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What changed in Mondelez International's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Mondelez International's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+357 added−333 removedSource: 10-K (2025-02-05) vs 10-K (2024-02-02)

Top changes in Mondelez International's 2024 10-K

357 paragraphs added · 333 removed · 274 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWe invest in our employees through training and development programs, on the job experiences, coaching, as well as tuition reimbursement for a majority of our employees in the United States to promote continued professional growth. We provide technical and leadership programs across the organization that enable colleagues to grow skills and capabilities to become more successful.
Biggest changeWe believe in supporting a healthy balance between development and advancement of internal talent and infusion of new talent and capabilities to enhance our teams. 6 Table of Contents We invest in our employees through training and development programs, on the job experiences, coaching, as well as tuition reimbursement, for a majority of our employees in the United States to promote continued professional growth.
We provide access to medical and welfare benefits and offer programs to all employees that support work-life balance, including paid parental leave, as well as financial, physical and mental health resources, including employee assistance programs to reach all global colleagues. We are committed to equal pay for equal work, regardless of gender, race, ethnicity or other personal characteristics.
We provide access to medical and welfare benefits and offer programs to all employees that support work-life balance, including paid parental leave, as well as financial, physical and mental health resources, including employee assistance programs that reach all global colleagues. We are committed to equal pay for equal work, regardless of gender, race, ethnicity or other personal characteristics.
He previously served as CEO of Danone North America, a business unit of Danone, a global food and beverage company, from January 2014 until April 2017 and CEO Danone North America from September 2017 until December 2022. Mr. Lozano spent more than 24 years at Danone in various leadership roles across Latin America including President, Danone Brazil. Mr.
He previously served as CEO of Danone North America, a business unit of Danone SA, a global food and beverage company, from January 2014 until April 2017 and CEO Danone North America from September 2017 until December 2022. Mr. Lozano spent more than 24 years at Danone in various leadership roles across Latin America including President, Danone Brazil. Mr.
She also served as Executive Vice President – General Counsel from February 2015 to February 2016 and as Senior Vice President – General Counsel from January 2005 to February 2015. Mr. Valle became Executive Vice President and President, North America in March 2022 and was Executive Vice President and President, Latin American from February 2020 to February 2022.
She also served as Executive Vice President – General Counsel from February 2015 to February 2016 and as Senior Vice President – General Counsel from January 2005 to February 2015. Mr. Valle became Executive Vice President and President, North America in March 2022 and was Executive Vice President and President, Latin America from February 2020 to February 2022.
A number of external factors such as the current macroeconomic environment, including global inflation and the effects of geopolitical uncertainty, climate and weather conditions, commodity, transportation and labor market conditions, supply chain disruptions, currency fluctuations and the effects of governmental agricultural or other programs affect the cost and availability of raw materials and agricultural materials used in our products.
A number of external factors such as the current macroeconomic environment, including global inflation and the effects of geopolitical uncertainty, climate and weather conditions, trade and regulatory uncertainty, commodity, transportation and labor market conditions, supply chain disruptions, currency fluctuations and the effects of governmental agricultural or other programs affect the cost and availability of raw materials and agricultural materials used in our products.
We also sell products directly to businesses and consumers through various pure play e-retail platforms, retailer digital platforms, our direct-to-consumer websites and social media platforms. No single customer accounted for 10% or more of our net revenues from continuing operations in 2023.
We also sell products directly to businesses and consumers through various pure play e-retail platforms, retailer digital platforms, our direct-to-consumer websites and social media platforms. No single customer accounted for 10% or more of our net revenues from continuing operations in 2024.
We also publish an ESG disclosure data sheet and are aligned with the Sustainability Accounting Standards Board (“SASB”) and Task Force on Climate-related Financial Disclosures (“TCFD”) reporting frameworks. We also provide our annual CDP Climate Change, Water Security and Forests disclosure.
We also publish an ESG disclosure data sheet and are aligned with the Sustainability Accounting Standards Board and Task Force on Climate-related Financial Disclosures reporting frameworks. We also provide our annual CDP Climate Change, Water Security and Forests disclosure.
Stein spent 15 years at The Clorox Company, a multinational manufacturer and marketer of consumer and professional products, most recently as Executive Vice President – General Counsel and Corporate Affairs from February 2016 to December 2020.
Stein spent 16 years at The Clorox Company, a multinational manufacturer and marketer of consumer and professional products, most recently as Executive Vice President – General Counsel and Corporate Affairs from February 2016 to December 2020.
For additional information, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations and Commodity Trends . Human Capital We believe the strength of our workforce is one of the significant contributors to our success as a global company that leads with purpose. All our employees contribute to our success and help us drive strong financial performance.
For additional information, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations and Commodity Trends . Human Capital We believe the strength of our workforce is one of the significant contributors to our success as a purpose-led, global company. All our employees contribute to our success and help us drive strong financial performance.
Attracting, developing and retaining global talent with the right skills to drive our business is central to our purpose, mission and long-term growth strategy. Workforce Profile : At December 31, 2023, we had approximately 91,000 employees.
Attracting, developing and retaining global talent with the right skills to drive our business is central to our purpose, mission and long-term growth strategy. Workforce Profile : At December 31, 2024, we had approximately 90,000 employees.
Our goal is to lead the future of snacking around the world by offering the right snack, for the right moment, made the right way. We aim to deliver a broad range of delicious, high-quality snacks that nourish life’s moments, made with sustainable ingredients and packaging that consumers can feel good about.
Our goal is to lead the future of snacking around the world by offering the right snack, for the right moment, made the right way. We aim to deliver a broad range of delicious, high-quality snacks that nourish life’s moments, made with sustainable ingredients and packaging.
In addition, over 25 countries in the European Union have implemented extended producer responsibility (“EPR”) policies as part of national packaging waste policies that make manufacturers responsible for the cost of recycling food and beverage packaging after consumers use it. These range from mandatory regulations to voluntary agreements between government and industry to voluntary industry initiatives.
In addition, many Member States in the European Union have implemented extended producer responsibility (“EPR”) policies as part of national packaging waste policies that make manufacturers responsible for the cost of recycling food and beverage packaging after consumers use it. These range from mandatory regulations to voluntary agreements between government and industry to voluntary industry initiatives.
We are also focused on boosting digital commerce and our digital transformation program that will help to enable consumer demand and sales opportunities. • Build a winning growth culture. To support the acceleration of our growth, we are becoming more agile, digital and local-consumer focused.
We are also focused on boosting digital commerce and on our digital transformation program that will help us to meet consumer demand and generate incremental sales opportunities. • Build a winning growth culture. To support the acceleration of our growth, we are becoming more agile, digital and local-consumer focused.
Examples of laws and regulations that affect our business include workplace safety regulations; selective food taxes; data privacy; labeling requirements such as front-of-pack labeling based on nutrient profiles or environmental claims; sales or media and marketing restrictions such as those on promotions or advertising products with specified nutrient profiles on certain channels or platforms or during certain hours of the day; sanctions on sales or sourcing of raw materials; cross-border trade concessions or border barriers; corporate tax policies of the United States and other countries; and packaging taxes.
Examples of laws and regulations that affect our business include, without limitation, workplace safety regulations; selective food taxes; data privacy and cybersecurity; ingredients, products, processing or other food-related 8 Table of Contents restrictions, labeling requirements such as front-of-pack labeling based on nutrient profiles or environmental claims; sales or media and marketing restrictions such as those on promotions or advertising products with specified nutrient profiles on certain channels or platforms or during certain hours of the day; sanctions; export controls on sales or sourcing of raw materials; cross-border trade concessions or border barriers; corporate tax policies of the United States and other countries; and packaging taxes.
The People and Compensation Committee of our Board of Directors oversees our diversity, equity and inclusion priorities, as well as workplace safety and employee wellness, pay equity, talent sourcing strategies, talent management and development programs and ESG KPIs for incentive plans.
The People and Compensation Committee of our Board of Directors oversees our human capital priorities, as well as workplace safety and employee wellness, pay equity, talent sourcing strategies, talent management and development programs and KPIs for incentive plans.
Additionally, we are expanding our portfolio of cakes and pastries with updated formats including Milka brownies a nd Oreo cakes . We also have a dedicated innovation and venture hub, SnackFutures, specifically tailored to leverage emerging consumer trends and growth opportunities in mindful snacking.
We continue to expand our portfolio of cakes and pastries in new markets and with updated formats including Milka brownies a nd Oreo cakes . We also have a dedicated innovation and venture hub, SnackFutures, specifically tailored to leverage emerging consumer trends and growth opportunities in mindful snacking.
Also refer to Item 1A, Risk Factors for additional information. 9 Table of Contents Information about our Executive Officers The following are our executive officers as of February 2, 2024: Name Age Title Dirk Van de Put 63 Chief Executive Officer Luca Zaramella 54 Executive Vice President and Chief Financial Officer Vinzenz P.
Also refer to Item 1A, Risk Factors for additional information. 9 Table of Contents Information about our Executive Officers The following are our executive officers as of February 5, 2025: Name Age Title Dirk Van de Put 64 Chief Executive Officer Luca Zaramella 55 Executive Vice President and Chief Financial Officer Vinzenz P.
To grow and maintain our market positions, we focus on meeting consumer needs and preferences through a local-first commercial focus, new digital and other 5 Table of Contents sales and marketing initiatives, product innovation and high standards of product quality.
To grow and maintain our market positions, we 5 Table of Contents focus on meeting consumer needs and preferences through a local-first commercial focus with a broad array of product formats, pack sizes and price points, new digital and other sales and marketing initiatives, product innovation and high standards of product quality.
Item 1. Business. General Mondelēz International’s purpose is to empower people to snack right. We sell our products in over 150 countries around the world. We are one of the world’s largest snack companies with global net revenues of $36.0 billion and net earnings of $5.0 billion in 2023.
Item 1. Business. General Mondelēz International’s purpose is to empower people to snack right. We sell our products in over 150 c ountries around the world. We are one of the world’s largest snack companies with global net revenues of $36.4 billion and net earnings of $4.6 billion in 2024.
We remain committed to helping to drive longstanding, enduring, positive change in the world. Strategy We aim to be the global leader in snacking by focusing on growth, execution, culture and sustainability. We are optimizing our portfolio of leading brands and have refined our strategy to accelerate growth, prioritizing our fast-growing core categories of chocolate, biscuits and baked snacks.
Strategy We aim to be the global leader in snacking by focusing on growth, execution, culture and sustainability. We are optimizing our portfolio of leading brands and have refined our strategy to accelerate growth, prioritizing our fast-growing core categories of chocolate, biscuits and baked snacks.
Global Operations We sell our products in over 150 countries and have operations in approximately 80 countries, including 148 manufacturing and processing facilities across 46 countries. The portion of our net revenues generated outside the United States was 73.4% in 2023, 73.6% in 2022 and 75.1% in 2021.
Global Operations We sell our products in over 150 countries and have operations in approximately 80 countries, including 147 principal manufacturing and processing facilities across 46 countries. The portion of our net revenues generated outside the United States was 74.0% in 2024, 73.4% in 2023 and 73.6% in 2022.
Prior to that he spent more than 20 years at Groupe Danone SA, a multinational provider of packaged water, dairy and baby food products, in a variety of leadership positions, most recently as Executive Vice President, Dairy Division Worldwide, from January 2015 to January 2018, and Vice President Dairy Division Europe, from January 2014 until December 2014.
Prior to that he spent more than 20 years at Danone SA, a global food and beverage company, in a variety of leadership positions, most recently as Executive Vice President, Dairy Division Worldwide, from January 2015 to January 2018, and Vice President Dairy Division Europe, from January 2014 until December 2014.
We believe our commitment to diversity, equity and inclusion and operating and cultural shifts to continue building a winning growth culture will help drive profitable top-line growth. 3 Table of Contents • Scale sustainable snacking . We continue to focus significant efforts to drive progress against our core initiatives for more sustainable and mindful snacking.
We believe our efforts to continue advancing a winning growth culture will help drive profitable top-line growth. 3 Table of Contents • Scale sustainable snacking . We continue to focus significant efforts to drive progress against our core initiatives for more sustainable and mindful snacking.
At December 31, 2023, we had approximately 12,000 U.S. employees and approximately 79,000 employees outside the United States, with employees represented by labor unions or workers’ councils representing approximately 21% of our U.S. employees and approximately 55% of our employees outside the United States.
At December 31, 2024, we had approximately 12,000 U.S. employees and approximately 78,000 employees outside the United States, with employees represented by labor unions or workers’ councils representing approximately 20% of our U.S. employees and approximately 60% of our employees outside the United States.
Gruber 58 Executive Vice President and President, Europe Deepak D. Iyer 56 Executive Vice President and President, Asia Pacific, Middle East and Africa Stephanie Lilak 57 Executive Vice President and Chief People Officer Mariano C. Lozano 57 Executive Vice President and President, Latin America Daniel E.
Gruber 59 Executive Vice President and President, Europe Deepak D. Iyer 57 Executive Vice President and President, Asia Pacific, Middle East and Africa Stephanie Lilak 58 Executive Vice President and Chief People Officer Mariano C.
Mr. Ramos has worked in Research and Development for over 20 years. Ms. Stein became Executive Vice President, Corporate & Legal Affairs, General Counsel and Corporate Secretary in September 2023 and was Executive Vice President, Corporate & Legal Affairs and General Counsel from January 2021 until September 2023. Before joining Mondelēz International, Ms.
Stein became Executive Vice President, Corporate & Legal Affairs, General Counsel and Corporate Secretary in September 2023 and was Executive Vice President, Corporate & Legal Affairs and General Counsel from January 2021 until September 2023. Before joining Mondelēz International, Ms.
Our strategy and goals in these key focus areas are central to supporting our growth around the world and underpinned by our focus on promoting a culture of safety, quality, inclusivity and equity.
We focus in key areas where we believe we can deliver greater long-term positive impact. Our strategy and goals in these key focus areas are central to supporting our growth around the world and underpinned by our focus on promoting a culture of safety, quality and inclusivity.
EPR policies are being implemented or contemplated in other jurisdictions around the world, including India, Vietnam and certain states in the United States. Single-use plastic bans and other plastic taxes are being considered in Europe as well as countries including Indonesia and the Philippines.
In addition, the European Union has adopted its Packaging and Packaging Waste Directive. EPR policies are being implemented or contemplated in other jurisdictions around the world, including India, Vietnam and certain states in the United States. Single-use plastic bans or plastic taxes are being implemented or considered in Europe as well as countries in Southeast Asia.
With the support of an independent third-party expert in this field, we conduct global pay equity reviews for salaried employees based on gender and race (as permitted by local country law). Our last global analysis in 2023 encompassed 83 countries and over 34,000 employees. From this analysis, our pay gap between male and female employees was less than 1%.
With the support of an independent third-party expert in this field, we conduct global pay equity reviews for salaried employees based on gender and, in the United States, race (as permitted by local country law). Our last global analysis in 2024 encompassed 82 countries and over 36,000 employees.
Aggregate survey results include external benchmark comparisons and are reviewed by executive officers and the Board of Directors. Based on the results, we create action plans at global, regional, functional and managerial levels.
We conduct confidential engagement surveys of our global workforce annually that are administered and analyzed by an independent third party. Aggregate survey results include external benchmark comparisons and are reviewed by executive officers and the Board of Directors. Based on the results, we create action plans at global, regional, functional and managerial levels.
(which is now part of The Kraft Heinz Company), we each granted the other party various licenses to use certain of our and their respective intellectual property rights in named jurisdictions following the spin-off of our North American grocery business in 2012. 8 Table of Contents Regulation Our food products and ingredients are subject to local, national and multinational regulations related to labeling, health and nutrition claims, packaging, pricing, marketing and advertising, and related areas.
(which is now part of The Kraft Heinz Company), we each granted the other party various licenses to use certain of our and their respective intellectual property rights in named jurisdictions following the spin-off of our North American grocery business in 2012.
We also have dedicated talent programs that support and accelerate leadership development and strengthen our succession plans. We also expanded and increased global participation in our Talent Marketplace, a development solution that helps connect employees to short-term ‘gig’ opportunities. Additionally, coaching, mentoring and team-based development solutions are provided to colleagues across all levels to support leadership, team effectiveness and performance.
We provide access to technical and leadership development programs to enable colleagues to grow skills and capabilities to become more successful. We also have dedicated talent programs that support and accelerate leadership development and strengthen our succession plans. We have expanded and increased global participation in our Talent Marketplace, a development solution that helps connect employees to short-term ‘gig’ opportunities.
Ramos 50 Executive Vice President, Chief Research and Development Officer Laura Stein 62 Executive Vice President, Corporate & Legal Affairs, General Counsel and Corporate Secretary Gustavo C. Valle 59 Executive Vice President and President, North America Mr.
Lozano 58 Executive Vice President and President, Latin America Martin Renaud 57 Executive Vice President , Chief Marketing and Sales Officer Laura Stein 63 Executive Vice President, Corporate & Legal Affairs, General Counsel and Corporate Secretary Gustavo C. Valle 60 Executive Vice President and President, North America Mr.
Our hybrid work model allows our office-based employees to engage with colleagues, customers and suppliers in-person on a regular basis while also leveraging innovative technology to optimize collaboration across geographically dispersed teams. Workforce Inclusion & Diversity : We believe that a diverse workforce with a range of experiences and perspectives is a significant driver of sustainable innovation and growth.
Our hybrid work model allows our office-based employees to engage with colleagues, customers and suppliers in-person on a regular basis while also leveraging innovative technology to optimize collaboration across geographically dispersed teams. Talent Management and Development: Maintaining a robust pipeline of talent is crucial to our ongoing success and to our succession planning efforts across the organization.
These policies have substantial effects on prices and supplies and are subject to periodic governmental and administrative review. In addition, increased attention to environmental and social issues in industry supply chains has led to developing different types of regulation in many countries. The lack of a harmonized approach can lead to uneven scrutiny or enforcement, which can impact our operations.
These policies have substantial effects on prices and supplies and are subject to periodic governmental and administrative review. In addition, increased attention to environmental and social issues in industry supply chains has led to the development of differences in government rules across jurisdictions.
In 2023, we made progress against these goals, such as expanding our signature raw material sourcing programs, submitting a time-bound roadmap against our 2050 Net Zero goal for validation to the Science Based Targets Initiative and investing in renewable energy sources in several of our owned manufacturing facilities across the world.
In 2024, we made progress against these goals, such as receiving validation for our 2030 near- 7 Table of Contents term and 2050 long-term Net Zero goal from the Science Based Targets Initiative and continuing to increase the ratio of renewable energy used within several of our owned manufacturing facilities across the world.
In the United States, we also review pay for salaried employees in the same pay grade by race/ethnicity (Asian, Black and Hispanic).
From this analysis, our pay gap between male and female employees was less than 1% when performing substantially similar work at Mondelēz. In the United States, we also review pay for salaried employees in the same pay grade by race/ethnicity (Asian, Black and Hispanic).
We work to test and learn new ideas and implement successful ones into other areas of our business. We aim to address consumer needs and market trends while leveraging scalable innovation platforms, sustainability and packaging programs and breakthrough technologies in order to delight our consumers, fuel our growth and reduce our environmental impact.
These bundles enhance our portfolio to address evolving consumer preferences and market trends, nutritional needs as well as reduce our environmental impact. We work to test and learn new ideas and implement successful ones into other areas of our business.
The 2023 independent analysis found no systemic issues and no negative pay gap between non-white and white employees. 7 Table of Contents Sustainability and Mindful Snacking Snacking Made Right is the lens through which we determine our ESG priorities to deliver on our mission of leading the future of snacking by offering the right snack, for the right moment, made the right way.
Sustainability and Mindful Snacking Snacking Made Right is the lens through which we determine our ESG priorities to deliver on our mission of leading the future of snacking by offering the right snack, for the right moment, made the right way. We have a clear strategic approach to making snacking right, so we can drive innovative, more sustainable business growth.
Culture and Employee Engagement: We believe a culture where employees feel heard and managers take action is key to building a highly-engaged workforce that can deliver sustainable business growth. We conduct confidential engagement surveys of our global workforce annually that are administered and analyzed by an independent third party.
We continue to focus on creating an inclusive culture for employees, providing all employees with opportunities through our development programs and policies. We believe a culture where employees feel heard and managers take action is key to building a highly-engaged workforce that can deliver sustainable business growth.
Research, Development and Innovation Our innovation and new product development objectives include continuous improvement in food safety and quality, growth through new products, superior consumer satisfaction and reduced production costs. Our innovation efforts focus on anticipating consumer demands and adapting quickly to changing market trends.
Research, Development and Innovation Our innovation and new product development objectives include continuous improvement in food safety and quality, growth through new products, superior consumer satisfaction and reduced production costs. We have established a robust framework for innovation to drive a technology pipeline supporting the creation of new product bundles across short-, medium- and long-term horizons.
We work to introduce new varieties of our core products, including new taste or nutrition profiles that cater to evolving consumer preferences, such as the introduction of Toblerone Pralines in a new market segment and a vegan 100% plant-based Philadelphia cream cheese .
We work to introduce new varieties of our core products, including new taste or nutrition profiles that cater to evolving consumer preferences, such as the launch in the UK of Cadbury Dairy Milk & MORE , a multi-dimensional tablet designed to deliver a richer, more indulgent eating experience, zero-sugar Oreo’s in China and reduced sugar candies under The Natural Confectionary Company brand in Australia.
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We continue to be focused on creating an inclusive culture for employees, providing equity of opportunity through our development programs and policies. We include diversity and other human capital metrics as a part of the strategic scorecard within our annual incentive plan for our CEO and other senior leaders.
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Additionally, coaching, mentoring and team-based development solutions are provided to colleagues across all levels to support leadership, team effectiveness and performance. Culture and Employee Engagement: We believe that a diverse workforce with a range of experiences and perspectives is a significant driver of sustainable innovation and growth.
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This scorecard is used consistently across our company at both the corporate and region level. As a result of these efforts, at the end of 2023, women held 42% of global management roles (defined as Director and above) and 42% of executive leadership roles (defined as the Management Leadership Team plus one level below).
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The 2024 independent analysis found no systemic issues and no negative pay gap between non-white and white employees when performing substantially similar work at Mondelēz.
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In the United States, People of Color held approximately 36% of management roles (defined as Director and above), and Black employees held 6.3% of management roles at the end of 2023. 6 Table of Contents Talent Management and Development: Maintaining a robust pipeline of talent is crucial to our ongoing success and is a key aspect of succession planning efforts across the organization.
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Regulation Our food products and ingredients are subject to local, national and multinational laws and regulations related to labeling, health and nutrition claims, packaging, pricing, marketing and advertising, and related areas.
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We include metrics related to the rate at which we fill positions with internal talent as part of the strategic scorecard within our annual incentive plan for our CEO and senior leaders, supporting a healthy balance between development of internal talent and infusion of new capabilities to enhance our teams.
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The lack of a harmonized approach can lead to uneven scrutiny or enforcement, which can impact our operations.
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We have a clear strategic approach to making snacking right, so we can drive innovative, more sustainable business growth. We focus in key areas where we believe we can deliver greater long-term positive impact.
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Renaud became Executive Vice President and Chief Marketing & Sales Officer in February 2022 and served as Executive Vice President and Chief Marketing Officer from January 2018 until February 2022. Prior to joining 10 Table of Contents Mondelēz International, Mr.
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Ramos became Chief Research & Development Officer in November 2022. Before joining Mondelēz International, Mr.
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Renaud spend more than 28 years at Danone SA, a global food and beverage company, in a variety of roles with increasing responsibility. Most recently, he served as President, Fresh Dairy Europe, from January 2015 to July 2017 after working as Vice President Danone Waters Asia Pacific, from October 2014 to December 2014. Ms.
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Ramos was Senior Vice President of Global Packaging at The Estée Lauder Companies, a 10 Table of Contents manufacturer and marketer of quality skin care, makeup, fragrance and hair care products, from January 2021 to November 2022, and served as the Chief Scientific Officer at Coty Inc., a multinational beauty company and developer of fragrance, color cosmetics, and skin and body care, from September 2017 to January 2021.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

89 edited+23 added−18 removed143 unchanged
Biggest changeThose risks include: • changing macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation), volatile commodity prices and increases in the cost of raw and packaging materials, labor, energy and transportation; • compliance with U.S. laws affecting operations outside of the United States, including anti-bribery laws such as the Foreign Corrupt Practices Act (“FCPA”); • the imposition of increased or new tariffs, sanctions, export controls, quotas, trade barriers, price floors or similar restrictions on our sales or key commodities like cocoa, potential changes in U.S. trade programs and trade relations with other countries, or regulations, taxes or policies that might negatively affect our sales or profitability; • compliance with antitrust and competition laws, trade laws, data privacy laws, anti-bribery laws, human rights laws and a variety of other local, national and multinational regulations and laws in multiple regimes; • currency devaluations or fluctuations in currency values, including in developed and emerging markets.
Biggest changeAlso see “ We are subject to risks from changes to the trade policies and tariff and import/export regulations by the U.S. and/or other foreign government s”; • changing macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation), volatile commodity prices, the ongoing longer-term impact of changes in international trade policies (including Brexit) and increases in the cost of raw and packaging materials, labor, energy and transportation; • compliance with U.S. laws affecting operations outside of the United States, including anti-bribery laws such as the Foreign Corrupt Practices Act (“FCPA”); • compliance with antitrust and competition laws, trade laws, data privacy laws, anti-bribery laws, human rights laws, new regulations intended to address increasing global concerns around forced labor, and a variety of other local, national and multinational regulations and laws in multiple regimes; • currency devaluations or fluctuations in currency values, including in developed and emerging markets.
Negative posts or comments about Mondelēz International, our brands or our employees on social media or web sites (whether factual or not) or security breaches related to use of our social media accounts and failure to respond effectively to these posts, comments or activities could damage our reputation and brand image across the various regions in which we operate.
Negative posts or comments about Mondelēz International, our brands or our employees on social media or web sites (whether factual or not) or security breaches related to the use of our social media accounts and failure to respond effectively to these posts, comments or activities could damage our reputation and brand image across the various regions in which we operate.
The European Union’s General Data Protection Regulation (“GDPR”) has greatly increased the jurisdictional reach of E.U. law, added a broad array of requirements for handling personal data including the public disclosure of significant data breaches, and imposes substantial penalties for non-compliance of up to 4% of global annual revenue for the preceding financial year in addition to potential restrictions on data transfer and processing.
For example, the European Union’s General Data Protection Regulation (“GDPR”) has greatly increased the jurisdictional reach of E.U. law, added a broad array of requirements for handling personal data including the public disclosure of significant data breaches, and imposes substantial penalties for non-compliance of up to 4% of global annual revenue for the preceding financial year in addition to potential restrictions on data transfer and processing.
When litigation, legal or tax claims or regulatory enforcement actions arise out of our failure or alleged failure to comply with applicable laws, regulations or controls, we could be subject to civil and criminal penalties, and voluntary and involuntary document requests, that could materially and adversely affect our reputation, product sales, financial condition, results of operations, cash flows and stock price.
When litigation, legal or tax claims, investigations or regulatory enforcement actions arise out of our failure or alleged failure to comply with applicable laws, regulations or controls, we could be subject to civil and criminal penalties, and voluntary and involuntary document requests, that could materially and adversely affect our reputation, product sales, financial condition, results of operations, cash flows and stock price.
Undue caution or our failure to react timely in addressing these challenges and trends could weaken our competitive position. Such pressures could also lead to stricter regulations, industry self-regulation that is unevenly adopted among companies, increased transparency in public disclosures, and increased focus on food and snacking marketing and labeling practices.
Undue caution or our failure to react timely in addressing these challenges and trends could weaken our competitive position. Such pressures could also lead to stricter regulations, industry self-regulation that is unevenly adopted among companies, increased transparency in public disclosures, and increased focus on food and snacking, including marketing and labeling practices.
We face risks related to legal or tax claims or other regulatory enforcement actions. We operate around the world in environments with constantly evolving legal, tax and regulatory frameworks, and we are subject to risk of litigation, legal or tax claims or other regulatory enforcement actions.
We face risks related to legal or tax claims, litigation, investigations or other regulatory enforcement actions. We operate around the world in environments with constantly evolving legal, tax and regulatory frameworks, and we are subject to risk of litigation, legal or tax claims, investigations, or other regulatory enforcement actions.
In addition, increased political and economic changes or volatility, geopolitical regional conflicts, terrorist activity, political unrest, civil strife, acts of war, government shutdowns, travel or immigration restrictions, tariffs and other trade restrictions, public health risks or pandemics, energy policy or restrictions, public corruption, expropriation and other economic or political uncertainties, including inaccuracies in our assumptions about these factors, could interrupt and negatively affect our business operations or customer demand.
In addition, increased political and economic changes or volatility, geopolitical regional conflicts, terrorist activity, political unrest, civil strife, acts of war, government shutdowns, product boycotts, travel or immigration restrictions, tariffs and other trade restrictions, public health risks or pandemics, energy policy or restrictions, public corruption, expropriation and other economic or political uncertainties, including inaccuracies in our assumptions about these factors, could interrupt and negatively affect our business operations or customer demand.
Decreased agricultural productivity caused by climate change has and in the future may continue to limit the availability of the commodities we purchase and use and increase the costs of such products.
Decreased agricultural productivity caused by climate change has limited and in the future may continue to limit the availability of the commodities we purchase and use and increase the costs of such products.
We use cash management programs, such as factoring and supply chain finance arrangements, in our business when circumstances are favorable to manage liquidity.
Additionally, we use cash management programs, such as factoring and supply chain finance arrangements, in our business when circumstances are favorable to manage liquidity.
In the United Kingdom, a ban on specific types of TV and online advertising of food containing levels of fat, sugar or salt above specified thresholds is expected to go into effect in October 2025, and new measures restricting certain promotions and in-store placement of some of those products recently went into effect.
For example, in the United Kingdom, a ban on specific types of TV and online advertising of food containing levels of fat, sugar or salt above specified thresholds is expected to go into effect in October 2025, and new measures restricting certain promotions and in-store placement of some of those products recently went into effect.
For example, the ongoing developments in the Middle East could impact demand for our products or result in increased supply chain costs or other cost impacts. High unemployment or the slowdown in economic growth in some markets could constrain consumer spending. Declining consumer purchasing power could result in loss of market share and adversely impact our profitability.
For example, the ongoing conflicts in the Middle East could impact demand for our products or result in increased supply chain costs or other cost impacts. High unemployment or the slowdown in economic growth in some markets could constrain consumer spending. Declining consumer purchasing power could result in loss of market share and adversely impact our profitability.
Failure to offer and deliver products that appeal to consumers or to correctly judge consumer demand for our products will impact our ability to meet our growth targets, and our sales and market share could decrease and our profitability could suffer. We must distinguish between short-term fads and trends and long-term changes in consumer preferences.
Failure to offer, effectively promote and deliver products that appeal to consumers or to correctly judge consumer demand for our products will impact our ability to meet our growth targets, and our sales and market share could decrease and our profitability could suffer. We must distinguish between short-term fads and trends and long-term changes in consumer preferences.
For instance, our financial condition, results of operations and cash flows could be negatively affected by the regulatory and economic impact of changes in the corporate tax policies of the United States and other countries; trade relations among the United States and other countries, including China, Mexico and the European Union; and changes within the European Union.
For instance, our financial condition, results of operations and cash flows could be negatively affected by the regulatory and economic impact of changes in the corporate tax policies of the United States and other countries; tariff policies and trade relations among the United States and other countries, including China, Mexico, Canada and the European Union; and changes within the European Union.
Our future effective tax rates could be affected by changes in the composition of earnings in countries with differing tax rates or other factors, and adverse changes in the underlying profitability or financial outlook of our operations in several jurisdictions could lead to changes in the realizability of our deferred tax assets, resulting in a charge to our effective tax rate.
Our future effective tax rates could be affected by changes in the composition of earnings in countries with differing tax rates or other factors, and adverse changes in the underlying profitability or financial outlook of our operations could lead to changes in the realizability of our deferred tax assets, resulting in a charge to our effective tax rate.
Moreover, even if a product liability, consumer fraud or other claim is unsuccessful, has no merit or is not pursued, the negative publicity surrounding assertions against our products or processes could materially and adversely affect our reputation, brands, product sales, product inventory, financial condition, results of operations, cash flows and stock price, and we could incur significant expense responding to such a claim.
Moreover, even if a product liability, consumer fraud or other claim, litigation or investigation has no merit, is not pursued or is unsuccessful, the negative publicity surrounding assertions against our products or processes or conduct could materially and adversely affect our reputation, brands, product sales, product inventory, financial condition, results of operations, cash flows and stock price, and we could incur significant expense responding to such a claim, litigation or investigation.
During 2023, we continued to operate under our strategy to drive long-term growth by focusing on four strategic priorities: accelerating consumer-centric growth, driving operational excellence, creating a winning growth culture and scaling sustainable snacking.
During 2024, we continued to operate under our strategy to drive long-term growth by focusing on four strategic priorities: accelerating consumer-centric growth, driving operational excellence, creating a winning growth culture and scaling sustainable snacking.
Failure to comply with these laws could subject us to civil and criminal penalties that could materially and adversely affect our reputation, financial condition, results of operations and stock price. In addition, competition in emerging markets is increasing as our competitors grow their global operations and low-cost local manufacturers improve and expand their production capacities.
Failure to comply with these laws could subject us to civil and criminal penalties that could materially and adversely affect our reputation, financial condition, results of operations and stock price. 17 Table of Contents In addition, competition in emerging markets is increasing as our competitors grow their global operations and low-cost local manufacturers improve and expand their production capacities.
During 2023, no single customer accounted for more than 10% of our net revenues. There can be no assurance that our customers will continue to purchase our products in the same mix or quantities or on the same terms as in the past, particularly as increasingly powerful retailers continue to demand lower pricing and develop their own brands.
During 2024, no single customer accounted for more than 10% of our net revenues. However, there can be no assurance that our customers will continue to purchase our products in the same mix or quantities or on the same terms as in the past, particularly as increasingly powerful retailers continue to demand lower pricing and develop their own brands.
We factor exchange rate impacts into our local pricing decisions, but there may be lags in implementing pricing changes due to competitive pressures or customer or regulatory constraints. We also hedge a number of risks including exposures to foreign exchange rate movements and volatility of interest rates that could impact our future borrowing costs.
We factor exchange rate impacts into our local pricing decisions, but there may be lags in implementing pricing changes due to competitive pressures or customer or regulatory constraints. We also hedge a number of risks including exposures to foreign exchange rate movements and volatility of interest rates that could 25 Table of Contents impact our future borrowing costs.
These and other impacts of the war in Ukraine could have the effect of heightening many of the other risks described in the risk factors presented in this filing, including but not limited to those relating to our reputation, brands, product sales, sanctions, trade relations in countries in which we operate, input price inflation and volatility, results of operations and financial condition.
These and other impacts of the war in Ukraine could have the effect of heightening many of the other risks described in the risk factors presented in this filing, including those relating to our reputation, brands, product sales, sanctions, trade relations in countries in which we operate, input price inflation and volatility, results of operations and financial condition.
In addition, the results of third-party studies (whether or not scientifically valid) purporting to assess the health implications of consumption of certain ingredients or substances present in certain of our products or packaging materials have resulted in and could continue to result in our being subject to new taxes and regulations or lawsuits that can adversely affect our business.
In addition, the results of third-party studies (whether or not scientifically valid) purporting to 23 Table of Contents assess the health implications of consumption of certain ingredients or substances present in certain of our products or packaging materials have resulted in and could continue to result in our being subject to new taxes and regulations or lawsuits that can adversely affect our business.
We may decide or be required to recall products or be subjected to product liability claims.
We may decide or be required to recall products or be subjected to product liability claims or litigation.
We attempt to protect our intellectual property rights by taking advantage of a combination of patent, trademark, copyright and trade secret laws in various countries, as well as licensing agreements, third-party nondisclosure and assignment agreements and policing of third-party misuses and infringement of our intellectual property in traditional retail and digital environments.
We attempt to protect our intellectual property rights by taking 24 Table of Contents advantage of a combination of patent, trademark, copyright and trade secret laws in various countries, as well as licensing agreements, third-party nondisclosure and assignment agreements and policing of third-party misuses and infringement of our intellectual property in traditional retail and digital environments.
We utilize an interdependent supply chain – a complex network of suppliers and material needs, owned and leased manufacturing locations, external manufacturing partners, distribution networks, shared service delivery centers and information systems that support 18 Table of Contents our ability to provide our products to our customers consistently.
We utilize an interdependent supply chain – a complex network of suppliers and material needs, owned and leased manufacturing locations, external manufacturing partners, distribution networks, shared service delivery centers and information systems that support our ability to provide our products to our customers consistently.
Depending on the nature of the 19 Table of Contents business ventures, including whether they operate globally, these ventures could also be subject to many of the same risks we are, including political, economic, regulatory and compliance risks, currency exchange rate fluctuations, and volatility of commodity and other input prices.
Depending on the nature of the business ventures, including whether they operate globally, these ventures could also be subject to many of the same risks we are, including political, economic, regulatory and compliance risks, currency exchange rate fluctuations, and volatility of commodity and other input prices.
Due to the constantly evolving and complex nature of cyber threat actors, we cannot predict the form and impact of any future incident, and the cost and operational expense of implementing, maintaining and enhancing protective measures to guard against increasingly complex and sophisticated cyber threats could increase significantly.
Due to the constantly evolving and complex nature of cyber threat actors, we cannot predict the form and impact of 18 Table of Contents any future incident, and the cost and operational expense of implementing, maintaining and enhancing protective measures to guard against increasingly complex and sophisticated cyber threats could increase significantly.
Failure to achieve and maintain a diverse workforce and 22 Table of Contents leadership team, compensate our employees competitively and fairly, maintain a safe and inclusive environment or promote the well-being of our employees could affect our reputation and also result in lower performance and an inability to retain valuable employees.
Failure to achieve and maintain a diverse workforce and leadership team, compensate our employees competitively and fairly, maintain a safe and inclusive environment or promote the well-being of our employees could affect our reputation and also result in lower performance and an inability to retain valuable employees.
We might incur significant additional expense or be required to recognize impairment charges in connection with our efforts, and we might be unable to achieve, or be perceived to fail to achieve, our goal.
We might incur significant additional expenses or be required to recognize impairment charges in connection with our efforts, and we might be unable to achieve, or be perceived to fail to achieve, our goal.
Further, developing and collecting, measuring and reporting ESG-related information and metrics can be costly, difficult and time consuming and is subject to evolving reporting standards, including recent legislation in California related to reporting greenhouse gas emissions and climate-related financial risk, the SEC’s proposed climate-related reporting requirements, and similar proposals by other international regulatory bodies such as the Corporate Sustainability Reporting Directive in the European Union, especially to the extent these standards are not harmonized or consistent.
Further, developing and collecting, measuring and reporting ESG-related information and metrics can 20 Table of Contents be costly, difficult and time consuming and is subject to evolving reporting standards, including recent legislation in California related to reporting greenhouse gas emissions and climate-related financial risk, the SEC’s climate-related reporting requirements, and similar proposals by other international regulatory bodies such as the Corporate Sustainability Reporting Directive in the European Union, especially to the extent these standards are not harmonized or consistent.
This includes events like applying highly inflationary accounting as we did for our Argentinean subsidiaries beginning in July 2018 and for Türkiye beginning in April 2022; • changes in capital controls, including currency exchange controls, government currency policies or other limits on our ability to import raw materials or finished products into various countries or repatriate cash from outside the United States; • increased sovereign risk, such as defaults by or deterioration in the economies and credit ratings of governments, particularly in emerging markets; • changes or inconsistencies in local regulations and laws, the uncertainty of enforcement of remedies in non-U.S. jurisdictions, and foreign ownership restrictions and the potential for nationalization or expropriation of property or other resources; • varying abilities to enforce intellectual property and contractual rights; • discriminatory or conflicting fiscal policies; • greater risk of uncollectible accounts and longer collection cycles; and • design, implementation and use of effective control environment processes across our diverse operations and employee base.
This includes events like applying highly inflationary accounting as we did for our Argentinean subsidiaries beginning in the third quarter of 2018, Türkiye beginning in the second quarter of 2022 and both Egypt and Nigeria beginning in the fourth quarter of 2024; • changes in capital controls, including currency exchange controls, government currency policies or other limits on our ability to import raw materials or finished products into various countries or repatriate cash from outside the United States; • increased sovereign risk, such as defaults by or deterioration in the economies and credit ratings of governments, particularly in emerging markets; • changes or inconsistencies in local regulations and laws, the uncertainty of enforcement of remedies in non-U.S. jurisdictions, and foreign ownership restrictions and the potential for nationalization or expropriation of property or other resources; • varying abilities to enforce intellectual property and contractual rights; • discriminatory or conflicting fiscal policies; • greater risk of uncollectible accounts and longer collection cycles; and • design, implementation and use of effective control environment processes across our diverse operations and employee base.
Factors that are hard to predict or beyond our control, like weather, natural disasters, water and energy availability, supply and commodity shortages, port congestions or delays, transport capacity constraints, terrorism, political unrest or armed hostilities (including the ongoing war in Ukraine and developments in the Middle East), cybersecurity incidents, labor shortages, strikes or work stoppages, operational and/or financial instability of our key suppliers and other vendors or service providers, government shutdowns or health pandemics, including any potential impact of climate change on these factors, could damage or disrupt our operations or those of our suppliers, their suppliers, our external manufacturing partners, distributors or other business partners.
Factors that are hard to predict or beyond our control, like weather, natural disasters, water and energy availability, supply and commodity shortages, port congestions or delays, transport capacity constraints, terrorism, political unrest or armed hostilities (including the ongoing war in Ukraine and conflicts in the Middle East), cybersecurity incidents, labor shortages, strikes or work stoppages, new or increased tariffs and/or trade barriers, operational and/or financial instability of our key suppliers and other vendors or service providers, government shutdowns or health pandemics, including any potential impact of climate change on these factors, could damage or disrupt our operations or those of our suppliers, their suppliers, our external manufacturing partners, distributors or other business partners.
Such actions could undermine our customers’ and shareholders’ confidence and reduce demand for our products, even if the regulatory or legal action is unfounded or these matters are immaterial to our operations. Our product sponsorship 15 Table of Contents relationships, including those with celebrity spokespersons, influencers or group affiliations, could also subject us to negative publicity.
Such actions could undermine our customers’ and shareholders’ confidence and reduce demand for our products, even if the regulatory or legal action is unfounded or these matters are immaterial to our operations. Our product sponsorship relationships, including those with celebrity spokespersons, influencers or group affiliations, could also subject us to negative publicity.
Any or all of these risks could materially and adversely affect our ability to meet the needs of our customers, reputation, product sales, financial condition, results of operations, cash flows and stock price. Our retail customers are consolidating, and we must leverage our value proposition in order to compete against retailer and other economy brands.
Any or all of these risks could materially and adversely affect our ability to meet the needs of our customers, reputation, product sales, financial condition, results of operations, cash flows and stock price. Our retail customers are consolidating, and we must offer an effective value proposition in order to compete against retailer and other economy brands.
Even if we achieve our goals, targets and objectives, we may not realize all of the benefits that we expected at the time they were established. 20 Table of Contents Climate change might adversely impact our supply chain or our operations.
Even if we achieve our goals, targets and objectives, we may not realize all of the benefits that we expected at the time they were established. Climate change might adversely impact our supply chain or our operations.
These include cocoa, which is a critical raw material for our chocolate and biscuit portfolios that is particularly sensitive to changes in climate and has recently had a global decrease in availability and increase in price, as well as other raw materials such as dairy, wheat, vegetable oils, sugar and nuts.
These include cocoa, which is a critical raw material for our chocolate and biscuits & baked snacks portfolios that is particularly sensitive to changes in climate and has recently had a global decrease in availability and increase in price, as well as other raw materials such as dairy, wheat, vegetable oils, sugar and nuts.
Failure to successfully maintain and enhance our reputation and brand health could materially and adversely affect our company and product brands as well as our product sales, financial condition, results of operations, cash flows and stock price.
Failure to successfully maintain and enhance our 16 Table of Contents reputation and brand health could materially and adversely affect our company and product brands as well as our product sales, financial condition, results of operations, cash flows and stock price.
Increased negative attention from the media, academics and online influencers, governments, shareholders and other stakeholders in these areas as well as on the role of food marketing, our response to political and social issues or catastrophic events, and other environmental, social, human capital or governance practices, including our diversity, equity and inclusion initiatives, could adversely affect our brand image.
Increased negative attention from the media, academics and online influencers, governments, shareholders and other stakeholders in these areas as well as on the role of food marketing, our response to political and social issues or catastrophic events, and other environmental, social, human capital or governance practices could adversely affect our brand image.
Weak economic conditions, recessions, inflation, equity market volatility or other factors, such as global or local pandemics, severe or unusual weather events, and our response to political and social issues or catastrophic events, may affect consumer preferences and demand in ways that are hard to predict.
Weak economic conditions, recessions, inflation, new or increased tariffs, and/or trade barriers, equity market volatility or other factors, such as global or local pandemics, severe or unusual weather events, and our response to political and social issues or catastrophic events, may affect consumer preferences and demand in ways that are hard to predict.
Equity investments such as our investments in JDE Peet’s N.V. joint venture and other strategic alliances pose additional risks, as we could share ownership in both public and private companies and in some cases management responsibilities with one or more other parties whose objectives for the alliance may diverge from ours over time, who may not have the same priorities, strategies or resources as we do, or whose interpretation of applicable policies may differ from our own.
Equity investments and other strategic alliances pose additional risks, as we could share ownership in both public and private companies and in some cases management responsibilities with one or more other parties whose objectives for the alliance may diverge from ours over time, who may not have the same priorities, strategies or resources as we do, or whose interpretation of applicable policies may differ from our own.
Further, we have 24/7 security operations, enhancing the monitoring and detection of threats in our environment, including but not limited to the manufacturing environment and operational technologies, as well as adjusting information security controls based on our threat intelligence information.
Further, we have 24/7 security operations, enhancing the monitoring and detection of threats in our environment, including the manufacturing environment and operational technologies, as well as adjusting information security controls based on our threat intelligence information.
We are subject to currency exchange rate fluctuations. At December 31, 2023, we sold our products in over 150 countries and had operations in approximately 80 countries. Consequently, a significant portion of our business is exposed to currency exchange rate fluctuations.
We are subject to currency exchange rate fluctuations. As of December 31, 2024, we sold our products in over 150 countries and had operations in approximately 80 countries. Consequently, a significant portion of our business is exposed to currency exchange rate fluctuations.
These conditions include global competition for resources; currency fluctuations; geopolitical conditions or conflicts (including the ongoing war in Ukraine and international sanctions imposed on Russia for its invasion of Ukraine, developments in the Middle East and rising tensions between China and Taiwan); inflationary pressures related to domestic and global economic conditions or supply chain issues; transportation and labor disruptions; tariffs or other trade barriers; government intervention to introduce living income premiums or similar requirements such as those announced in 2019 in two of the main cocoa-growing countries; changes in environmental or trade policy and regulations, alternative energy and agricultural programs; severe weather; agricultural productivity; crop disease or pests; water risk; health pandemics; forest fires and other natural disasters; acts of terrorism; cybersecurity incidents; supplier capacity; and consumer or industrial demand.
These conditions include global competition for resources; tariffs or other trade barriers; currency fluctuations; geopolitical conditions or conflicts (including the ongoing war in Ukraine and international sanctions imposed on Russia for its invasion of Ukraine, conflicts in the Middle East and rising tensions between China and Taiwan); inflationary pressures related to domestic and global economic conditions or supply chain issues; transportation and labor disruptions; government intervention to introduce living income premiums or similar requirements; changes in environmental or trade policy and regulations, alternative energy and agricultural programs; severe weather; agricultural productivity; crop disease or pests; water risk; health pandemics; forest fires and other natural disasters; acts of terrorism; geopolitical regional conflicts; cybersecurity incidents; supplier capacity; and consumer or industrial demand.
Limitations on our ability to access the global capital markets, a reduction in our liquidity or an increase in our borrowing costs could materially and adversely affect our financial condition, results of operations and stock price.
Limitations on our ability to access the commercial paper markets, a reduction in our liquidity or an increase in our borrowing costs could materially and adversely affect our financial condition, results of operations and stock price.
Changes in tax laws in the U.S. or in other countries where we have significant operations (such as Brazil’s recently passed tax legislation), including rate changes or corporate tax provisions that could disallow or tax perceived base erosion or profit shifting payments or subject us to new types of tax, could materially affect our effective tax rate and our deferred tax assets and liabilities.
Changes in tax laws in the U.S. or in other countries where we have significant operations, including rate changes or corporate tax provisions that could disallow or tax perceived base erosion or profit shifting payments or subject us to new types of tax, could materially affect our effective tax rate and our deferred tax assets and liabilities.
We must address changes in, and that affect, our workforce and satisfy the legal requirements associated with how we manage and compensate our employees. This includes our management of employees represented by labor unions or workers’ councils, who represent approximately 55% of our 79,000 employees outside the United States and approximately 21% of our 12,000 U.S. employees.
We must address changes in, and that affect, our workforce and satisfy the legal requirements associated with how we manage and compensate our employees. This includes our management of employees represented by labor unions or workers’ councils, who represent approximately 60% of our 78,000 employees outside the United States and approximately 20% of our 12,000 U.S. employees.
Legislative and other governmental regulatory actions may also increase funding requirements for our pension plans’ benefits obligation. Volatility in the global capital markets may increase the risk that we will be required to make additional cash contributions to these company-sponsored pension plans and recognize further increases in our net periodic pension cost.
Legislative and other governmental regulatory actions may also increase funding requirements for our pension plan benefit obligations. Volatility in the global capital markets may increase the risk that we will be required to make additional cash contributions to these company-sponsored pension plans and recognize further increases in our net periodic pension cost.
The war could also result in the temporary or permanent loss of assets or our ability to conduct business operations in Russia, and our Russian assets may be partially or fully impaired in future periods, or our business operations terminated, based on actions taken by Russia, other parties or us.
The war could also result in the temporary or permanent loss of assets due to expropriation or further curtailment of our ability to conduct business operations in Russia, and our Russian assets may become partially or fully impaired or our operations may be deconsolidated in future periods, or our business operations terminated, based on actions taken by Russia, other parties or us.
We might not be able to predict or respond to all impacts on a timely basis to prevent near- or long-term adverse impacts to our results.
We might not be able to predict or respond to all impacts on a timely basis to prevent near- 14 Table of Contents or long-term adverse impacts to our results.
Placement of our advertisements in social media may also result in damage to our brands if the media itself experiences negative publicity. Our brands may be associated with or appear alongside harmful content before these platforms or our own social media monitoring can detect this risk to our brand.
Placement of our advertisements in social media may also result in damage to our brands if the media itself experiences negative publicity. Our brands may be associated with or appear alongside harmful content including outputs from generative artificial intelligence models, before these platforms or our own social media monitoring can detect this risk to our brand.
We are a global company and generated 73.4% of our 2023 net revenues, 73.6% of our 2022 net revenues and 75.1% of our 2021 net revenues outside the United States. We manufacture and market our products in over 150 countries and have operations in approximately 80 countries. Therefore, we are subject to risks inherent in global operations.
We are a global company and generated 74.0% of our 2024 net revenues, 73.4% of our 2023 net revenues and 73.6% of our 2022 net revenues outside the United States. We market our products in over 150 countries and have operations in approximately 80 countries. Therefore, we are subject to risks inherent in global operations.
If our mitigation activities are not effective, if we are unable to price to cover increased costs (including if we are delayed in our ability to raise prices or unable to raise the prices of our products enough to keep up with the rate of inflation), if we must reduce our prices, if increased prices affect demand for our products (including if consumers forego purchasing certain of our products or switch to “private label” or lower-priced product offerings), or if we are limited by supply or distribution constraints, our financial condition, results of operations, cash flows and stock price can be materially adversely affected. 12 Table of Contents We are subject to risks from operating globally.
If our mitigation activities are not effective, if we are unable to price to cover increased costs (including if we are delayed in our ability to raise prices or unable to raise the prices of our products enough to keep up with the rate of inflation), if we must reduce our prices, if increased prices affect demand for our products (including if consumers forego purchasing certain of our products or switch to “private label” or lower-priced product offerings), or if we are limited by supply or distribution constraints, our financial condition, results of operations, cash flows and stock price can be materially adversely affected. 12 Table of Contents We are subject to risks from operating globally, including potential cost impacts of any tariffs that may be enacted by governments as well as other trade and regulatory uncertainty.
We could decide, or laws or regulations could require us, to recall products due to suspected or confirmed deliberate or unintentional product contamination, including contamination of ingredients we use in our products that third parties supply, spoilage or other adulteration, product mislabeling or product tampering.
We could decide, or laws or regulations could require us, to recall products due to suspected or confirmed deliberate or unintentional product contamination, including contamination of ingredients we use in our products that third parties supply, spoilage or other adulteration, the introduction of foreign objects, food-borne illnesses, product mislabeling or product tampering.
We could also fail to attract and develop personnel with key emerging capabilities that we need to continue to respond to changing consumer and customer needs and grow our business, including skills in the areas of digital commerce and marketing, data analytics, and procurement and supply chain expertise.
We could also fail to attract and develop personnel with key emerging capabilities that we need to continue to respond to changing consumer and customer needs and grow our business, including skills in the areas of advanced technology, artificial intelligence, machine learning, digital commerce, data analytics and supply chain expertise.
If our strategy is not effective, we fail to achieve our goals and objectives or identify or prioritize the areas most important to achieving our goals, or we fail to effectively operate under our strategy in a way that minimizes disruptions to our business, it could materially and adversely affect our financial condition, results of operations, cash flows and stock price.
If our strategy is not effective, we fail to achieve our goals and objectives or identify or prioritize the areas most important to achieving our goals, or we fail to effectively operate under our strategy in a way that minimizes disruptions to our business, it could materially and adversely affect our financial condition, results of operations, cash flows and stock price. 15 Table of Contents Promoting and protecting our reputation and brand image is essential to our business success.
Retail customers might also adopt these tactics in their dealings with us in response to the significant growth in online retailing for consumer products, which is outpacing the growth of traditional retail channels and has increased further since the COVID-19 pandemic. 21 Table of Contents The growth of alternative online retail channels, such as direct-to-consumer and electronic business-to-business, may adversely affect our relationships with our large retail and wholesale customers.
Retail customers might also adopt these tactics in their dealings with us in response to the significant growth in online retailing for consumer products, which is outpacing the growth of traditional retail channels. The growth of alternative online retail channels, such as direct-to-consumer and electronic business-to-business, may adversely affect our relationships with our large retail and wholesale customers.
As of December 31, 2023, numerous countries have now enacted the Organization of Economic Cooperation and Development’s model rules on a global minimum tax, with the earliest effective date being for taxable years beginning after December 31, 2023.
As of December 31, 2024, numerous countries have now enacted the Organization of Economic Cooperation and Development’s model rules on a global minimum tax, with the earliest effective date being for taxable years beginning after December 31, 2023. Important details of these minimum tax regimes are still being considered.
We must also provide an array of products that satisfy the broad spectrum of consumer preferences and use marketing and advertising effectively to reach consumers at the right time with the right message.
We must also provide an array of product formats, pack sizes and price points that satisfy the broad spectrum of consumer preferences and use marketing and advertising effectively to reach consumers at the right time with the right message.
Strikes such as the one we experienced in some of our U.S. manufacturing and distribution facilities in 2021, work stoppages, or other forms of labor unrest by our employees or those of our suppliers, distributors or other business partners, or situations like the renegotiation of collective bargaining agreements, have in the past and may in the future cause disruptions to our supply chain, manufacturing or distribution processes.
Strikes, work stoppages or other forms of labor unrest by our employees or those of our suppliers, distributors or other business partners, or situations like the renegotiation of collective bargaining agreements, have in the past and may in the future cause disruptions to our supply chain, manufacturing or distribution processes.
Promoting and protecting our reputation and brand image is essential to our business success. Our success depends on our ability to maintain and enhance our brands, expand to new geographies and new distribution platforms such as digital commerce, and evolve our portfolio with new product offerings that meet consumer needs and expectations.
Our success depends on our ability to maintain and enhance our brands, expand to new geographies and new distribution platforms such as digital commerce, and evolve our portfolio with new product offerings that meet consumer needs and expectations.
The scope and duration of the war in Ukraine is uncertain and rapidly changing, and we are unable to predict the full extent to which the war in Ukraine will impact our business operations, financial performance, results of operations and stock price in the future.
The scope and duration of the war in Ukraine is uncertain and rapidly changing, and we are unable to predict the full extent to which the war in Ukraine will impact our business operations, financial performance, results of operations and stock price in the future. We have discontinued new capital investments and suspended our advertising spending in Russia.
For example, in 2022 we acquired Chipita, Clif Bar and Ricolino and in 2023, we completed the sale of our developed market gum business in the United States, Canada and Europe and sold our remaining equity investment in Kuerig Dr Pepper Inc. Such transactions and investments present significant challenges and risks.
In 2023, we completed the sale of our developed market gum business in the United States, Canada and Europe and sold our remaining equity investment in Keurig Dr Pepper Inc., and in 2022 we acquired Chipita Global S.A., 19 Table of Contents Clif Bar & Company and Ricolino. Such transactions and investments present significant challenges and risks.
At the end of 2023, the projected benefit obligation of the defined benefit pension plans we sponsor was $8.6 billion and plan assets were $9.2 billion.
At the end of 2024, the projected benefit obligation of the defined benefit pension plans we sponsor was $7.9 billion and plan assets were $8.5 billion.
Moreover, adverse publicity, regulatory developments or legal action against us, our employees or our licensees related to product quality and safety, where and how we manufacture our products, environmental risks including climate change, human and workplace rights across our supply chain, labor relations, or antitrust, anti-bribery and anti-corruption compliance could damage our reputation and brand health.
Moreover, adverse publicity, regulatory developments or legal action against us, our employees, licensees, or other actors in our supply chain related to product quality and safety, where and how we manufacture our products, environmental concerns including climate change and waste management, human and workplace rights across our supply chain, alleged health implications of certain food products or processing methods, labor relations, or antitrust, anti-bribery and anti-corruption compliance could damage our reputation and brand health.
We compete to hire new personnel with a variety of capabilities in the many countries in which we manufacture and market our products and then to develop and retain their skills and competencies.
We must attract, hire, retain and develop effective leaders and a highly skilled and diverse global workforce. We compete to hire new personnel with a variety of capabilities in the many countries in which we manufacture and market our products and then to develop and retain their skills and competencies.
Our failure to obtain or adequately protect our intellectual property rights (including in response to developments in artificial intelligence technologies), or any change in law or other changes that serve to lessen or remove the current legal protections of our intellectual property, may diminish our competitiveness and could materially harm our business, financial condition and stock price. 24 Table of Contents We may be unaware of potential third-party claims of intellectual property infringement relating to our technology, brands or products.
Our failure to obtain or adequately protect our intellectual property rights (including in response to developments in artificial intelligence technologies), or any change in law or other changes that serve to lessen or remove the current legal protections of our intellectual property, may diminish our competitiveness and could materially harm our business, financial condition and stock price.
In addition, we are experiencing new and more frequent attempts by third parties to gain access to our systems, such as through increased email phishing of our workforce.
In addition, we are experiencing new and more frequent attempts by third parties to gain access to our systems, such as through increased email phishing of our workforce. Our use of third-party technology and business services may expose us to cybersecurity breaches.
The rapid growth of some channels, such as discounters as well as digital commerce which has expanded significantly following the onset of the COVID-19 pandemic, may impact our current operations or strategies more quickly than we planned for, create consumer price 14 Table of Contents deflation, alter the buying behavior of consumers or disrupt our retail customer relationships.
The rapid growth of some channels, such as discounters and digital commerce, may impact our current operations or strategies more quickly than we planned for, create consumer price deflation, alter the buying behavior of consumers or disrupt our retail customer relationships.
In 2021, we announced our goal of net zero greenhouse gas emissions by 2050. Achieving this goal will require significant transformation of our business, capital investment and the development of technology that might not currently exist.
We have also experienced decreased demand for chocolate during periods when temperatures are warmer. In 2021, we announced our goal of net zero greenhouse gas emissions by 2050. Achieving this goal will require significant transformation of our business, capital investment and the development of technology that might not currently exist.
Likewise, constraints in the supply or availability of key commodities and necessary services like transportation, such as we experienced across our business, particularly in the United States and United Kingdom, may limit our ability to grow our net revenues and earnings.
Likewise, constraints in the supply or availability of key commodities and necessary services like transportation may limit our ability to grow our net revenues and earnings.
We have discontinued new capital investments and suspended our advertising 13 Table of Contents spending in Russia. As the business and geopolitical environment continues to change, our operations and activity in Russia, which accounted for 2.9% of 2023 consolidated net revenues, or Ukraine, which accounted for 0.4% of 2023 consolidated net revenues, may decline or be further scaled back.
As the business and geopolitical environment continues to change, our operations and activity in Russia, which accounted for 2.9% of 2024 consolidated net revenues, or Ukraine, which accounted for 0.4% of 2024 consolidated net revenues, may decline or be further scaled back.
Climate change-related impacts could also reduce demand for our products. If costs for raw materials increase or availability decreases, we raise prices for our products and our competitors respond differently to those cost or availability pressures, demand for our products and our market share could suffer. We have also experienced decreased demand for chocolate during periods when temperatures are warmer.
Climate change-related impacts could also reduce demand for our products. If costs for raw materials increase or availability decreases, we raise prices for our products and our competitors respond differently to those 21 Table of Contents cost or availability pressures, demand for our products and our market share could suffer.
Accordingly, changes in the currency exchange rates that we use to translate our results into U.S. dollars for financial reporting purposes or for transactions involving multiple currencies could materially and adversely affect future demand for our products, our financial condition, results of operations, cash flows and stock price, and our relationships with customers, suppliers and employees in the short or long-term. 25 Table of Contents Weak financial performance, downgrades in our credit ratings, rising interest rates, illiquid global capital markets and volatile global economic conditions could limit our access to the global capital markets or the effectiveness of our cash management programs, reduce our liquidity and increase our borrowing costs.
Accordingly, changes in the currency exchange rates that we use to translate our results into U.S. dollars for financial reporting purposes or for transactions involving multiple currencies could materially and adversely affect future demand for our products, our financial condition, results of operations, cash flows and stock price, and our relationships with customers, suppliers and employees in the short or long-term.
Increasing regulation of carbon taxes could also substantially increase our product supply chain and distribution costs. Even if we make changes to align ourselves with such legal or regulatory requirements, we may still be subject to significant penalties or potential litigation if such laws and regulations are interpreted and applied in a manner inconsistent with our practices.
Even if we make changes to align ourselves with such legal or regulatory requirements, we may still be subject to significant penalties or potential litigation if such laws and regulations are interpreted and applied in a manner inconsistent with our practices. Similarly, we may incur substantial costs if such legal or regulatory requirements are subsequently reversed or modified.
In addition, aspects of U.S. tax laws may lead foreign jurisdictions to respond by enacting additional tax legislation that is unfavorable to us.
As of January 2025, the change in U.S. presidential administration and control of U.S. Congress may produce changes to U.S. tax legislation. In addition, aspects of U.S. tax laws may lead foreign jurisdictions to respond by enacting additional tax legislation that is unfavorable to us.
In addition, we may be impacted by litigation trends, including class action lawsuits involving consumers, employees and shareholders.
In addition, we may be impacted by litigation trends, including class action, individual or multi-jurisdiction lawsuits, or investigations or enforcement actions involving consumers, employees, shareholders or other stakeholders.
Any litigation regarding patents or other intellectual property could be costly and time-consuming and could divert management’s and other key personnel’s attention from our business operations. Third-party claims of intellectual property infringement might require us to pay monetary damages or enter into costly license agreements.
We may be unaware of potential third-party claims of intellectual property infringement relating to our technology, brands or products. Any litigation regarding patents or other intellectual property could be costly and time-consuming and could divert management’s and other key personnel’s attention from our business operations.
A significant product liability claim or other legal 23 Table of Contents judgment against us, a related regulatory enforcement action, a widespread product recall or attempts to manipulate us based on threats related to the safety of our products could materially and adversely affect our reputation and profitability.
In addition, our marketing could face claims of false or deceptive advertising or other criticism. A significant product liability or related claim or other legal judgment against us, a regulatory enforcement action, a widespread product recall or comments relating to the safety of our products could materially and adversely affect our reputation and profitability.
Actions by our employees, contractors, agents or others in violation of our policies and procedures could lead to deficiencies in our internal or other controls or violations, unintentional or otherwise, of laws and regulations.
Actions by our employees, contractors, agents or others in violation of our policies and procedures could lead to deficiencies in our internal or other controls or violations, unintentional or otherwise, of laws and regulations. We could also be subject to litigation, legal claims, investigations or regulatory actions in connection with the continued evolution of our sustainability and ESG-related initiatives.
Either partner might fail to recognize an alliance relationship that could expose the business to higher risk or make the venture not as productive as expected. Furthermore, we may not be able to complete, on terms favorable to us, desired or proposed divestitures of businesses that do not meet our strategic objectives or our growth or profitability targets.
Furthermore, we may not be able to complete, on terms favorable to us, desired or proposed divestitures of businesses that do not meet our strategic objectives or our growth or profitability targets.
Some commodities are grown by smallholder farmers who might not be able to invest to increase productivity or adapt to changing conditions. Our work to monitor our exposure to commodity prices and hedge against input price increases cannot fully protect us from changes in commodity costs due to factors like market illiquidity, specific local regulations and downstream costs.
Our efforts to monitor our exposure to commodity prices and hedge against price increases cannot fully protect us from changes in input costs, including due to factors like changing import duties and tariffs, market illiquidity, specific local regulations and downstream costs.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWhile we have not experienced any material cybersecurity threats or incidents in recent years, there can be no guarantee that we will not be the subject of future threats or incidents.
Biggest changeWhile we have not experienced a known material information security breach nor incurred material breach-related expenses over the last three years, there can be no guarantee that we will not be the subject of future cybersecurity threats or incidents.
Our CISO currently reports to our Chief Financial Officer and has operational responsibility for our information security programs, protections, and efforts, along with leading the team responsible for implementing, monitoring, and maintaining cybersecurity and data security strategy, policy, standards, architecture, and practices across our business.
Our CISO currently reports to our Chief Information and Digital Officer and has operational responsibility for our information security programs, protections, and efforts, along with leading the team responsible for implementing, monitoring, and maintaining cybersecurity and data security strategy, policy, standards, architecture, and practices across our business.
Members of our Management Leadership Team also report to the Board at least annually on data protection and current internal and external developments in cybersecurity, as part of the Board’s enterprise risk management review, and the Board receives reports of Audit Committee discussions regarding its oversight of cybersecurity risk.
Members of our Management Leadership Team also report to the Board more frequently than annually on data protection and current internal and external developments in cybersecurity, as part of the Board’s enterprise risk management review, and the Board receives reports of Audit Committee discussions regarding its oversight of cybersecurity risk.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−1 removed2 unchanged
Biggest changeAs of December 31, 2023 Number of Manufacturing Facilities Number of Distribution and Warehouse Facilities Latin America (1) 19 15 AMEA 45 26 Europe 61 6 North America 23 60 Total 148 107 Owned 123 14 Leased 25 93 Total 148 107 (1) Excludes our deconsolidated Venezuela operations.
Biggest changeIt is our practice to maintain all of our plants and other facilities in good condition. As of December 31, 2024 Manufacturing Facilities Distribution and Warehouse Facilities Latin America (1) 17 16 AMEA 48 24 Europe 61 6 North America 21 61 Total 147 107 Owned 123 13 Leased 24 94 Total 147 107 (1) Excludes our deconsolidated Venezuela operations.
Item 2. Properties. On December 31, 2023, we had approximately 148 manufacturing and processing facilities in 46 countries and 107 distribution centers and warehouses worldwide that we owned or leased.
Item 2. Properties. On December 31, 2024, we had approximately 147 manufacturing and processing facilities in 46 countries and 107 principal distribution centers and warehouses worldwide that we owned or leased.
Removed
It is our practice to maintain all of our plants and other facilities in good condition.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+1 added−1 removed2 unchanged
Biggest changeAs of December 31, Mondelēz International S&P 500 Performance Peer Group 2018 $ 100.00 $ 100.00 $ 100.00 2019 140.42 131.49 126.82 2020 152.48 155.68 138.77 2021 176.68 200.37 158.64 2022 181.84 164.08 157.16 2023 202.16 207.21 154.04 The Mondelēz International performance peer group consists of the following companies considered our market competitors or that have been selected on the basis of industry, global focus or industry leadership: Campbell Soup Company, The Coca-Cola Company, Colgate-Palmolive Company, Danone S.A., General Mills, Inc., The Hershey Company, Kellanova (formerly Kellogg Company), The Kraft Heinz Company, Nestlé S.A., PepsiCo, Inc., The Procter & Gamble Company and Unilever PLC. 30 Table of Contents Issuer Purchases of Equity Securities Our stock repurchase activity for each of the three months in the quarter ended December 31, 2023 was: Period Total Number of Shares Purchased (1) Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) (3) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2) October 1-31, 2023 5,915 $ 69.00 — $ 5,341 November 1-30, 2023 9,067,510 69.71 9,067,243 4,709 December 1-31, 2023 3,890,796 71.28 3,890,541 4,432 For the Quarter Ended December 31, 2023 12,964,221 $ 70.18 12,957,784 (1) The total number of shares purchased (and the average price paid per share) reflects: (i) shares purchased pursuant to the repurchase program described in (2) below; and (ii) shares tendered to us by employees who used shares to exercise options and to pay the related taxes for grants of deferred stock units that vested, totaling 5,915 shares, 267 shares and 255 shares for the fiscal months of October, November and December 2023, respectively.
Biggest changeAs of December 31, Mondelēz International S&P 500 Performance Peer Group 2019 $ 100.00 $ 100.00 $ 100.00 2020 108.58 118.40 109.42 2021 125.82 152.39 125.09 2022 129.50 124.79 123.92 2023 143.96 157.59 121.46 2024 121.94 197.02 123.32 The Mondelēz International performance peer group consists of the following companies considered our market competitors or that have been selected on the basis of industry, global focus or industry leadership: Campbell Soup Company, The Coca-Cola Company, Colgate-Palmolive Company, Danone S.A., General Mills, Inc., The Hershey Company, Kellanova, The Kraft Heinz Company, Nestlé S.A., PepsiCo, Inc., The Procter & Gamble Company and Unilever PLC. 30 Table of Contents Issuer Purchases of Equity Securities Our stock repurchase activity for each of the three months in the quarter ended December 31, 2024 was: Period Total Number of Shares Purchased (1) Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) (3) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2) October 1-31, 2024 3,497 $ 79.25 — $ 3,266 November 1-30, 2024 3,587,410 64.43 3,585,592 3,035 December 1-31, 2024 15,935,293 60.96 15,935,259 2,064 For the Quarter Ended December 31, 2024 19,526,200 $ 61.60 19,520,851 (1) The total number of shares purchased (and the average price paid per share) reflects: (i) shares purchased pursuant to the repurchase program described in (2) below; and (ii) shares tendered to us by employees who used shares to exercise options and to pay the related taxes for grants of deferred stock units that vested, totaling 3,497 shares, 1,818 shares and 34 shares for the fiscal months of October, November and December 2024, respectively.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. We are proud members of the Standard and Poor’s 500 and Nasdaq 100. Our Common Stock is listed on The Nasdaq Global Select Market under the symbol “MDLZ.” At January 30, 2024, there were 36,216 holders of record of our Common Stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. We are proud members of the Standard and Poor’s 500 and Nasdaq 100. Our Common Stock is listed on The Nasdaq Global Select Market under the symbol “MDLZ.” At January 31, 2025, there were 34,057 holders of record of our Common Stock.
(2) Dollar values stated in millions. Effective January 1, 2023, our Board of Directors authorized a program for the repurchase of up to $6.0 billion of our Common Stock through December 31, 2025, excluding excise tax. Since the program inception on January 1, 2023 through December 31, 2023, we have repurchased $1.6 billion.
(2) Dollar values stated in millions. Effective January 1, 2023, our Board of Directors authorized a program for the repurchase of up to $6.0 billion of our Common Stock through December 31, 2025, excluding excise tax. During the year ended December 31, 2023, we repurchased approximately $1.6 billion of Common Stock pursuant to this authorization.
As of December 31, 2023, we had approximately $4.4 billion share repurchase authorization remaining. See related information in Note 13, Capital Stock . (3) As of January 1, 2023, our share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act.
See related information in Note 13, Capital Stock . (3) As of January 1, 2023, our share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act. Any excise tax incurred on share repurchases is recognized as part of the cost basis of the shares acquired in the consolidated statements of equity.
Removed
Any excise tax incurred on share repurchases is recognized as part of the cost basis of the shares acquired in the consolidated statements of equity.
Added
During the year ended December 31, 2024, we repurchased $2.4 billion. On December 10, 2024, our Board of Directors authorized a new program for the repurchase of up to $9.0 billion of our Common Stock through December 31, 2027, excluding excise tax. This authorization, effective January 1, 2025, replaced our prior share repurchase program.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

129 edited+53 added−32 removed120 unchanged
Biggest changeFor the Years Ended December 31, 2022 2021 $ Change % Change Diluted EPS attributable to Mondelēz International $ 1.96 $ 3.04 $ (1.08) (35.5) % Simplify to Grow Program (2) 0.07 0.17 (0.10) Intangible asset impairment charges (2) 0.05 0.02 0.03 Mark-to-market losses/(gains) from derivatives (2) 0.19 (0.17) 0.36 Acquisition integration costs and contingent consideration adjustments (2) 0.05 (0.02) 0.07 Inventory step-up 0.01 — 0.01 Acquisition-related costs (2) 0.19 0.01 0.18 Divestiture-related costs (2) 0.01 0.01 — Operating results from divestitures (2) (0.16) (0.17) 0.01 2017 Malware incident net recoveries (0.02) — (0.02) European Commission legal matter 0.23 — 0.23 Incremental costs due to war in Ukraine 0.09 — 0.09 Remeasurement of net monetary position (2) 0.03 0.01 0.02 Impact from pension participation changes (2) 0.01 0.02 (0.01) Loss on debt extinguishment (3) 0.07 0.07 — Initial impacts from enacted tax law changes (4) 0.01 0.07 (0.06) Gain on equity method investment transactions (5) 0.02 (0.39) 0.41 Equity method investee items (6) (0.02) 0.03 (0.05) Adjusted EPS (1) $ 2.79 $ 2.70 $ 0.09 3.3 % Unfavorable currency translation 0.23 — 0.23 Adjusted EPS (constant currency) (1) $ 3.02 $ 2.70 $ 0.32 11.9 % Key Drivers of Adjusted EPS (constant currency) $ Change Increase in operations $ 0.27 Impact from acquisitions (2) 0.03 Change in benefit plan non-service income — Change in interest and other expense, net (7) (0.03) Change in equity method investment net earnings (0.01) Change in income taxes (4) — Change in shares outstanding (8) 0.06 Total change in Adjusted EPS (constant currency) (1) $ 0.32 (1) The tax expense/(benefit) of each of the pre-tax items excluded from our GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. • 2022 taxes for the: Simplify to Grow Program were $(26) million, intangible asset impairment charge were $(25) million, mark-to-market losses from derivatives were $(56) million, acquisition integration costs and contingent consideration adjustments were $(72) million, inventory step-up charges were $(7) million, acquisition-related costs were $11 million, divestiture-related costs were $(9) million, operating results from divestitures were $50 million, 2017 malware incident net recoveries were $10 million, European Commission legal matter were zero, incremental costs due to the war in Ukraine were $4 million, remeasurement of net monetary position were zero, impact from pension participation changes were $(3) million, loss on debt extinguishment and related expenses were $(31) million, initial impacts from enacted tax law changes were $17 million, loss on equity method investment transactions were $2 million and equity method investee items were zero. • 2021 taxes for the: Simplify to Grow Program were $(83) million, intangible asset impairment charges were $(8) million, mark-to-market gains from derivatives were $44 million, acquisition-related costs were $(4) million, acquisition integration costs and contingent 45 Table of Contents consideration adjustments were $12 million, divestiture-related costs were $(8) million, operating results from divestitures were $53 million, remeasurement of net monetary position were zero, impact from pension participation changes were $(8) million, loss on debt extinguishment were $(34) million, initial impacts from enacted tax law changes were $100 million, gain on equity method investment transactions were $184 million and equity method investee items were zero.
Biggest changeFor the Years Ended December 31, 2023 2022 $ Change % Change Diluted EPS attributable to Mondelēz International $ 3.62 $ 1.96 $ 1.66 84.7 % Simplify to Grow Program (2) 0.08 0.07 0.01 Intangible asset impairment charges (2) 0.01 0.05 (0.04) Mark-to-market (gains)/losses from derivatives (2) (0.12) 0.19 (0.31) Acquisition integration costs and contingent consideration adjustments (2) 0.14 0.05 0.09 Inventory step-up — 0.01 (0.01) Acquisition-related costs (2) — 0.19 (0.19) Divestiture-related costs (2) 0.04 0.01 0.03 Operating results from divestitures (2) (0.17) (0.30) 0.13 Gain on marketable securities (6) (0.34) — (0.34) 2017 Malware incident net recoveries — (0.02) 0.02 European Commission legal matter 0.01 0.23 (0.22) Incremental costs due to war in Ukraine — 0.09 (0.09) Gain on divestitures (2) (0.08) — (0.08) Remeasurement of net monetary position (2) 0.07 0.03 0.04 Impact from pension participation changes (2) 0.01 0.01 — Loss on debt extinguishment (3) — 0.07 (0.07) Initial impacts from enacted tax law changes (4) 0.06 0.01 0.05 Gain on equity method investment transactions (5) (0.25) 0.02 (0.27) Adjusted EPS (1) $ 3.08 $ 2.67 $ 0.41 15.4 % Currency-related items 0.13 — 0.13 Adjusted EPS (constant currency) (1) $ 3.21 $ 2.67 $ 0.54 20.2 % Key Drivers of Adjusted EPS (constant currency) $ Change Increase in operations $ 0.47 Impact from acquisitions (2) 0.06 Change in benefit plan non-service income (0.03) Change in interest and other expense, net (6) 0.04 Dividend income from marketable securities 0.01 Change in equity method investment net earnings 0.01 Change in income taxes (4) (0.05) Change in shares outstanding (7) 0.03 Total change in Adjusted EPS (constant currency) (1) $ 0.54 (1) The tax expense/(benefit) of each of the pre-tax items excluded from our GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. • 2023 taxes for the: Simplify to Grow Program were $(26) million, intangible asset impairment charges were $(6) million, mark-to-market gains from derivatives were $21 million, acquisition integration costs and contingent consideration adjustments were $(60) million, divestiture-related costs were $(25) million, operating results from divestitures were $46 million, gain on divestiture were $(8) million, European Commission legal matter were $(24) million, remeasurement of net monetary position were zero, impact from pension participation changes were $(3) million, initial impacts from enacted tax law changes were $83 million, gain on marketable securities were $133 million and gain on equity method investment transactions were $124 million. 46 Table of Contents • 2022 taxes for the: Simplify to Grow Program were $(26) million, intangible asset impairment charge were $(25) million, mark-to-market losses from derivatives were $(56) million, acquisition integration costs and contingent consideration adjustments were $(72) million, inventory step-up charges were $(7) million, acquisition-related costs were $11 million, divestiture-related costs were $(9) million operating results from divestitures were $50 million, 2017 malware incident net recoveries were $10 million, European Commission legal matter were zero, incremental costs due to the war in Ukraine were $4 million, remeasurement of net monetary position were zero, impact from pension participation changes were $(3) million, loss on debt extinguishment and related expenses were $(31) million, initial impacts from enacted tax law changes were $17 million and loss on equity method investment transactions were $2 million.
We believe our current plans for each of these brands will allow them to not be impaired, but if plans to grow brand earnings and expand margin 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.
We believe our current plans for each of these brands will allow them to not be impaired, but if plans to grow brand revenue and earnings, and expand margin 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.
Annually, we assess indefinite-life intangible assets for impairment by performing a qualitative review and assessing events and circumstances that could affect the fair value or carrying value of these assets. If significant potential impairment risk exists for a specific asset, we quantitatively test it for impairment by comparing its estimated fair value with its carrying value.
Annually, we assess indefinite-life intangible assets for impairment by performing a qualitative review and assessing events and circumstances that could affect the fair value or carrying value of these assets. If potential impairment risk exists for a specific asset, we quantitatively test it for impairment by comparing its estimated fair value with its carrying value.
(11) We exclude unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency and equity method investment transaction derivative from our non-GAAP earnings measures. The mark-to-market impacts of commodity and forecasted currency transaction derivatives are excluded until such time that the related exposures impact our operating results.
(11) We exclude unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency and equity method investment transaction derivatives from our non-GAAP earnings measures. The mark-to-market impacts of commodity and forecasted currency transaction derivatives are excluded until such time that the related exposures impact our operating results.
The increase in operating income margin was driven primarily by the favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, lapping prior year acquisition-related costs, lower impact from the European Commission legal matter, lower incremental costs due to the war in Ukraine, gain on the sale of our developed market gum business, lower intangible asset impairment charges, higher Adjusted Operating Income margin and lapping prior year inventory step-up charges, partially offset by higher acquisition integration costs and contingent consideration adjustments, higher divestiture-related costs, higher remeasurement loss of net monetary position and lapping prior year 2017 malware incident net recoveries.
The decrease in operating income margin was driven primarily by the favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, lapping prior year acquisition-related costs, lower impact from the European Commission legal matter, lower incremental costs due to the war in Ukraine, gain on the sale of our developed market gum business, lower intangible asset impairment charges, higher Adjusted Operating Income margin and lapping prior year inventory step-up charges, partially offset by higher acquisition integration costs and contingent consideration adjustments, higher divestiture-related costs, higher remeasurement loss of net monetary position and lapping prior year 2017 malware incident net recoveries.
The increase was driven primarily by higher net pricing, overhead cost leverage, lower manufacturing costs driven by productivity and favorable product mix, partially offset by higher raw material costs and higher advertising and consumer promotion costs. 39 Table of Contents Net Earnings and Earnings per Share Attributable to Mondelēz International Net earnings attributable to Mondelēz International of $4,959 million increased by $2,242 million (82.5%) in 2023.
The increase was driven primarily by higher net pricing, overhead cost leverage, lower manufacturing costs driven by productivity and favorable product mix, partially offset by higher raw material costs and higher advertising and consumer promotion costs. 45 Table of Contents Net Earnings and Earnings per Share Attributable to Mondelēz International Net earnings attributable to Mondelēz International of $4,959 million increased by $2,242 million (82.5%) in 2023.
Overall, we do not expect negative effects to our funding sources that would have a material effect on our liquidity, and we continue to monitor our global operations including the impact of ongoing or new developments in Ukraine and the Middle East. To date, we have been successful in generating cash and raising financing as needed.
Overall, we do not expect negative effects to our funding sources that would have a material effect on our liquidity, and we continue to monitor our global operations including the impact of ongoing or new conflicts in Ukraine and the Middle East. To date, we have been successful in generating cash and raising financing as needed.
GAAP financial measure) from continuing operations excluding the impacts of the items listed in the Adjusted Operating Income definition as well as losses on debt extinguishment and related expenses; gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans; mark-to-market unrealized gains or losses and realized gains or losses from marketable securities (16) ; initial impacts from enacted tax law changes (17) ; and gains or losses on equity method investment transactions.
GAAP financial measure) from continuing operations excluding the impacts of the items listed in the Adjusted Operating Income definition as well as losses on debt extinguishment and related expenses; gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans; mark-to-market unrealized gains or losses and realized gains or losses from marketable securities (17) ; initial impacts from enacted tax law changes (18) ; and gains or losses on equity method investment transactions (19) .
Unfavorable currency impacts decreased net revenues by $1,096 million, due primarily to the strength of the U.S. dollar relative to several currencies, primarily due to the Argentinean peso and Russian ruble as well as the Turkish lira, Egyptian pound, Indian rupee, Chinese yuan, Nigerian naira, Australian dollar, South African rand, Pakistan rupee and Canadian dollar, partially offset by the strength of several currencies relative to the U.S. dollar, including the Mexican peso, euro, Brazilian real, Polish zloty and British pound sterling.
Unfavorable currency impacts decreased net revenues by $1,096 million, due primarily to the strength of the U.S. dollar relative to several currencies, primarily due to the Argentinean peso and Russian ruble as well as the Turkish lira, Egyptian pound, Indian rupee, Chinese yuan, Nigerian naira, Australian dollar, 43 Table of Contents South African rand, Pakistan rupee and Canadian dollar, partially offset by the strength of several currencies relative to the U.S. dollar, including the Mexican peso, euro, Brazilian real, Polish zloty and British pound sterling.
For a full discussion related to the financial condition for the fiscal year ended December 31, 2021, including a year-to-year comparison between 2022 and 2021, see Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
For a full discussion related to the financial condition for the fiscal year ended December 31, 2022, including a year-to-year comparison between 2023 and 2022, see Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Refer to Note 9, Debt and Borrowing Arrangements , for more information on our debt and debt covenants. 53 Table of Contents Commodity Trends We regularly monitor worldwide supply, commodity cost and currency trends so we can cost-effectively secure ingredients, packaging and fuel required for production.
Refer to Note 9, Debt and Borrowing Arrangements , for more information on our debt and debt covenants. 55 Table of Contents Commodity Trends We regularly monitor worldwide supply, commodity cost and currency trends so we can cost-effectively secure ingredients, packaging and fuel required for production.
Refer to Note 6, Goodwill and Intangible Assets , for additional information. 58 Table of Contents Business Combinations The assets acquired and liabilities assumed upon the acquisition or consolidation of a business are recorded at fair value, with the residual of the purchase price allocated to goodwill.
Refer to Note 6, Goodwill and Intangible Assets , for additional information. 60 Table of Contents Business Combinations The assets acquired and liabilities assumed upon the acquisition or consolidation of a business are recorded at fair value, with the residual of the purchase price allocated to goodwill.
Operating Income Operating income increased $1,968 million (55.7%) to $5,502 million in 2023, Adjusted Operating Income (1) increased $749 million (15.3%) to $5,634 million and Adjusted Operating Income on a constant currency basis increased $939 million (19.2%) to $5,824 million due to the following: For the Years Ended December 31, 2023 2022 $ Change % Change (in millions) Operating Income $ 5,502 $ 3,534 $ 1,968 55.7 % Simplify to Grow Program (2) 131 122 9 Intangible asset impairment charges (3) 26 101 (75) Mark-to-market (gains)/losses from derivatives (4) (189) 326 (515) Acquisition integration costs and contingent consideration adjustments (5) 246 136 110 Inventory step-up (5) — 25 (25) Acquisition-related costs (5) — 330 (330) Gain on divestiture (5) (108) — (108) Divestiture-related costs (5) (10) 83 18 65 Operating results from divestitures (5) (194) (148) (46) Operating results from short-term distributor agreements (3) — (3) 2017 Malware incident net recoveries — (37) 37 European Commission legal matter (6) 43 318 (275) Incremental costs due to war in Ukraine (7) (1) 121 (122) Remeasurement of net monetary position (8) 98 40 58 Impact from pension participation changes (9) — (1) 1 Adjusted Operating Income (1) $ 5,634 $ 4,885 $ 749 15.3 % Unfavorable currency translation 190 — 190 Adjusted Operating Income (constant currency) (1) $ 5,824 $ 4,885 $ 939 19.2 % Key Drivers of Adjusted Operating Income (constant currency) $ Change Higher net pricing $ 4,143 Higher input costs (2,522) Favorable volume/mix 189 Higher selling, general and administrative expenses (947) Impact from acquisitions (5) 112 Higher asset impairment charges (36) Total change in Adjusted Operating Income (constant currency) (1) $ 939 (1) Refer to the Non-GAAP Financial Measures section for additional information.
Operating Income Operating income increased $1,968 million (55.7%) to $5,502 million in 2023, Adjusted Operating Income (1) increased $749 million (15.3%) to $5,634 million and Adjusted Operating Income on a constant currency basis increased $939 million (19.2%) to $5,824 million due to the following: For the Years Ended December 31, 2023 2022 $ Change % Change (in millions) Operating Income $ 5,502 $ 3,534 $ 1,968 55.7 % Simplify to Grow Program (2) 131 122 9 Intangible asset impairment charges (3) 26 101 (75) Mark-to-market (gains)/losses from derivatives (4) (189) 326 (515) Acquisition integration costs (5) 246 136 110 Inventory step-up (5) — 25 (25) Acquisition-related costs (5) — 330 (330) Gain on divestitures (5) (108) — (108) Divestiture-related costs (5) 83 18 65 Operating results from divestitures (5) (194) (148) (46) Operating results from short-term distributor agreements (3) — (3) 2017 Malware incident recoveries, net — (37) 37 European Commission legal matter (6) 43 318 (275) Incremental costs due to war in Ukraine (7) (1) 121 (122) Remeasurement of net monetary position (8) 98 40 58 Impact from pension participation changes (9) — (1) 1 Adjusted Operating Income (1) $ 5,634 $ 4,885 $ 749 15.3 % Currency-related items 190 — 190 Adjusted Operating Income (constant currency) (1) $ 5,824 $ 4,885 $ 939 19.2 % Key Drivers of Adjusted Operating Income (constant currency) $ Change Higher net pricing $ 4,143 Higher input costs (2,522) Favorable volume/mix 189 Higher selling, general and administrative expenses (947) Impact from acquisitions (5) 112 Higher asset impairment charges (36) Total change in Adjusted Operating Income (constant currency) (1) $ 939 (1) Refer to the Non-GAAP Financial Measures section.
If the carrying value of a reporting unit’s net assets exceeds its fair value, we would recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit's fair value. In 2023, 2022 and 2021, there were no impairments of goodwill.
If the carrying value of a reporting unit’s net assets exceeds its fair value, we would recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit's fair value. In 2024, 2023 and 2022, there were no impairments of goodwill.
(8) Refer to Note 12, Stock Plans , for more information on our equity compensation programs and share repurchase program and Note 17, Earnings per Share , for earnings per share weighted-average share information. 46 Table of Contents Results of Operations by Operating Segment Our operations and management structure are organized into four operating segments: • Latin America • AMEA • Europe • North America We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise across our key markets.
(7) Refer to Note 12, Stock Plans , for more information on our equity compensation programs and share repurchase program and Note 17, Earnings per Share , for earnings per share weighted-average share information. 47 Table of Contents Results of Operations by Operating Segment Our operations and management structure are organized into four operating segments: • Latin America • AMEA • Europe • North America We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise across our key markets.
For U.S. income tax purposes only, the Company has determined that 100% of the distributions paid to its shareholders in 2023 are characterized as a qualified dividend paid from U.S. earnings and profits.
For U.S. income tax purposes only, the Company has determined that 100% of the distributions paid to its shareholders in 2024 are characterized as a qualified dividend paid from U.S. earnings and profits.
(10) In connection with our applying highly inflationary accounting (refer to Note 1, Summary of Significant Accounting Policies ), for Argentina (beginning in the third quarter of 2018) and Türkiye (beginning in the second quarter of 2022), we exclude the related remeasurement gains or losses related to remeasuring net monetary assets or liabilities denominated in the local currency to the U.S. dollar during the periods presented and the realized gains and losses from derivatives that mitigate the foreign currency volatility related to the remeasurement of the respective net monetary assets or liabilities during the periods presented.
(10) In connection with our applying highly inflationary accounting (refer to Note 1, Summary of Significant Accounting Policies ), for Argentina (beginning in the third quarter of 2018), Türkiye (beginning in the second quarter of 2022) and Egypt and Nigeria (beginning in the fourth quarter of 2024), we exclude the related remeasurement gains or losses related to remeasuring net monetary assets or liabilities denominated in the local currency to the U.S. dollar during the periods presented and the realized gains and losses from derivatives that mitigate the foreign currency volatility related to the remeasurement of the respective net monetary assets or liabilities during the periods presented.
As of December 31, 2023 and December 31, 2022, we had no material third-party guarantees recorded on our consolidated balance sheets. Guarantees do not have, and we do not expect them to have, a material effect on our liquidity.
As of December 31, 2024 and December 31, 2023, we had no material third-party guarantees recorded on our consolidated balance sheets. Guarantees do not have, and we do not expect them to have, a material effect on our liquidity.
The assumptions for discount rates and expected rates of return and our process for setting these assumptions are described in Note 11, Benefit Plans , along with additional information on our employee benefit plans. 59 Table of Contents As a sensitivity measure, a fifty-basis point change in our discount rates or the expected rate of return on plan assets would have the following effects, increase/(decrease), on our annual benefit plan costs: As of December 31, 2023 U.S.
The assumptions for discount rates and expected rates of return and our process for setting these assumptions are described in Note 11, Benefit Plans , along with additional information on our employee benefit plans. 61 Table of Contents As a sensitivity measure, a fifty-basis point change in our discount rates or the expected rate of return on plan assets would have the following effects, increase/(decrease), on our annual benefit plan costs: As of December 31, 2024 U.S.
A limitation of these non-GAAP financial measures is they exclude items detailed below that have an impact on our U.S. GAAP reported results. The best way this limitation can be addressed is by evaluating our non-GAAP financial measures in combination with our U.S. GAAP reported results and carefully evaluating the following tables that reconcile U.S.
A limitation of these non-GAAP financial measures is they exclude items that have an impact on our U.S. GAAP reported results. The best way this limitation can be addressed is by evaluating our non-GAAP financial measures in combination with our U.S. GAAP reported results and carefully evaluating the tables that reconcile U.S.
(4) Refer to Note 10, Financial Instruments, and the Non-GAAP Financial Measures section for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives. 38 Table of Contents (5) Refer to Note 2, Acquisitions and Divestitures , for more information on the October 1, 2023 sale of the developed market gum business, November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar and the January 3, 2022 acquisition of Chipita.
(4) Refer to Note 10, Financial Instruments, and the Non-GAAP Financial Measures section for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives. 39 Table of Contents (5) Refer to Note 2, Acquisitions and Divestitures , for more information on the November 1, 2024 acquisition of Evirth, October 1, 2023 sale of the developed market gum business, November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar and the January 3, 2022 acquisition of Chipita.
Contingencies See Note 14, Commitments and Contingencies , to the consolidated financial statements. New Accounting Guidance See Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements for a discussion of new accounting standards. 60 Table of Contents
Contingencies See Note 14, Commitments and Contingencies , to the consolidated financial statements. New Accounting Guidance See Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements for a discussion of new accounting standards. 62 Table of Contents
GAAP financial measure) excluding the impacts of the Simplify to Grow Program (5) ; gains or losses (including non-cash impairment charges) on goodwill and intangible assets; divestiture (2) or acquisition gains or losses, divestiture-related costs (6) , acquisition-related costs (7) , and acquisition integration costs and contingent consideration adjustments (8) ; inventory step-up charges (9) ; operating results of divestitures (2) ; operating results from short-term distributor agreements related to the sale of a business (3) ; remeasurement of net monetary position (10) ; mark-to-market impacts from commodity, forecasted currency and equity method investment transaction derivative contracts (11) ; impact from resolution of tax matters (12) ; 2017 malware incident net recoveries; incremental costs due to the war in Ukraine (13) ; impact from the European Commission legal matter (14) ; impact from pension participation changes (15) ; and costs associated with the JDE Peet's transaction.
GAAP financial measure) excluding the impacts of the Simplify to Grow Program (5) ; gains or losses (including non-cash impairment charges) on goodwill and intangible assets; divestiture (2) or acquisition gains or losses, divestiture-related costs (6) , acquisition-related costs (7) , and acquisition integration costs and contingent consideration adjustments (8) ; inventory step-up charges (9) ; the operating results of divestitures (2) ; operating results from short-term distributor agreements related to the sale of a business (3) ; remeasurement of net monetary position (10) ; mark-to-market impacts from commodity, forecasted currency and equity method investment transaction derivative contracts (11) ; impact from resolution of tax matters (12) ; 2017 malware incident net recoveries; incremental costs due to the war in Ukraine (13) ; impact from the European Commission legal matter (14) ; the impact from pension participation changes (15) ; and operating costs from the ERP System Implementation program (16) .
The August 1, 2022 acquisition of Clif Bar added incremental 37 Table of Contents net revenues of $529 million through the one-year anniversary of the acquisition. The short-term distributor agreement related to the October 1, 2023 sale of our developed market gum business added incremental net revenues of $22 million.
The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $529 million through the one-year anniversary of the acquisition. The short-term distributor agreement related to the October 1, 2023 sale of our developed market gum business added incremental net revenues of $22 million.
Based on the guidance available thus far, we do not expect this legislation to have a material impact on our consolidated financial statements but we will continue to evaluate it as additional guidance and clarification becomes available. 33 Table of Contents Financial Outlook We seek to achieve profitable, long-term growth and manage our business to attain this goal using our key operating metrics: Organic Net Revenue, Adjusted Operating Income and Adjusted EPS.
Based on the guidance available thus far, this legislation did not have a material impact on our consolidated financial statements, but we will continue to evaluate it as additional guidance and clarification becomes available. 34 Table of Contents Financial Outlook We seek to achieve profitable, long-term growth and manage our business to attain this goal using our key operating metrics: Organic Net Revenue, Adjusted Operating Income and Adjusted EPS.
In connection with our 2023 annual impairment testing, each of our reporting units had sufficient fair value in excess of carrying value.
In connection with our 2024 annual impairment testing, each of our reporting units had sufficient fair value in excess of carrying value.
Pricing Our net revenue growth and profitability may be affected as we adjust prices to address new conditions, such as increasing input and operating costs due to supply, transportation and labor constraints and higher cost trends.
Pricing Our net revenue growth and profitability may be affected as we adjust prices to address new conditions, such as increasing input and operating costs due to supply, transportation and labor constraints, the impact of tariffs and higher cost trends.
(9) Refer to Note 11, Benefit Plans , for more information. During 2023, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.
(9) Refer to Note 11, Benefit Plans , for more information. 44 Table of Contents During 2023, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.
Acquisitions and Divestitures During 2022, we completed the following acquisitions to strategically complement and expand our existing portfolio: • Ricolino, a confectionery business with products sold primarily in Mexico • Clif Bar & Company (“Clif Bar”), a leading U.S. maker of nutritious energy bars with organic ingredients • Chipita Global S.A.
(“Evirth”), a leading manufacturer of cakes and pastries in China. During 2022, we completed the following acquisitions to strategically complement and expand our existing portfolio: • Ricolino, a confectionery business with products sold primarily in Mexico • Clif Bar & Company (“Clif Bar”), a leading U.S. maker of nutritious energy bars with organic ingredients • Chipita Global S.A.
(6) Refer to Note 14, Commitments and Contingencies , for more information. (7) Refer to Note 1, Summary of Significant Accounting Policies – War in Ukraine, for more information. (8) Refer to Note 1, Summary of Significant Accounting Policies – Currency Translation and Highly Inflationary Accounting , for information on our application of highly inflationary accounting for Argentina and Türkiye.
(7) Refer to Note 1, Summary of Significant Accounting Policies – War in Ukraine, for more information. (8) Refer to Note 1, Summary of Significant Accounting Policies – Currency Translation and Highly Inflationary Accounting , for information on our application of highly inflationary accounting for Argentina and Türkiye.
For more detailed information on our business and strategy, refer to Item 1, Business. Recent Developments and Significant Items Affecting Comparability Macroeconomic environment We continue to observe significant market and geopolitical uncertainty, inflationary pressures, supply constraints and exchange rate volatility.
For more detailed information on our business and strategy, refer to Item 1, Business. Recent Developments and Significant Items Affecting Comparability Macroeconomic environment We continue to observe significant market and geopolitical uncertainty, fluctuating consumer demand, inflationary pressures, supply constraints, trade and regulatory uncertainty and exchange rate volatility.
Our debt-to-capitalization ratio was 0.41 at December 31, 2023 and 0.46 at December 31, 2022. The weighted-average term of our outstanding long-term debt was 7.8 years at December 31, 2023 and 8.2 years at December 31, 2022. Our average daily commercial borrowings were $2.1 billion in 2023, $1.6 billion in 2022 and $0.5 billion in 2021.
Our debt-to-capitalization ratio was 0.40 at December 31, 2024 and 0.41 at December 31, 2023. The weighted-average term of our outstanding long-term debt was 7.7 years at December 31, 2024 and 7.8 years at December 31, 2023. Our average daily commercial borrowings were $1.1 billion in 2024, $2.1 billion in 2023 and $1.6 billion in 2022.
Refer to Note 2, Acquisitions and Divestitures and Note 7, Investments for more information. 52 Table of Contents Capital expenditures were $1,112 million in 2023, $906 million in 2022 and $965 million in 2021. We continue to make capital expenditures primarily to modernize manufacturing facilities and support new product and productivity initiatives.
Refer to Note 2, Acquisitions and Divestitures and Note 7, Investments for more information. 54 Table of Contents Capital expenditures were $1,387 million in 2024, $1,112 million in 2023 and $906 million in 2022. We continue to make capital expenditures primarily to modernize manufacturing facilities and support new product and productivity initiatives.
Operating income margin increased from 11.2% in 2022 to 15.3% in 2023.
Operating income margin decreased from 11.2% in 2022 to 15.3% in 2023.
Refer to Non-GAAP Financial Measures for the definition of Adjusted EPS and Consolidated Results of Operations for our reconciliation with diluted EPS. – Adjusted EPS increased in 2023, driven by operating gains, impact from acquisitions, lower interest expense, fewer shares outstanding and dividend income from marketable securities, partially offset by unfavorable currency translation, higher taxes and lower benefit plan non-service income. – Adjusted EPS increased in 2022, driven by operating gains and fewer shares outstanding, partially offset by unfavorable currency translation, higher interest expense and lower equity method investment earnings. 35 Table of Contents Discussion and Analysis of Historical Results Items Affecting Comparability of Financial Results The following table includes significant income or (expense) items that affected the comparability of our results of operations and our effective tax rates.
Refer to Non-GAAP Financial Measures for the definition of Adjusted EPS and Consolidated Results of Operations for our reconciliation with diluted EPS. – Adjusted EPS increased in 2024, driven by operating gains, fewer shares outstanding, lower taxes, lower interest expense, impact from an acquisition and higher benefit plan non-service income, partially offset by unfavorable currency-related items and lapping prior year dividend income related to our former KDP investment. – Adjusted EPS increased in 2023, driven by operating gains, impact from acquisitions, lower interest expense, fewer shares outstanding, dividend income from marketable securities and higher equity method investment earnings, partially offset by unfavorable currency translation, higher taxes and lower benefit plan non-service income. 36 Table of Contents Discussion and Analysis of Historical Results Items Affecting Comparability of Financial Results The following table includes significant income or (expense) items that affected the comparability of our results of operations and our effective tax rates.
Plans Fifty-Basis-Point Fifty-Basis-Point Increase Decrease Increase Decrease (in millions) Effect of change in discount rate on pension costs $ (2) $ — $ (19) $ 22 Effect of change in expected rate of return on plan assets on pension costs (8) 8 (39) 39 Effect of change in discount rate on postretirement health care costs 2 (2) — — Income Taxes As a global company, we calculate and provide for income taxes in each tax jurisdiction in which we operate.
Plans Fifty-Basis-Point Fifty-Basis-Point Increase Decrease Increase Decrease (in millions) Effect of change in discount rate on pension costs $ 2 $ (2) $ (14) $ 19 Effect of change in expected rate of return on plan assets on pension costs (7) 7 (36) 36 Effect of change in discount rate on postretirement health care costs (1) 1 — — Income Taxes As a global company, we calculate and provide for income taxes in each tax jurisdiction in which we operate.
For more information, see Item 1A, Risk Factors , including the risk entitled “ The war in Ukraine has impacted and could continue to impact our business operations, financial performance and results of operations. ” 32 Table of Contents Developments in the Middle East In October 2023, conflict developed in the Middle East between Hamas and Israel, and conflict has expanded throughout the region.
For additional information, see Item 1A, Risk Factors , including the risk entitled “ The war in Ukraine has impacted and could continue to impact our business operations, financial performance and results of operations. ” Developments in the Middle East In October 2023, conflict developed in the Middle East between Hamas and Israel, and has expanded to other parts of the region.
Excluding these factors, selling, general and administrative expenses increased $478 million from 2021. The increase was driven primarily by higher advertising and consumer promotion costs and higher overheads, in part due to increased investments in route to market capabilities.
Excluding these factors, selling, general and administrative expenses increased $215 million from 2023. The increase was driven primarily by higher advertising and consumer promotion costs and higher overhead costs in part due to increased investments in route to market capabilities.
We expect to continue to utilize our commercial paper program and international credit lines as needed. We continually evaluate long-term debt issuances to meet our short- and longer-term funding requirements. We also use intercompany loans with our international subsidiaries to improve financial flexibility. Our investment in JDE Peet's provides us additional flexibility.
We expect to continue to utilize our commercial paper program and international credit lines as needed. We continually evaluate long-term debt issuances to meet our short- and longer-term funding requirements. We also use intercompany loans with our international subsidiaries to improve financial flexibility.
During 2023, the primary drivers of the increase in our aggregate commodity costs were higher energy, sugar, grains, dairy, cocoa, packaging, edible oils and other ingredient costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials.
During 2024, the primary drivers of the increase in our aggregate commodity costs were higher cocoa, sugar, nuts and other ingredient costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower energy, edible oils, grains, dairy and packaging costs.
("Chipita"), a high-growth leader in the central and Eastern European croissant and baked snacks category Additionally in 2022, we announced our intention to divest our developed market gum and global Halls candy businesses and in the fourth quarter of 2022, we announced an agreement to sell the developed market gum business.
("Chipita"), a high-growth leader in the central and Eastern European croissant and baked snacks category Additionally in the fourth quarter of 2022, we announced an agreement to sell the developed market gum business.
For the Years Ended December 31, See Note 2023 2022 2021 (in millions, except percentages) Simplify to Grow Program Note 8 Restructuring Charges $ (106) $ (36) $ (154) Implementation Charges (25) (87) (167) Intangible asset impairment charges Note 6 (26) (101) (32) Mark-to-market gains/(losses) from derivatives (1) Note 10 185 (318) 277 Acquisition and divestiture-related costs Note 2 Acquisition integration costs and contingent consideration adjustments (1) (246) (148) 40 Inventory step-up — (25) — Acquisition-related costs — (254) (25) Net gain on divestitures and acquisitions 108 — 8 Divestiture-related costs (83) (18) (22) 2017 Malware incident net recoveries — 37 — Incremental costs due to war in Ukraine (2) Note 1 1 (121) — European Commission legal matter Note 14 (43) (318) — Remeasurement of net monetary position Note 1 (98) (40) (13) Impact from pension participation changes (1) Note 11 (10) (10) (42) Impact from resolution of tax matters (1) Note 14 — — 7 Loss on debt extinguishment and related expenses Note 9 (1) (129) (137) Initial impacts from enacted tax law changes Note 16 (83) (17) (100) Gain on marketable securities Note 7 593 — — Gain/(loss) on equity method investment transactions (3) Note 7 462 (22) 740 Equity method investee items (4) (93) 25 (41) Effective tax rate Note 16 26.1 % 26.8 % 27.2 % (1) Includes impacts recorded in operating income, benefit plan non-service income and interest expense and other, net.
For the Years Ended December 31, See Note 2024 2023 2022 (in millions, except percentages) Simplify to Grow Program Note 8 Restructuring Charges $ (77) $ (106) $ (36) Implementation Charges (72) (25) (87) Intangible asset impairment charges Note 6 (153) (26) (101) Mark-to-market gains/(losses) from derivatives (1) Note 10 544 185 (318) Acquisition and divestiture-related costs Note 2 Acquisition integration costs and contingent consideration adjustments (1) 315 (246) (148) Inventory step-up (3) — (25) Acquisition-related costs (3) — (254) Gain on acquisition and divestitures 4 108 — Divestiture-related costs (1) (83) (18) 2017 Malware incident net recoveries — — 37 Incremental costs due to war in Ukraine Note 1 (3) 1 (121) European Commission legal matter Note 14 3 (43) (318) ERP System Implementation costs (2) (78) — — Remeasurement of net monetary position Note 1 (31) (98) (40) Impact from pension participation changes (1) Note 11 (10) (10) (10) Loss on debt extinguishment and related expenses Note 9 — (1) (129) Initial impacts from enacted tax law changes Note 16 (24) (83) (17) Gain on marketable securities Note 7 — 593 — (Loss)/gain on equity method investment transactions (3) Note 7 (321) 462 (22) Effective tax rate Note 16 23.5 % 26.1 % 26.8 % (1) Includes impacts recorded in operating income, benefit plan non-service income and interest expense and other, net.
(2) See the Operating Income table above and the related footnotes for more information. (3) Divestitures include completed sales of businesses, partial or full sales of equity method investments and exits of major product lines upon completion of a sale or licensing agreement.
(2) See the Operating Income table above and the related footnotes for more information. 41 Table of Contents (3) Divestitures include completed sales of businesses, partial or full sales of equity method investments and exits of major product lines upon completion of a sale or licensing agreement. (4) Refer to Note 16, Income Taxes , for information on income taxes.
Higher raw material costs were in part due to higher dairy, packaging, edible oils, energy, grains, sugar, nuts and other ingredients costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower cocoa costs.
Higher raw material costs were in part due to higher cocoa, sugar, nuts and other ingredient costs, as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower energy, edible oils, grains, dairy and packaging costs. Overall, unfavorable volume/mix was due to volume declines partially offset by favorable product mix.
We expect 2024 capital expenditures to be up to $1.4 billion, including capital expenditures in connection with our Simplify to Grow Program and for funding our strategic priorities. We expect to continue to fund these expenditures with cash from operations.
We expect 2025 capital expenditures to be up to $1.4 billion, including capital expenditures in connection with our ERP System Implementation program and for funding our strategic priorities. We expect to continue to fund these expenditures with cash from operations.
These favorable items were partially offset by higher raw material costs, higher manufacturing costs, higher acquisition integration costs and contingent consideration adjustments (including lapping a prior year benefit from contingent consideration adjustments), higher advertising and consumer promotion costs, fixed asset impairment charges incurred in 2022, inventory step-up charges incurred in 2022, unfavorable volume/mix, higher other selling, general and administrative expenses and unfavorable currency. 51 Table of Contents Liquidity and Capital Resources We believe that cash from operations, our revolving credit facilities, short-term borrowings and our authorized long-term financing will continue to provide sufficient liquidity for our working capital needs, planned capital expenditures and future payments of our contractual, tax and benefit plan obligations and payments for acquisitions, share repurchases and quarterly dividends.
These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, higher acquisition integration costs and contingent consideration adjustments, higher other selling, general and administrative expenses, an intangible asset impairment charge incurred in 2023, divestiture-related costs incurred in 2023, unfavorable volume/mix and unfavorable currency. 53 Table of Contents Liquidity and Capital Resources We believe that cash from operations, our revolving credit facilities, short-term borrowings and our authorized long-term financing will continue to provide sufficient liquidity for our working capital needs, planned capital expenditures and future payments of our contractual, tax and benefit plan obligations and payments for acquisitions, share repurchases and quarterly dividends.
On July 27, 2023, the Audit Committee, with authorization delegated from our Board of Directors, declared a quarterly cash dividend of $0.425 per share of Class A Common Stock, an increase of 10 percent, which would be $1.70 per common share on an annualized basis.
On July 30, 2024, the Audit Committee, with authorization delegated from our Board of Directors, declared a quarterly cash dividend of $0.470 per share of Class A Common Stock, an increase of 11 percent, which would be $1.88 per common share on an annualized basis.
Unfavorable currency impacts were due to the strength of the U.S. dollar relative to most currencies in the region, including the Australian dollar, Indian rupee, Chinese yuan, Philippine peso, Egyptian pound, South African Rand, and Japanese yen.
Unfavorable currency translation impacts were due to the strength of the U.S. dollar relative to most currencies in the region, including the Nigerian naira, Egyptian pound, Chinese yuan, Indian rupee, Vietnam dong, Philippine peso and Japanese yen.
GAAP financial measures and the reconciliations to the corresponding U.S. GAAP financial measures, provides you with a more complete understanding of the factors and trends affecting our business than could be obtained absent these disclosures.
We believe that the presentation of these non-GAAP financial measures, when considered together with our U.S. GAAP financial measures and the reconciliations to the corresponding U.S. GAAP financial measures, provides a more complete understanding of the factors and trends affecting our business than could be obtained absent these disclosures.
Organic Net Revenue increased in both 2023 and 2022 due to higher net pricing and favorable volume/mix. Organic Net Revenue is on a constant currency basis and excludes revenue from acquisitions and divestitures.
In 2024, Organic Net Revenue increased due to higher net pricing, partially offset by unfavorable volume/mix. In 2023, Organic Net Revenue grew due to higher net pricing and favorable volume/mix. Organic Net Revenue is on a constant currency basis and excludes revenue from acquisitions and divestitures.
In 2023, we recorded $26 million of intangible asset impairment charges related to a chocolate brand in the North America segment and a biscuit brand in the Europe segment.
In 2023, we recorded $26 million of intangible asset impairment charges related to a chocolate brand in North America and a biscuit brand in Europe. In 2022, we recorded $101 million of intangible asset impairment charges related to two biscuit brands in AMEA.
(8) Refer to Note 1, Summary of Significant Accounting Policies – Currency Translation and Highly Inflationary Accounting , for information on our application of highly inflationary accounting for Argentina and Türkiye. (9) Refer to Note 11, Benefit Plans , for more information. During 2022, we realized higher net pricing and favorable volume/mix, which was largely offset by increased input costs.
(9) Refer to Note 1, Summary of Significant Accounting Policies – Currency Translation and Highly Inflationary Accounting , for information on our application of highly inflationary accounting for Argentina, Türkiye, Egypt and Nigeria. During 2024, we realized higher net pricing, which was partially offset by increased input costs and unfavorable volume/mix.
Unfavorable currency impacts reflected the strength of the U.S. dollar relative to most currencies across the region, including the euro, British pound sterling, Turkish lira, Polish zloty, Swedish krona and Romanian leu, partially offset by the strength of a few currencies relative to the U.S. dollar, primarily the Russian ruble.
Unfavorable currency translation rate changes reflected the strength of the U.S. dollar relative to most currencies across the region, including the Turkish lira, Russian ruble and Ukrainian hryvnya, partially offset by the strength of a few currencies relative to the U.S. dollar, including the British pound sterling, Polish zloty and euro.
A number of external factors such as the current macroeconomic environment, including global inflation, effects of the war in Ukraine, climate and weather conditions, commodity, transportation and labor market conditions, currency fluctuations and the effects of governmental agricultural or other programs affect the cost and availability of raw materials and agricultural materials used in our products.
A number of external factors such as the current macroeconomic environment, including global inflation, effects of geopolitical uncertainty, climate and weather conditions, commodity, transportation and labor market conditions, exchange rate volatility and the effects of local and global regulations, including trade policies, governmental agricultural or other programs affect the availability and cost of raw materials and agricultural materials used in our products.
Refer to Note 14, Commitments and Contingencies , for additional information. (15) The impact from pension participation changes represents the charges incurred when employee groups are withdrawn from multiemployer pension plans and other changes in employee group pension plan participation. We exclude these charges from our non–GAAP results because those amounts do not reflect our ongoing pension obligations.
(15) The impact from pension participation changes represents the charges incurred when employee groups are withdrawn from multiemployer pension plans and other changes in employee group pension plan participation. We exclude these charges from 58 Table of Contents our non–GAAP results because those amounts do not reflect our ongoing pension obligations.
At its December 2023 meeting, the Board of Directors approved a new $2 billion long-term financing authorization that replaced the prior long-term financing authorization of $2 billion. As of December 31, 2023, $2.0 billion of the long-term financing authorization remained available. Our total debt was $19.4 billion at December 31, 2023 and $22.9 billion at December 31, 2022.
At our July 2024 meeting, the Board of Directors approved a new $2 billion long-term financing authorization that replaced the prior long-term financing authorization of $2 billion. As of December 31, 2024, $1.5 billion of the long-term financing authorization remained available. Our total debt was $17.7 billion at December 31, 2024 and $19.4 billion at December 31, 2023.
GAAP reported figures to the non-GAAP financial measures in this Form 10-K. 57 Table of Contents Critical Accounting Estimates We prepare our consolidated financial statements in conformity with U.S. GAAP.
GAAP reported figures to the non-GAAP financial measures in this Form 10-K, which can be found above under Consolidated Results of Operations . 59 Table of Contents Critical Accounting Estimates We prepare our consolidated financial statements in conformity with U.S. GAAP.
We exclude these items to better facilitate comparisons of our underlying operating performance across periods. (9) In the third quarter of 2022, we began to exclude the one-time inventory step-up charges associated with acquired companies related to the fair market valuation of the acquired inventory. We exclude this item to better facilitate comparisons of our underlying operating performance across periods.
We exclude these items to better facilitate comparisons of our underlying operating performance across periods. See Note 10, Financial Instruments - Fair Value of Contingent Consideration for additional information. (9) In the third quarter of 2022, we began to exclude the one-time inventory step-up charges associated with acquired companies related to the fair market valuation of the acquired inventory.
For the Years Ended December 31, 2023 2022 $ Change % Change Diluted EPS attributable to Mondelēz International $ 3.62 $ 1.96 $ 1.66 84.7 % Simplify to Grow Program (2) 0.08 0.07 0.01 Intangible asset impairment charges (2) 0.01 0.05 (0.04) Mark-to-market (gains)/losses from derivatives (2) (0.12) 0.19 (0.31) Acquisition integration costs and contingent consideration adjustments (2) 0.14 0.05 0.09 Inventory step-up (2) — 0.01 (0.01) Acquisition-related costs (2) — 0.19 (0.19) Divestiture-related costs (2) 0.04 0.01 0.03 Operating results from divestitures (2) (3) (0.13) (0.16) 0.03 Gain on divestiture (2) (0.08) — (0.08) 2017 Malware incident net recoveries — (0.02) 0.02 European Commission legal matter (2) 0.01 0.23 (0.22) Incremental costs due to war in Ukraine (2) — 0.09 (0.09) Remeasurement of net monetary position (2) 0.07 0.03 0.04 Impact from pension participation changes (2) 0.01 0.01 — Loss on debt extinguishment and related expenses (4) — 0.07 (0.07) Initial impacts from enacted tax law changes (5) 0.06 0.01 0.05 Gain on marketable securities (6) (0.34) — (0.34) (Gain)/loss on equity method investment transactions (6) (0.25) 0.02 (0.27) Equity method investee items (7) 0.07 (0.02) 0.09 Adjusted EPS (1) $ 3.19 $ 2.79 $ 0.40 14.3 % Unfavorable currency translation 0.13 — 0.13 Adjusted EPS (constant currency) (1) $ 3.32 $ 2.79 $ 0.53 19.0 % Key Drivers of Adjusted EPS (constant currency) $ Change Increase in operations $ 0.47 Impact from acquisitions (2) 0.06 Change in benefit plan non-service income (0.03) Change in interest and other expense, net (8) 0.04 Dividend income from marketable securities 0.01 Change in equity method investment net earnings — Change in income taxes (5) (0.05) Change in shares outstanding (9) 0.03 Total change in Adjusted EPS (constant currency) (1) $ 0.53 (1) Refer to the Non-GAAP Financial Measures section appearing for additional information.
For the Years Ended December 31, 2024 2023 $ Change % Change Diluted EPS attributable to Mondelēz International $ 3.42 $ 3.62 $ (0.20) (5.5) % Simplify to Grow Program (2) 0.09 0.08 0.01 Intangible asset impairment charges (2) 0.08 0.01 0.07 Mark-to-market gains from derivatives (2) (0.32) (0.12) (0.20) Acquisition integration costs and contingent consideration adjustments (2) (0.17) 0.14 (0.31) Divestiture-related costs (2) — 0.04 (0.04) Operating results from divestitures (2) (3) (0.07) (0.17) 0.10 Gain on divestitures (2) — (0.08) 0.08 European Commission legal matter (2) — 0.01 (0.01) ERP System Implementation costs (2) 0.04 — 0.04 Remeasurement of net monetary position (2) 0.02 0.07 (0.05) Impact from pension participation changes (2) 0.01 0.01 — Initial impacts from enacted tax law changes (4) 0.02 0.06 (0.04) Gain on marketable securities (5) — (0.34) 0.34 Loss/(gain) on equity method investment transactions (6) 0.24 (0.25) 0.49 Adjusted EPS (1) $ 3.36 $ 3.08 $ 0.28 9.1 % Currency-related items 0.12 — 0.12 Adjusted EPS (constant currency) (1) $ 3.48 $ 3.08 $ 0.40 13.0 % Key Drivers of Adjusted EPS (constant currency) $ Change Increase in operations $ 0.24 Impact from acquisitions (2) 0.01 Change in benefit plan non-service income 0.01 Change in interest and other expense, net (6) 0.04 Change in dividend income from marketable securities (0.01) Change in income taxes (4) 0.05 Change in shares outstanding (7) 0.06 Total change in Adjusted EPS (constant currency) (1) $ 0.40 (1) Refer to the Non-GAAP Financial Measures section appearing for additional information.
The operations held by MIHN generated approximately 72.2% (or $26.0 billion) of the $36.0 billion of consolidated net revenue during fiscal year 2023 and represented approximately 91.9% (or $26.1 billion) of the $28.4 billion of net assets as of December 31, 2023.
The operations held by MIHN generated approximately 73.1% (or $26.6 billion) of the $36.4 billion of consolidated net revenue during fiscal year 2024 and represented approximately 81.9% (or $22.1 billion) of the $27.0 billion of net assets as of December 31, 2024.
We continue to evaluate the situation in Ukraine and Russia and our ability to control our operating activities and businesses on an ongoing basis and comply with applicable international sanctions, and we continue to consolidate both our Ukrainian and Russian subsidiaries.
We continue to evaluate the situation in Ukraine and Russia and our ability to control our operating activities and businesses on an ongoing basis and comply with applicable international sanctions. We continue to consolidate both our Ukrainian and Russian subsidiaries. During both 2024 and 2023, Ukraine generated 0.4% and Russia generated 2.9% of consolidated net revenue.
We believe Adjusted EPS provides improved comparability of underlying operating results. 55 Table of Contents (1) When items no longer impact our current or future presentation of non-GAAP operating results, we remove these items from our non-GAAP definitions.
We also evaluate growth in our Adjusted EPS on a constant currency basis (4) . We believe Adjusted EPS provides improved comparability of underlying operating results. 57 Table of Contents (1) When items no longer impact our current or future presentation of non-GAAP operating results, we remove these items from our non-GAAP definitions.
The tax expense/(benefit) of each of the pre-tax items excluded from our GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. • 2023 taxes for the: Simplify to Grow Program were $(26) million, intangible asset impairment charges were $(6) million, mark-to-market gains from derivatives were $21 million, acquisition integration costs and contingent consideration adjustments were $(60) million, divestiture-related costs were $(25) million, operating results from divestitures were $46 million, gain on divestiture were $(8) million, European Commission legal matter were $(24) million, remeasurement of net monetary position were zero, impact from pension 40 Table of Contents participation changes were $(3) million, initial impacts from enacted tax law changes were $83 million, gain on marketable securities were $133 million, gain on equity method investment transactions were $124 million and equity method investee items were zero. • 2022 taxes for the: Simplify to Grow Program were $(26) million, intangible asset impairment charge were $(25) million, mark-to-market losses from derivatives were $(56) million, acquisition integration costs and contingent consideration adjustments were $(72) million, inventory step-up charges were $(7) million, acquisition-related costs were $11 million, divestiture-related costs were $(9) million, operating results from divestitures were $50 million, 2017 malware incident net recoveries were $10 million, European Commission legal matter were zero, incremental costs due to the war in Ukraine were $4 million, remeasurement of net monetary position were zero, impact from pension participation changes were $(3) million, loss on debt extinguishment and related expenses were $(31) million, initial impacts from enacted tax law changes were $17 million, loss on equity method investment transactions were $2 million and equity method investee items were zero.
The tax expense/(benefit) of each of the pre-tax items excluded from our GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. • 2024 taxes for the: Simplify to Grow Program were $(36) million, intangible asset impairment charges were $(40) million, mark-to-market gains from derivatives were $107 million, acquisition integration costs and contingent consideration adjustments were $89 million, operating results from divestitures were zero, ERP Systems Implementation costs were $(19) million, remeasurement of net monetary position were zero, impact from pension participation changes were $(3) million, initial impacts from enacted tax law changes were $24 million and loss on equity method investment transactions were $4 million. • 2023 taxes for the: Simplify to Grow Program were $(26) million, intangible asset impairment charges were $(6) million, mark-to-market gains from derivatives were $21 million, acquisition integration costs and contingent consideration adjustments were $(60) million, divestiture-related costs were $(25) million, operating results from divestitures were $46 million, gain on divestiture were $(8) million, European Commission legal matter were $(24) million, remeasurement of net monetary position were zero, impact from pension participation changes were $(3) million, initial impacts from enacted tax law changes were $83 million, gain on marketable securities were $133 million and gain on equity method investment transactions were $124 million.
Emerging markets net revenues increased 20.3% and emerging markets Organic Net Revenue increased 22.0% (1) . Developed markets net revenues increased 3.9% and developed markets Organic Net Revenue increased 6.9% (1) .
Emerging markets net revenues increased 1.1% and emerging markets Organic Net Revenue increased 6.2% (1) . Developed markets net revenues increased 1.2% and developed markets Organic Net Revenue increased 3.2% (1) .
These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, higher acquisition integration costs and contingent consideration adjustments, higher other selling, general and administrative expenses, an intangible asset impairment charge incurred in 2023, divestiture-related costs incurred in 2023, unfavorable volume/mix and unfavorable currency. 2022 compared with 2021 Net revenues increased $1,378 million (16.6%), due to higher net pricing (11.8 pp), the impact of acquisitions (4.9 pp) and favorable volume/mix (0.6 pp), partially offset by unfavorable currency (0.4 pp) and the impact of divestitures (0.3 pp).
These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, unfavorable currency translation rate changes, higher other selling, general and administrative expenses, unfavorable volume/mix, costs incurred for the ERP Systems Implementation program, higher acquisition integration costs and contingent consideration adjustments and an intangible asset impairment charge incurred in 2024. 2023 compared with 2022 Net revenues increased $308 million (4.6%), due to higher net pricing (8.6 pp) and favorable volume/mix (3.1 pp), partially offset by unfavorable currency (7.1 pp).
Overall, volume/mix was slightly unfavorable as declines in biscuits & baked snacks and cheese & grocery were mostly offset by gains in candy, gum, chocolate and refreshment beverages.
Favorable volume/mix was driven by gains in gum, biscuits & baked snacks, chocolate and cheese & grocery, partially offset by declines in refreshment beverages and candy.
These favorable items were partially offset by higher acquisition integration costs and contingent consideration adjustments, higher equity method investee items, higher negative initial impacts from enacted tax law changes, higher remeasurement loss of net monetary position, lower operating results from divestitures, higher divestiture-related costs, lapping prior year 2017 malware incident net recoveries and higher Simplify to Grow program costs. – Diluted EPS decreased in 2022 driven by lapping prior year net gains on equity method transactions, unfavorable year-over-year mark-to-market impacts from currency and commodity derivatives, the impact from the European Commission legal matter, higher acquisition-related costs, incremental costs incurred due to the war in Ukraine, higher acquisition integration costs and contingent consideration adjustments, higher intangible asset impairment charges, higher remeasurement loss of net monetary position, inventory step-up charges incurred in 2022 and lower net earnings from divestitures, partially offset by lower Simplify to Grow program costs, an increase in Adjusted EPS, lower negative impacts from enacted tax law changes, lower equity method investee items, 2017 malware incident net recoveries and lower negative impact from pension participation changes. – Adjusted EPS, a non-GAAP financial measure, increased 14.3% to $3.19 in 2023 and increased 3.3% to $2.79 in 2022.
These unfavorable items were partially offset by an increase in Adjusted EPS, favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, favorable year-over-year change in mark-to-market impacts from commodity and currency derivatives, lower divestiture-related costs, lower remeasurement loss of net monetary position, favorable year-over-year change in initial impacts from enacted tax law changes and lapping prior-year impact from the European Commission legal matter. – Diluted EPS increased in 2023 driven by an increase in Adjusted EPS, a gain on marketable securities, favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, higher net gain on equity method investment transactions, lower impact from the European Commission legal matter, lapping prior year acquisition-related costs, lapping prior year incremental costs due to the war in Ukraine, a gain on divestiture, lapping prior year loss on debt extinguishment, lower intangible asset impairment charges and lapping prior year inventory step-up charges.
These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, higher remeasurement loss on net monetary position, acquisition integration costs incurred in 2022, the impact of divestitures, inventory step-up charges incurred in 2022 and lapping a prior year favorable impact from the resolution of a tax matter. 48 Table of Contents AMEA For the Years Ended December 31, 2023 2022 $ Change % Change (in millions) Net revenues $ 7,075 $ 6,767 $ 308 4.6 % Segment operating income 1,113 929 184 19.8 % For the Years Ended December 31, 2022 2021 $ Change % Change (in millions) Net revenues $ 6,767 $ 6,465 $ 302 4.7 % Segment operating income 929 1,054 (125) (11.9) % 2023 compared with 2022 Net revenues increased $308 million (4.6%), due to higher net pricing (8.6 pp) and favorable volume/mix (3.1 pp pp), partially offset by unfavorable currency (7.1 pp).
These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, higher remeasurement loss on net monetary position and higher acquisition integration costs. 49 Table of Contents AMEA For the Years Ended December 31, 2024 2023 $ Change % Change (in millions) Net revenues $ 7,296 $ 7,075 $ 221 3.1 % Segment operating income 1,192 1,113 79 7.1 % For the Years Ended December 31, 2023 2022 $ Change % Change (in millions) Net revenues $ 7,075 $ 6,767 $ 308 4.6 % Segment operating income 1,113 929 184 19.8 % 2024 compared with 2023 Net revenues increased $221 million (3.1%), due to higher net pricing (5.5 pp) the impact of an acquisition (1.0 pp), and favorable volume/mix (0.7 pp), partly offset by unfavorable currency translation rate changes (4.1 pp).
We exclude these items to better facilitate comparisons of our underlying operating performance across periods. (7) Acquisition-related costs, which includes transaction costs such as third party advisor, investment banking and legal fees, also includes one-time compensation expense related to the buyout of non-vested ESOP shares and realized gains or losses from hedging activities associated with acquisition funds.
(7) Acquisition-related costs, which includes transaction costs such as third party advisor, investment banking and legal fees, also includes one-time compensation expense related to the buyout of non-vested employee stock ownership plan (“ESOP”) shares and realized gains or losses from hedging activities associated with acquisition funds.
Diluted EPS attributable to Mondelēz International was $3.62 in 2023, up $1.66 (84.7%) from 2022. Adjusted EPS (1) was $3.19 in 2023, up $0.40 (14.3%) from 2022. Adjusted EPS on a constant currency basis was $3.32 in 2023, up $0.53 (19.0%) from 2022.
Diluted EPS attributable to Mondelēz International was $3.62 in 2023, up $1.66 (84.7%) from 2022. Adjusted EPS (1) was $3.08 in 2023, up $0.41 (15.4%) from 2022. Adjusted EPS on a constant currency basis was $3.21 in 2023, up $0.54 (20.2%) from 2022.
Unfavorable currency changes decreased operating income by $312 million, primarily due to the strength of the U.S. dollar relative to most currencies, including the euro, British pound sterling, Turkish lira, Australian dollar, Indian rupee, Polish zloty, Egyptian pound and Chinese yuan, partially offset by the strength of a few currencies relative to the U.S. dollar, including the Russian ruble and Brazilian real.
Unfavorable currency-related items, net of the adjustment for extreme pricing in Argentina, decreased operating income by $191 million primarily due to the strength of the U.S. dollar relative to most currencies, including the Argentinean peso, Russian ruble, Brazilian real, Egyptian pound, Turkish lira, Chinese yuan and Nigerian naira, partially offset by the strength of a few currencies relative to the U.S. dollar, primarily the British pound sterling and Polish zloty.
Our cash flow activity over the last three years is noted below: For the Years Ended December 31, 2023 2022 2021 (in millions) Net cash provided by operating activities $ 4,714 $ 3,908 $ 4,141 Net cash provided by/(used in) investing activities 2,812 (4,888) (26) Net cash used in financing activities (7,558) (456) (4,069) Net Cash Provided by Operating Activities The increase in net cash provided by operating activities in 2023 was primarily due to an increase in cash-basis net earnings.
Our cash flow activity over the last three years is noted below: For the Years Ended December 31, 2024 2023 2022 (in millions) Net cash provided by/(used in): Operating activities $ 4,910 $ 4,714 $ 3,908 Investing activities 526 2,812 (4,888) Financing activities (5,780) (7,558) (456) Net Cash Provided by Operating Activities The increase in net cash provided by operating activities in 2024 was primarily due to an increase in cash-basis net earnings, largely due to operating gains, partially offset by unfavorable year-over-year working capital movements, including the payment of the European Commission matter.
Net Cash Used in Financing Activities The increase in net cash used in financing activities was primarily due to lower debt proceeds, higher debt repayments and an increase in dividends paid to shareholders, partially offset by lower share repurchases in 2023. Dividends We paid dividends of $2,160 million in 2023, $1,985 million in 2022 and $1,826 million in 2021.
Net Cash Used in Financing Activities The decrease in net cash used in financing activities was primarily due to higher debt proceeds combined with lower debt repayments, partially offset by higher share repurchases and an increase in dividends paid to shareholders in 2024.
Mark-to-market gains/(losses) above also include our equity method investment-related derivative contract mark-to-market gains/(losses) (refer to Note 10, Financial Instruments ) that are recorded in the gain on equity method investment transactions on our consolidated statement of earnings.
Mark-to-market gains/(losses) above also include our equity method investment-related derivative contract mark-to-market gains/(losses) (refer to Note 10, Financial Instruments ) that are recorded in the gain on equity method investment transactions on our consolidated statement of earnings. (2) ERP System Implementation program costs represent incremental operating expenses above the normal ongoing level of spending on information technology to support operations.
Net Cash Used in/Provided by Investing Activities The improvement in net cash provided by/used in investing activities was largely driven by lapping prior year cash consideration paid for the Chipita, Clif Bar and Ricolino acquisitions combined with proceeds from the developed market gum divestiture and higher proceeds from the current year KDP and JDEP share sales as compared to the prior year JDEP share sale, partially offset by lapping higher proceeds from the settlement and replacement of net investment hedge derivative contracts.
Net Cash Used in/Provided by Investing Activities The reduction in net cash provided by investing activities was largely driven by lapping prior year proceeds from the developed market gum divestiture combined with lower proceeds from the current year JDEP share sale as compared to the prior year KDP and JDEP share sales, higher capital expenditures and cash consideration paid for the Evirth acquisition.
Our segment net revenues and earnings were: For the Years Ended December 31, 2023 2022 2021 (in millions) Net revenues: Latin America $ 5,006 $ 3,629 $ 2,797 AMEA 7,075 6,767 6,465 Europe 12,857 11,420 11,156 North America 11,078 9,680 8,302 Net revenues $ 36,016 $ 31,496 $ 28,720 For the Years Ended December 31, 2023 2022 2021 (in millions) Earnings before income taxes: Operating income: Latin America $ 529 $ 388 $ 261 AMEA 1,113 929 1,054 Europe 1,978 1,481 2,092 North America 2,092 1,769 1,371 Unrealized gains/(losses) on hedging activities (mark-to-market impacts) 189 (326) 279 General corporate expenses (356) (245) (253) Amortization of intangible assets (151) (132) (134) Net gain on divestitures and acquisitions 108 — 8 Acquisition-related costs — (330) (25) Operating income 5,502 3,534 4,653 Benefit plan non-service income 82 117 163 Interest and other expense, net (310) (423) (447) Gain on marketable securities 606 — — Earnings before income taxes $ 5,880 $ 3,228 $ 4,369 47 Table of Contents Latin America For the Years Ended December 31, 2023 2022 $ Change % Change (in millions) Net revenues $ 5,006 $ 3,629 $ 1,377 37.9 % Segment operating income 529 388 141 36.3 % For the Years Ended December 31, 2022 2021 $ Change % Change (in millions) Net revenues $ 3,629 $ 2,797 $ 832 29.7 % Segment operating income 388 261 127 48.7 % 2023 compared with 2022 Net revenues increased $1,377 million (37.9%), due to higher net pricing (31.0 pp), the impact of acquisitions (14.0 pp) and favorable volume/mix (3.8 pp), partially offset by unfavorable currency (10.0 pp) and the impact of divestitures (0.9 pp).
Our segment net revenues and operating earnings were: For the Years Ended December 31, 2024 2023 2022 (in millions) Net revenues: Latin America $ 4,926 $ 5,006 $ 3,629 AMEA 7,296 7,075 6,767 Europe 13,309 12,857 11,420 North America 10,910 11,078 9,680 Net revenues $ 36,441 $ 36,016 $ 31,496 For the Years Ended December 31, 2024 2023 2022 (in millions) Operating income: Latin America $ 532 $ 529 $ 388 AMEA 1,192 1,113 929 Europe 2,068 1,978 1,481 North America 2,492 2,092 1,769 Unrealized gains/(losses) on hedging activities (mark-to-market impacts) 543 189 (326) General corporate expenses (330) (356) (245) Amortization of intangible assets (153) (151) (132) Gain on acquisition and divestitures 4 108 — Acquisition-related costs (3) — (330) Operating income $ 6,345 $ 5,502 $ 3,534 48 Table of Contents Latin America For the Years Ended December 31, 2024 2023 $ Change % Change (in millions) Net revenues $ 4,926 $ 5,006 $ (80) (1.6) % Segment operating income 532 529 3 0.6 % For the Years Ended December 31, 2023 2022 $ Change % Change (in millions) Net revenues $ 5,006 $ 3,629 $ 1,377 37.9 % Segment operating income 529 388 141 36.3 % 2024 compared with 2023 Net revenues decreased $80 million (1.6%), due to unfavorable impact of currency-related items (6.2 pp) and unfavorable volume/mix (2.4 pp), partially offset by higher net pricing (7.0 pp).
The impact of divestitures resulted in a year-over-year reduction in net revenues of $35 million. Refer to Note 2, Acquisitions and Divestitures , for more information.
The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $484 million in 2024. Refer to Note 2, Acquisitions and Divestitures, for additional information.
(3) Gain/(loss) on equity method investment transactions is recorded outside pre-tax operating results on the consolidated statement of earnings. See footnote (1) as mark-to-market gains/(losses) on our equity method-investment-related derivative contracts are presented in the table above within mark-to-market gains/(losses) from derivatives.
See footnote (1) as mark-to-market gains/(losses) on our equity method-investment-related derivative contracts are presented in the table above within mark-to-market gains/(losses) from derivatives.
In 2022, we sold approximately 18.6 million of our shares back to JDEP, which reduced our ownership interest by approximately 3.0 percentage points. We recorded a loss of €8 million ($8 million). In 2021, we issued €300 million exchangeable bonds.
In 2022, we sold approximately 18.6 million of our shares back to JDEP, which reduced our ownership interest by approximately 3.0 percentage points. We recorded a loss of €8 million ($8 million). Keurig Dr Pepper Transactions (Nasdaq: "KDP") In 2023, we sold the remainder of our shares in KDP, representing approximately 76 million shares.
Unfavorable currency impacts were primarily due to the strength of the U.S. dollar relative to several currencies in the region, primarily the Argentinean peso, partially offset by the strength of several currencies relative to the U.S. dollar, primarily the Brazilian real and Mexican peso. The impact of divestitures resulted in a year-over-year decline in net revenues of $21 million.
Unfavorable currency translation impacts were primarily due to the strength of the U.S. dollar relative to most currencies in the region, primarily the Argentinean peso, Brazilian real, Mexican peso and Chilean peso, partially offset by the strength of a few currencies relative to the U.S. dollar, primarily the Colombian peso.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−0 removed17 unchanged
Biggest changeAs of December 31, 2023 and December 31, 2022, the estimated potential one-day loss in fair value of our interest rate-sensitive instruments, primarily debt, and the estimated potential one-day loss in pre-tax earnings from our currency and commodity instruments, as calculated in the VAR model, were: Pre-Tax Earnings Impact Fair Value Impact At 12/31/23 Average High Low At 12/31/23 Average High Low (in millions) Instruments sensitive to: Interest rates $ 119 $ 144 $ 234 $ 89 Foreign currency rates $ 14 $ 17 $ 18 $ 14 Commodity prices 21 40 86 18 Pre-Tax Earnings Impact Fair Value Impact At 12/31/22 Average High Low At 12/31/22 Average High Low (in millions) Instruments sensitive to: Interest rates $ 196 $ 201 $ 232 $ 169 Foreign currency rates $ 20 $ 23 $ 30 $ 20 Commodity prices 63 75 118 51 This VAR computation is a risk analysis tool designed to statistically estimate the maximum expected daily loss, under the specified confidence interval and assuming normal market conditions, from adverse movements in interest rates, currency exchange rates and commodity prices.
Biggest changeAs of December 31, 2024 and December 31, 2023, the estimated potential one-day loss in fair value of our interest rate-sensitive instruments, primarily debt, and the estimated potential one-day loss in pre-tax earnings from our currency and commodity instruments, as calculated in the VAR model, were: Pre-Tax Earnings Impact Fair Value Impact At 12/31/24 Average High Low At 12/31/24 Average High Low (in millions) Instruments sensitive to: Interest rates $ 76 $ 84 $ 95 $ 76 Foreign currency rates $ 22 $ 34 $ 46 $ 22 Commodity prices 21 49 99 14 Pre-Tax Earnings Impact Fair Value Impact At 12/31/23 Average High Low At 12/31/23 Average High Low (in millions) Instruments sensitive to: Interest rates $ 119 $ 144 $ 234 $ 89 Foreign currency rates $ 14 $ 17 $ 18 $ 14 Commodity prices 21 40 86 18 This VAR computation is a risk analysis tool designed to statistically estimate the maximum expected daily loss, under the specified confidence interval and assuming normal market conditions, from adverse movements in interest rates, currency exchange rates and commodity prices.
Excluded from the computation were anticipated transactions, currency trade payables and receivables, and net investments in non-U.S. subsidiaries, which the above-mentioned instruments are intended to hedge. 61 Table of Contents The VAR model assumes normal market conditions, a 95% confidence interval and a one-day holding period.
Excluded from the computation were anticipated transactions, currency trade payables and receivables, and net investments in non-U.S. subsidiaries, which the above-mentioned instruments are intended to hedge. 63 Table of Contents The VAR model assumes normal market conditions, a 95% confidence interval and a one-day holding period.
The parameters used for estimating the expected return distributions were determined by observing interest rate, currency exchange and commodity price movements over the prior quarter for the calculation of VAR amounts at December 31, 2023 and 2022, and over each of the four prior quarters for the calculation of average VAR amounts during each year.
The parameters used for estimating the expected return distributions were determined by observing interest rate, currency exchange and commodity price movements over the prior quarter for the calculation of VAR amounts at December 31, 2024 and 2023, and over each of the four prior quarters for the calculation of average VAR amounts during each year.
We cannot predict actual future movements in market rates and do not present these VAR results to be indicative of future movements in market rates or to be representative of any actual impact that future changes in market rates may have on our future financial results. 62 Table of Contents
We cannot predict actual future movements in market rates and do not present these VAR results to be indicative of future movements in market rates or to be representative of any actual impact that future changes in market rates may have on our future financial results. 64 Table of Contents
The VAR analysis was done separately for our currency exchange, fixed income and commodity risk portfolios as of each quarter end during the periods presented below. The instruments included in the VAR computation were currency exchange forwards and options for currency exchange risk, debt and swaps for interest rate risk, and commodity forwards, futures and options for commodity risk.
The VAR analysis was done separately as of each quarter end for our currency exchange, fixed income and commodity risk portfolios using historical market movements. The instruments included in the VAR computation were currency exchange forwards and options for currency exchange risk, debt and swaps for interest rate risk, and commodity forwards, futures and options for commodity risk.

Other MDLZ 10-K year-over-year comparisons