Benefits paid | (39) | (31) | |
Settlements paid | (71) | (113) | |
Other | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets at December 31 | 1,265 | 1,826 | 1,959 |
Net pension assets at December 31 | 72 | 97 | |
Non-U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at January 1 | 10,821 | 11,658 | |
Service cost | 88 | 137 | 121 |
Interest cost | 172 | 130 | 149 |
Benefits paid | (461) | (533) | |
Settlements paid | 0 | 0 | |
Actuarial (gains)/losses | (2,844) | (269) | |
Acquisitions | 18 | 0 | |
Currency | (957) | (308) | |
Other | 41 | 6 | |
Projected benefit obligation at December 31 | 6,878 | 10,821 | 11,658 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1 | 11,021 | 10,972 | |
Actual return on plan assets | (2,388) | 548 | |
Contributions | 211 | 292 | |
Benefits paid | (461) | (533) | |
Settlements paid | 0 | 0 | |
Other | (992) | (258) | |
Other | (2) | 0 | |
Fair value of plan assets at December 31 | 7,389 | 11,021 | $ 10,972 |
Net pension assets at December 31 | $ 511 | $ 200 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jul. 11, 2019 | Sep. 30, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Plan assets related to certain insurance contracts | $ 117 | $ 124 | ||||
Expense for defined contribution plans | $ 66 | 73 | $ 83 | |||
Fixed-income securities | U.S. and International Investment Grade Debt Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Target allocation percentage | 95% | |||||
U.S. Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Period for recognition of net periodic benefit costs | 4 years | |||||
U.S. Plans | North America | Bakery and Confectionery Union and Industry International Pension Fund | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Multiemployer plan, withdrawal obligation | $ 526 | $ 344 | ||||
Multiemployer plan, withdrawal obligation term | 20 years | |||||
Multiemployer plan, adjustment related to withdrawal liability | $ 35 | |||||
Multiemployer plan, adjustment related to withdrawal liability, net of tax | $ 26 | |||||
Multiemployer plan, accreted interest on withdrawal liability | 11 | 11 | $ 11 | |||
U.S. Plans | North America | Bakery and Confectionery Union and Industry International Pension Fund | Other current liabilities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Multiemployer plan, withdrawal obligation | 15 | |||||
U.S. Plans | North America | Bakery and Confectionery Union and Industry International Pension Fund | Other long-term liabilities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Multiemployer plan, withdrawal obligation | 329 | |||||
Pension Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net pension asset (liability) | 583 | 297 | ||||
Pension Plans | U.S. Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accumulated benefit obligation | 1,200 | $ 1,700 | ||||
Employer contribution | 4 | |||||
Estimated employer contributions during in 2023 | $ 6 | |||||
Weighted-average discount rate | 5.55% | 3.01% | ||||
Rate of compensation increase | 4% | 4% | ||||
Pension Plans | Non-U.S. Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accumulated benefit obligation | $ 6,800 | $ 10,700 | ||||
Employer contribution | 190 | |||||
Employees contribution | 21 | |||||
Estimated employer contributions during in 2023 | $ 119 | |||||
Weighted-average discount rate | 4.51% | 1.73% | ||||
Rate of compensation increase | 3.22% | 2.83% | ||||
Pension Plans | Non-U.S. Plans | Fixed-income securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Target allocation percentage | 61% | |||||
Pension Plans | Non-U.S. Plans | Equity securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Target allocation percentage | 15% | |||||
Pension Plans | Non-U.S. Plans | Buy-in annuity policies | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Target allocation percentage | 20% | |||||
Pension Plans | Non-U.S. Plans | Real estate | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Target allocation percentage | 4% | |||||
Postretirement Benefit Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Current portion of our accrued postretirement benefit obligation | $ 16 | $ 16 | ||||
Postretirement Benefit Plans | Multiemployer Medical Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Multiemployer plan contributions | $ 17 | $ 19 | $ 20 | |||
Postretirement Benefit Plans | U.S. Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted-average discount rate | 5.53% | 2.96% | ||||
Postretirement Benefit Plans | Non-U.S. Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted-average discount rate | 6.07% | 3.81% | ||||
Postemployment Benefit Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted-average discount rate | 6.30% | 4.30% | ||||
Ultimate annual turnover rate | 0.40% | 0.40% | ||||
Rate of compensation increase | 4% | 4% | ||||
Net gains for post-employment benefit plans expected to be amortized from other comprehensive earnings/(losses) into cost during 2023 | $ (3) |
Benefit Plans - Pension Plans R
Benefit Plans - Pension Plans Resulted in Net Pension Asset (Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid pension assets | $ 1,016 | $ 1,009 |
Accrued pension costs | (403) | (681) |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid pension assets | 1,016 | 1,009 |
Other current liabilities | (30) | (31) |
Accrued pension costs | (403) | (681) |
Net pension liability | 583 | 297 |
Pension Plans | U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 31 | 42 |
Accumulated benefit obligation | 31 | 42 |
Fair value of plan assets | 2 | 3 |
Pension Plans | Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 531 | 1,889 |
Accumulated benefit obligation | 492 | 1,805 |
Fair value of plan assets | $ 135 | $ 1,223 |
Benefit Plans - Weighted-Averag
Benefit Plans - Weighted-Average Assumptions to Determine Benefit Obligations (Details) - Pension Plans | Dec. 31, 2022 | Dec. 31, 2021 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.55% | 3.01% |
Expected rate of return on plan assets | 6.25% | 4.50% |
Rate of compensation increase | 4% | 4% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.51% | 1.73% |
Expected rate of return on plan assets | 5.41% | 3.44% |
Rate of compensation increase | 3.22% | 2.83% |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Pension Cost (Details) - Pension Plans - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment expense (credit) | $ (17) | ||||
U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 5 | $ 6 | $ 6 | ||
Interest cost | 51 | 42 | 49 | ||
Expected return on plan assets | (79) | (72) | (77) | ||
Net loss/(gain) | 6 | 17 | 17 | ||
Prior service cost/(benefit) | 1 | 1 | 1 | ||
Curtailment expense (credit) | [1] | 0 | 0 | 0 | |
Settlement losses and other expenses | 14 | 19 | 18 | ||
Net periodic postemployment costs | (2) | 13 | 14 | ||
Non-U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 88 | 137 | 121 | ||
Interest cost | 172 | 130 | 149 | ||
Expected return on plan assets | (353) | (419) | (400) | ||
Net loss/(gain) | 57 | 130 | 118 | ||
Prior service cost/(benefit) | (2) | (6) | (7) | ||
Curtailment expense (credit) | [1] | 8 | (17) | 0 | |
Settlement losses and other expenses | 2 | 3 | 4 | ||
Net periodic postemployment costs | (28) | $ (42) | $ (15) | ||
U.K. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Incentive payment charges and other expenses related to frozen benefit plan | $ 48 | ||||
[1]During the third quarter of 2021, we terminated our Defined Benefit Pension Scheme in Nigeria. During the second quarter of 2021, we made a decision to freeze our Defined Benefit Pension Scheme in the United Kingdom. As a result, we recognized curtailment credits of ($17 million) in 2021 recorded within benefit plan non-service income. In connection with the United Kingdom plan freeze, we also incurred incentive payment charges and other expenses of $48 million in 2021 included in operating income. |
Benefit Plans - Weighted-Aver_2
Benefit Plans - Weighted-Average Assumptions to Determine Net Periodic Pension Cost (Details) - Pension Plans | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.01% | 2.73% | 3.44% |
Expected rate of return on plan assets | 4.50% | 4.50% | 5% |
Rate of compensation increase | 4% | 4% | 4% |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.74% | 1.33% | 1.74% |
Expected rate of return on plan assets | 3.44% | 3.90% | 4.20% |
Rate of compensation increase | 2.84% | 3.16% | 3.17% |
Benefit Plans - Fair Value of P
Benefit Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | $ 1,614 | $ 2,466 | $ 1,865 |
Significant Unobservable Inputs (Level 3) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,540 | 2,387 | 1,791 |
Significant Unobservable Inputs (Level 3) | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 70 | 74 | 70 |
Significant Unobservable Inputs (Level 3) | Private equity and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 4 | 5 | $ 4 |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 8,538 | 12,724 | |
Pension Plans | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 6,646 | 10,342 | |
Pension Plans | Total Fair Value | Total equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 964 | 1,552 | |
Pension Plans | Total Fair Value | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 3 | 4 | |
Pension Plans | Total Fair Value | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1 | 3 | |
Pension Plans | Total Fair Value | Pooled funds - equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 960 | 1,545 | |
Pension Plans | Total Fair Value | Total fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 5,351 | 8,368 | |
Pension Plans | Total Fair Value | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 2,495 | 3,777 | |
Pension Plans | Total Fair Value | Pooled funds - fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 560 | 648 | |
Pension Plans | Total Fair Value | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 2,296 | 3,943 | |
Pension Plans | Total Fair Value | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 221 | 251 | |
Pension Plans | Total Fair Value | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 4 | 4 | |
Pension Plans | Total Fair Value | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 102 | 162 | |
Pension Plans | Total Fair Value | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 4 | 5 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,807 | 2,075 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 910 | 1,091 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 3 | 4 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1 | 3 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds - equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 906 | 1,084 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 645 | 644 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 48 | 56 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds - fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 453 | 449 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 144 | 139 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 152 | 179 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 97 | 157 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 3 | 4 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 3,225 | 5,801 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Total equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 54 | 461 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Pooled funds - equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 54 | 461 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Total fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 3,166 | 5,335 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 2,447 | 3,721 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Pooled funds - fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 107 | 199 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 612 | 1,415 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 5 | 5 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,614 | 2,466 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Total equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Pooled funds - equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Total fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,540 | 2,389 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Pooled funds - fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,540 | 2,389 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 69 | 72 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 4 | 4 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1 | 1 | |
Pension Plans | Investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | $ 1,892 | $ 2,382 |
Benefit Plans - Changes in Leve
Benefit Plans - Changes in Level 3 Plan Assets (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at January 1 | $ 2,466 | $ 1,865 |
Net Realized and Unrealized Gains/ (Losses) | (447) | (170) |
Net Purchases, Issuances and Settlements | (149) | 785 |
Net Transfers Into/(Out of) Level 3 | 0 | 0 |
Currency Impact | (256) | (14) |
Fair value of plan assets at December 31 | 1,614 | 2,466 |
Corporate bonds and other fixed-income securities | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at January 1 | 2,387 | 1,791 |
Net Realized and Unrealized Gains/ (Losses) | (450) | (178) |
Net Purchases, Issuances and Settlements | (148) | 784 |
Net Transfers Into/(Out of) Level 3 | 0 | 0 |
Currency Impact | (249) | (10) |
Fair value of plan assets at December 31 | 1,540 | 2,387 |
Real estate | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at January 1 | 74 | 70 |
Net Realized and Unrealized Gains/ (Losses) | 3 | 7 |
Net Purchases, Issuances and Settlements | (1) | 1 |
Net Transfers Into/(Out of) Level 3 | 0 | 0 |
Currency Impact | (6) | (4) |
Fair value of plan assets at December 31 | 70 | 74 |
Private equity and other | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at January 1 | 5 | 4 |
Net Realized and Unrealized Gains/ (Losses) | 0 | 1 |
Net Purchases, Issuances and Settlements | 0 | 0 |
Net Transfers Into/(Out of) Level 3 | 0 | 0 |
Currency Impact | (1) | 0 |
Fair value of plan assets at December 31 | $ 4 | $ 5 |
Benefit Plans - Percentage of F
Benefit Plans - Percentage of Fair Value of Pension Plan Assets (Details) - Pension Plans | Dec. 31, 2022 | Dec. 31, 2021 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 100% | 100% |
U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 15% | 15% |
U.S. Plans | Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 85% | 85% |
U.S. Plans | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0% | 0% |
U.S. Plans | Buy-in annuity policies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0% | 0% |
U.S. Plans | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0% | 0% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 100% | 100% |
Non-U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 16% | 17% |
Non-U.S. Plans | Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 63% | 62% |
Non-U.S. Plans | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 3% | 3% |
Non-U.S. Plans | Buy-in annuity policies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 17% | 17% |
Non-U.S. Plans | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 1% | 1% |
Benefit Plans - Estimated Futur
Benefit Plans - Estimated Future Benefit Payments for Pension Plans (Details) - Pension Plans $ in Millions | Dec. 31, 2022 USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 147 |
2024 | 89 |
2025 | 92 |
2026 | 91 |
2027 | 90 |
2028-2032 | 442 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 404 |
2024 | 395 |
2025 | 401 |
2026 | 414 |
2027 | 419 |
2028-2032 | $ 2,157 |
Benefit Plans - Benefit Obligat
Benefit Plans - Benefit Obligation of Postretirement Benefit Plans (Details) - Postretirement Benefit Plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Projected benefit obligation at January 1 | $ 317 | $ 361 |
Service cost | 2 | 4 |
Interest cost | 9 | 8 |
Benefits paid | (15) | (15) |
Plan amendments | 0 | (1) |
Currency | (5) | (1) |
Actuarial losses/(gains) | (75) | (39) |
Projected benefit obligation at December 31 | $ 233 | $ 317 |
Benefit Plans - Weighted-Aver_3
Benefit Plans - Weighted-Average Assumptions to Determine Postretirement Benefit Obligations (Details) - Postretirement Benefit Plans | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.53% | 2.96% |
Health care cost trend rate assumed for next year | 7% | 5.50% |
Ultimate trend rate | 5% | 5% |
Year that the rate reaches the ultimate trend rate | 2031 | 2024 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 6.07% | 3.81% |
Health care cost trend rate assumed for next year | 5.98% | 5.72% |
Ultimate trend rate | 4.70% | 4.47% |
Year that the rate reaches the ultimate trend rate | 2040 | 2040 |
Benefit Plans - Components of_2
Benefit Plans - Components of Net Periodic Postretirement Health Care Costs (Details) - Postretirement Health Care Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 2 | $ 4 | $ 5 |
Interest cost | 9 | 8 | 12 |
Net loss/(gain) | 1 | 2 | 7 |
Prior service credit | 0 | 0 | (30) |
Net periodic postretirement health care costs/(benefit) | $ 12 | $ 14 | $ (6) |
Benefit Plans - Weighted-Aver_4
Benefit Plans - Weighted-Average Assumptions to Determine Net Periodic Postretirement Health Care Cost (Details) - Postretirement Health Care Plan | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.96% | 2.68% | 3.41% |
Health care cost trend rate | 5.50% | 5.75% | 6% |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.81% | 3.35% | 3.86% |
Health care cost trend rate | 5.72% | 5.66% | 5.42% |
Benefit Plans - Future Benefit
Benefit Plans - Future Benefit Payments for Postretirement Health Care Plans (Details) - Postretirement Health Care Plan $ in Millions | Dec. 31, 2022 USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 11 |
2024 | 12 |
2025 | 11 |
2026 | 11 |
2027 | 11 |
2028-2032 | 49 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 4 |
2024 | 5 |
2025 | 5 |
2026 | 5 |
2027 | 5 |
2028-2032 | $ 28 |
Benefit Plans - Changes in Accu
Benefit Plans - Changes in Accumulated Postemployment Benefit Obligations (Details) - Postemployment Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at January 1 | $ 56 | $ 65 | |
Service cost | 4 | 6 | $ 6 |
Interest cost | 2 | 3 | 3 |
Benefits paid | (14) | (12) | |
Actuarial losses/(gains) | (1) | (6) | |
Projected benefit obligation at December 31 | $ 47 | $ 56 | $ 65 |
Benefit Plans - Components of_3
Benefit Plans - Components of Net Postemployment Costs (Details) - Postemployment Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 4 | $ 6 | $ 6 |
Interest cost | 2 | 3 | 3 |
Amortization of net gains | (6) | (4) | (2) |
Net periodic postemployment costs | $ 0 | $ 5 | $ 7 |
Stock Plans - Narrative (Detail
Stock Plans - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 20 | $ 23 | $ 28 |
Deferred tax benefit related to compensation expense | 3 | 4 | 5 |
Unamortized compensation expense related to stock options | $ 21 | ||
Unamortized compensation expense recognition period | 1 year 7 months 6 days | ||
Deferred units, performance share units and other stock-based awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 100 | 98 | 98 |
Deferred tax benefit related to compensation expense | $ 17 | $ 16 | $ 15 |
Unamortized compensation expense recognition period | 10 months 24 days | ||
Unamortized compensation expense related to deferred stock units, performance share units and restricted stock | $ 113 | ||
2005 Plan | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares award expiration date | May 21, 2024 | ||
Shares authorized to be issued under stock option plan (in shares) | 243.7 | ||
Shares available to be granted (in shares) | 45.5 |
Stock Plans - Weighted-Average
Stock Plans - Weighted-Average Black-Scholes Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Risk-Free Interest Rate | 1.87% | 0.57% | 1.34% |
Expected Life | 5 years | 5 years | 5 years |
Expected Volatility | 22.05% | 23.45% | 19.64% |
Expected Dividend Yield | 2.13% | 2.20% | 2.06% |
Fair Value at Grant Date (in dollars per share) | $ 11.24 | $ 9.08 | $ 8.61 |
Stock Plans - Stock Option Acti
Stock Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Shares Subject to Option | |||||
Beginning balance (in shares) | 23,503,759 | 27,751,894 | 33,855,948 | ||
Options granted (in shares) | 2,244,030 | 2,573,350 | 2,416,800 | ||
Options exercised (in shares) | [1] | (4,780,086) | (6,249,330) | (7,847,964) | |
Options cancelled (in shares) | (477,453) | (572,155) | (672,890) | ||
Ending balance (in shares) | 20,490,250 | 23,503,759 | 27,751,894 | ||
Exercisable at end of the period (in shares) | 16,350,018 | ||||
Weighted- Average Exercise or Grant Price Per Share | |||||
Beginning balance (in dollars per share) | $ 42.65 | $ 39.51 | $ 36.19 | ||
Options granted (in dollars per share) | 64.64 | 56.26 | 58.50 | ||
Options exercised (in dollars per share) | [1] | 35.96 | 33.68 | 30.55 | |
Options cancelled (in dollars per share) | 55.89 | 49.65 | 44.94 | ||
Ending balance (in dollars per share) | 46.31 | $ 42.65 | $ 39.51 | ||
Exercisable at end of the period (in dollars per share) | $ 42.62 | ||||
Average Remaining Contractual Term | |||||
Ending balance | 5 years | ||||
Exercisable at end of the period | 4 years | ||||
Aggregate Intrinsic Value | |||||
Options exercised | [1] | $ 142 | $ 169 | $ 205 | |
Aggregate intrinsic value | 417 | 556 | 527 | $ 640 | |
Exercisable at end of the period | 393 | ||||
Cash received from options exercised | 158 | 206 | 236 | ||
Actual tax benefit realized for the tax deductions from the option exercises | $ 22 | $ 24 | $ 27 | ||
Annual grant to eligible employees | |||||
Shares Subject to Option | |||||
Options granted (in shares) | 2,180,540 | 2,412,710 | 2,280,440 | ||
Weighted- Average Exercise or Grant Price Per Share | |||||
Options granted (in dollars per share) | $ 64.65 | $ 56.13 | $ 59.04 | ||
Additional options issued | |||||
Shares Subject to Option | |||||
Options granted (in shares) | 63,490 | 160,640 | 136,360 | ||
Weighted- Average Exercise or Grant Price Per Share | |||||
Options granted (in dollars per share) | $ 64.39 | $ 58.17 | $ 49.48 | ||
[1]Cash received from options exercised was $158 million in 2022, $206 million in 2021 and $236 million in 2020. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $22 million in 2022, $24 million in 2021 and $27 million in 2020. |
Stock Plans - Deferred Stock Un
Stock Plans - Deferred Stock Units, Performance Share Units and Other Stock-Based Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Number of Shares | ||||||
Beginning balance (in shares) | 4,668,046 | 4,896,990 | 5,661,945 | |||
Shares granted (in shares) | 2,147,797 | 2,616,984 | 1,761,510 | |||
Vested (in shares) | [1] | (1,925,556) | (2,459,427) | [2] | (2,051,054) | [2] |
Forfeited (in shares) | (438,613) | (386,501) | [2] | (475,411) | [2] | |
Ending balance (in shares) | 4,451,674 | 4,668,046 | 4,896,990 | |||
Weighted-Average Fair Value Per Share | ||||||
Beginning balance (in dollars per share) | [3] | $ 57.04 | $ 53.80 | $ 46.90 | ||
Shares granted (in dollars per share) | [3] | 61.55 | 56.19 | 61.75 | ||
Vested (in dollars per share) | [1],[3] | 54.13 | 49.59 | [2] | 42.87 | [2] |
Forfeited (in dollars per share) | [3] | 60.68 | 57.52 | [2] | 48.24 | [2] |
Ending balance (in dollars per share) | [3] | $ 60.12 | $ 57.04 | $ 53.80 | ||
Weighted-Average Aggregate Fair Value | ||||||
Total shares granted | [1] | $ 132 | $ 147 | $ 109 | ||
Vested | [1] | 104 | 122 | [2] | 88 | [2] |
Actual tax benefit realized for the tax deductions from the shares vested | $ 5 | $ 6 | $ 5 | |||
Performance share units | ||||||
Number of Shares | ||||||
Shares granted (in shares) | 806,590 | 903,250 | 825,230 | |||
Weighted-Average Fair Value Per Share | ||||||
Shares granted (in dollars per share) | [3] | $ 61.87 | $ 59.35 | $ 65.83 | ||
Deferred stock units | ||||||
Number of Shares | ||||||
Shares granted (in shares) | 505,090 | 550,090 | 545,550 | |||
Weighted-Average Fair Value Per Share | ||||||
Shares granted (in dollars per share) | [3] | $ 64.65 | $ 56.13 | $ 59.04 | ||
Additional shares granted | ||||||
Number of Shares | ||||||
Shares granted (in shares) | [4] | 836,117 | 1,163,644 | 390,730 | ||
Weighted-Average Fair Value Per Share | ||||||
Shares granted (in dollars per share) | [3],[4] | $ 59.37 | $ 53.76 | $ 56.90 | ||
Annual grant to eligible employees | ||||||
Grant Date | ||||||
Grant date | Feb. 24, 2022 | Feb. 18, 2021 | Feb. 20, 2020 | |||
[1]The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $5 million in 2022, $6 million in 2021 and $5 million in 2020.[2]Includes PSUs, DSUs and other stock-based awards.[3]The grant date fair value of PSUs is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided.[4]Includes PSUs and DSUs. |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) | 12 Months Ended | 96 Months Ended | 108 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | Jan. 01, 2023 | |
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | |||
Preferred stock, shares authorized (in shares) | 500,000,000 | |||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 0 | |
Amount of shares repurchased | $ 2,000,000,000 | $ 2,096,000,000 | $ 1,401,000,000 | |||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 5,000,000,000 | |||||
Common stock reserved for stock option and other stock awards (in shares) | 70,400,000 | |||||
Amount of shares repurchased | $ 2,000,000,000 | |||||
Number of shares repurchased (in shares) | 31,556,510 | 35,384,366 | 25,071,845 | |||
Average cost of shares repurchased (in dollars per share) | $ 63.41 | |||||
Common Stock | Share Repurchase Program amended between 2013 and 2020 | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase value | $ 23,700,000,000 | $ 23,700,000,000 | ||||
Stock repurchase expiration date | Dec. 31, 2023 | |||||
Common Stock | Prior to January 1, 2020 | ||||||
Class of Stock [Line Items] | ||||||
Amount of shares repurchased | $ 20,000,000,000 | |||||
Common Stock | Share Repurchase Program 2023 - 2025 | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase value | $ 6,000,000,000 |
Capital Stock - Authorized Comm
Capital Stock - Authorized Common Stock Repurchase Programs (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares Issued | |||
Balance at January 1 (in shares) | 1,996,537,778 | ||
Balance at December 31 (in shares) | 1,996,537,778 | 1,996,537,778 | |
Treasury Shares | |||
Balance at January 1 (in shares) | (604,907,239) | ||
Balance at December 31 (in shares) | (630,646,687) | (604,907,239) | |
Common Stock | |||
Shares Issued | |||
Balance at January 1 (in shares) | 1,996,537,778 | 1,996,537,778 | 1,996,537,778 |
Exercise of stock options and issuance of other stock awards (in shares) | 0 | 0 | 0 |
Balance at December 31 (in shares) | 1,996,537,778 | 1,996,537,778 | 1,996,537,778 |
Treasury Shares | |||
Balance at January 1 (in shares) | (604,907,239) | (577,363,557) | (561,531,524) |
Shares repurchased (in shares) | (31,556,510) | (35,384,366) | (25,071,845) |
Exercise of stock options and issuance of other stock awards (in shares) | 5,817,062 | 7,840,684 | 9,239,812 |
Balance at December 31 (in shares) | (630,646,687) | (604,907,239) | (577,363,557) |
Shares Outstanding | |||
Balance at January 1 (in shares) | 1,391,630,539 | 1,419,174,221 | 1,435,006,254 |
Shares repurchased (in shares) | (31,556,510) | (35,384,366) | (25,071,845) |
Exercise of stock options and issuance of other stock awards (in shares) | 5,817,062 | 7,840,684 | 9,239,812 |
Balance at December 31 (in shares) | 1,365,891,091 | 1,391,630,539 | 1,419,174,221 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - 12 months ended Dec. 31, 2022 € in Millions | USD ($) | EUR (€) | EUR (€) |
U.S. Commodity Futures Trading Commission ("CFTC") | |||
Loss Contingencies [Line Items] | |||
Loss contingency, filling date | April 1, 2015 | April 1, 2015 | |
Loss contingency, damages sought | $ 1,000,000 | ||
U.S. Commodity Futures Trading Commission ("CFTC") | Each Additional Violation of the Commodity Exchange Act | |||
Loss Contingencies [Line Items] | |||
Loss contingency, damages sought | 140,000 | ||
Investigation by European Commission | |||
Loss Contingencies [Line Items] | |||
Accrued loss contingency | 318,000,000 | € 300 | |
Expensed loss contingency | $ 318,000,000 | € 300 |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive Income - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Transfer of realized (gains)/losses in fair value to earnings | $ 21 | $ (44) | $ 285 |
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 | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 28,323 | $ 27,654 | $ 27,317 | |
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests | 14 | 16 | (13) | |
Total other comprehensive earnings/(losses) | (337) | 50 | (423) | |
Other comprehensive earnings/(losses) | (323) | 66 | (436) | |
Balance at end of period | 26,920 | 28,323 | 27,654 | |
Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (9,097) | (8,655) | (8,320) | |
Tax (expense)/benefit on gains/(losses) | (659) | (481) | (398) | |
Tax (expense)/benefit | (66) | 23 | 47 | |
Total other comprehensive earnings/(losses) | (725) | (458) | (322) | |
Balance at end of period | (9,808) | (9,097) | (8,655) | |
Equity method investment transactions | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Losses/(gains) reclassified into net earnings | [1] | 0 | 0 | 29 |
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) | (1,721) | |
Tax (expense)/benefit on gains/(losses) | (37) | (80) | 38 | |
Net gains/(losses) arising during period | 149 | 398 | (187) | |
Tax (benefit) on reclassifications | [2] | (21) | (34) | (31) |
Currency impact | 102 | 66 | (99) | |
Total other comprehensive earnings/(losses) | 274 | 495 | (153) | |
Balance at end of period | (1,105) | (1,379) | (1,874) | |
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 | [3] | 57 | 140 | 104 |
Settlement losses and other expenses | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Losses/(gains) reclassified into net earnings | [1] | 16 | 22 | 22 |
Curtailment credit | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Losses/(gains) reclassified into net earnings | [3] | (8) | 17 | 0 |
Derivative Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (148) | (161) | (213) | |
Tax (expense)/benefit on gains/(losses) | (13) | 0 | 27 | |
Net gains/(losses) arising during period | 160 | 163 | (132) | |
Tax (benefit) on reclassifications | [2] | (17) | (3) | (28) |
Currency impact | 6 | 5 | (4) | |
Total other comprehensive earnings/(losses) | 114 | 13 | 52 | |
Balance at end of period | (34) | (148) | (161) | |
Derivative Cash Flow Hedges | Currency exchange contracts | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Losses/(gains) reclassified into net earnings | [4] | 8 | 0 | 0 |
Derivative Cash Flow Hedges | Interest rate contracts | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Losses/(gains) reclassified into net earnings | [1],[4] | (30) | (152) | 189 |
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) | (10,254) | |
Total other comprehensive earnings/(losses) | (323) | 66 | (436) | |
Balance at end of period | $ (10,947) | $ (10,624) | $ (10,690) | |
[1]Includes equity method investment transactions recorded within gain/(loss) on equity method investment transactions.[2]Taxes reclassified to earnings are recorded within the provision for income taxes[3] These reclassified losses are included in net periodic benefit costs disclosed in Note 11, Benefit Plans . |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) transaction | Jan. 01, 2022 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2017 USD ($) | |
Income Tax Contingency [Line Items] | ||||||
Effective tax rate | 26.80% | 27.20% | 36.20% | |||
Effective income tax rate reconciliation, excluding impact from employee stock ownership plan, percent | 22.60% | |||||
Net discrete tax expense benefit | $ 96 | $ 2 | $ 119 | |||
Net benefit from release of liabilities for uncertain tax positions, expirations of statutes of limitations and audit settlements | 72 | $ 47 | $ 50 | |||
Income tax benefit from business combination | 51 | |||||
Net tax expense from increase in tax liability resulting from tax legislation | 17 | |||||
Effective income tax rate excluding effects of equity method transaction | 23% | 22.80% | ||||
Valuation allowance | 1,257 | $ 1,280 | $ 1,280 | |||
Valuation allowance increase (decrease) | (23) | |||||
Valuation allowance, increased amount | 79 | |||||
Valuation allowance, decreased amount | 102 | |||||
Loss carryforwards | 664 | |||||
Loss carryforwards, expire at various dates between 2023 and 2042 | 34 | |||||
Loss carryforwards, indefinitely | 630 | |||||
Unremitted earnings indefinitely reinvested | 4,400 | |||||
Undistributed earnings of foreign subsidiaries subject to U.S. tax | 1,200 | |||||
Deferred tax liabilities not recognized to unremitted earnings indefinitely reinvested | 90 | |||||
Unrecognized tax benefits | 424 | 446 | $ 442 | 446 | $ 426 | |
Impact on tax provision from unrecognized tax benefits | 352 | 372 | ||||
Unrecognized tax benefits reasonably possible increase resulting from unfavorable audit developments | 40 | |||||
Unrecognized tax benefits reasonably possible decrease resulting from audit settlements and the expiration of statutes of limitations in various jurisdictions | 70 | |||||
Unrecognized tax benefits, income tax penalties and interest accrued | 162 | $ 173 | ||||
Net expense for interest and penalties | 1 | |||||
Transition tax liability | $ 570 | $ 1,300 | ||||
KDP | ||||||
Income Tax Contingency [Line Items] | ||||||
Net tax expense incurred in connection with equity method transaction | 187 | |||||
Number of sales of equity method investment transactions | transaction | 4 | |||||
JDEP and KDP | ||||||
Income Tax Contingency [Line Items] | ||||||
Net tax expense incurred in connection with equity method transaction | $ 452 | |||||
Domestic Tax Authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax benefit due to new tax guidance | 44 | |||||
Foreign Tax Authority | U.K. | ||||||
Income Tax Contingency [Line Items] | ||||||
Net tax expense from increase in tax liability resulting from tax legislation | $ 100 | |||||
Foreign Tax Authority | China | ||||||
Income Tax Contingency [Line Items] | ||||||
Net benefit from release of valuation allowance | $ 70 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings/(losses) from continuing operations before income taxes: | |||
United States | $ 463 | $ 519 | $ 514 |
Outside United States | 2,765 | 3,850 | 2,869 |
Earnings before income taxes | 3,228 | 4,369 | 3,383 |
United States federal: | |||
Current | 187 | 297 | 440 |
Deferred | (17) | (31) | (82) |
Federal income taxes | 170 | 266 | 358 |
State and local: | |||
Current | 78 | 89 | 98 |
Deferred | 2 | 9 | (7) |
State and local taxes | 80 | 98 | 91 |
Total United States | 250 | 364 | 449 |
Outside United States: | |||
Current | 642 | 599 | 756 |
Deferred | (27) | 227 | 19 |
Total outside United States | 615 | 826 | 775 |
Total provision for income taxes | $ 865 | $ 1,190 | $ 1,224 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory rate | 21% | 21% | 21% | |
Increase/(decrease) resulting from: | ||||
State and local income taxes, net of federal tax benefit | 1.60% | 1.10% | 1.60% | |
Tax impacts from our foreign operations | 2% | (1.60%) | 1.10% | |
Changes in judgment on realizability of deferred tax assets | (1.10%) | 0.10% | (2.20%) | |
Reversal of other tax accruals no longer required | (1.40%) | (0.50%) | (0.80%) | |
Tax accrual on investment in KDP (including tax impact of share sales) | 0.50% | 4.70% | 6.70% | |
Excess tax benefits from equity compensation | (0.80%) | (0.70%) | (1.00%) | |
Foreign tax legislation/reform | 0.50% | 2.30% | 1% | |
Business sales (including tax impact from JDE Peet's transaction) | 0.10% | 0% | 7.40% | |
Foreign tax provisions under TCJA (GILTI, FDII And BEAT) | [1] | 0.10% | 0.80% | 1.10% |
Non-deductible expenses, including buyout of Clif Bar ESOP and European Commission legal matter | 4.10% | 0.10% | 0.10% | |
Other | 0.20% | (0.10%) | 0.20% | |
Effective tax rate | 26.80% | 27.20% | 36.20% | |
[1]The Tax Cuts and Jobs Act of 2017 (“TCJA”) established the Global Intangible Low-Tax Income (“GILTI”) provision, which taxes U.S. allocated expenses and certain income from foreign operations; the Foreign-Derived Intangible Income (“FDII”) provision, which allows a deduction against certain types of U.S. taxable income resulting in a lower effective U.S. tax rate on such income; and the Base Erosion Anti-abuse Tax (“BEAT”), which is a minimum tax based on cross-border service payments by U.S. entities. |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities Temporary Differences (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
Deferred income tax assets: | |||
Accrued postretirement and postemployment benefits | $ 83 | $ 114 | |
Other employee benefits | 156 | 150 | |
Accrued expenses | 649 | 454 | |
Loss carryforwards | 664 | 685 | |
Tax credit carryforwards | 786 | 786 | |
Other | 481 | 468 | |
Total deferred income tax assets | 2,819 | 2,657 | |
Valuation allowance | (1,257) | $ (1,280) | (1,280) |
Net deferred income tax assets | 1,562 | 1,377 | |
Deferred income tax liabilities: | |||
Intangible assets, including impact from Swiss tax reform | (3,279) | (3,214) | |
Property, plant and equipment | (708) | (638) | |
Accrued pension costs | (57) | ||
Accrued pension costs | 23 | ||
Other | (482) | (451) | |
Total deferred income tax liabilities | (4,526) | (4,280) | |
Net deferred income tax liabilities | $ (2,964) | $ (2,903) |
Income Taxes - Change in Unreco
Income Taxes - Change in Unrecognized Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
January 1 | $ 446 | $ 442 | $ 426 |
Increases from positions taken during prior periods | 16 | 31 | 35 |
Decreases from positions taken during prior periods | (9) | (21) | (17) |
Increases from positions taken during the current period | 48 | 47 | 48 |
Decreases relating to settlements with taxing authorities | (54) | (13) | (27) |
Reductions resulting from the lapse of the applicable statute of limitations | (22) | (26) | (29) |
Currency/other | (1) | (14) | 6 |
December 31 | $ 424 | $ 446 | $ 442 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net earnings | $ 2,726 | $ 4,314 | $ 3,569 |
Noncontrolling interest earnings | (9) | (14) | (14) |
Net earnings attributable to Mondelēz International | $ 2,717 | $ 4,300 | $ 3,555 |
Weighted-average shares for basic EPS (in shares) | 1,378 | 1,403 | 1,431 |
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares (in shares) | 7 | 10 | 10 |
Weighted-average shares for diluted EPS (in shares) | 1,385 | 1,413 | 1,441 |
Basic earnings per share attributable to Mondelēz International (in dollars per share) | $ 1.97 | $ 3.06 | $ 2.48 |
Diluted earnings per share attributable to Mondelēz International (in dollars per share) | $ 1.96 | $ 3.04 | $ 2.47 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock options | |||
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) | 3 | 3.1 | 3.6 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | [1] | Dec. 31, 2020 | [1] | |
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 31,496 | $ 28,720 | $ 26,581 | ||
Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 3,629 | 2,797 | 2,477 | ||
AMEA | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 6,767 | 6,465 | 5,740 | ||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 11,420 | 11,156 | 10,207 | ||
North America | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 9,680 | $ 8,302 | $ 8,157 | ||
[1]Our snack product categories include biscuits & baked snacks, chocolate and gum & candy. During the first quarter of 2022, we realigned some of our products between our biscuits & baked snacks and chocolate categories; as such, we reclassified the product category net revenues on a basis consistent with the 2022 presentation. |
Segment Reporting - Operating I
Segment Reporting - Operating Income by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Operating income | $ 3,534 | $ 4,653 | $ 3,853 |
Unrealized gains/(losses) on hedging activities (mark-to-market impacts) | (326) | 279 | 16 |
General corporate expenses | (245) | (253) | (326) |
Amortization of intangible assets | (132) | (134) | (194) |
Gain on acquisition | 0 | 8 | 0 |
Acquisition-related costs | (330) | (25) | (15) |
Benefit plan non-service income | 117 | 163 | 138 |
Interest and other expense, net | (423) | (447) | (608) |
Earnings before income taxes | 3,228 | 4,369 | 3,383 |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Operating income | 388 | 261 | 189 |
AMEA | |||
Segment Reporting Information [Line Items] | |||
Operating income | 929 | 1,054 | 821 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Operating income | 1,481 | 2,092 | 1,775 |
North America | |||
Segment Reporting Information [Line Items] | |||
Operating income | $ 1,769 | $ 1,371 | $ 1,587 |
Segment Reporting - Total Asset
Segment Reporting - Total Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 71,161 | $ 67,092 | $ 67,810 | |
Equity method investments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 4,879 | 5,289 | 6,036 | |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 6,164 | 4,106 | 4,181 |
AMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 9,882 | 10,386 | 9,997 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 22,713 | 20,927 | 21,442 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 26,603 | 23,321 | 23,297 |
Unallocated assets and adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [2] | $ 920 | $ 3,063 | $ 2,857 |
[1]Segment assets do not reflect outstanding intercompany asset balances that have been eliminated at a segment level.[2]Unallocated assets consist primarily of cash and cash equivalents, deferred income taxes, centrally held property, plant and equipment, prepaid pension assets and derivative financial instrument balances. Final adjustments for jurisdictional netting of deferred tax assets and liabilities is done at a consolidated level. |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation Expense and Capital Expenditure by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Reporting Information [Line Items] | ||||
Total depreciation expense | [1] | $ 690 | $ 683 | $ 652 |
Total capital expenditures | 906 | 965 | 863 | |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation expense | [1] | 117 | 105 | 101 |
Total capital expenditures | 113 | 165 | 219 | |
AMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation expense | [1] | 169 | 173 | 159 |
Total capital expenditures | 229 | 208 | 177 | |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation expense | [1] | 256 | 257 | 238 |
Total capital expenditures | 355 | 409 | 295 | |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation expense | [1] | 148 | 148 | 154 |
Total capital expenditures | $ 209 | $ 183 | $ 172 | |
[1]Includes depreciation expense related to owned property, plant and equipment. Does not include amortization of intangible assets or leased assets. Refer to the consolidated statement of cash flows for total depreciation and amortization expenses. |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 31,496 | $ 28,720 | [1] | $ 26,581 | [1] |
United States | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 8,315 | 7,146 | 7,130 | ||
Other | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 23,181 | $ 21,574 | $ 19,451 | ||
[1]Our snack product categories include biscuits & baked snacks, chocolate and gum & candy. During the first quarter of 2022, we realigned some of our products between our biscuits & baked snacks and chocolate categories; as such, we reclassified the product category net revenues on a basis consistent with the 2022 presentation. |
Segment Reporting - Long-lived
Segment Reporting - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | |||
Total long-lived assets | $ 12,558 | $ 10,651 | $ 10,628 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total long-lived assets | 2,740 | 1,851 | 1,956 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Total long-lived assets | 932 | 1,125 | 888 |
Other | |||
Segment Reporting Information [Line Items] | |||
Total long-lived assets | $ 8,886 | $ 7,675 | $ 7,784 |
Segment Reporting - Net Reven_3
Segment Reporting - Net Revenues by Product Category (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | [1] | Dec. 31, 2020 | [1] | |
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 31,496 | $ 28,720 | $ 26,581 | ||
Biscuits & Baked Snacks | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 15,608 | 13,552 | 12,796 | ||
Chocolate | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 9,486 | 9,271 | 8,149 | ||
Gum & Candy | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 3,412 | 2,872 | 2,662 | ||
Beverages | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,100 | 1,035 | 1,049 | ||
Cheese & Grocery | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,890 | 1,990 | 1,925 | ||
Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 3,629 | 2,797 | 2,477 | ||
Latin America | Biscuits & Baked Snacks | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,013 | 799 | 669 | ||
Latin America | Chocolate | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,003 | 758 | 609 | ||
Latin America | Gum & Candy | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 840 | 567 | 474 | ||
Latin America | Beverages | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 409 | 359 | 403 | ||
Latin America | Cheese & Grocery | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 364 | 314 | 322 | ||
AMEA | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 6,767 | 6,465 | 5,740 | ||
AMEA | Biscuits & Baked Snacks | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 2,515 | 2,254 | 2,045 | ||
AMEA | Chocolate | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 2,520 | 2,395 | 2,019 | ||
AMEA | Gum & Candy | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 780 | 816 | 696 | ||
AMEA | Beverages | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 572 | 550 | 544 | ||
AMEA | Cheese & Grocery | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 380 | 450 | 436 | ||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 11,420 | 11,156 | 10,207 | ||
Europe | Biscuits & Baked Snacks | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 3,818 | 3,354 | 3,058 | ||
Europe | Chocolate | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 5,646 | 5,836 | 5,268 | ||
Europe | Gum & Candy | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 691 | 614 | 612 | ||
Europe | Beverages | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 119 | 126 | 102 | ||
Europe | Cheese & Grocery | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,146 | 1,226 | 1,167 | ||
North America | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 9,680 | 8,302 | 8,157 | ||
North America | Biscuits & Baked Snacks | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 8,262 | 7,145 | 7,024 | ||
North America | Chocolate | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 317 | 282 | 253 | ||
North America | Gum & Candy | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,101 | 875 | 880 | ||
North America | Beverages | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 0 | 0 | 0 | ||
North America | Cheese & Grocery | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 0 | $ 0 | $ 0 | ||
[1]Our snack product categories include biscuits & baked snacks, chocolate and gum & candy. During the first quarter of 2022, we realigned some of our products between our biscuits & baked snacks and chocolate categories; as such, we reclassified the product category net revenues on a basis consistent with the 2022 presentation. |