Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-16483 | |
Entity Registrant Name | Mondelēz International, Inc. | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 52-2284372 | |
Entity Address, Address Line One | 905 West Fulton Market, Suite 200 | |
Entity Address, City or Town | Chicago, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60607 | |
City Area Code | 847 | |
Local Phone Number | 943-4000 | |
Entity Information [Line Items] | ||
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,360,417,919 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001103982 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock, no par value | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, no par value | |
Trading Symbol | MDLZ | |
Security Exchange Name | NASDAQ | |
1.625% Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes due 2027 | |
Trading Symbol | MDLZ27 | |
Security Exchange Name | NASDAQ | |
0.250% Notes due 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.250% Notes due 2028 | |
Trading Symbol | MDLZ28 | |
Security Exchange Name | NASDAQ | |
0.750% Notes due 2033 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.750% Notes due 2033 | |
Trading Symbol | MDLZ33 | |
Security Exchange Name | NASDAQ | |
2.375% Notes due 2035 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.375% Notes due 2035 | |
Trading Symbol | MDLZ35 | |
Security Exchange Name | NASDAQ | |
4.500% Notes due 2035 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.500% Notes due 2035 | |
Trading Symbol | MDLZ35A | |
Security Exchange Name | NASDAQ | |
1.375% Notes due 2041 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.375% Notes due 2041 | |
Trading Symbol | MDLZ41 | |
Security Exchange Name | NASDAQ | |
3.875% Notes due 2045 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.875% Notes due 2045 | |
Trading Symbol | MDLZ45 | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net revenues | $ 8,507 | $ 7,274 | $ 17,673 | $ 15,038 |
Cost of sales | 5,153 | 4,633 | 10,873 | 9,414 |
Gross profit | 3,354 | 2,641 | 6,800 | 5,624 |
Selling, general and administrative expenses | 1,869 | 1,676 | 3,724 | 3,369 |
Asset impairment and exit costs | 23 | 6 | 70 | 170 |
Amortization of intangible assets | 37 | 32 | 76 | 64 |
Operating income | 1,425 | 927 | 2,930 | 2,021 |
Benefit plan non-service income | (22) | (30) | (41) | (63) |
Interest and other expense, net | 97 | 98 | 192 | 266 |
Loss/(gain) on marketable securities | 189 | 0 | (607) | 0 |
Earnings before income taxes | 1,161 | 859 | 3,386 | 1,818 |
Income tax provision | (268) | (201) | (926) | (411) |
(Loss)/gain on equity method investment transactions | (23) | (8) | 464 | (13) |
Equity method investment net earnings | 71 | 98 | 106 | 215 |
Net earnings | 941 | 748 | 3,030 | 1,609 |
Noncontrolling interest earnings | 3 | (1) | (5) | (7) |
Net earnings attributable to Mondelēz International | $ 944 | $ 747 | $ 3,025 | $ 1,602 |
Per share data: | ||||
Basic earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.69 | $ 0.54 | $ 2.22 | $ 1.16 |
Diluted earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.69 | $ 0.54 | $ 2.20 | $ 1.15 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 941 | $ 748 | $ 3,030 | $ 1,609 |
Other comprehensive earnings/(losses), net of tax: | ||||
Currency translation adjustment | 146 | (399) | 297 | (349) |
Pension and other benefit plans | (22) | 167 | (28) | 260 |
Derivative cash flow hedges | (28) | 8 | (38) | 60 |
Total other comprehensive earnings/(losses) | 96 | (224) | 231 | (29) |
Comprehensive earnings/(losses) | 1,037 | 524 | 3,261 | 1,580 |
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | (11) | (10) | (1) | (8) |
Comprehensive earnings/(losses) attributable to Mondelēz International | $ 1,048 | $ 534 | $ 3,262 | $ 1,588 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 1,482 | $ 1,923 |
Trade receivables (net of allowances of $64 at June 30, 2023 and $45 at December 31, 2022) | 2,934 | 3,088 |
Other receivables (net of allowances of $54 at June 30, 2023 and $59 at December 31, 2022) | 851 | 819 |
Inventories, net | 3,825 | 3,381 |
Other current assets | 2,530 | 880 |
Total current assets | 11,622 | 10,091 |
Property, plant and equipment, net | 9,308 | 9,020 |
Operating lease right of use assets | 636 | 660 |
Goodwill | 23,670 | 23,450 |
Intangible assets, net | 19,839 | 19,710 |
Prepaid pension assets | 1,108 | 1,016 |
Deferred income taxes | 432 | 473 |
Equity method investments | 3,245 | 4,879 |
Other assets | 2,165 | 1,862 |
TOTAL ASSETS | 72,025 | 71,161 |
LIABILITIES | ||
Short-term borrowings | 2,178 | 2,299 |
Current portion of long-term debt | 901 | 383 |
Accounts payable | 7,740 | 7,562 |
Accrued marketing | 2,521 | 2,370 |
Accrued employment costs | 816 | 949 |
Other current liabilities | 3,846 | 3,168 |
Total current liabilities | 18,002 | 16,731 |
Long-term debt | 18,147 | 20,251 |
Long-term operating lease liabilities | 492 | 514 |
Deferred income taxes | 3,525 | 3,437 |
Accrued pension costs | 374 | 403 |
Accrued postretirement health care costs | 213 | 217 |
Other liabilities | 2,593 | 2,688 |
TOTAL LIABILITIES | 43,346 | 44,241 |
Commitments and Contingencies (Note 12) | ||
EQUITY | ||
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at June 30, 2023 and December 31, 2022) | 0 | 0 |
Additional paid-in capital | 32,148 | 32,143 |
Retained earnings | 33,458 | 31,481 |
Accumulated other comprehensive losses | (10,710) | (10,947) |
Treasury stock, at cost (635,538,156 shares at June 30, 2023 and 630,646,687 shares at December 31, 2022) | (26,249) | (25,794) |
Total Mondelēz International Shareholders’ Equity | 28,647 | 26,883 |
Noncontrolling interest | 32 | 37 |
TOTAL EQUITY | 28,679 | 26,920 |
TOTAL LIABILITIES AND EQUITY | $ 72,025 | $ 71,161 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 64 | $ 45 |
Other receivables, allowances | $ 54 | $ 59 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued (in shares) | 1,996,537,778 | 1,996,537,778 |
Treasury stock, at cost (in shares) | 635,538,156 | 630,646,687 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/(Losses) | Treasury Stock | Non-controlling Interest |
Balance at beginning of period at Dec. 31, 2021 | $ 28,323 | $ 0 | $ 32,097 | $ 30,806 | $ (10,624) | $ (24,010) | $ 54 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 1,609 | 1,602 | 7 | ||||
Other comprehensive earnings/(losses), net of income taxes | (29) | (14) | (15) | ||||
Exercise of stock options and issuance of other stock awards | 125 | (11) | (11) | 147 | |||
Common Stock repurchased | (1,505) | (1,505) | |||||
Cash dividends declared | (969) | (969) | |||||
Dividends paid on noncontrolling interest and other activities | (1) | 3 | (4) | ||||
Balance at end of period at Jun. 30, 2022 | 27,553 | 0 | 32,086 | 31,431 | (10,638) | (25,368) | 42 |
Balance at beginning of period at Mar. 31, 2022 | 28,216 | 0 | 32,053 | 31,163 | (10,425) | (24,630) | 55 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 748 | 747 | 1 | ||||
Other comprehensive earnings/(losses), net of income taxes | (224) | (213) | (11) | ||||
Exercise of stock options and issuance of other stock awards | 65 | 33 | 0 | 32 | |||
Common Stock repurchased | (770) | (770) | |||||
Cash dividends declared | (482) | (482) | |||||
Dividends paid on noncontrolling interest and other activities | 0 | 3 | (3) | ||||
Balance at end of period at Jun. 30, 2022 | 27,553 | 0 | 32,086 | 31,431 | (10,638) | (25,368) | 42 |
Balance at beginning of period at Dec. 31, 2022 | 26,920 | 0 | 32,143 | 31,481 | (10,947) | (25,794) | 37 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 3,030 | 3,025 | 5 | ||||
Other comprehensive earnings/(losses), net of income taxes | 231 | 237 | (6) | ||||
Exercise of stock options and issuance of other stock awards | 146 | 5 | (9) | 150 | |||
Common Stock repurchased | (605) | (605) | |||||
Cash dividends declared | (1,053) | (1,053) | |||||
Dividends paid on noncontrolling interest and other activities | 10 | 14 | (4) | ||||
Balance at end of period at Jun. 30, 2023 | 28,679 | 0 | 32,148 | 33,458 | (10,710) | (26,249) | 32 |
Balance at beginning of period at Mar. 31, 2023 | 28,274 | 0 | 32,112 | 33,040 | (10,814) | (26,110) | 46 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 941 | 944 | (3) | ||||
Other comprehensive earnings/(losses), net of income taxes | 96 | 104 | (8) | ||||
Exercise of stock options and issuance of other stock awards | 92 | 36 | (1) | 57 | |||
Common Stock repurchased | (196) | (196) | |||||
Cash dividends declared | (525) | (525) | |||||
Dividends paid on noncontrolling interest and other activities | (3) | 0 | (3) | ||||
Balance at end of period at Jun. 30, 2023 | $ 28,679 | $ 0 | $ 32,148 | $ 33,458 | $ (10,710) | $ (26,249) | $ 32 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retained Earnings | ||||
Cash dividends declared (in dollars per share) | $ 0.385 | $ 0.350 | $ 0.770 | $ 0.700 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | ||
Net earnings | $ 3,030 | $ 1,609 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 593 | 548 |
Stock-based compensation expense | 75 | 56 |
Deferred income tax provision/(benefit) | 101 | (32) |
Asset impairments and accelerated depreciation | 44 | 163 |
Loss on early extinguishment of debt | 1 | 38 |
(Gain)/loss on equity method investment transactions | (464) | 13 |
Equity method investment net earnings | (106) | (215) |
Distributions from equity method investments | 102 | 121 |
Unrealized (gain)/loss on derivative contracts | (229) | 137 |
Unrealized gain on marketable securities | (593) | 0 |
Other non-cash items, net | 27 | 13 |
Change in assets and liabilities, net of acquisitions and divestitures: | ||
Receivables, net | (90) | (227) |
Inventories, net | (428) | (366) |
Accounts payable | (62) | 183 |
Other current assets | (130) | (142) |
Other current liabilities | 190 | 179 |
Change in pension and postretirement assets and liabilities, net | (88) | (111) |
Net cash provided by operating activities | 1,973 | 1,967 |
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | ||
Capital expenditures | (495) | (385) |
Acquisitions, net of cash received | 19 | (1,402) |
Proceeds from divestitures including equity method and marketable security investments | 1,960 | 595 |
(Payments)/proceeds from investments and derivative settlements | (234) | 193 |
Net cash provided by/(used in) investing activities | 1,250 | (999) |
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | ||
Issuances of commercial paper, maturities greater than 90 days | 67 | 0 |
Net (repayments)/issuances of short-term borrowings | (186) | 219 |
Long-term debt proceeds | 189 | 1,991 |
Long-term debt repayments | (2,056) | (2,329) |
Repurchases of Common Stock | (596) | (1,506) |
Dividends paid | (1,055) | (977) |
Other | 98 | 86 |
Net cash used in financing activities | (3,539) | (2,516) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (79) | (70) |
Cash, cash equivalents and restricted cash: | ||
(Decrease)/Increase | (395) | (1,618) |
Balance at beginning of period | 1,948 | 3,553 |
Balance at end of period | $ 1,553 | $ 1,935 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results. For a complete set of consolidated financial statements and related notes, refer to our Annual Report on Form 10-K for the year ended December 31, 2022. Principles of Consolidation The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries that were deconsolidated in 2015. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors' interests in the results of subsidiaries that we control and consolidate. We account for investments over which we exercise significant influence under the equity method of accounting. Investments with readily determinable fair values for which we do not have the ability to exercise significant influence are measured at fair value. War in Ukraine In February 2022, Russia began a military invasion of Ukraine and we closed our operations and facilities in Ukraine. In March 2022, our two Ukrainian manufacturing facilities in Trostyanets and Vyshhorod were significantly damaged. 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. We reversed $22 million during the remainder of 2022 and $3 million during the first six months of 2023 of previously recorded charges primarily as a result of higher than expected collection of trade receivables and inventory recoveries. We continue to make targeted repairs on both our plants and have partially reopened and restarted limited production in both plants. We also continue to support our Ukraine employees, including paying salaries to those not yet able to return to work until full production returns. We continue to consolidate both our Ukrainian and Russian subsidiaries and continue to evaluate our ability to control our operating activities and businesses on an ongoing basis. We base our estimates on historical experience, expectations of future impacts and other assumptions that we believe are reasonable. Given the uncertainty of the ongoing effects of the war in Ukraine, and its impact on the global economic environment, our estimates could be significantly different than future performance. Highly Inflationary Accounting Within our consolidated entities, Argentina and Türkiye (Turkey) are accounted for as highly inflationary economies. Argentina and Türkiye represent 1.6% and 0.8% of our consolidated net revenues with remeasurement losses of $10 million and $16 million for the three months ended June 30, 2023, respectively, and 2.3% and 0.9% of our consolidated net revenues with remeasurement losses of $21 million and $17 million for the six months ended June 30, 2023. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. We also have restricted cash within other current assets of $71 million as of June 30, 2023 and $25 million as of December 31, 2022. Total cash, cash equivalents and restricted cash was $1,553 million as of June 30, 2023 and $1,948 million as of December 31, 2022. 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, 2023 $ (45) $ (59) $ (14) Current period provision/(recovery) for expected credit losses (22) 6 — Write-offs charged against the allowance 3 — — Currency — (1) (1) Balance at June 30, 2023 $ (64) $ (54) $ (15) Transfers of Financial Assets The outstanding principal amount of receivables under our uncommitted revolving non-recourse accounts receivable factoring arrangements amounted to $744 million as of June 30, 2023 and $516 million as of December 31, 2022. The incremental cost of factoring receivables under this arrangement was not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows. Non-Cash Lease Transactions We recorded $62 million in operating lease and $73 million in finance lease right-of-use assets obtained in exchange for lease obligations during the six months ended June 30, 2023 and $125 million in operating lease and $76 million in finance lease right-of-use assets obtained in exchange for lease obligations during the six months ended June 30, 2022. Supply Chain Financing As part of our continued efforts to improve our working capital efficiency, we have worked with our suppliers over the past several years to optimize our terms and conditions, which include the extension of payment terms. Our current payment terms with a majority of our suppliers are from 30 to 180 days, which we deem to be commercially reasonable. We also facilitate voluntary supply chain financing (“SCF”) programs through several participating financial institutions. Under these programs, our suppliers, at their sole discretion, determine invoices that they want to sell to participating financial institutions. Our suppliers’ voluntary inclusion of invoices in SCF programs has no bearing on our payment terms or amounts due. Our responsibility is limited to making payments based upon the agreed-upon contractual terms. No guarantees are provided by the Company or any of our subsidiaries under the SCF programs and we have no economic interest in the suppliers’ decision to participate in the SCF programs. Amounts due to our suppliers that elected to participate in the SCF program are included in accounts payable in our consolidated balance sheet. We have been informed by the participating financial institutions that our outstanding accounts payable related to suppliers that participate in the SCF programs was $2.3 billion and $2.4 billion, respectively, as of June 30, 2023 and December 31, 2022. 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 adopted this standard in the first quarter of 2023 and it did not have an impact on our consolidated financial statements. In September 2022, the FASB issued an ASU which enhances the transparency of supplier finance programs by requiring additional disclosure about the key terms of these programs and a 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 adopted, with the exception of the roll-forward requirement, this standard in the first quarter of 2023 and it did not have a material impact on our consolidated financial statements and related disclosures. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Note 2. Acquisitions and Divestitures Acquisitions Ricolino On November 1, 2022, we acquired 100% of the equity of Grupo Bimbo's confectionery business, Ricolino, located primarily in Mexico. The acquisition of Ricolino builds on our continued prioritization of fast-growing snacking segments in key geographies. The cash consideration paid for Ricolino totaled $26 billion Mexican pesos ($1.3 billion), net of cash received. 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 712 Other assets 3 Assets acquired $ 1,614 Current liabilities 177 Deferred tax liability 78 Operating lease liabilities 17 Other liabilities 12 Total purchase price $ 1,330 Less: cash received (22) Net Cash Paid $ 1,308 Within identifiable intangible assets, we allocated $339 million to trade names, which have an indefinite life. The fair value for the Ricolino, Dulces Vero, LaCorona and Coronado trade names were determined using the Relief from Royalty method, a form of 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 America operating segment. Ricolino added incremental net revenues of $155 million during the three months and $326 million during the six months ended June 30, 2023, and operating income of $7 million during the three months and $16 million during the six months ended June 30, 2023. We incurred acquisition integration costs of $10 million during the three months and $16 million during the six months ended June 30, 2023. We incurred $1 million of acquisition-related costs during the three months and six months ended June 30, 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 123 Other current assets 9 Property, plant and equipment 186 Operating leases right of use assets 22 Deferred tax assets 96 Definite-life intangible assets 200 Indefinite-life intangible assets 1,450 Goodwill 999 Other assets 11 Assets acquired $ 3,271 Current liabilities 159 Contingent consideration 440 Other liabilities 15 Total purchase price $ 2,657 Less: cash received (99) Net Cash Paid $ 2,558 Within identifiable intangible assets, we allocated $1,450 million to trade names, which have an indefinite life. 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 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 revenue, discount and royalty rates. We expect to generate a meaningful cash tax benefit over time from the amortization of acquisition-related intangibles. Goodwill was determined as the excess of the purchase price over the fair value of the net assets acquired and arises principally as a result of expansion opportunities and synergies across the U.S. and other key markets. All of the goodwill was assigned to the North America operating segment. Tax deductible goodwill is expected to be $1.4 billion and will be amortized. Clif Bar added incremental net revenues of $240 million during the three months and $458 million during the six months ended June 30, 2023, and operating income of $35 million during the three months and $70 million during the six months ended June 30, 2023. We incurred acquisition integration costs of $16 million during the three months and $55 million during the six months ended June 30, 2023. These acquisition integration costs include an increase to the contingent consideration liability due to changes to underlying assumptions. Refer to Note 9, Financial Instruments for additional information. We incurred $4 million of acquisition-related costs during the three months and six months ended June 30, 2022. 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 €0.4 billion ($0.4 billion) for a total purchase price of €1.7 billion ($1.8 billion). We have recorded a purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as follows: (in millions) Cash $ 52 Receivables 102 Inventory 60 Other current assets 3 Property, plant and equipment 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 identifiable intangible assets, we allocated $686 million to trade names, which have an indefinite life. The fair value for the 7 Days trade name, which is the primary asset acquired, was determined using the multi-period excess earnings method under the income approach at the acquisition date. The fair value measurements of intangible assets are based on significant unobservable inputs, and thus represent Leve l 3 inputs. Significant assumptions used in assessing the fair values of intangible assets include forecasted future cash flows and discount rates. Goodwill was determined as the excess of the purchase price over the fair value of the net assets acquired and arises principally as a result of expansion opportunities and synergies across both new and legacy product categories. None of the goodwill recognized is expected to be deductible for income tax purposes. All of the goodwill was assigned to the Europe operating segment. We incurred acquisition integration costs of $4 million during the three months and $10 million during the six months ended June 30, 2023. We incurred acquisition integration costs of $36 million during the three months and $71 million during the six months ended June 30, 2022. We incurred acquisition-related costs of $21 million during the six months ended June 30, 2022. Divestitures Developed Market Gum - Held for Sale On December 16, 2022, we entered into an agreement to sell our 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 concluded that the disposal group met the held for sale criteria as of December 31, 2022. The disposal group is included as part of the North America and Europe operating segments. We incurred divestiture-related costs of $22 million in the three months ended June 30, 2023 and $52 million in the six months ended June 30, 2023. Total assets and liabilities held for sale are comprised of the following: As of June 30, As of December 31, 2022 (in millions) Inventories, net $ 98 $ 79 Current assets held for sale (1) $ 98 $ 79 Property, plant and equipment, net 168 159 Goodwill 292 292 Intangible assets, net 702 671 Noncurrent assets held for sale (2) $ 1,162 $ 1,122 Accrued employment costs — 4 Current liabilities held for sale (3) $ — $ 4 Accrued pension costs 1 — Deferred income taxes 15 15 Noncurrent liabilities held for sale (4) $ 16 $ 15 (1) Reported in Other current assets on the condensed consolidated balance sheets. (2) Reported in Other assets on the condensed consolidated balance sheets. (3) Reported in Other current liabilities on the condensed consolidated balance sheets. (4) Reported in Other liabilities on the condensed consolidated balance sheets. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of June 30, As of December 31, 2022 (in millions) Raw materials $ 1,092 $ 1,031 Finished product 2,881 2,501 3,973 3,532 Inventory reserves (148) (151) Inventories, net $ 3,825 $ 3,381 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, As of December 31, 2022 (in millions) Land and land improvements $ 379 $ 378 Buildings and building improvements 3,375 3,250 Machinery and equipment 12,298 11,724 Construction in progress 915 879 16,967 16,231 Accumulated depreciation (7,659) (7,211) Property, plant and equipment, net $ 9,308 $ 9,020 For the six months ended June 30, 2023, capital expenditures of $495 million excluded $305 million of accrued capital expenditures remaining unpaid at June 30, 2023 and included payment for the $324 million of capital expenditures that were accrued and unpaid at December 31, 2022. For the six months ended June 30, 2022, capital expenditures of $385 million excluded $239 million of accrued capital expenditures remaining unpaid at June 30, 2022 and included payment for the $249 million of capital expenditures that were accrued and unpaid at December 31, 2021. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill Changes in goodwill consisted of (in millions): Latin America AMEA Europe North America Total January 1, 2022 $ 674 $ 3,365 $ 7,830 $ 10,109 $ 21,978 Currency 41 (233) (550) (15) (757) Acquisitions (1) 714 — 795 1,020 2,529 Held for Sale (1) — — (66) (226) (292) Divestitures (8) — — — (8) Balance at December 31, 2022 $ 1,421 $ 3,132 $ 8,009 $ 10,888 $ 23,450 Currency 172 (82) 134 19 243 Acquisitions (1) (2) (2) — — (21) (23) Balance at June 30, 2023 $ 1,591 $ 3,050 $ 8,143 $ 10,886 $ 23,670 (1) Refer to Note 2, Acquisitions and Divestitures for more information. (2) Relates to purchase price allocation adjustments for Ricolino and Clif Bar during 2023. Intangible Assets Intangible assets consisted of the following (in millions): As of June 30, 2023 As of December 31, 2022 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-life intangible assets $ 3,311 $ (2,072) $ 1,239 $ 3,354 $ (2,057) $ 1,297 Indefinite-life intangible assets (1) 18,600 — 18,600 18,413 — 18,413 Total $ 21,911 $ (2,072) $ 19,839 $ 21,767 $ (2,057) $ 19,710 (1) In 2022, we recorded $101 million of intangible asset impairment charges related to two biscuit brands in the AMEA segment, of which $78 million was recorded in the first quarter and $23 million was recorded in the third quarter. Indefinite-life intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the global LU biscuit business of Groupe Danone S.A., Cadbury Limited and Clif Bar. Definite-life intangible assets consist primarily of trademarks, customer-related intangibles, process technology, licenses and non-compete agreements. Amortization expense for intangible assets was $37 million for the three months and $76 million for the six months ended June 30, 2023 and $32 million for the three months and $64 million for the six months ended June 30, 2022. For the next five years, we currently estimate annual amortization expense of approximately $150 million in 2023-2025, approximately $95 million in 2026 and approximately $90 million in 2027 (reflecting June 30, 2023 exchange rates). Impairment Assessment We test our reporting units and brands for impairment annually as of July 1, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit or brand is less than its carrying amount. During the second quarter of 2023, we evaluated our goodwill impairment and intangible asset impairment risk through an assessment of potential triggering events. We considered qualitative and quantitative information in our assessment. We concluded there were no impairment indicators. During our 2022 annual indefinite-life intangible asset testing, we identified eight brands that each had a fair value in excess of book value of 10% or less. The aggregate book value of the eight brands was $1.6 billion as of June 30, 2023. We believe our current plans for each of these brands will allow them to not be impaired, but if the brand earnings expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly then a brand or brands could become impaired in the future. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 6. Investments Marketable Securities Our reduction in ownership in Keurig Dr Pepper Inc. (Nasdaq: "KDP") during the first quarter of 2023, to below 5% of the outstanding shares, resulted in a change of accounting for our KDP investment, from equity method investment accounting to accounting for equity interests with readily determinable fair values ("marketable securities") as we no longer have significant influence. These marketable securities are measured at fair value based on quoted prices in active markets for identical assets (Level 1). On June 8, 2023, we sold 23 million shares of KDP, which reduced our ownership by 1.6%, from 3.2% to 1.6% of the total outstanding shares. We received proceeds of approximately $708 million. On March 2, 2023, we sold 30 million shares of KDP, which reduced our ownership interest by 2.1%, from 5.3% to 3.2% of the total outstanding shares. We received proceeds of approximately $1.0 billion and recorded a pre-tax gain on equity method transactions of $493 million (or $366 million after tax) during the first quarter of 2023. Pre-tax gains and losses for marketable securities are summarized below (in millions): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (in millions) Loss/(gain) on marketable securities sold during the period $ 104 $ (293) Unrealized loss/(gain) on equity securities held as of the end of the period 90 (300) Dividend income (5) (14) Total loss/(gain) on marketable securities $ 189 $ (607) In the table above, loss/(gain) on marketable securities sold during the period reflects the difference between the sale proceeds and the carrying value of the equity securities at the beginning of the period or the date of the change of accounting for our investment in KDP, if later. We reported marketable securities of $705 million as of June 30, 2023 in other current assets in the Company's Condensed Consolidated Balance Sheet. On July 13, 2023, we sold the remainder of our KDP investment, approximately 23 million shares, and received approximately $704 million in proceeds. Equity Method Investments Our equity method investments include, but are not limited to, our ownership interests in JDE Peet's (Euronext Amsterdam: "JDEP"), Dong Suh Foods Corporation and Dong Suh Oil & Fats Co. Ltd. Our ownership interests may change over time due to investee stock-based compensation arrangements, share issuances or other equity-related transactions. As of June 30, 2023, we owned 18.1%, 50.0% and 49.0%, respectively, of these companies' outstanding shares. Our investments accounted for under the equity method of accounting totaled $3.2 billion as of June 30, 2023 and $4.9 billion as of December 31, 2022. The investment balance as of December 31, 2022 is inclusive of our investment in KDP. We recorded equity earnings of $71 million and cash dividends of zero in the three months ended June 30, 2023, and equity earnings of $98 million and cash dividends of $14 million in the three months ended June 30, 2022. We recorded equity earnings of $106 million and cash dividends of $102 million in the six months ended June 30, 2023 and equity earnings of $215 million and cash dividends of $121 million in the six months ended June 30, 2022. Based on the quoted closing prices as of June 30, 2023, the fair value of our publicly-traded investment in JDEP wa s $2.6 billion , and there was no other than temporary impairment identified. JDEP Transactions On April 3, 2023, we sold approximately 7.7 million shares of JDEP, which reduced our ownership interest by 1.6%, from 19.7% to 18.1% of the total outstanding shares. We received cash proceeds of €198 million ($217 million) and recorded a loss of €18 million ($19 million) on this sale during the three months ended June 30, 2023. We continue to have board representation with two directors on JDEP's Board of Directors and have retained certain additional governance rights. As we continue to have significant influence, we continue to account for our investment in JDEP under the equity method. On March 30, 2023, we issued options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares. These options are exercisable at their maturities which are between July 3, 2023 and September 29, 2023, with strike prices ranging from €26.10 to €28.71 per share. If all options issued on March 30, 2023 are exercised, our ownership interest will be reduced by an additional 1.6%. On May 8, 2022, we sold approximately 18.6 million of our JDEP shares back to JDEP, which reduced our ownership interest by approximately 3%. We received cash proceeds of €500 million ($529 million) and recorded a loss of €8 million ($8 million) on this sale during the three months ended June 30, 2022. In 2021, we issued €300 million exchangeable bonds, which are redeemable at maturity in September 2024 at their principal amount in cash or, at our option, through the delivery of an equivalent number of JDEP’s ordinary shares based on an initial exchange price of €35.40 and, as the case may be, an additional amount in cash. If all bonds were redeemed in exchange for JDEP's shares, this would represent approximately 8.5 million shares or approximately 10% of our equity interest in JDEP as of June 30, 2023. Refer to Note 9, Financial Instruments , for further details on this transaction. |
Restructuring Program
Restructuring Program | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Program | Note 7. Restructuring Program On May 6, 2014, our Board of Directors approved a $3.5 billion 2014-2018 restructuring program and up to $2.2 billion of capital expenditures. On August 31, 2016, our Board of Directors approved a $600 million reallocation between restructuring program cash costs and capital expenditures so the $5.7 billion program consisted of approximately $4.1 billion of restructuring program charges ($3.1 billion cash costs and $1.0 billion non-cash costs) and up to $1.6 billion of capital expenditures. On September 6, 2018, our Board of Directors approved an extension of the restructuring program through 2022, an increase of $1.3 billion in the program charges and an increase of $700 million in capital expenditures. On October 21, 2021, our Board of Directors approved an extension of the restructuring program through 2023, and on July 25, 2023, our Board of Directors approved a further extension of the restructuring program through December 31, 2024. The total $7.7 billion program now consists of $5.4 billion of program charges ($4.1 billion of cash costs and $1.3 billion of non-cash costs) and total capital expenditures of $2.3 billion to be incurred over the life of the program. The current restructuring program, as increased and extended by these actions, is now called the Simplify to Grow Program. The primary objective of the Simplify to Grow Program is to reduce our operating cost structure in both our supply chain and overhead costs. The program covers severance as well as asset disposals and other manufacturing and procurement-related one-time costs. Since inception, we have incurred total restructuring and implementation charges of $5.2 billion related to the Simplify to Grow Program. We expect to incur the remainder of the program charges by year-end 2023. Restructuring Costs The Simplify to Grow Program liability activity for the six months ended June 30, 2023 was: Severance Asset Write-downs and Other (1) Total (in millions) Liability balance, January 1, 2023 $ 164 $ — $ 164 Charges (2) 26 6 32 Cash spent (3) (35) — (35) Non-cash settlements/adjustments (4) — (6) (6) Currency 4 — 4 Liability balance, June 30, 2023 (5) $ 159 $ — $ 159 (1) Includes gains as a result of assets sold which are included in the restructuring program. (2) We recorded restructuring charges of $2 million in the three months ended June 30, 2023 and $4 million in the three months ended June 30, 2022 and restructuring charges of $32 million in the six months ended June 30, 2023 and $15 million in the six months ended June 30, 2022 within asset impairment and exit costs and benefit plan non-service income. (3) We spent $17 million in the three months ended June 30, 2023 and $16 million in the three months ended June 30, 2022 and spent $35 million in the six months ended June 30, 2023 and $33 million in the six months ended June 30, 2022 in cash severance and related costs. (4) We recognized non-cash asset write-downs (including accelerated depreciation and asset impairments), and other non-cash adjustments, including any gains on sale of restructuring program assets, which totaled a charge of $5 million in the three months ended June 30, 2023 and a charge of $7 million in the three months ended June 30, 2022 and a charge of $6 million in the six months ended June 30, 2023 and $9 million in the six months ended June 30, 2022. (5) At June 30, 2023, $118 million of our net restructuring liability was recorded within other current liabilities and $41 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 $4 million in the three months ended June 30, 2023 and $19 million in the three months ended June 30, 2022, and we recorded implementation costs of $9 million in the six months ended June 30, 2023 and $39 million in the six months ended June 30, 2022. We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs During the three and six months ended June 30, 2023 and June 30, 2022, and since inception of the Simplify to Grow Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes: Latin AMEA Europe North Corporate Total (in millions) For the Three Months Ended June 30, 2023 Restructuring Costs $ (1) $ 1 $ (3) $ 6 $ (1) $ 2 Implementation Costs (1) — 2 3 — 4 Total $ (2) $ 1 $ (1) $ 9 $ (1) $ 6 For the Three Months Ended June 30, 2022 Restructuring Costs $ (2) $ — $ — $ 4 $ 2 $ 4 Implementation Costs 3 3 8 9 (4) 19 Total $ 1 $ 3 $ 8 $ 13 $ (2) $ 23 For the For the Six Months Ended June 30, 2023 Restructuring Costs $ (1) $ 2 $ 27 $ 5 $ — $ 32 Implementation Costs (1) — 2 3 5 9 Total $ (2) $ 2 $ 29 $ 8 $ 5 $ 41 For the For the Six Months Ended June 30, 2022 Restructuring Costs $ (3) $ 2 $ 2 $ 12 $ 2 $ 15 Implementation Costs 4 4 13 16 2 39 Total $ 1 $ 6 $ 15 $ 28 $ 4 $ 54 Total Project Restructuring Costs $ 547 $ 556 $ 1,190 $ 662 $ 149 $ 3,104 Implementation Costs 302 245 571 593 373 2,084 Total $ 849 $ 801 $ 1,761 $ 1,255 $ 522 $ 5,188 |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Borrowing Arrangements | Note 8. Debt and Borrowing Arrangements Short-Term Borrowings Our short-term borrowings and related weighted-average interest rates consisted of: As of June 30, 2023 As of December 31, 2022 Amount Weighted- Amount Weighted- (in millions, except percentages) Commercial paper $ 2,080 5.4 % $ 2,209 4.7 % Bank loans 98 10.2 % 90 9.1 % Total short-term borrowings $ 2,178 $ 2,299 Our uncommitted credit lines and committed credit lines available as of June 30, 2023 and December 31, 2022 include: As of June 30, 2023 As of December 31, 2022 Facility Amount Borrowed Amount Facility Amount Borrowed Amount (in millions) Uncommitted credit facilities $ 1,311 $ 98 $ 1,335 $ 90 Credit facilities: February 22, 2023 (1) — — 2,500 — March 11, 2023 (1) — — 2,000 — December 29, 2023 (1) 2,000 — — — February 21, 2024 (1) 1,500 — — — July 29, 2025 (1) (3) — — 2,000 2,000 October 18, 2025 (2) 189 189 — — February 23, 2027 (1) 4,500 — 4,500 — (1) We maintain senior unsecured revolving credit facilities for general corporate purposes, including working capital needs, and to support our commercial paper program. The revolving credit agreements include a covenant that we maintain a minimum shareholders' equity of at least $25.0 billion, excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans. At June 30, 2023, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $39.4 billion. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. (2) On April 18, 2023, we entered into a credit facility secured by pledged deposits. Under this agreement, we may draw up to a total of $0.2 billion in loans from the facility. On April 25, 2023, we drew down $0.2 billion bearing a variable rate based on SOFR plus an applicable margin. (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. Amounts borrowed and repaid under the facility may not be reborrowed. 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. We repaid $1.0 billion on March 3, 2023, $0.3 billion on April 3, 2023, and $0.7 billion on May 3, 2023 in term loans. Long-Term Debt As of June 30, 2023, the Company reclassified the net carrying value of debt of $500 million due within one year from long-term debt to current portion of long-term debt. 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 June 30, 2023 As of December 31, 2022 (in millions) Fair Value $ 18,703 $ 20,217 Carrying Value $ 21,226 $ 22,933 Interest and Other Expense, net Interest and other expense, net consisted of: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Interest expense, debt $ 145 $ 89 $ 298 $ 180 Loss on debt extinguishment and 1 — 1 129 Other (income)/expense, net (49) 9 (107) (43) Interest and other expense, net $ 97 $ 98 $ 192 $ 266 Other (income)/expense, net includes amounts excluded from hedge effectiveness related to our net investment hedge derivative contracts. Refer to Note 9, Financial Instruments . |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 9. Financial Instruments Fair Value of Derivative Instruments Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of June 30, 2023 As of December 31, 2022 Asset Liability Asset Liability (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 106 47 $ 132 35 Net investment hedge derivative contracts (1) 301 262 265 241 $ 407 $ 309 $ 397 $ 276 Derivatives not designated as Currency exchange contracts $ 257 $ 144 $ 185 $ 103 Commodity contracts 912 766 200 247 Interest rate contracts 11 4 8 — Equity method investment contracts (2) — 5 — 3 $ 1,180 $ 919 $ 393 $ 353 Total fair value $ 1,587 $ 1,228 $ 790 $ 629 (1) Net investment hedge derivative contracts consist of cross-currency interest rate swaps, forward contracts and options. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote. (2) Equity method investment contracts consist of two types of derivatives: (a) options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares that are exercisable at maturity over the third quarter of 2023 with strike prices ranging between €26.10 and €28.71 per share and (b) the bifurcated embedded derivative option that was a component of the September 20, 2021 €300 million exchangeable bonds issuance. Refer to Note 8, Debt and Borrowing Arrangements . We record derivative assets and liabilities on a gross basis on our condensed consolidated balance sheets. The fair value of our asset derivatives is recorded within other current assets and other assets and the fair value of our liability derivatives is recorded within other current liabilities and other liabilities. The fair values (asset/(liability)) of our derivative instruments were determined using: As of June 30, 2023 Total Quoted Prices in Significant Significant (in millions) Currency exchange contracts $ 113 $ — $ 113 $ — Commodity contracts 146 16 130 — Interest rate contracts 66 — 66 — Net investment hedge contracts 39 — 39 — Equity method investment contracts (5) — (5) — Total derivatives $ 359 $ 16 $ 343 $ — 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 $ — 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 options to sell shares of JDEP are valued using the Black-Scholes option pricing model. This model requires assumptions related to the stock price of JDE Peet's shares, strike price of each European style option, time to expiry, expected dividend yield and the interpolated market-implied volatility of JDE Peet's active market of listed options. Our calculation of the fair value of interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the observable market interest rate curve. Our calculation of the fair value of financial instruments takes into consideration the risk of nonperformance, including counterparty credit risk. Our OTC derivative transactions are governed by International Swap Dealers Association agreements and other standard industry contracts. Under these agreements, we do not post nor require collateral from our counterparties. The majority of our derivative contracts do not have a legal right of set-off. We manage the credit risk in connection with these and all our derivatives by entering into transactions with counterparties with investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. Derivative Volume The notional values of our hedging instruments were: Notional Amount As of June 30, As of December 31, 2022 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 2,762 $ 2,085 Forecasted transactions 5,855 5,470 Commodity contracts (1) 12,104 7,777 Interest rate contracts 4,304 4,147 Net investment hedges: Net investment hedge derivative contracts 7,792 7,319 Non-U.S. dollar debt designated as net investment hedges Euro notes 3,475 3,410 Swiss franc notes 659 638 Canadian dollar notes 453 443 (1) Prior year notional value has been revised. Cash Flow Hedges Cash flow hedge activity, net of taxes, is recorded within accumulated other comprehensive earnings/(losses). Refer to Note 13, Reclassifications from Accumulated Other Comprehensive Income for further information on current period activity. Based on current market conditions, we would expect to transfer losses of $8 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. Cash Flow Hedge Coverage As of June 30, 2023, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 3 years, 2 months. Hedges of Net Investments in International Operations Net investment hedge ("NIH") derivative contracts We enter into cross-currency interest rate swaps, forwards and options to hedge certain investments in our non-U.S. operations against movements in exchange rates. The aggregate notional value as of June 30, 2023 was $7.8 billion. Net investment hedge derivative contract impacts on other comprehensive earnings and net earnings were: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) After-tax gain on NIH contracts (1) $ 22 $ 307 $ 17 $ 348 (1) Amounts recorded for unsettled and settled NIH derivative contracts are recorded in the cumulative translation adjustment within other comprehensive earnings. The cash flows from the settled contracts are reported within other investing activities in the condensed consolidated statement of cash flows. For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Amounts excluded from the assessment of hedge effectiveness (1) $ 36 $ 30 $ 72 $ 52 (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 were recorded within the cumulative translation adjustment section of other comprehensive income and were: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Euro notes $ (17) $ 142 $ (50) $ 216 British pound sterling notes — 19 — 27 Swiss franc notes (11) 21 (16) 27 Canadian notes (7) 11 (8) 7 Economic Hedges Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Three Months Ended For the Six Months Ended Location of Gain/(Loss) Recognized in Earnings 2023 2022 2023 2022 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 25 $ 7 $ 47 $ (4) Interest and other expense, net Forecasted transactions 27 114 29 107 Cost of sales Forecasted transactions 8 (52) 13 (31) Interest and other expense, net Forecasted transactions (1) 1 (6) 3 Selling, general and administrative expenses Commodity contracts 106 (40) 104 197 Cost of sales Equity method investment 1 — 3 — (Loss)/gain on equity method investment transactions Total $ 166 $ 30 $ 190 $ 272 Fair Value of Contingent Consideration The following is a summary of our contingent consideration liability activity: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Liability at beginning of period $ 659 $ 165 $ 642 $ 159 Contingent consideration arising from acquisitions — — — — Changes in fair value (2) 8 15 14 Payments (90) — (90) — Currency — (1) — (1) Liability at end of period $ 567 $ 172 $ 567 $ 172 Contingent consideration was recorded at fair value in the condensed consolidated balance sheets as follows: As of June 30, 2023 Total Fair Value of Quoted Prices in Significant Significant (in millions) Clif Bar (1) $ 472 $ — $ — $ 472 Other (2) 95 — — 95 Total contingent consideration $ 567 $ — $ — $ 567 As of December 31, 2022 Total Fair Value of Quoted Prices in Significant Significant (in millions) Clif Bar (1) $ 452 $ — $ — $ 452 Other (2) 190 — — 190 Total contingent consideration $ 642 $ — $ — $ 642 (1) In connection with the Clif Bar acquisition, we entered into a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain net revenue, gross profit and EBITDA targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price. The other contingent consideration liabilities are recorded at fair value within long term liabilities. The estimated fair value of the contingent consideration obligation at the acquisition date was determined using a Monte Carlo simulation and recorded in other liabilities. Significant assumptions used in assessing the fair value of the liability include financial projections for net revenue, gross profit, and EBITDA, as well as discount and volatility rates. Fair value adjustments are primarily recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. (2) The other contingent consideration liabilities are recorded at fair value, with $12 million and $102 million classified as other current liabilities and $83 million and $88 million classified as long term liabilities at June 30, 2023 and December 31, 2022. The fair value of this contingent consideration was determined using a Monte Carlo valuation model based on Level 3 inputs, including management's latest estimate of forecasted future results. Other key assumptions included discount rate and volatility. Fair value adjustments are recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 10. Benefit Plans Pension Plans Components of Net Periodic Pension Cost Net periodic pension cost/(benefit) consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended 2023 2022 2023 2022 (in millions) Service cost $ 1 $ 2 $ 13 $ 16 Interest cost 17 12 76 47 Expected return on plan assets (24) (18) (100) (94) Amortization: Net loss from experience differences — 2 10 15 Settlement losses and other expenses 3 4 — — Net periodic pension (benefit)/cost $ (3) $ 2 $ (1) $ (16) U.S. Plans Non-U.S. Plans For the Six Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Service cost $ 2 $ 3 $ 27 $ 55 Interest cost 32 23 152 88 Expected return on plan assets (49) (36) (202) (186) Amortization: Net loss from experience differences — 5 21 33 Prior service cost/(benefit) 1 — — (1) Settlement losses and other expenses 8 7 — — Net periodic pension (benefit)/cost $ (6) $ 2 $ (2) $ (11) Employer Contributions During the six months ended June 30, 2023, we contributed $3 million to our U.S. pension plans and $65 million to our non-U.S. pension plans. We make contributions to our pension plans in accordance with local funding arrangements and statutory minimum funding requirements. Discretionary contributions are made to the extent that they are tax deductible and do not generate an excise tax liability. As of June 30, 2023, we plan to make further contributions of approximately $3 million to our U.S. plans and $54 million to our non-U.S. plans for the remainder of 2023. Our actual contributions may be different due to many factors, including changes in tax and other benefit laws, significant differences between expected and actual pension asset performance or interest rates. Multiemployer Pension Plans On July 11, 2019, we received an undiscounted withdrawal liability assessment from the Bakery and Confectionery Union and Industry International Pension Fund totaling $526 million requiring pro-rata monthly payments over 20 years. We began making monthly payments during the third quarter of 2019. In connection with the discounted long-term liability, we recorded accreted interest of $2 million and $5 million for the three and six months ended June 30, 2023 and 2022, within interest and other expense, net. As of June 30, 2023, the remaining discounted withdrawal liability was $336 million, with $15 million recorded in other current liabilities and $321 million recorded in long-term other liabilities. Postretirement and Postemployment Benefit Plans The net periodic postretirement (benefit)/cost was $(2) million for the three and six months ended June 30, 2023 and $3 million and $6 million for the three and six months ended June 30, 2022. The net periodic postemployment |
Stock Plans
Stock Plans | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Plans | Note 11. Stock Plans Stock Options Stock option activity is reflected below: Shares Subject Weighted- Average Aggregate Balance at January 1, 2023 20,490,250 $46.31 5 years $ 417 million Annual grant to eligible employees 2,452,110 65.36 Additional options issued 3,820 66.78 Total options granted 2,455,930 65.36 Options exercised (1) (2,844,348) 37.84 $ 93 million Options canceled (159,460) 53.03 Balance at June 30, 2023 19,942,372 49.81 5 years $ 461 million (1) Cash received from options exercised was $56 million in the three months and $105 million in the six months ended June 30, 2023. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $9 million in the three months and $17 million in the six months ended June 30, 2023 Performance Share Units and Other Stock-Based Awards Our performance share unit (PSU), deferred stock unit (DSU) and other stock-based activity is reflected below: Number Grant Date Weighted-Average Fair Value Per Share (4) Weighted-Average Aggregate Fair Value (3) Balance at January 1, 2023 4,451,674 $60.12 Annual grant to eligible employees: Mar 2, 2023 Performance share units 895,410 68.59 Deferred stock units 578,570 65.36 Additional shares granted (1) 710,633 Various 65.54 Total shares granted 2,184,613 66.74 $ 146 million Vested (2) (3) (1,626,765) 62.75 $ 102 million Forfeited (2) (144,096) 61.28 Balance at June 30, 2023 4,865,426 62.18 (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 zero in the three months and $2 million in the six months ended June 30, 2023. (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. Share Repurchase Program Between 2013 and 2020, our Board of Directors authorized the repurchase of a total of $23.7 billion of our Common Stock and extended the program through December 31, 2023. Prior to January 1, 2023, we had repurchased approximately $22.0 billion of Common Stock pursuant to this authorization. Our Board of Directors approved a new program authorizing the repurchase of up to $6.0 billion of our Common Stock through December 31, 2025. This authorization, effective January 1, 2023, replaced our previous share repurchase program. Repurchases under the program are determined by management and are wholly discretionary. During the six months ended June 30, 2023, we repurchased approximately 8.8 million shares of Common Stock at an average cost of $68.16 per share, or an aggregate cost of approximately $602 million, all of which was paid |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. 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") 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 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. 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 Mondelēz Global in the District Court by investors who copied and expanded upon the CFTC allegations in a series of private claims for monetary damages as well as injunctive, declaratory, and other unspecified relief. In June 2015, these suits were consolidated 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. In November 2022, the District Court adjourned the trial date it had previously set for November 30 and ordered the parties to brief Kraft’s motions to decertify the class and for summary judgment, which was completed on July 25, 2023. 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. 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 discussions with the European Commission are progressing in an effort to reach a negotiated, proportionate resolution in this matter. As of June 30, 2023 and December 31, 2022, we have accrued (in accordance with U.S. GAAP) a liability of €300 million ($328 million as of June 30, 2023) within other current liabilities in the consolidated balance sheet as an estimate of the possible cost to resolve this matter. It is not possible to predict if our ongoing 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. As of June 30, 2023 and December 31, 2022, we had no material third-party guarantees recorded on our condensed consolidated balance sheet. Tax Matters We are a party to various tax matter proceedings incidental to our business. These proceedings are subject to inherent uncertainties, and unfavorable outcomes could subject us to additional tax liabilities and could materially adversely impact our business, results of operations or financial position. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Reclassifications from Accumulated Other Comprehensive Income | Note 13. Reclassifications from Accumulated Other Comprehensive Income The following table summarizes the changes in accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net (losses)/gains of $11 million in the second quarter of 2023 and $82 million in the second quarter of 2022 and $41 million in the first six months of 2023 and $40 million in the first six months of 2022.. For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (9,659) $ (9,043) $ (9,808) $ (9,097) Currency translation adjustments 139 (339) 312 (333) Tax (expense)/benefit 7 (60) (15) (16) Other comprehensive earnings/(losses) 146 (399) 297 (349) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 8 11 6 15 Balance at end of period (9,505) (9,431) (9,505) (9,431) Pension and Other Benefit Plans: Balance at beginning of period $ (1,111) $ (1,286) $ (1,105) $ (1,379) Net actuarial gain/(loss) arising during period (1) 108 1 152 Tax (expense)/benefit on net actuarial gain/(loss) — (27) — (27) Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (1) 5 16 13 36 Settlement losses and other expenses (1) 3 4 8 7 Tax expense/(benefit) on reclassifications (3) (3) (6) (6) (12) Currency impact (26) 72 (44) 104 Other comprehensive earnings/(losses) (22) 167 (28) 260 Balance at end of period (1,133) (1,119) (1,133) (1,119) Derivative Cash Flow Hedges: Balance at beginning of period $ (44) $ (96) $ (34) $ (148) Net derivative gains/(losses) (38) 98 (66) 124 Tax (expense)/benefit on net derivative gain/(loss) 4 1 1 — Losses/(gains) reclassified into net earnings: Currency exchange contracts (2) — 3 — 5 Interest rate contracts (2) 5 (99) 23 (53) Tax expense/(benefit) on reclassifications (3) 1 — 3 (23) Currency impact — 5 1 7 Other comprehensive earnings/(losses) (28) 8 (38) 60 Balance at end of period (72) (88) (72) (88) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (10,814) $ (10,425) $ (10,947) $ (10,624) Total other comprehensive earnings/(losses) 96 (224) 231 (29) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 8 11 6 15 Other comprehensive earnings/(losses) attributable to Mondelēz International 104 (213) 237 (14) Balance at end of period $ (10,710) $ (10,638) $ (10,710) $ (10,638) (1) These reclassified losses are included in net periodic benefit costs disclosed in Note 10, Benefit Plans . (2) These reclassified gains or losses are recorded within interest and other expense, net. (3) Taxes reclassified to earnings are recorded within the provision for income taxes. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes As of the second quarter of 2023, our estimated annual effective tax rate, which excludes discrete tax impacts, was 24.6%. This rate reflected the impact of unfavorable foreign provisions under U.S. tax laws partially offset by favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions. Our 2023 second quarter effective tax rate of 23.1% included a $50 million net tax benefit related to gains and losses on KDP marketable securities and a $29 million net tax expense incurred in connection with unrealized gains and losses on hedging activities as well as other discrete net tax expense of $4 million. Our effective tax rate for the six months ended June 30, 2023 of 27.3% was higher due to a $127 million net tax expense incurred in connection with the KDP share sale during the first quarter (the earnings are reported separately on our statement of earnings and thus not included in earnings before income taxes). Excluding this impact, our effective tax rate for the six months ended June 30, 2023 was 23.6%. The 23.6% rate included a $151 million net tax expense related to gains and losses on KDP marketable securities ($201 million net tax expense in Q1 and $50 million net tax benefit in Q2) as well as the associated pre-tax impacts. As of the second quarter of 2022, our estimated annual effective tax rate, which excluded discrete tax impacts, was 24.4%. This rate reflected the impact of unfavorable foreign provisions under U.S. tax laws and our tax related to earnings from equity method investments (the earnings are reported separately on our statement of earnings and thus not included in earnings before income taxes), partially offset by favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions. The estimated annual effective tax rate also considers the impact of the establishment of a valuation allowance related to a deferred tax asset arising from the anticipated 2022 Ukraine loss. Our 2022 second quarter effective tax rate of 23.4% was favorably impacted by discrete net tax benefits of $2 million. The discrete net tax benefit primarily consisted of a 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 an expense from tax law changes in various jurisdictions. Our effective tax rate for the six months ended June 30, 2022 of 22.6% was favorably impacted by discrete net tax benefits of $64 million primarily driven by the Chipita acquisition. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 15. Earnings per Share Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions, except per share data) Net earnings $ 941 $ 748 $ 3,030 $ 1,609 Noncontrolling interest earnings 3 (1) (5) (7) Net earnings attributable to Mondelēz International $ 944 $ 747 $ 3,025 $ 1,602 Weighted-average shares for basic EPS 1,364 1,382 1,365 1,385 Plus incremental shares from assumed conversions 7 7 7 8 Weighted-average shares for diluted EPS 1,371 1,389 1,372 1,393 Basic earnings per share attributable to $ 0.69 $ 0.54 $ 2.22 $ 1.16 Diluted earnings per share attributable to $ 0.69 $ 0.54 $ 2.20 $ 1.15 We exclude antidilutive Mondelēz International stock options and long-term incentive plan shares from our calculation of weighted-average shares for diluted EPS. We excluded antidilutive stock options and performance share units of 2.8 million for the three months ended June 30, 2023 and 3.4 million for the three months ended June 30, 2022 and 2.7 million for the six months ended June 30, 2023 and 2022. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 16. 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 intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. We exclude these items from segment operating income in order to provide better transparency of our segment operating results. Furthermore, we centrally manage benefit plan non-service income and interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the segment profitability measure that management reviews. Our segment net revenues and earnings were: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Net revenues: Latin America $ 1,228 $ 876 $ 2,439 $ 1,702 AMEA 1,609 1,535 3,548 3,402 Europe 2,926 2,626 6,233 5,561 North America 2,744 2,237 5,453 4,373 Net revenues $ 8,507 $ 7,274 $ 17,673 $ 15,038 Earnings before income taxes: Operating income: Latin America $ 134 $ 90 $ 273 $ 193 AMEA 207 211 567 483 Europe 449 380 956 757 North America 580 454 1,146 872 Unrealized gains/(losses) on hedging activities 171 (109) 220 (82) General corporate expenses (79) (62) (156) (112) Amortization of intangible assets (37) (32) (76) (64) Acquisition-related costs — (5) — (26) Operating income 1,425 927 2,930 2,021 Benefit plan non-service income 22 30 41 63 Interest and other expense, net (97) (98) (192) (266) (Loss)/gain on marketable securities (189) — 607 — Earnings before income taxes $ 1,161 $ 859 $ 3,386 $ 1,818 Items impacting our segment operating results are discussed in Note 1, Basis of Presentation , Note 2, Acquisitions and Divestitures, Note 3, Inventories , Note 4, Property, Plant and Equipment, Note 5, Goodwill and Intangible Assets, and Note 7, Restructuring Program . Also see Note 8, Debt and Borrowing Arrangements , and Note 9, Financial Instruments, for more information on our interest and other expense, net for each period. Net revenues by product category were: For the Three Months Ended June 30, 2023 Latin AMEA Europe North Total (in millions) Biscuits & Baked Snacks $ 309 $ 570 $ 1,129 $ 2,383 $ 4,391 Chocolate 316 563 1,241 56 2,176 Gum & Candy 368 235 220 305 1,128 Beverages 112 150 26 — 288 Cheese & Grocery 123 91 310 — 524 Total net revenues $ 1,228 $ 1,609 $ 2,926 $ 2,744 $ 8,507 For the Three Months Ended June 30, 2022 Latin AMEA Europe North Total (in millions) Biscuits & Baked Snacks $ 255 $ 568 $ 1,001 $ 1,901 $ 3,725 Chocolate 243 536 1,140 60 1,979 Gum & Candy 193 201 170 276 840 Beverages 92 144 24 — 260 Cheese & Grocery 93 86 291 — 470 Total net revenues $ 876 $ 1,535 $ 2,626 $ 2,237 $ 7,274 For the Six Months Ended June 30, 2023 Latin AMEA Europe North Total (in millions) Biscuits $ 585 $ 1,239 $ 2,191 $ 4,696 $ 8,711 Chocolate 684 1,310 2,911 140 5,045 Gum & Candy 716 441 453 617 2,227 Beverages 223 358 59 — 640 Cheese & Grocery 231 200 619 — 1,050 Total net revenues $ 2,439 $ 3,548 $ 6,233 $ 5,453 $ 17,673 For the Six Months Ended June 30, 2022 Latin AMEA Europe North Total (in millions) Biscuits $ 479 $ 1,225 $ 1,952 $ 3,700 $ 7,356 Chocolate 491 1,242 2,652 137 4,522 Gum & Candy 365 404 322 536 1,627 Beverages 194 341 56 — 591 Cheese & Grocery 173 190 579 — 942 Total net revenues $ 1,702 $ 3,402 $ 5,561 $ 4,373 $ 15,038 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 944 | $ 747 | $ 3,025 | $ 1,602 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results. For a complete set of consolidated financial statements and related notes, refer to our Annual Report on Form 10-K for the year ended December 31, 2022. |
Principles of Consolidation | Principles of ConsolidationThe condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries that were deconsolidated in 2015. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors' interests in the results of subsidiaries that we control and consolidate. We account for investments over which we exercise significant influence under the equity method of accounting. Investments with readily determinable fair values for which we do not have the ability to exercise significant influence are measured at fair value. |
Highly Inflationary Accounting | Highly Inflationary Accounting Within our consolidated entities, Argentina and Türkiye (Turkey) |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashCash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. |
Allowances for Credit Losses | Allowances for Credit Losses |
Transfers of Financial Assets | Transfers of Financial Assets The outstanding principal amount of receivables under our uncommitted revolving non-recourse accounts receivable factoring arrangements amounted to $744 million as of June 30, 2023 and $516 million as of December 31, 2022. The incremental cost of factoring receivables under this arrangement was not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows. |
Supply Chain Financing | Supply Chain FinancingAs part of our continued efforts to improve our working capital efficiency, we have worked with our suppliers over the past several years to optimize our terms and conditions, which include the extension of payment terms. Our current payment terms with a majority of our suppliers are from 30 to 180 days, which we deem to be commercially reasonable. We also facilitate voluntary supply chain financing (“SCF”) programs through several participating financial institutions. Under these programs, our suppliers, at their sole discretion, determine invoices that they want to sell to participating financial institutions. Our suppliers’ voluntary inclusion of invoices in SCF programs has no bearing on our payment terms or amounts due. Our responsibility is limited to making payments based upon the agreed-upon contractual terms. No guarantees are provided by the Company or any of our subsidiaries under the SCF programs and we have no economic interest in the suppliers’ decision to participate in the SCF programs. Amounts due to our suppliers that elected to participate in the SCF program are included in accounts payable in our consolidated balance sheet. |
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 adopted this standard in the first quarter of 2023 and it did not have an impact on our consolidated financial statements. In September 2022, the FASB issued an ASU which enhances the transparency of supplier finance programs by requiring additional disclosure about the key terms of these programs and a 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 adopted, with the exception of the roll-forward requirement, this standard in the first quarter of 2023 and it did not have a material impact on our consolidated financial statements and related disclosures. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 $ (45) $ (59) $ (14) Current period provision/(recovery) for expected credit losses (22) 6 — Write-offs charged against the allowance 3 — — Currency — (1) (1) Balance at June 30, 2023 $ (64) $ (54) $ (15) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 712 Other assets 3 Assets acquired $ 1,614 Current liabilities 177 Deferred tax liability 78 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 123 Other current assets 9 Property, plant and equipment 186 Operating leases right of use assets 22 Deferred tax assets 96 Definite-life intangible assets 200 Indefinite-life intangible assets 1,450 Goodwill 999 Other assets 11 Assets acquired $ 3,271 Current liabilities 159 Contingent consideration 440 Other liabilities 15 Total purchase price $ 2,657 Less: cash received (99) Net Cash Paid $ 2,558 We have recorded a purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as follows: (in millions) Cash $ 52 Receivables 102 Inventory 60 Other current assets 3 Property, plant and equipment 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 |
Schedule Assets and Liabilities Held-for-Sale | Total assets and liabilities held for sale are comprised of the following: As of June 30, As of December 31, 2022 (in millions) Inventories, net $ 98 $ 79 Current assets held for sale (1) $ 98 $ 79 Property, plant and equipment, net 168 159 Goodwill 292 292 Intangible assets, net 702 671 Noncurrent assets held for sale (2) $ 1,162 $ 1,122 Accrued employment costs — 4 Current liabilities held for sale (3) $ — $ 4 Accrued pension costs 1 — Deferred income taxes 15 15 Noncurrent liabilities held for sale (4) $ 16 $ 15 (1) Reported in Other current assets on the condensed consolidated balance sheets. (2) Reported in Other assets on the condensed consolidated balance sheets. (3) Reported in Other current liabilities on the condensed consolidated balance sheets. (4) Reported in Other liabilities on the condensed consolidated balance sheets. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | Inventories consisted of the following: As of June 30, As of December 31, 2022 (in millions) Raw materials $ 1,092 $ 1,031 Finished product 2,881 2,501 3,973 3,532 Inventory reserves (148) (151) Inventories, net $ 3,825 $ 3,381 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of June 30, As of December 31, 2022 (in millions) Land and land improvements $ 379 $ 378 Buildings and building improvements 3,375 3,250 Machinery and equipment 12,298 11,724 Construction in progress 915 879 16,967 16,231 Accumulated depreciation (7,659) (7,211) Property, plant and equipment, net $ 9,308 $ 9,020 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | Changes in goodwill consisted of (in millions): Latin America AMEA Europe North America Total January 1, 2022 $ 674 $ 3,365 $ 7,830 $ 10,109 $ 21,978 Currency 41 (233) (550) (15) (757) Acquisitions (1) 714 — 795 1,020 2,529 Held for Sale (1) — — (66) (226) (292) Divestitures (8) — — — (8) Balance at December 31, 2022 $ 1,421 $ 3,132 $ 8,009 $ 10,888 $ 23,450 Currency 172 (82) 134 19 243 Acquisitions (1) (2) (2) — — (21) (23) Balance at June 30, 2023 $ 1,591 $ 3,050 $ 8,143 $ 10,886 $ 23,670 (1) Refer to Note 2, Acquisitions and Divestitures for more information. (2) Relates to purchase price allocation adjustments for Ricolino and Clif Bar during 2023. |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following (in millions): As of June 30, 2023 As of December 31, 2022 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-life intangible assets $ 3,311 $ (2,072) $ 1,239 $ 3,354 $ (2,057) $ 1,297 Indefinite-life intangible assets (1) 18,600 — 18,600 18,413 — 18,413 Total $ 21,911 $ (2,072) $ 19,839 $ 21,767 $ (2,057) $ 19,710 (1) In 2022, we recorded $101 million of intangible asset impairment charges related to two biscuit brands in the AMEA segment, of which $78 million was recorded in the first quarter and $23 million was recorded in the third quarter. |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consisted of the following (in millions): As of June 30, 2023 As of December 31, 2022 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-life intangible assets $ 3,311 $ (2,072) $ 1,239 $ 3,354 $ (2,057) $ 1,297 Indefinite-life intangible assets (1) 18,600 — 18,600 18,413 — 18,413 Total $ 21,911 $ (2,072) $ 19,839 $ 21,767 $ (2,057) $ 19,710 (1) In 2022, we recorded $101 million of intangible asset impairment charges related to two biscuit brands in the AMEA segment, of which $78 million was recorded in the first quarter and $23 million was recorded in the third quarter. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Pre-tax Gains and Losses for Marketable Securities | Pre-tax gains and losses for marketable securities are summarized below (in millions): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (in millions) Loss/(gain) on marketable securities sold during the period $ 104 $ (293) Unrealized loss/(gain) on equity securities held as of the end of the period 90 (300) Dividend income (5) (14) Total loss/(gain) on marketable securities $ 189 $ (607) |
Restructuring Program (Tables)
Restructuring Program (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Program Liability | The Simplify to Grow Program liability activity for the six months ended June 30, 2023 was: Severance Asset Write-downs and Other (1) Total (in millions) Liability balance, January 1, 2023 $ 164 $ — $ 164 Charges (2) 26 6 32 Cash spent (3) (35) — (35) Non-cash settlements/adjustments (4) — (6) (6) Currency 4 — 4 Liability balance, June 30, 2023 (5) $ 159 $ — $ 159 (1) Includes gains as a result of assets sold which are included in the restructuring program. (2) We recorded restructuring charges of $2 million in the three months ended June 30, 2023 and $4 million in the three months ended June 30, 2022 and restructuring charges of $32 million in the six months ended June 30, 2023 and $15 million in the six months ended June 30, 2022 within asset impairment and exit costs and benefit plan non-service income. (3) We spent $17 million in the three months ended June 30, 2023 and $16 million in the three months ended June 30, 2022 and spent $35 million in the six months ended June 30, 2023 and $33 million in the six months ended June 30, 2022 in cash severance and related costs. (4) We recognized non-cash asset write-downs (including accelerated depreciation and asset impairments), and other non-cash adjustments, including any gains on sale of restructuring program assets, which totaled a charge of $5 million in the three months ended June 30, 2023 and a charge of $7 million in the three months ended June 30, 2022 and a charge of $6 million in the six months ended June 30, 2023 and $9 million in the six months ended June 30, 2022. (5) At June 30, 2023, $118 million of our net restructuring liability was recorded within other current liabilities and $41 million was recorded within other long-term liabilities. |
Schedule of Restructuring and Implementation Costs by Segment | During the three and six months ended June 30, 2023 and June 30, 2022, and since inception of the Simplify to Grow Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes: Latin AMEA Europe North Corporate Total (in millions) For the Three Months Ended June 30, 2023 Restructuring Costs $ (1) $ 1 $ (3) $ 6 $ (1) $ 2 Implementation Costs (1) — 2 3 — 4 Total $ (2) $ 1 $ (1) $ 9 $ (1) $ 6 For the Three Months Ended June 30, 2022 Restructuring Costs $ (2) $ — $ — $ 4 $ 2 $ 4 Implementation Costs 3 3 8 9 (4) 19 Total $ 1 $ 3 $ 8 $ 13 $ (2) $ 23 For the For the Six Months Ended June 30, 2023 Restructuring Costs $ (1) $ 2 $ 27 $ 5 $ — $ 32 Implementation Costs (1) — 2 3 5 9 Total $ (2) $ 2 $ 29 $ 8 $ 5 $ 41 For the For the Six Months Ended June 30, 2022 Restructuring Costs $ (3) $ 2 $ 2 $ 12 $ 2 $ 15 Implementation Costs 4 4 13 16 2 39 Total $ 1 $ 6 $ 15 $ 28 $ 4 $ 54 Total Project Restructuring Costs $ 547 $ 556 $ 1,190 $ 662 $ 149 $ 3,104 Implementation Costs 302 245 571 593 373 2,084 Total $ 849 $ 801 $ 1,761 $ 1,255 $ 522 $ 5,188 |
Debt and Borrowing Arrangemen_2
Debt and Borrowing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings and Related Weighted-Average Interest Rates | Our short-term borrowings and related weighted-average interest rates consisted of: As of June 30, 2023 As of December 31, 2022 Amount Weighted- Amount Weighted- (in millions, except percentages) Commercial paper $ 2,080 5.4 % $ 2,209 4.7 % Bank loans 98 10.2 % 90 9.1 % Total short-term borrowings $ 2,178 $ 2,299 |
Schedule of Uncommitted and Committed Credit Lines Available | Our uncommitted credit lines and committed credit lines available as of June 30, 2023 and December 31, 2022 include: As of June 30, 2023 As of December 31, 2022 Facility Amount Borrowed Amount Facility Amount Borrowed Amount (in millions) Uncommitted credit facilities $ 1,311 $ 98 $ 1,335 $ 90 Credit facilities: February 22, 2023 (1) — — 2,500 — March 11, 2023 (1) — — 2,000 — December 29, 2023 (1) 2,000 — — — February 21, 2024 (1) 1,500 — — — July 29, 2025 (1) (3) — — 2,000 2,000 October 18, 2025 (2) 189 189 — — February 23, 2027 (1) 4,500 — 4,500 — (1) We maintain senior unsecured revolving credit facilities for general corporate purposes, including working capital needs, and to support our commercial paper program. The revolving credit agreements include a covenant that we maintain a minimum shareholders' equity of at least $25.0 billion, excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans. At June 30, 2023, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $39.4 billion. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. (2) On April 18, 2023, we entered into a credit facility secured by pledged deposits. Under this agreement, we may draw up to a total of $0.2 billion in loans from the facility. On April 25, 2023, we drew down $0.2 billion bearing a variable rate based on SOFR plus an applicable margin. (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. Amounts borrowed and repaid under the facility may not be reborrowed. 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. We repaid $1.0 billion on March 3, 2023, $0.3 billion on April 3, 2023, and $0.7 billion on May 3, 2023 in term loans. |
Schedule of Fair Value of 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 June 30, 2023 As of December 31, 2022 (in millions) Fair Value $ 18,703 $ 20,217 Carrying Value $ 21,226 $ 22,933 |
Schedule of Interest and Other Expense | Interest and other expense, net consisted of: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Interest expense, debt $ 145 $ 89 $ 298 $ 180 Loss on debt extinguishment and 1 — 1 129 Other (income)/expense, net (49) 9 (107) (43) Interest and other expense, net $ 97 $ 98 $ 192 $ 266 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Effects of Derivative Instruments | Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Three Months Ended For the Six Months Ended Location of Gain/(Loss) Recognized in Earnings 2023 2022 2023 2022 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 25 $ 7 $ 47 $ (4) Interest and other expense, net Forecasted transactions 27 114 29 107 Cost of sales Forecasted transactions 8 (52) 13 (31) Interest and other expense, net Forecasted transactions (1) 1 (6) 3 Selling, general and administrative expenses Commodity contracts 106 (40) 104 197 Cost of sales Equity method investment 1 — 3 — (Loss)/gain on equity method investment transactions Total $ 166 $ 30 $ 190 $ 272 |
Schedule of Contingent Consideration | The following is a summary of our contingent consideration liability activity: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Liability at beginning of period $ 659 $ 165 $ 642 $ 159 Contingent consideration arising from acquisitions — — — — Changes in fair value (2) 8 15 14 Payments (90) — (90) — Currency — (1) — (1) Liability at end of period $ 567 $ 172 $ 567 $ 172 Contingent consideration was recorded at fair value in the condensed consolidated balance sheets as follows: As of June 30, 2023 Total Fair Value of Quoted Prices in Significant Significant (in millions) Clif Bar (1) $ 472 $ — $ — $ 472 Other (2) 95 — — 95 Total contingent consideration $ 567 $ — $ — $ 567 As of December 31, 2022 Total Fair Value of Quoted Prices in Significant Significant (in millions) Clif Bar (1) $ 452 $ — $ — $ 452 Other (2) 190 — — 190 Total contingent consideration $ 642 $ — $ — $ 642 (1) In connection with the Clif Bar acquisition, we entered into a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain net revenue, gross profit and EBITDA targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price. The other contingent consideration liabilities are recorded at fair value within long term liabilities. The estimated fair value of the contingent consideration obligation at the acquisition date was determined using a Monte Carlo simulation and recorded in other liabilities. Significant assumptions used in assessing the fair value of the liability include financial projections for net revenue, gross profit, and EBITDA, as well as discount and volatility rates. Fair value adjustments are primarily recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. (2) The other contingent consideration liabilities are recorded at fair value, with $12 million and $102 million classified as other current liabilities and $83 million and $88 million classified as long term liabilities at June 30, 2023 and December 31, 2022. The fair value of this contingent consideration was determined using a Monte Carlo valuation model based on Level 3 inputs, including management's latest estimate of forecasted future results. Other key assumptions included discount rate and volatility. Fair value adjustments are recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. |
Net investment hedges | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Hedges of Net Investments in International Operations | Net investment hedge derivative contract impacts on other comprehensive earnings and net earnings were: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) After-tax gain on NIH contracts (1) $ 22 $ 307 $ 17 $ 348 (1) Amounts recorded for unsettled and settled NIH derivative contracts are recorded in the cumulative translation adjustment within other comprehensive earnings. The cash flows from the settled contracts are reported within other investing activities in the condensed consolidated statement of cash flows. For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Amounts excluded from the assessment of hedge effectiveness (1) $ 36 $ 30 $ 72 $ 52 (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 were recorded within the cumulative translation adjustment section of other comprehensive income and were: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Euro notes $ (17) $ 142 $ (50) $ 216 British pound sterling notes — 19 — 27 Swiss franc notes (11) 21 (16) 27 Canadian notes (7) 11 (8) 7 |
Derivative | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of June 30, 2023 As of December 31, 2022 Asset Liability Asset Liability (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 106 47 $ 132 35 Net investment hedge derivative contracts (1) 301 262 265 241 $ 407 $ 309 $ 397 $ 276 Derivatives not designated as Currency exchange contracts $ 257 $ 144 $ 185 $ 103 Commodity contracts 912 766 200 247 Interest rate contracts 11 4 8 — Equity method investment contracts (2) — 5 — 3 $ 1,180 $ 919 $ 393 $ 353 Total fair value $ 1,587 $ 1,228 $ 790 $ 629 (1) Net investment hedge derivative contracts consist of cross-currency interest rate swaps, forward contracts and options. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote. (2) Equity method investment contracts consist of two types of derivatives: (a) options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares that are exercisable at maturity over the third quarter of 2023 with strike prices ranging between €26.10 and €28.71 per share and (b) the bifurcated embedded derivative option that was a component of the September 20, 2021 €300 million exchangeable bonds issuance. Refer to Note 8, Debt and Borrowing Arrangements . |
Schedule of Derivative Instruments Fair Value and Measurement Inputs | The fair values (asset/(liability)) of our derivative instruments were determined using: As of June 30, 2023 Total Quoted Prices in Significant Significant (in millions) Currency exchange contracts $ 113 $ — $ 113 $ — Commodity contracts 146 16 130 — Interest rate contracts 66 — 66 — Net investment hedge contracts 39 — 39 — Equity method investment contracts (5) — (5) — Total derivatives $ 359 $ 16 $ 343 $ — 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 $ — |
Schedule of Notional Values of Derivative Instruments | The notional values of our hedging instruments were: Notional Amount As of June 30, As of December 31, 2022 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 2,762 $ 2,085 Forecasted transactions 5,855 5,470 Commodity contracts (1) 12,104 7,777 Interest rate contracts 4,304 4,147 Net investment hedges: Net investment hedge derivative contracts 7,792 7,319 Non-U.S. dollar debt designated as net investment hedges Euro notes 3,475 3,410 Swiss franc notes 659 638 Canadian dollar notes 453 443 (1) Prior year notional value has been revised. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Benefit Costs/(Credits) | Net periodic pension cost/(benefit) consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended 2023 2022 2023 2022 (in millions) Service cost $ 1 $ 2 $ 13 $ 16 Interest cost 17 12 76 47 Expected return on plan assets (24) (18) (100) (94) Amortization: Net loss from experience differences — 2 10 15 Settlement losses and other expenses 3 4 — — Net periodic pension (benefit)/cost $ (3) $ 2 $ (1) $ (16) U.S. Plans Non-U.S. Plans For the Six Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Service cost $ 2 $ 3 $ 27 $ 55 Interest cost 32 23 152 88 Expected return on plan assets (49) (36) (202) (186) Amortization: Net loss from experience differences — 5 21 33 Prior service cost/(benefit) 1 — — (1) Settlement losses and other expenses 8 7 — — Net periodic pension (benefit)/cost $ (6) $ 2 $ (2) $ (11) |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Options Activity | Stock option activity is reflected below: Shares Subject Weighted- Average Aggregate Balance at January 1, 2023 20,490,250 $46.31 5 years $ 417 million Annual grant to eligible employees 2,452,110 65.36 Additional options issued 3,820 66.78 Total options granted 2,455,930 65.36 Options exercised (1) (2,844,348) 37.84 $ 93 million Options canceled (159,460) 53.03 Balance at June 30, 2023 19,942,372 49.81 5 years $ 461 million (1) Cash received from options exercised was $56 million in the three months and $105 million in the six months ended June 30, 2023. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $9 million in the three months and $17 million in the six months ended June 30, 2023 |
Performance Share Units and Other Stock-Based Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Performance Share Units and Stock-Based Awards Activity | Our performance share unit (PSU), deferred stock unit (DSU) and other stock-based activity is reflected below: Number Grant Date Weighted-Average Fair Value Per Share (4) Weighted-Average Aggregate Fair Value (3) Balance at January 1, 2023 4,451,674 $60.12 Annual grant to eligible employees: Mar 2, 2023 Performance share units 895,410 68.59 Deferred stock units 578,570 65.36 Additional shares granted (1) 710,633 Various 65.54 Total shares granted 2,184,613 66.74 $ 146 million Vested (2) (3) (1,626,765) 62.75 $ 102 million Forfeited (2) (144,096) 61.28 Balance at June 30, 2023 4,865,426 62.18 (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 zero in the three months and $2 million in the six months ended June 30, 2023. |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Earnings/(Losses) | The following table summarizes the changes in accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net (losses)/gains of $11 million in the second quarter of 2023 and $82 million in the second quarter of 2022 and $41 million in the first six months of 2023 and $40 million in the first six months of 2022.. For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (9,659) $ (9,043) $ (9,808) $ (9,097) Currency translation adjustments 139 (339) 312 (333) Tax (expense)/benefit 7 (60) (15) (16) Other comprehensive earnings/(losses) 146 (399) 297 (349) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 8 11 6 15 Balance at end of period (9,505) (9,431) (9,505) (9,431) Pension and Other Benefit Plans: Balance at beginning of period $ (1,111) $ (1,286) $ (1,105) $ (1,379) Net actuarial gain/(loss) arising during period (1) 108 1 152 Tax (expense)/benefit on net actuarial gain/(loss) — (27) — (27) Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (1) 5 16 13 36 Settlement losses and other expenses (1) 3 4 8 7 Tax expense/(benefit) on reclassifications (3) (3) (6) (6) (12) Currency impact (26) 72 (44) 104 Other comprehensive earnings/(losses) (22) 167 (28) 260 Balance at end of period (1,133) (1,119) (1,133) (1,119) Derivative Cash Flow Hedges: Balance at beginning of period $ (44) $ (96) $ (34) $ (148) Net derivative gains/(losses) (38) 98 (66) 124 Tax (expense)/benefit on net derivative gain/(loss) 4 1 1 — Losses/(gains) reclassified into net earnings: Currency exchange contracts (2) — 3 — 5 Interest rate contracts (2) 5 (99) 23 (53) Tax expense/(benefit) on reclassifications (3) 1 — 3 (23) Currency impact — 5 1 7 Other comprehensive earnings/(losses) (28) 8 (38) 60 Balance at end of period (72) (88) (72) (88) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (10,814) $ (10,425) $ (10,947) $ (10,624) Total other comprehensive earnings/(losses) 96 (224) 231 (29) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 8 11 6 15 Other comprehensive earnings/(losses) attributable to Mondelēz International 104 (213) 237 (14) Balance at end of period $ (10,710) $ (10,638) $ (10,710) $ (10,638) (1) These reclassified losses are included in net periodic benefit costs disclosed in Note 10, Benefit Plans . (2) These reclassified gains or losses are recorded within interest and other expense, net. (3) Taxes reclassified to earnings are recorded within the provision for income taxes. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions, except per share data) Net earnings $ 941 $ 748 $ 3,030 $ 1,609 Noncontrolling interest earnings 3 (1) (5) (7) Net earnings attributable to Mondelēz International $ 944 $ 747 $ 3,025 $ 1,602 Weighted-average shares for basic EPS 1,364 1,382 1,365 1,385 Plus incremental shares from assumed conversions 7 7 7 8 Weighted-average shares for diluted EPS 1,371 1,389 1,372 1,393 Basic earnings per share attributable to $ 0.69 $ 0.54 $ 2.22 $ 1.16 Diluted earnings per share attributable to $ 0.69 $ 0.54 $ 2.20 $ 1.15 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Net Revenues and Earnings | Our segment net revenues and earnings were: For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 (in millions) Net revenues: Latin America $ 1,228 $ 876 $ 2,439 $ 1,702 AMEA 1,609 1,535 3,548 3,402 Europe 2,926 2,626 6,233 5,561 North America 2,744 2,237 5,453 4,373 Net revenues $ 8,507 $ 7,274 $ 17,673 $ 15,038 Earnings before income taxes: Operating income: Latin America $ 134 $ 90 $ 273 $ 193 AMEA 207 211 567 483 Europe 449 380 956 757 North America 580 454 1,146 872 Unrealized gains/(losses) on hedging activities 171 (109) 220 (82) General corporate expenses (79) (62) (156) (112) Amortization of intangible assets (37) (32) (76) (64) Acquisition-related costs — (5) — (26) Operating income 1,425 927 2,930 2,021 Benefit plan non-service income 22 30 41 63 Interest and other expense, net (97) (98) (192) (266) (Loss)/gain on marketable securities (189) — 607 — Earnings before income taxes $ 1,161 $ 859 $ 3,386 $ 1,818 |
Schedule of Net Revenues by Product Category | Net revenues by product category were: For the Three Months Ended June 30, 2023 Latin AMEA Europe North Total (in millions) Biscuits & Baked Snacks $ 309 $ 570 $ 1,129 $ 2,383 $ 4,391 Chocolate 316 563 1,241 56 2,176 Gum & Candy 368 235 220 305 1,128 Beverages 112 150 26 — 288 Cheese & Grocery 123 91 310 — 524 Total net revenues $ 1,228 $ 1,609 $ 2,926 $ 2,744 $ 8,507 For the Three Months Ended June 30, 2022 Latin AMEA Europe North Total (in millions) Biscuits & Baked Snacks $ 255 $ 568 $ 1,001 $ 1,901 $ 3,725 Chocolate 243 536 1,140 60 1,979 Gum & Candy 193 201 170 276 840 Beverages 92 144 24 — 260 Cheese & Grocery 93 86 291 — 470 Total net revenues $ 876 $ 1,535 $ 2,626 $ 2,237 $ 7,274 For the Six Months Ended June 30, 2023 Latin AMEA Europe North Total (in millions) Biscuits $ 585 $ 1,239 $ 2,191 $ 4,696 $ 8,711 Chocolate 684 1,310 2,911 140 5,045 Gum & Candy 716 441 453 617 2,227 Beverages 223 358 59 — 640 Cheese & Grocery 231 200 619 — 1,050 Total net revenues $ 2,439 $ 3,548 $ 6,233 $ 5,453 $ 17,673 For the Six Months Ended June 30, 2022 Latin AMEA Europe North Total (in millions) Biscuits $ 479 $ 1,225 $ 1,952 $ 3,700 $ 7,356 Chocolate 491 1,242 2,652 137 4,522 Gum & Candy 365 404 322 536 1,627 Beverages 194 341 56 — 591 Cheese & Grocery 173 190 579 — 942 Total net revenues $ 1,702 $ 3,402 $ 5,561 $ 4,373 $ 15,038 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 USD ($) | Mar. 31, 2022 USD ($) facility | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Restricted cash | $ 71 | $ 71 | $ 25 | |||
Cash, cash equivalents and restricted cash | 1,553 | 1,553 | $ 1,935 | 1,948 | $ 3,553 | |
Outstanding principal amount of receivables sold under factoring arrangement | 744 | 744 | 516 | |||
Operating lease right-of-use assets obtained in exchange for lease obligations | 62 | 125 | ||||
Finance lease right-of-use assets in exchange for lease obligations | 73 | $ 76 | ||||
Supplier chain financing, obligation | $ 2,300 | $ 2,300 | 2,400 | |||
Maximum | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Supplier finance program, payment timing, period | 180 days | 180 days | ||||
Minimum | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Supplier finance program, payment timing, period | 30 days | 30 days | ||||
Military Invasion of Ukraine | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Number of manufacturing facilities damaged | facility | 2 | |||||
Incremental costs due to war in Ukraine, before tax | $ 143 | |||||
Incremental costs due to war in Ukraine, after tax | $ 145 | |||||
Trade receivable reversal and inventory recoveries | $ 3 | $ 22 | ||||
Argentina | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of consolidated net revenues | 1.60% | 2.30% | ||||
Argentina | Selling, general and administrative expenses | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Remeasurement gain (loss) due to inflationary accounting | $ 10 | $ 21 | ||||
Turkey | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of consolidated net revenues | 0.80% | 0.90% | ||||
Turkey | Selling, general and administrative expenses | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Remeasurement gain (loss) due to inflationary accounting | $ 16 | $ 17 |
Basis of Presentation - Changes
Basis of Presentation - Changes in Allowances for Credit Losses (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Allowance for Trade Receivables | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at January 1, 2023 | $ (45) |
Current period provision/(recovery) for expected credit losses | (22) |
Write-offs charged against the allowance | 3 |
Currency | 0 |
Balance at June 30, 2023 | (64) |
Allowance for Other Current Receivables | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at January 1, 2023 | (59) |
Current period provision/(recovery) for expected credit losses | 6 |
Write-offs charged against the allowance | 0 |
Currency | (1) |
Balance at June 30, 2023 | (54) |
Allowance for Long-Term Receivables | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at January 1, 2023 | (14) |
Current period provision/(recovery) for expected credit losses | 0 |
Write-offs charged against the allowance | 0 |
Currency | (1) |
Balance at June 30, 2023 | $ (15) |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) $ in Millions, € in Billions, $ in Billions | 3 Months Ended | 6 Months Ended | ||||||||
Nov. 01, 2022 USD ($) | Nov. 01, 2022 MXN ($) | Aug. 01, 2022 USD ($) | Jan. 03, 2022 USD ($) | Jan. 03, 2022 EUR (€) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 16, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||||||||
Payments to acquire business net of cash acquired | $ (19) | $ 1,402 | ||||||||
Acquisition-related costs | $ 0 | $ 5 | 0 | 26 | ||||||
Held for Sale | Developed-market Gum Business | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Disposal group, including discontinued operation, expected consideration | $ 1,400 | |||||||||
Costs related to divestiture | 22 | 52 | ||||||||
Ricolino | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of interest acquired | 100% | |||||||||
Payments to acquire business net of cash acquired | $ 1,308 | $ 26 | ||||||||
Indefinite-life intangible assets | $ 339 | |||||||||
Incremental net revenues from acquisition | 155 | 326 | ||||||||
Incremental operating income (loss) from acquisition | 7 | 16 | ||||||||
Acquisition integration costs | 10 | 16 | ||||||||
Acquisition-related costs | 1 | 1 | ||||||||
Clif Bar | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of interest acquired | 100% | |||||||||
Payments to acquire business net of cash acquired | $ 2,558 | |||||||||
Incremental net revenues from acquisition | 240 | 458 | ||||||||
Incremental operating income (loss) from acquisition | 35 | 70 | ||||||||
Acquisition integration costs | 16 | 55 | ||||||||
Acquisition-related costs | 4 | 4 | ||||||||
Payments to acquire businesses and other related costs | 2,900 | |||||||||
Payment of employee stock ownership plan expense | 300 | |||||||||
Contingent consideration | 440 | |||||||||
Goodwill expected to be deductible for income tax purposes | 1,400 | |||||||||
Clif Bar | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent consideration arrangement, additional consideration to be paid, low value | 0 | |||||||||
Clif Bar | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent consideration arrangement, additional consideration to be paid, high value | 2,400 | |||||||||
Clif Bar | Trade Names | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Indefinite-life intangible assets | $ 1,450 | |||||||||
Chipita, S.A. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of interest acquired | 100% | |||||||||
Payments to acquire business net of cash acquired | $ 1,402 | |||||||||
Acquisition integration costs | $ 4 | $ 36 | $ 10 | 71 | ||||||
Acquisition-related costs | $ 21 | |||||||||
Total cash payment | 1,400 | € 1.2 | ||||||||
Liabilities assumed | 436 | 0.4 | ||||||||
Purchase consideration | 1,800 | € 1.7 | ||||||||
Chipita, S.A. | Trade Names | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Indefinite-life intangible assets | $ 686 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Purchase Price Allocation of Net Tangible and Intangible Assets Acquired and Liabilities Assumed - Ricolino (Details) $ in Millions, $ in Billions | 6 Months Ended | |||||
Nov. 01, 2022 USD ($) | Nov. 01, 2022 MXN ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 23,670 | $ 23,450 | $ 21,978 | |||
Net Cash Paid | $ (19) | $ 1,402 | ||||
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 | 712 | |||||
Other assets | 3 | |||||
Assets acquired | 1,614 | |||||
Current liabilities | 177 | |||||
Deferred tax liability | 78 | |||||
Finance lease liabilities | 17 | |||||
Other liabilities | 12 | |||||
Total purchase price | 1,330 | |||||
Less: cash received | (22) | |||||
Net Cash Paid | $ 1,308 | $ 26 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Purchase Price Allocation of Net Tangible and Intangible Assets Acquired and Liabilities Assumed - Clif Bar (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Aug. 01, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 23,670 | $ 23,450 | $ 21,978 | ||
Net Cash Paid | $ (19) | $ 1,402 | |||
Clif Bar | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 99 | ||||
Receivables | 76 | ||||
Inventory | 123 | ||||
Other current assets | 9 | ||||
Property, plant and equipment | 186 | ||||
Operating leases right of use assets | 22 | ||||
Deferred tax assets | 96 | ||||
Definite-life intangible assets | 200 | ||||
Goodwill | 999 | ||||
Other assets | 11 | ||||
Assets acquired | 3,271 | ||||
Current liabilities | 159 | ||||
Contingent consideration | 440 | ||||
Other liabilities | 15 | ||||
Total purchase price | 2,657 | ||||
Less: cash received | (99) | ||||
Net Cash Paid | 2,558 | ||||
Clif Bar | Trade Names | |||||
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 (Details) $ in Millions, € in Billions | 6 Months Ended | |||||
Jan. 03, 2022 USD ($) | Jan. 03, 2022 EUR (€) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 23,670 | $ 23,450 | $ 21,978 | |||
Net Cash Paid | $ (19) | $ 1,402 | ||||
Chipita, S.A. | ||||||
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 liability | 158 | |||||
Finance lease liabilities | 8 | |||||
Other liabilities | 21 | |||||
Total purchase price | 1,890 | |||||
Less: long-term debt | (436) | € (0.4) | ||||
Less: cash received | (52) | |||||
Net Cash Paid | 1,402 | |||||
Chipita, S.A. | Trade Names | ||||||
Business Acquisition [Line Items] | ||||||
Indefinite-life intangible assets | $ 686 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Schedule of Assets and Liabilities Held-for-Sale (Details) - Held for Sale - Developed-market Gum Business - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Inventories, net | $ 98 | $ 79 | |
Current assets held for sale | [1] | 98 | 79 |
Property, plant and equipment, net | 168 | 159 | |
Goodwill | 292 | 292 | |
Intangible assets, net | 702 | 671 | |
Noncurrent assets held for sale | [2] | 1,162 | 1,122 |
Accrued employment costs | 0 | 4 | |
Current liabilities held for sale | [3] | 0 | 4 |
Accrued pension costs | 1 | 0 | |
Deferred income taxes | 15 | 15 | |
Noncurrent liabilities assets held for sale | [4] | $ 16 | $ 15 |
[1]Reported in Other current assets on the condensed consolidated balance sheets.[2]Reported in Other assets on the condensed consolidated balance sheets.[3]Reported in Other current liabilities on the condensed consolidated balance sheets.[4]Reported in Other liabilities on the condensed consolidated balance sheets. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,092 | $ 1,031 |
Finished product | 2,881 | 2,501 |
Inventories, gross | 3,973 | 3,532 |
Inventory reserves | (148) | (151) |
Inventories, net | $ 3,825 | $ 3,381 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 16,967 | $ 16,231 |
Accumulated depreciation | (7,659) | (7,211) |
Property, plant and equipment, net | 9,308 | 9,020 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 379 | 378 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,375 | 3,250 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 12,298 | 11,724 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 915 | $ 879 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Capital expenditures | $ 495 | $ 385 | ||
Accrued capital expenditures unpaid | $ 305 | $ 239 | $ 324 | $ 249 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | |||
Goodwill [Roll Forward] | ||||
Beginning balance | $ 23,450 | $ 21,978 | ||
Currency | 243 | (757) | ||
Acquisitions | [1] | (23) | [2] | 2,529 |
Ending balance | 23,670 | 23,450 | ||
Latin America | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 1,421 | 674 | ||
Currency | 172 | 41 | ||
Acquisitions | [1] | (2) | [2] | 714 |
Ending balance | 1,591 | 1,421 | ||
AMEA | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 3,132 | 3,365 | ||
Currency | (82) | (233) | ||
Acquisitions | [1] | 0 | [2] | 0 |
Ending balance | 3,050 | 3,132 | ||
Europe | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 8,009 | 7,830 | ||
Currency | 134 | (550) | ||
Acquisitions | [1] | 0 | [2] | 795 |
Ending balance | 8,143 | 8,009 | ||
North America | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 10,888 | 10,109 | ||
Currency | 19 | (15) | ||
Acquisitions | [1] | (21) | [2] | 1,020 |
Ending balance | $ 10,886 | 10,888 | ||
Held for Sale | ||||
Goodwill [Roll Forward] | ||||
Held for Sale and Divestitures | [1] | (292) | ||
Held for Sale | Latin America | ||||
Goodwill [Roll Forward] | ||||
Held for Sale and Divestitures | [1] | 0 | ||
Held for Sale | AMEA | ||||
Goodwill [Roll Forward] | ||||
Held for Sale and Divestitures | [1] | 0 | ||
Held for Sale | Europe | ||||
Goodwill [Roll Forward] | ||||
Held for Sale and Divestitures | [1] | (66) | ||
Held for Sale | North America | ||||
Goodwill [Roll Forward] | ||||
Held for Sale and Divestitures | [1] | (226) | ||
Divestitures | ||||
Goodwill [Roll Forward] | ||||
Held for Sale and Divestitures | (8) | |||
Divestitures | Latin America | ||||
Goodwill [Roll Forward] | ||||
Held for Sale and Divestitures | (8) | |||
Divestitures | AMEA | ||||
Goodwill [Roll Forward] | ||||
Held for Sale and Divestitures | 0 | |||
Divestitures | Europe | ||||
Goodwill [Roll Forward] | ||||
Held for Sale and Divestitures | 0 | |||
Divestitures | North America | ||||
Goodwill [Roll Forward] | ||||
Held for Sale and Divestitures | $ 0 | |||
[1] Refer to Note 2, Acquisitions and Divestitures for more information. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) brand | Jun. 30, 2023 USD ($) | ||
Definite-life intangible assets | |||||
Gross carrying amount | $ 3,354 | $ 3,311 | |||
Accumulated amortization | (2,057) | (2,072) | |||
Net carrying amount | 1,297 | 1,239 | |||
Indefinite-life intangible assets | |||||
Gross carrying amount | [1] | 18,413 | 18,600 | ||
Total | |||||
Gross carrying amount | 21,767 | 21,911 | |||
Net carrying amount | 19,710 | $ 19,839 | |||
Biscuits & Baked Snacks | AMEA | Brands | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Impairment charge | $ 23 | $ 78 | $ 101 | ||
Number of impaired brands | brand | 2 | ||||
[1]In 2022, we recorded $101 million of intangible asset impairment charges related to two biscuit brands in the AMEA segment, of which $78 million was recorded in the first quarter and $23 million was recorded in the third quarter. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) brand | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) brand | Jun. 30, 2022 USD ($) | Dec. 31, 2022 brand | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization expense for intangible assets | $ 37 | $ 32 | $ 76 | $ 64 | |
Estimated amortization expense of intangibles in 2023 | 150 | 150 | |||
Estimated amortization expense of intangibles in 2024 | 150 | 150 | |||
Estimated amortization expense of intangibles in 2025 | 150 | 150 | |||
Estimated amortization expense of intangibles in 2026 | 95 | 95 | |||
Estimated amortization expense of intangibles in 2027 | $ 90 | $ 90 | |||
Brands | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Number of brands with fair value in excess of book value of 10% or less | brand | 8 | 8 | 8 | ||
Book value of brands with fair value in excess of book value of 10% or less | $ 1,600 | $ 1,600 |
Investments - Narrative (Detail
Investments - Narrative (Details) € / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||
Jul. 13, 2023 USD ($) shares | Jun. 08, 2023 USD ($) shares | Apr. 03, 2023 USD ($) shares | Apr. 03, 2023 EUR (€) shares | Mar. 02, 2023 shares | May 08, 2022 USD ($) shares | May 08, 2022 EUR (€) shares | Sep. 29, 2023 € / shares | Jun. 30, 2023 USD ($) director shares | Jun. 30, 2023 EUR (€) | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Jun. 30, 2023 USD ($) director shares | Jun. 30, 2022 USD ($) | Dec. 31, 2023 € / shares | Jun. 07, 2023 | Apr. 02, 2023 | Mar. 30, 2023 shares | Mar. 01, 2023 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) € / shares | Sep. 20, 2021 EUR (€) | |
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Marketable securities | $ 705 | $ 705 | |||||||||||||||||||||
Equity method investments | 3,245 | 3,245 | $ 4,879 | ||||||||||||||||||||
Equity method investment net earnings | 71 | $ 98 | 106 | $ 215 | |||||||||||||||||||
Cash dividends received from equity method investments | $ 0 | 14 | $ 102 | $ 121 | |||||||||||||||||||
KDP | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Equity securities investment, significant influence over investee, threshold ownership percentage | 5% | ||||||||||||||||||||||
Equity investment, increase (decrease) in ownership percentage | (1.60%) | (2.10%) | |||||||||||||||||||||
Equity securities, measured at fair value, ownership percentage | 1.60% | 3.20% | 3.20% | ||||||||||||||||||||
JDEP | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Equity investment, increase (decrease) in ownership percentage | (1.60%) | (1.60%) | (3.00%) | (3.00%) | |||||||||||||||||||
JDEP | Forecast | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Equity investment, increase (decrease) in ownership percentage | (1.60%) | ||||||||||||||||||||||
0.000% Notes Due September 2024 | Exchangeable Notes | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Debt issued | € | € 300,000,000 | € 300,000,000 | |||||||||||||||||||||
Exchange price (in EUR per share) | € / shares | € 35.40 | ||||||||||||||||||||||
Debt convertible into equity interest, shares issuable (in shares) | shares | 8.5 | ||||||||||||||||||||||
Debt convertible into equity interest, percentage | 10% | ||||||||||||||||||||||
KDP | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Number of shares sold (in shares) | shares | 23 | 30 | |||||||||||||||||||||
Proceeds from sale of marketable securities | $ 708 | ||||||||||||||||||||||
Equity method investment, ownership percentage | 5.30% | ||||||||||||||||||||||
Proceeds from equity method investment transaction | $ 1,000 | ||||||||||||||||||||||
Gain on sale of equity method investment | 493 | ||||||||||||||||||||||
Equity securities, measured at fair value, realized gain (loss), net of tax | $ 366 | ||||||||||||||||||||||
KDP | Subsequent Event | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Number of shares sold (in shares) | shares | 23 | ||||||||||||||||||||||
Proceeds from sale of marketable securities | $ 704 | ||||||||||||||||||||||
JDEP | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Equity method investment, ownership percentage | 18.10% | 18.10% | 18.10% | 18.10% | 19.70% | ||||||||||||||||||
Fair value of ownership of equity method investment | $ 2,600 | $ 2,600 | |||||||||||||||||||||
Number of directors | director | 2 | 2 | |||||||||||||||||||||
JDEP | Equity method investment contracts | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Number of shares sold (in shares) | shares | 7.7 | 7.7 | 18.6 | 18.6 | |||||||||||||||||||
Proceeds from equity method investment transaction | $ 217 | € 198,000,000 | $ 529 | € 500,000,000 | |||||||||||||||||||
Gain on sale of equity method investment | $ 19 | € 18,000,000 | $ 8 | € 8,000,000 | |||||||||||||||||||
Derivative, underlying investment (in shares) | shares | 7.7 | 7.7 | 7.7 | ||||||||||||||||||||
JDEP | Forecast | Minimum | Equity method investment contracts | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Option strike price (in euros per share) | € / shares | € 26.10 | € 26.10 | |||||||||||||||||||||
JDEP | Forecast | Maximum | Equity method investment contracts | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Option strike price (in euros per share) | € / shares | € 28.71 | € 28.71 | |||||||||||||||||||||
Dong Suh Foods Corporation | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Equity method investment, ownership percentage | 50% | 50% | |||||||||||||||||||||
Dong Suh Oil & Fats Co. Ltd. | |||||||||||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||||||||||
Equity method investment, ownership percentage | 49% | 49% |
Investments - Pre-tax Gains and
Investments - Pre-tax Gains and Losses for Marketable Securities (Details) - KDP - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Schedule of Investments [Line Items] | ||
Loss/(gain) on marketable securities sold during the period | $ 104 | $ (293) |
Unrealized loss/(gain) on equity securities held as of the end of the period | 90 | (300) |
Dividend income | (5) | (14) |
Total loss/(gain) on marketable securities | $ 189 | $ (607) |
Restructuring Program - Narrati
Restructuring Program - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 110 Months Ended | |||||||||||
Oct. 21, 2021 | Sep. 06, 2018 | Aug. 31, 2016 | May 06, 2014 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |||||
2014-2018 Restructuring Program | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approved restructuring program cost | $ 5,700 | $ 3,500 | ||||||||||||
Reallocation of previously approved capital expenditures to be spent on restructuring program cash costs | 600 | |||||||||||||
2014-2018 Restructuring Program | Maximum | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approved capital expenditures | 1,600 | $ 2,200 | ||||||||||||
2014-2018 Restructuring Program | Restructuring Program Charges | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approved restructuring program cost | 4,100 | |||||||||||||
2014-2018 Restructuring Program | Cash Costs | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approved restructuring program cost | 3,100 | |||||||||||||
2014-2018 Restructuring Program | Non-cash Costs | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approved restructuring program cost | $ 1,000 | |||||||||||||
Simplify to Grow Program | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approved restructuring program cost | $ 7,700 | |||||||||||||
Restructuring and implementation charges | $ 6 | $ 23 | $ 41 | $ 54 | $ 5,188 | |||||||||
Restructuring charges | 2 | 4 | 32 | [1] | 15 | 3,104 | ||||||||
Cash spent in restructuring | [2] | 35 | ||||||||||||
Restructuring reserve | 159 | [3] | 159 | [3] | 159 | [3] | $ 164 | |||||||
Implementation costs | 4 | 19 | 9 | 39 | 2,084 | |||||||||
Simplify to Grow Program | Maximum | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approved capital expenditures | 2,300 | |||||||||||||
Increase in approved restructuring program costs | $ 1,300 | |||||||||||||
Increase in approved capital expenditures | $ 700 | |||||||||||||
Simplify to Grow Program | Other current liabilities | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring reserve | 118 | 118 | 118 | |||||||||||
Simplify to Grow Program | Other liabilities | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring reserve | 41 | 41 | 41 | |||||||||||
Simplify to Grow Program | Restructuring Program Charges | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approved restructuring program cost | 5,400 | |||||||||||||
Simplify to Grow Program | Cash Costs | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approved restructuring program cost | 4,100 | |||||||||||||
Simplify to Grow Program | Non-cash Costs | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Approved restructuring program cost | $ 1,300 | |||||||||||||
Simplify to Grow Program | Severance and Related Costs | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring charges | [1] | 26 | ||||||||||||
Cash spent in restructuring | 17 | $ 16 | 35 | [2] | $ 33 | |||||||||
Restructuring reserve | $ 159 | [3] | $ 159 | [3] | $ 159 | [3] | $ 164 | |||||||
[1]We recorded restructuring charges of $2 million in the three months ended June 30, 2023 and $4 million in the three months ended June 30, 2022 and restructuring charges of $32 million in the six months ended June 30, 2023 and $15 million in the six months ended June 30, 2022 within asset impairment and exit costs and benefit plan non-service income.[2]We spent $17 million in the three months ended June 30, 2023 and $16 million in the three months ended June 30, 2022 and spent $35 million in the six months ended June 30, 2023 and $33 million in the six months ended June 30, 2022 in cash severance and related costs.[3]At June 30, 2023, $118 million of our net restructuring liability was recorded within other current liabilities and $41 million was recorded within other long-term liabilities. |
Restructuring Program - Restruc
Restructuring Program - Restructuring Liability Activity (Details) - Simplify to Grow Program - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 110 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | |||
Restructuring Reserve [Roll Forward] | |||||||
Liability balance, January 1, 2023 | $ 164 | ||||||
Charges | $ 2 | $ 4 | 32 | [1] | $ 15 | $ 3,104 | |
Cash spent | [2] | (35) | |||||
Non-cash settlements/adjustments | [3] | (6) | |||||
Currency | 4 | ||||||
Liability balance, June 30, 2023 | [4] | 159 | 159 | 159 | |||
Non-cash asset write-downs | 5 | 7 | 6 | 9 | |||
Severance and related costs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Liability balance, January 1, 2023 | 164 | ||||||
Charges | [1] | 26 | |||||
Cash spent | (17) | $ (16) | (35) | [2] | $ (33) | ||
Non-cash settlements/adjustments | [3] | 0 | |||||
Currency | 4 | ||||||
Liability balance, June 30, 2023 | [4] | 159 | 159 | 159 | |||
Asset Write-downs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Liability balance, January 1, 2023 | [5] | 0 | |||||
Charges | [1],[5] | 6 | |||||
Cash spent | [2],[5] | 0 | |||||
Non-cash settlements/adjustments | [3],[5] | (6) | |||||
Currency | [5] | 0 | |||||
Liability balance, June 30, 2023 | [4],[5] | $ 0 | $ 0 | $ 0 | |||
[1]We recorded restructuring charges of $2 million in the three months ended June 30, 2023 and $4 million in the three months ended June 30, 2022 and restructuring charges of $32 million in the six months ended June 30, 2023 and $15 million in the six months ended June 30, 2022 within asset impairment and exit costs and benefit plan non-service income.[2]We spent $17 million in the three months ended June 30, 2023 and $16 million in the three months ended June 30, 2022 and spent $35 million in the six months ended June 30, 2023 and $33 million in the six months ended June 30, 2022 in cash severance and related costs.[3]We recognized non-cash asset write-downs (including accelerated depreciation and asset impairments), and other non-cash adjustments, including any gains on sale of restructuring program assets, which totaled a charge of $5 million in the three months ended June 30, 2023 and a charge of $7 million in the three months ended June 30, 2022 and a charge of $6 million in the six months ended June 30, 2023 and $9 million in the six months ended June 30, 2022.[4]At June 30, 2023, $118 million of our net restructuring liability was recorded within other current liabilities and $41 million was recorded within other long-term liabilities.[5]Includes gains as a result of assets sold which are included in the restructuring program. |
Restructuring Program - Restr_2
Restructuring Program - Restructuring and Implementation Costs by Segments (Details) - Simplify to Grow Program - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 110 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | $ 2 | $ 4 | $ 32 | [1] | $ 15 | $ 3,104 |
Implementation Costs | 4 | 19 | 9 | 39 | 2,084 | |
Total | 6 | 23 | 41 | 54 | 5,188 | |
Operating Segments | Latin America | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | (1) | (2) | (1) | (3) | 547 | |
Implementation Costs | (1) | 3 | (1) | 4 | 302 | |
Total | (2) | 1 | (2) | 1 | 849 | |
Operating Segments | AMEA | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 1 | 0 | 2 | 2 | 556 | |
Implementation Costs | 0 | 3 | 0 | 4 | 245 | |
Total | 1 | 3 | 2 | 6 | 801 | |
Operating Segments | Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | (3) | 0 | 27 | 2 | 1,190 | |
Implementation Costs | 2 | 8 | 2 | 13 | 571 | |
Total | (1) | 8 | 29 | 15 | 1,761 | |
Operating Segments | North America | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 6 | 4 | 5 | 12 | 662 | |
Implementation Costs | 3 | 9 | 3 | 16 | 593 | |
Total | 9 | 13 | 8 | 28 | 1,255 | |
Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | (1) | 2 | 0 | 2 | 149 | |
Implementation Costs | 0 | (4) | 5 | 2 | 373 | |
Total | $ (1) | $ (2) | $ 5 | $ 4 | $ 522 | |
[1]We recorded restructuring charges of $2 million in the three months ended June 30, 2023 and $4 million in the three months ended June 30, 2022 and restructuring charges of $32 million in the six months ended June 30, 2023 and $15 million in the six months ended June 30, 2022 within asset impairment and exit costs and benefit plan non-service income. |
Debt and Borrowing Arrangemen_3
Debt and Borrowing Arrangements - Short-Term Borrowings and Related Weighted-Average Interest Rates (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 2,178 | $ 2,299 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 2,080 | $ 2,209 |
Weighted- Average Rate | 5.40% | 4.70% |
Bank loans | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 98 | $ 90 |
Weighted- Average Rate | 10.20% | 9.10% |
Debt and Borrowing Arrangemen_4
Debt and Borrowing Arrangements - Uncommitted and Committed Credit Lines Available (Details) - USD ($) | 6 Months Ended | ||||||||||||
May 03, 2023 | Apr. 25, 2023 | Apr. 03, 2023 | Mar. 03, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Apr. 18, 2023 | Dec. 31, 2022 | Jul. 29, 2022 | Mar. 31, 2022 | ||||
Debt Instrument [Line Items] | |||||||||||||
Amount Outstanding | $ 2,178,000,000 | $ 2,299,000,000 | |||||||||||
Repayments of long-term debt | 2,056,000,000 | $ 2,329,000,000 | |||||||||||
Bank loans | Credit Facility Expiring July 29, 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility Amount | 0 | [1],[2] | 2,000,000,000 | [1],[2] | $ 2,000,000,000 | ||||||||
Borrowed Amount | 0 | [1],[2] | 2,000,000,000 | [1],[2] | $ 2,000,000,000 | ||||||||
Repayments of long-term debt | $ 700,000,000 | $ 300,000,000 | $ 1,000,000,000 | ||||||||||
Bank loans | Credit Facility Expiring October 18, 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility Amount | 189,000,000 | [3] | $ 200,000,000 | 0 | [3] | ||||||||
Borrowed Amount | [3] | 189,000,000 | 0 | ||||||||||
Proceeds from lines of credit | $ 200,000,000 | ||||||||||||
Bank loans | Credit Facility Expiring February 23, 2027 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility Amount | [2] | 4,500,000,000 | 4,500,000,000 | ||||||||||
Borrowed Amount | [2] | 0 | 0 | ||||||||||
Bank loans | Senior Unsecured Revolving Credit Facility Expiring February 27, 2024 | Revolving Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings/(losses) | 39,400,000,000 | ||||||||||||
Bank loans | Senior Unsecured Revolving Credit Facility Expiring February 27, 2024 | Revolving Credit Agreement | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings/(losses) | 25,000,000,000 | ||||||||||||
Bank loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amount Outstanding | 98,000,000 | 90,000,000 | |||||||||||
Bank loans | Uncommitted credit facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility Amount | 1,311,000,000 | 1,335,000,000 | |||||||||||
Amount Outstanding | 98,000,000 | 90,000,000 | |||||||||||
Bank loans | Credit Facility Expiring February 22, 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility Amount | [2] | 0 | 2,500,000,000 | ||||||||||
Amount Outstanding | [2] | 0 | 0 | ||||||||||
Bank loans | Credit Facility Maturing March 11, 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility Amount | [2] | 0 | 2,000,000,000 | ||||||||||
Amount Outstanding | [2] | 0 | 0 | ||||||||||
Bank loans | Credit Facility Maturing December 29, 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility Amount | [2] | 2,000,000,000 | 0 | ||||||||||
Amount Outstanding | [2] | 0 | 0 | ||||||||||
Bank loans | Credit Facility Maturing February 21, 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility Amount | [2] | 1,500,000,000 | 0 | ||||||||||
Amount Outstanding | [2] | $ 0 | $ 0 | ||||||||||
[1]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. Amounts borrowed and repaid under the facility may not be reborrowed. 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. We repaid $1.0 billion on March 3, 2023, $0.3 billion on April 3, 2023, and $0.7 billion on May 3, 2023 in term loans.[2]We maintain senior unsecured revolving credit facilities for general corporate purposes, including working capital needs, and to support our commercial paper program. The revolving credit agreements include a covenant that we maintain a minimum shareholders' equity of at least $25.0 billion, excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans. At June 30, 2023, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $39.4 billion. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security.[3]On April 18, 2023, we entered into a credit facility secured by pledged deposits. Under this agreement, we may draw up to a total of $0.2 billion in loans from the facility. On April 25, 2023, we drew down $0.2 billion bearing a variable rate based on SOFR plus an applicable margin. |
Debt and Borrowing Arrangemen_5
Debt and Borrowing Arrangements - Narrative (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Reclassification of long-term debt to short-term debt, amount | $ 500 |
Debt and Borrowing Arrangemen_6
Debt and Borrowing Arrangements - Fair Value of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 18,703 | $ 20,217 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 21,226 | $ 22,933 |
Debt and Borrowing Arrangemen_7
Debt and Borrowing Arrangements - Interest and Other Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Disclosure [Abstract] | ||||
Interest expense, debt | $ 145 | $ 89 | $ 298 | $ 180 |
Loss on debt extinguishment and related expenses | 1 | 0 | 1 | 129 |
Other (income)/expense, net | (49) | (107) | (43) | |
Other (income)/expense, net | 9 | |||
Interest and other expense, net | $ 97 | $ 98 | $ 192 | $ 266 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Instruments (Details) € / shares in Units, shares in Millions, $ in Millions | Dec. 31, 2023 € / shares | Sep. 29, 2023 € / shares | Jun. 30, 2023 USD ($) shares | Mar. 30, 2023 shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Sep. 20, 2021 EUR (€) | |
Derivatives, Fair Value [Line Items] | ||||||||
Asset Derivatives | $ 1,587 | $ 790 | ||||||
Liability Derivatives | $ 1,228 | 629 | ||||||
0.000% Notes Due September 2024 | Exchangeable Notes | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Debt issued | € | € 300,000,000 | € 300,000,000 | ||||||
Equity method investment contracts | JDEP | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative, underlying investment (in shares) | shares | 7.7 | 7.7 | ||||||
Equity method investment contracts | Minimum | JDEP | Forecast | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Option strike price (in euros per share) | € / shares | € 26.10 | € 26.10 | ||||||
Equity method investment contracts | Maximum | JDEP | Forecast | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Option strike price (in euros per share) | € / shares | € 28.71 | € 28.71 | ||||||
Derivatives designated as accounting hedges | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Asset Derivatives | $ 407 | 397 | ||||||
Liability Derivatives | 309 | 276 | ||||||
Derivatives designated as accounting hedges | Interest rate contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Asset Derivatives | 106 | 132 | ||||||
Liability Derivatives | 47 | 35 | ||||||
Derivatives designated as accounting hedges | Net investment hedge derivative contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Asset Derivatives | [1] | 301 | 265 | |||||
Liability Derivatives | [1] | 262 | 241 | |||||
Derivatives not designated as accounting hedges | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Asset Derivatives | 1,180 | 393 | ||||||
Liability Derivatives | 919 | 353 | ||||||
Derivatives not designated as accounting hedges | Currency exchange contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Asset Derivatives | 257 | 185 | ||||||
Liability Derivatives | 144 | 103 | ||||||
Derivatives not designated as accounting hedges | Interest rate contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Asset Derivatives | 11 | 8 | ||||||
Liability Derivatives | 4 | 0 | ||||||
Derivatives not designated as accounting hedges | Commodity contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Asset Derivatives | 912 | 200 | ||||||
Liability Derivatives | 766 | 247 | ||||||
Derivatives not designated as accounting hedges | Equity method investment contracts | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Asset Derivatives | [2] | 0 | 0 | |||||
Liability Derivatives | [2] | $ 5 | $ 3 | |||||
[1] Net investment hedge derivative contracts consist of cross-currency interest rate swaps, forward contracts and options. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote. Equity method investment contracts consist of two types of derivatives: (a) options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares that are exercisable at maturity over the third quarter of 2023 with strike prices ranging between €26.10 and €28.71 per share and (b) the bifurcated embedded derivative option that was a component of the September 20, 2021 €300 million exchangeable bonds issuance. Refer to Note 8, Debt and Borrowing Arrangements . |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Fair Value and Measurement Inputs (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Total derivatives | $ 359 | $ 161 |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 113 | 82 |
Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 146 | (47) |
Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 66 | 105 |
Net investment hedge derivative contracts | ||
Derivative [Line Items] | ||
Total derivatives | 39 | 24 |
Equity method investment contracts | ||
Derivative [Line Items] | ||
Total derivatives | (5) | (3) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Total derivatives | 16 | (35) |
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 | 16 | (35) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Net investment hedge derivative contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity method investment contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Total derivatives | 343 | 196 |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 113 | 82 |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 130 | (12) |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 66 | 105 |
Significant Other Observable Inputs (Level 2) | Net investment hedge derivative contracts | ||
Derivative [Line Items] | ||
Total derivatives | 39 | 24 |
Significant Other Observable Inputs (Level 2) | Equity method investment contracts | ||
Derivative [Line Items] | ||
Total derivatives | (5) | (3) |
Significant Unobservable Inputs (Level 3) | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Net investment hedge derivative contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Equity method investment contracts | ||
Derivative [Line Items] | ||
Total derivatives | $ 0 | $ 0 |
Financial Instruments - Notiona
Financial Instruments - Notional Values of Hedging Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
Euro notes | Net investment hedge debt | |||
Derivative [Line Items] | |||
Notional Amount | $ 3,475 | $ 3,410 | |
Swiss franc notes | Net investment hedge debt | |||
Derivative [Line Items] | |||
Notional Amount | 659 | 638 | |
Canadian dollar notes | Net investment hedge debt | |||
Derivative [Line Items] | |||
Notional Amount | 453 | 443 | |
Currency exchange contracts | Intercompany loans and forecasted interest payments | |||
Derivative [Line Items] | |||
Notional Amount | 2,762 | 2,085 | |
Currency exchange contracts | Forecasted transactions | |||
Derivative [Line Items] | |||
Notional Amount | 5,855 | 5,470 | |
Commodity contracts | |||
Derivative [Line Items] | |||
Notional Amount | [1] | 12,104 | 7,777 |
Interest rate contracts | |||
Derivative [Line Items] | |||
Notional Amount | 4,304 | 4,147 | |
Net investment hedge contracts | |||
Derivative [Line Items] | |||
Notional Amount | 7,792 | $ 7,319 | |
Net investment hedge contracts | Net investment hedge debt | |||
Derivative [Line Items] | |||
Notional Amount | $ 7,800 | ||
[1]Prior year notional value has been revised. |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, aggregate notional value | $ 4,304 | $ 4,147 |
Net investment hedge contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, aggregate notional value | 7,792 | $ 7,319 |
Net investment hedges | Net investment hedge contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, aggregate notional value | 7,800 | |
Cash flow hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Expected transfer of unrealized losses (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months | $ 8 | |
Hedged forecasted transaction period | 3 years 2 months |
Financial Instruments - Net Inv
Financial Instruments - Net Investment Hedge Derivative Contracts (Details) - Net investment hedges - Net investment hedge derivative contracts - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
After-tax (loss)/gain on NIH contracts | [1] | $ 22 | $ 307 | $ 17 | $ 348 |
Amounts excluded from the assessment of hedge effectiveness | [2] | $ 36 | $ 30 | $ 72 | $ 52 |
[1]Amounts recorded for unsettled and settled NIH derivative contracts are recorded in the cumulative translation adjustment within other comprehensive earnings. The cash flows from the settled contracts are reported within other investing activities in the condensed consolidated statement of cash flows.[2]We elected to record changes in the fair value of amounts excluded from the assessment of effectiveness in net earnings within interest and other expense, net. |
Financial Instruments - Non-U.S
Financial Instruments - Non-U.S. Dollar Debt Designated as Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Euro notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | $ (17) | $ 142 | $ (50) | $ 216 |
British pound sterling notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | 0 | 19 | 0 | 27 |
Swiss franc notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | (11) | 21 | (16) | 27 |
Canadian notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | $ (7) | $ 11 | $ (8) | $ 7 |
Financial Instruments - Economi
Financial Instruments - Economic Hedges (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | $ 166 | $ 30 | $ 190 | $ 272 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 25 | 7 | 47 | (4) |
Currency exchange contracts | Forecasted transactions | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 27 | 114 | 29 | 107 |
Currency exchange contracts | Forecasted transactions | Interest and other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 8 | (52) | 13 | (31) |
Currency exchange contracts | Forecasted transactions | Selling, general and administrative expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (1) | 1 | (6) | 3 |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 106 | (40) | 104 | 197 |
Equity method investment contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | $ 1 | $ 0 | $ 3 | $ 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Contingent Consideration Liability (Details) - Contingent Consideration - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Contingent Consideration Liability Activity [Roll Forward] | ||||
Liability at beginning of period | $ 659 | $ 165 | $ 642 | $ 159 |
Contingent consideration arising from acquisitions | 0 | 0 | 0 | 0 |
Changes in fair value | (2) | 8 | 15 | 14 |
Payments | 90 | 0 | 90 | 0 |
Currency | 0 | (1) | 0 | (1) |
Liability at end of period | $ 567 | $ 172 | $ 567 | $ 172 |
Financial Instruments - Fair _2
Financial Instruments - Fair Value of Contingent Consideration Liability (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Aug. 01, 2022 | |
Derivative [Line Items] | ||||
Contingent consideration, fair value | $ 567 | $ 642 | ||
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 | 567 | 642 | ||
Clif Bar | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [1] | 472 | 452 | |
Contingent consideration, liability, noncurrent | $ 440 | |||
Clif Bar | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [1] | 0 | 0 | |
Clif Bar | Significant Other Observable Inputs (Level 2) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [1] | 0 | 0 | |
Clif Bar | Significant Unobservable Inputs (Level 3) | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [1] | 472 | 452 | |
Other | ||||
Derivative [Line Items] | ||||
Contingent consideration, fair value | [2] | 95 | 190 | |
Contingent consideration, current liability | 12 | 102 | ||
Contingent consideration, liability, noncurrent | 83 | 88 | ||
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] | $ 95 | $ 190 | |
[1] In connection with the Clif Bar acquisition, we entered into a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain net revenue, gross profit and EBITDA targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price. The other contingent consideration liabilities are recorded at fair value within long term liabilities. The estimated fair value of the contingent consideration obligation at the acquisition date was determined using a Monte Carlo simulation and recorded in other liabilities. Significant assumptions used in assessing the fair value of the liability include financial projections for net revenue, gross profit, and EBITDA, as well as discount and volatility rates. Fair value adjustments are primarily recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. The other contingent consideration liabilities are recorded at fair value, with $12 million and $102 million classified as other current liabilities and $83 million and $88 million classified as long term liabilities at June 30, 2023 and December 31, 2022. The fair value of this contingent consideration was determined using a Monte Carlo valuation model based on Level 3 inputs, including management's latest estimate of forecasted future results. Other key assumptions included discount rate and volatility. Fair value adjustments are recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. Refer to Note 2, Acquisitions and Divestitures for additional information. |
Benefit Plans - Pension Plans (
Benefit Plans - Pension Plans (Details) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 2 | $ 2 | $ 3 |
Interest cost | 17 | 12 | 32 | 23 |
Expected return on plan assets | (24) | (18) | (49) | (36) |
Net loss from experience differences | 0 | 2 | 0 | 5 |
Prior service cost/(benefit) | 1 | 0 | ||
Settlement losses and other expenses | 3 | 4 | 8 | 7 |
Net periodic pension (benefit)/cost | (3) | 2 | (6) | 2 |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 13 | 16 | 27 | 55 |
Interest cost | 76 | 47 | 152 | 88 |
Expected return on plan assets | (100) | (94) | (202) | (186) |
Net loss from experience differences | 10 | 15 | 21 | 33 |
Prior service cost/(benefit) | 0 | (1) | ||
Settlement losses and other expenses | 0 | 0 | 0 | 0 |
Net periodic pension (benefit)/cost | $ (1) | $ (16) | $ (2) | $ (11) |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 11, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
U.S. Plans | North America | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer plan, withdrawal liability | $ 526 | $ 336 | $ 336 | ||
Multiemployer plan, withdrawal obligation term | 20 years | ||||
Multiemployer plan, accreted interest on the long-term liability | 2 | $ 2 | 5 | $ 5 | |
Other current liabilities | U.S. Plans | North America | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer plan, withdrawal liability | 15 | 15 | |||
Long-term other liabilities | U.S. Plans | North America | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer plan, withdrawal liability | 321 | 321 | |||
Pension Plans | U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contribution | 3 | ||||
Estimated future employer contributions over the remainder of 2023 | 3 | 3 | |||
Net periodic pension (benefit)/cost | (3) | 2 | (6) | 2 | |
Pension Plans | Non-U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contribution | 65 | ||||
Estimated future employer contributions over the remainder of 2023 | 54 | 54 | |||
Net periodic pension (benefit)/cost | (1) | (16) | (2) | (11) | |
Postretirement Health Coverage [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension (benefit)/cost | (2) | 3 | (2) | 6 | |
Postemployment Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension (benefit)/cost | $ 0 | $ 0 | $ 1 | $ 1 |
Stock Plans - Stock Option Acti
Stock Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | ||
Shares Subject to Option | ||||
Balance at January 1, 2023 (in shares) | 20,490,250 | |||
Options granted (in shares) | 2,455,930 | |||
Options exercised (in shares) | [1] | (2,844,348) | ||
Options canceled (in shares) | (159,460) | |||
Balance at June 30, 2023 (in shares) | 19,942,372 | 19,942,372 | 20,490,250 | |
Weighted- Average Exercise or Grant Price Per Share | ||||
Balance at January 1, 2023 (in dollars per share) | $ 46.31 | |||
Options granted (in dollars per share) | 65.36 | |||
Options exercised (in dollars per share) | [1] | 37.84 | ||
Options canceled (in dollars per share) | 53.03 | |||
Balance at June 30, 2023 (in dollars per share) | $ 49.81 | $ 49.81 | $ 46.31 | |
Average Remaining Contractual Term | ||||
Average remaining contractual term | 5 years | 5 years | ||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value | $ 461 | $ 461 | $ 417 | |
Aggregate intrinsic value options exercised | [1] | 93 | ||
Cash received from options exercised | 56 | 105 | ||
Actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises | $ 9 | $ 17 | ||
Annual grant to eligible employees | ||||
Shares Subject to Option | ||||
Options granted (in shares) | 2,452,110 | |||
Weighted- Average Exercise or Grant Price Per Share | ||||
Options granted (in dollars per share) | $ 65.36 | |||
Additional options issued | ||||
Shares Subject to Option | ||||
Options granted (in shares) | 3,820 | |||
Weighted- Average Exercise or Grant Price Per Share | ||||
Options granted (in dollars per share) | $ 66.78 | |||
[1]Cash received from options exercised was $56 million in the three months and $105 million in the six months ended June 30, 2023. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $9 million in the three months and $17 million in the six months ended June 30, 2023 |
Stock Plans - Performance Share
Stock Plans - Performance Share Units and Other Stock-Based Awards Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | ||
Number of Shares | |||
Balance at January 1, 2023 (in shares) | 4,451,674 | ||
Shares granted (in shares) | 2,184,613 | ||
Vested (in shares) | [1],[2] | (1,626,765) | |
Forfeited (in shares) | [1] | (144,096) | |
Balance at June 30, 2023 (in shares) | 4,865,426 | 4,865,426 | |
Weighted-average grant date fair value per share | |||
Balance at January 1, 2023 (in dollars per share) | [3] | $ 60.12 | |
Shares granted (in dollars per share) | [3] | 66.74 | |
Vested (in dollars per share) | [1],[2],[3] | 62.75 | |
Forfeited (in dollars per share) | [1],[3] | 61.28 | |
Balance at June 30, 2023 (in dollars per share) | [3] | $ 62.18 | $ 62.18 |
Weighted-Average Aggregate Fair Value | |||
Weighted average grant date fair value of shares granted | [2] | $ 146 | |
Weighted average grant date fair value of shares vested | [1],[2] | 102 | |
Actual tax benefit/(expense) realized for the tax deductions from the shares vested | $ 0 | $ 2 | |
Annual grant to eligible employees | |||
Grant Date | |||
Grant Date | Mar. 02, 2023 | ||
Performance share units | |||
Number of Shares | |||
Shares granted (in shares) | 895,410 | ||
Weighted-average grant date fair value per share | |||
Shares granted (in dollars per share) | [3] | $ 68.59 | |
Deferred stock units | |||
Number of Shares | |||
Shares granted (in shares) | 578,570 | ||
Weighted-average grant date fair value per share | |||
Shares granted (in dollars per share) | [3] | $ 65.36 | |
Additional shares granted | |||
Number of Shares | |||
Shares granted (in shares) | [4] | 710,633 | |
Weighted-average grant date fair value per share | |||
Shares granted (in dollars per share) | [3],[4] | $ 65.54 | |
[1]Includes PSUs, DSUs and other stock-based awards.[2]The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled zero in the three months and $2 million in the six months ended June 30, 2023.[3]The grant date fair value of PSUs is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided.[4]Includes PSUs and DSUs. |
Stock Plans - Share Repurchase
Stock Plans - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 108 Months Ended | ||||
Jul. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2023 | Dec. 02, 2020 | |
Class of Stock [Line Items] | ||||||||
Common shares repurchased | $ 196,000,000 | $ 770,000,000 | $ 605,000,000 | $ 1,505,000,000 | ||||
Payments for repurchase of common Stock | 596,000,000 | $ 1,506,000,000 | ||||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common shares repurchased | $ 602,000,000 | |||||||
Number of shares repurchased (in shares) | 8.8 | |||||||
Average cost of shares repurchased (in dollars per share) | $ 68.16 | |||||||
Remaining share repurchase capacity | $ 5,400,000,000 | $ 5,400,000,000 | ||||||
Common Stock | Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Payments for repurchase of common Stock | $ 6,000,000 | |||||||
Common Stock | Share Repurchase Program Amended December 2, 2020 | ||||||||
Class of Stock [Line Items] | ||||||||
Stock repurchase value | $ 23,700,000,000 | |||||||
Common Stock | Prior to January 1, 2022 | ||||||||
Class of Stock [Line Items] | ||||||||
Common shares repurchased | $ 22,000,000,000 | |||||||
Common Stock | Share Repurchase Program Amended January 1, 2023 | ||||||||
Class of Stock [Line Items] | ||||||||
Stock repurchase value | $ 6,000,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Jun. 30, 2023 € in Millions, $ in Millions | EUR (€) | USD ($) |
Investigation By European Commission | ||
Loss Contingencies [Line Items] | ||
Loss contingency, accrual, current | € 300 | $ 328 |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive Income - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity [Abstract] | ||||
Losses reclassified from accumulated other comprehensive earnings/(losses) to net earnings | $ 11 | $ (82) | $ 41 | $ (40) |
Reclassifications from Accumu_4
Reclassifications from Accumulated Other Comprehensive Income - Changes in the Accumulated Balance of Components of Other Comprehensive Earnings/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 28,274 | $ 28,216 | $ 26,920 | $ 28,323 | |
Total other comprehensive earnings/(losses) | 96 | (224) | 231 | (29) | |
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests | 8 | 11 | 6 | 15 | |
Other comprehensive earnings/(losses) attributable to Mondelēz International | 104 | (213) | 237 | (14) | |
Balance at end of period | 28,679 | 27,553 | 28,679 | 27,553 | |
Currency translation adjustments | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (9,659) | (9,043) | (9,808) | (9,097) | |
Currency translation adjustments | 139 | (339) | 312 | (333) | |
Tax (expense)/benefit | 7 | (60) | (15) | (16) | |
Total other comprehensive earnings/(losses) | 146 | (399) | 297 | (349) | |
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests | 8 | 11 | 6 | 15 | |
Balance at end of period | (9,505) | (9,431) | (9,505) | (9,431) | |
Pension and Other Benefits Plans | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (1,111) | (1,286) | (1,105) | (1,379) | |
Currency translation adjustments | (26) | 72 | (44) | 104 | |
Total other comprehensive earnings/(losses) | (22) | 167 | (28) | 260 | |
Net actuarial gain/(loss) arising during period | (1) | 108 | 1 | 152 | |
Tax (expense)/benefit before reclassifications | 0 | (27) | 0 | (27) | |
Tax expense/(benefit) on reclassifications | [1] | (3) | (6) | (6) | (12) |
Balance at end of period | (1,133) | (1,119) | (1,133) | (1,119) | |
Amortization of experience losses and prior service costs | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Losses/(gains) reclassified into net earnings | [2] | 5 | 16 | 13 | 36 |
Settlement losses and other expenses | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Losses/(gains) reclassified into net earnings | [2] | 3 | 4 | 8 | 7 |
Derivative Cash Flow Hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (44) | (96) | (34) | (148) | |
Currency translation adjustments | 0 | 5 | 1 | 7 | |
Total other comprehensive earnings/(losses) | (28) | 8 | (38) | 60 | |
Net actuarial gain/(loss) arising during period | (38) | 98 | (66) | 124 | |
Tax (expense)/benefit before reclassifications | 4 | 1 | 1 | 0 | |
Tax expense/(benefit) on reclassifications | [1] | 1 | 0 | 3 | (23) |
Balance at end of period | (72) | (88) | (72) | (88) | |
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 | [3] | 5 | (99) | 23 | (53) |
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 | [3] | 0 | 3 | 0 | 5 |
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 | (10,814) | (10,425) | (10,947) | (10,624) | |
Total other comprehensive earnings/(losses) | 104 | (213) | 237 | (14) | |
Balance at end of period | $ (10,710) | $ (10,638) | $ (10,710) | $ (10,638) | |
[1]Taxes reclassified to earnings are recorded within the provision for income taxes.[2] These reclassified losses are included in net periodic benefit costs disclosed in Note 10, Benefit Plans . |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Contingency [Line Items] | |||||
Estimated annual effective tax rate | 24.60% | 24.40% | |||
Effective tax rate | 23.10% | 23.40% | 27.30% | 22.60% | |
Income tax expense (benefit) from hedging activities | $ 29 | ||||
Net benefit (expense) from other adjustment | 4 | ||||
Effective income tax rate reconciliation, excluding effect of sale of equity securities | 23.60% | ||||
Income tax expense (benefit) from gain (loss) on marketable securities | (50) | $ 201 | |||
Discrete net tax benefits | $ 2 | $ 64 | |||
KDP | |||||
Income Tax Contingency [Line Items] | |||||
Tax expense (benefit) related to sale of equity securities | $ (50) | $ 127 | |||
Income tax expense (benefit) from gain (loss) on marketable securities | $ 151 |
Earnings per Share - Summary (D
Earnings per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net earnings | $ 941 | $ 748 | $ 3,030 | $ 1,609 |
Noncontrolling interest earnings | 3 | (1) | (5) | (7) |
Net earnings attributable to Mondelēz International | $ 944 | $ 747 | $ 3,025 | $ 1,602 |
Weighted-average shares for basic EPS (in shares) | 1,364 | 1,382 | 1,365 | 1,385 |
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares (in shares) | 7 | 7 | 7 | 8 |
Weighted-average shares for diluted EPS (in shares) | 1,371 | 1,389 | 1,372 | 1,393 |
Basic earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.69 | $ 0.54 | $ 2.22 | $ 1.16 |
Diluted earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.69 | $ 0.54 | $ 2.20 | $ 1.15 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock Options and Performance Share Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Mondelēz International stock options excluded from the calculation of diluted EPS (in shares) | 2.8 | 3.4 | 2.7 | 2.7 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 8,507 | $ 7,274 | $ 17,673 | $ 15,038 |
Operating income | 1,425 | 927 | 2,930 | 2,021 |
Unrealized gains/(losses) on hedging activities (mark-to-market impacts) | 171 | (109) | 220 | (82) |
General corporate expenses | (79) | (62) | (156) | (112) |
Amortization of intangible assets | (37) | (32) | (76) | (64) |
Acquisition-related costs | 0 | (5) | 0 | (26) |
Benefit plan non-service income | 22 | 30 | 41 | 63 |
Interest and other expense, net | (97) | (98) | (192) | (266) |
Loss/(gain) on marketable securities | (189) | 0 | 607 | 0 |
Earnings before income taxes | 1,161 | 859 | 3,386 | 1,818 |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,228 | 876 | 2,439 | 1,702 |
Operating income | 134 | 90 | 273 | 193 |
AMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,609 | 1,535 | 3,548 | 3,402 |
Operating income | 207 | 211 | 567 | 483 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,926 | 2,626 | 6,233 | 5,561 |
Operating income | 449 | 380 | 956 | 757 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,744 | 2,237 | 5,453 | 4,373 |
Operating income | $ 580 | $ 454 | $ 1,146 | $ 872 |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 8,507 | $ 7,274 | $ 17,673 | $ 15,038 |
Biscuits & Baked Snacks | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 4,391 | 3,725 | 8,711 | 7,356 |
Chocolate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,176 | 1,979 | 5,045 | 4,522 |
Gum & Candy | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,128 | 840 | 2,227 | 1,627 |
Beverages | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 288 | 260 | 640 | 591 |
Cheese & Grocery | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 524 | 470 | 1,050 | 942 |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,228 | 876 | 2,439 | 1,702 |
Latin America | Biscuits & Baked Snacks | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 309 | 255 | 585 | 479 |
Latin America | Chocolate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 316 | 243 | 684 | 491 |
Latin America | Gum & Candy | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 368 | 193 | 716 | 365 |
Latin America | Beverages | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 112 | 92 | 223 | 194 |
Latin America | Cheese & Grocery | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 123 | 93 | 231 | 173 |
AMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,609 | 1,535 | 3,548 | 3,402 |
AMEA | Biscuits & Baked Snacks | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 570 | 568 | 1,239 | 1,225 |
AMEA | Chocolate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 563 | 536 | 1,310 | 1,242 |
AMEA | Gum & Candy | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 235 | 201 | 441 | 404 |
AMEA | Beverages | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 150 | 144 | 358 | 341 |
AMEA | Cheese & Grocery | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 91 | 86 | 200 | 190 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,926 | 2,626 | 6,233 | 5,561 |
Europe | Biscuits & Baked Snacks | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,129 | 1,001 | 2,191 | 1,952 |
Europe | Chocolate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,241 | 1,140 | 2,911 | 2,652 |
Europe | Gum & Candy | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 220 | 170 | 453 | 322 |
Europe | Beverages | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 26 | 24 | 59 | 56 |
Europe | Cheese & Grocery | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 310 | 291 | 619 | 579 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,744 | 2,237 | 5,453 | 4,373 |
North America | Biscuits & Baked Snacks | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,383 | 1,901 | 4,696 | 3,700 |
North America | Chocolate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 56 | 60 | 140 | 137 |
North America | Gum & Candy | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 305 | 276 | 617 | 536 |
North America | Beverages | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
North America | Cheese & Grocery | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 0 | $ 0 | $ 0 | $ 0 |