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What changed in Mondelez International's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Mondelez International's 2022 and 2023 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 2023 report.

+377 added−429 removedSource: 10-K (2024-02-02) vs 10-K (2023-02-03)

Top changes in Mondelez International's 2023 10-K

377 paragraphs added · 429 removed · 308 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

59 edited+8 added−21 removed53 unchanged
Biggest changeWe have established a hybrid-model that embraces the benefits of flexibility and collaboration, and expect our office-based employees to engage with colleagues, customers and suppliers in-person on a regular basis. Diversity, Equity & Inclusion : Diversity, equity & inclusion (“DE&I”) significantly contributes to our winning growth culture.
Biggest changeOur 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.
For more information on our U.S. and non-U.S. operations, refer to Note 18, Segment Reporting; on our manufacturing and other facilities, refer to Item 2, Properties ; and risks related to our operations outside the United States, see Item 1A, Risk Factors .
For more information on our U.S. and non-U.S. operations, refer to Note 18, Segment Reporting; on our manufacturing and other facilities, refer to Item 2, Properties ; and on risks related to our operations outside the United States, see Item 1A, Risk Factors .
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 sales and marketing initiatives, 5 Table of Contents product innovation and high standards of product quality.
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.
Van de Put served as President and Chief Executive Officer, Global Over-the-Counter, Consumer Health Division of Novartis AG, a global healthcare company, from 2009 to 2010. Prior to that, he worked for 24 years in a variety of leadership positions for several global food and beverage providers, including Danone SA, The Coca-Cola Company and Mars, Incorporated. Mr.
Mr. Van de Put served as President and Chief Executive Officer, Global Over-the-Counter, Consumer Health Division of Novartis AG, a global healthcare company, from 2009 to 2010. Prior to that, he worked for 24 years in a variety of leadership positions for several global food and beverage providers, including Danone SA, The Coca-Cola Company and Mars, Incorporated. Mr.
The Governance, Membership and Sustainability Committee of our Board of Directors oversees our ESG policies and programs related to corporate citizenship, social responsibility, and public policy issues significant to us such as sustainability and environmental responsibility; food labeling, marketing and packaging; philanthropic and political activities and contributions; and Board of Directors ESG education and capabilities.
The Governance, Membership and Sustainability Committee of our Board of Directors oversees our ESG policies and programs related to corporate citizenship, social responsibility, and public policy issues significant to us such as sustainability and environmental responsibility; food labeling, marketing and packaging; philanthropic and political activities and contributions; and Board of Directors’ ESG education and capabilities.
Examples of laws and regulations that affect our business include workplace safety regulations; selective food taxes; 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 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.
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 2022.
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 compete based on product quality, brand recognition and loyalty, service, product innovation, taste, convenience, nutritional value, the ability to identify and satisfy consumer preferences, effectiveness of our digital and other sales and marketing strategies, routes to market and distribution networks, promotional activity and price.
We compete based on product quality, brand recognition and loyalty, service, product innovation, taste, convenience, nutritional value, the ability to identify and satisfy consumer preferences, effectiveness of our digital and other sales and marketing strategies, routes to market and distribution networks, promotional activities and price.
Ramos was Senior Vice President of Global Packaging at The Estée Lauder Companies, a 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.
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.
We are also subject to legislation designed to reduce emissions from greenhouse gases, and many countries are considering introducing carbon taxes that could increase our production costs or those of our suppliers. 9 Table of Contents We continue to monitor developments in laws and regulations.
We are also subject to legislation designed to reduce emissions from greenhouse gases, and many countries are considering introducing carbon taxes that could increase our production costs or those of our suppliers. We continue to monitor developments in laws and regulations.
Further, to foster a strong sense of ownership and align the interests of employees with shareholders, we grant stock-based incentives to most senior-level employees. 7 Table of Contents We also continue to evolve our programs to meet our employees’ health and wellness needs.
Further, to foster a strong sense of ownership and align the interests of employees with shareholders, we grant stock-based incentives to most senior-level employees. We also continue to evolve our programs to meet our employees’ health and wellness needs.
We also continue to optimize our manufacturing and other operations and invest in our brands through ongoing research and development, advertising, marketing and consumer promotions. Raw Materials and Packaging We purchase and use large quantities of commodities, including cocoa, dairy, wheat, edible oils, sugar and other sweeteners, flavoring agents and nuts.
We also continue to optimize our manufacturing and supply chain networks and invest in our brands through ongoing research and development, advertising, marketing and consumer promotions. Raw Materials and Packaging We purchase and use large quantities of commodities, including cocoa, dairy, wheat, edible oils, sugar and other sweeteners, flavoring agents and nuts.
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 73.6% in 2022, 75.1% in 2021 and 73.2% in 2020.
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.
Competition We operate in highly competitive markets that include global, regional and local competitors, including new start-up brands and businesses. Some competitors have different profit objectives and investment time horizons than we do and therefore may approach pricing and promotional decisions differently.
Competition We operate in highly competitive markets that are comprised of global, regional and local competitors, including new start-up brands and businesses. Some competitors have different profit objectives and investment time horizons than we do and therefore may approach pricing and promotional decisions differently.
We use the services of independent sales offices and agents in some of our international locations. Through our global digital commerce organization and capabilities, we pursue online growth with partners in key markets around the world, including both pure e-tailers and omni-channel retailers. We continue to invest in advertising and consumer promotions, talent and digital capabilities.
Additionally, we leverage the services of independent sales offices and agents in various international locations. Through our global digital commerce organization and capabilities, we pursue online growth with partners in key markets around the world, including both pure e-tailers and omni-channel retailers. We continue to invest in advertising and consumer promotions, talent and digital capabilities.
We use hedging techniques to limit the impact of fluctuations in the cost of our principal raw materials; however, we may not be able to fully hedge against commodity cost changes, and our hedging strategies may not protect us from increases in specific raw material costs. Due to factors noted above, the costs of our principal raw materials can fluctuate.
We use hedging techniques to limit the impact of fluctuations in the cost of our principal raw materials; however, we may not be able to fully hedge against commodity cost changes, and our hedging strategies may not protect us from increases in specific raw material costs.
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 $31.5 billion and net earnings of $2.7 billion in 2022.
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.
For a discussion of long-term demographics, consumer trends and demand, refer to our Financial Outlook within Management’s Discussion and Analysis of Financial Condition and Results of Operations . Distribution and Marketing We distribute our products through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors and other facilities.
For a discussion of long-term demographics, consumer trends and demand, refer to our Financial Outlook within Management’s Discussion and Analysis of Financial Condition and Results of Operations . Distribution and Marketing Our product distribution network encompasses direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors and other facilities.
Prior to that, he served as Senior Vice President and Corporate Controller from December 2014 to August 2016 and Senior Vice President, Finance of Mondelēz Europe from October 2011 to November 2014. Mr. Zaramella joined Mondelēz International in 1996. Ms.
Prior to that, he served as Senior Vice President and Corporate Controller from December 2014 to August 2016 and Senior Vice President, Finance of Mondelēz Europe from October 2011 to November 2014. Mr. Zaramella joined Mondelēz International in 1996. Mr. Gruber became Executive Vice President and President, Europe in January 2019.
We conduct marketing efforts through three principal sets of activities: (i) consumer marketing and advertising including digital and social media, on-air, print, outdoor and other product promotions; (ii) consumer sales incentives such as coupons and rebates; and (iii) trade promotions to support price features, displays and other merchandising of our products by our customers.
Our marketing initiatives are categorized in three principal sets of activities: (i) consumer marketing and advertising including digital and social media, on-air, print, outdoor and other product promotions; (ii) consumer sales incentives such as coupons and rebates; and (iii) trade promotions to support price features, displays and other merchandising of our products by our customers.
Mr. Ramos has worked in Research and Development for over 20 years. Ms. Stein became Executive Vice President, Corporate & Legal Affairs and General Counsel in January 2021. Before joining Mondelēz International, Ms.
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.
Specifically, we promote employee development by reviewing strategic positions regularly and identifying potential internal candidates to fill those roles, evaluating job skill sets to identify competency gaps and creating developmental plans to facilitate employee professional growth.
Specifically, we review strategic positions regularly and identify potential internal candidates to fill those roles, evaluating job skill sets to identify competency gaps and creating developmental plans to facilitate employee professional growth.
A number of external factors such as changing weather patterns and conditions, commodity market conditions, the macroeconomic environment, 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, 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.
At December 31, 2022, we had approximately 13,000 U.S. employees and approximately 78,000 employees outside the United States, with employees represented by labor unions or workers’ councils representing approximately 28% of our U.S. employees and approximately 50% of our employees outside the United States.
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.
Workplace Safety and Wellness : We promote a strong culture of safety and prioritize keeping all our employees, contractors and visitors safe. To accomplish this, we employ comprehensive health, safety and environment management policies and standards throughout the organization. In addition, we strive to continuously improve our work processes, tools and metrics to reduce workplace injuries and enhance safety.
Workplace Safety and Wellness : We promote a strong culture of safety and prioritize keeping all our employees, contractors and visitors safe. To accomplish this, we employ comprehensive health, safety and environment management policies and standards throughout the organization.
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. We work to test-and-learn new ideas and implement successful ones into other areas of our business.
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.
We also publish an ESG disclosure data sheet that outlines our alignment with the Sustainability Accounting Standards Board (“SASB”) and Task Force on Climate-related Financial Disclosures (“TCFD”) reporting frameworks.
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.
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. Beyond this, diversity is a strength that drives innovation and growth, and we strive to champion diversity, inclusion, and economic empowerment. Workforce Profile : At December 31, 2022, 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, 2023, we had approximately 91,000 employees.
Our goal includes more sustainable sourcing of key ingredients, reducing our environmental footprint, promoting the rights of people across our value chain, and evolving our portfolio to offer a broader range of high-quality snacks addressing consumer needs while encouraging consumers to snack mindfully. In 2022 we made progress against these goals, such as expanding our signature raw material sourcing programs.
Our goals include more sustainable sourcing of key ingredients, reducing our environmental footprint, promoting the rights of people across our value chain, and evolving our portfolio to offer a broader range of high-quality snacks addressing consumer needs while encouraging consumers to snack mindfully.
We focus where we believe we can make a bigger difference and 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, inclusivity and equity.
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.
He formerly served as President and Chief Executive Officer of McCain Foods Limited, a multinational frozen food provider, from July 2011 to November 2017 and as its Chief Operating Officer from May 2010 to July 2011. Mr.
Van de Put became Chief Executive Officer and a director in November 2017 and became Chairman of the Board of Directors in April 2018. He formerly served as President and Chief Executive Officer of McCain Foods Limited, a multinational frozen food provider, from July 2011 to November 2017 and as its Chief Operating Officer from May 2010 to July 2011.
For information on our ongoing sustainability efforts and programs, refer to Sustainability and Mindful Snacking below. 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 global company that leads with purpose. All our employees contribute to our success and help us drive strong financial performance.
Depending on the country, trademarks remain valid for as long as they are in use or their registration status is maintained. Trademark registrations generally are renewable for fixed terms. We also have patents for a number of current and potential products. Our patents cover inventions ranging from packaging techniques to processes relating to specific products and to the products themselves.
Trademark registrations generally are renewable for fixed terms. We also have patents for a number of current and potential products. Our patents cover inventions ranging from packaging techniques to processes relating to specific products and to the products themselves.
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. In 2022, we expanded our Employee Assistance Programs to reach all global colleagues.
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.
Alviti 52 Executive Vice President and Chief People Officer Maurizio Brusadelli 54 Executive Vice President and President, Asia Pacific, Middle East and Africa Vinzenz P. Gruber 57 Executive Vice President and President, Europe Mariano C. Lozano 56 Executive Vice President and President, Latin America Daniel E.
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.
The group’s priorities support incremental growth against three key strategic areas: invent new brands and businesses, invest in early-stage entrepreneurs, and amplify SnackFutures’ impact with the CoLab start-up engagement and mentoring program built to provide start-ups with tools, technologies and expertise that can help them learn, grow and succeed.
The core objectives of this group are aligned with three key strategic areas: invent new brands and businesses, invest in early-stage entrepreneurs, and amplify SnackFutures’ influence through the CoLab start-up engagement and mentoring programs built to equip start-ups with essential tools, technologies and expertise that can help them learn, grow and succeed.
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.
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.
In the United States, we also review pay for salaried employees in the same pay grade by race/ethnicity (Asian, Black and Hispanic). The 2022 independent analysis found no systemic issues and no negative pay gap between non-white and white employees.
In the United States, we also review pay for salaried employees in the same pay grade by race/ethnicity (Asian, Black and Hispanic).
(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.
(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.
We aim to address consumer needs and market trends and leverage scalable innovation platforms, sustainability programs and breakthrough technologies in order to delight our consumers, fuel our growth and reduce our environmental impact.
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.
He previously served as CEO of Dannon North America, a business unit of Danone, a global food and beverage company, from January 10 Table of Contents 2014 until April 2017 and CEO Danone North America from September 2017 until December 2022. Mr.
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.
Culture and Employee Engagement: We conduct confidential engagement surveys frequently of our global workforce that are administered and analyzed by an independent third party. Aggregate survey results 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.
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 are focusing our technical research and development resources at 12 technical centers around the globe to drive growth, creativity, greater effectiveness, improved efficiency and accelerated project delivery. We also have a dedicated innovation and venture hub, SnackFutures, which is designed to capitalize on consumer trends and emerging growth opportunities in mindful snacking.
To drive growth, creativity, greater effectiveness, improved efficiency and accelerated project delivery, we are focusing our technical research and development resources at technical centers around the globe. Mindful snacking and sustainability are a significant focus of our current research and development initiatives.
Brusadelli joined Mondelēz International in 1993. Mr. Gruber became Executive Vice President and President, Europe in January 2019. He previously served as President, Western Europe from October 2016 to December 2018 and President, Chocolate, Europe from August 2011 to September 2016. Mr.
He previously served as President, Western Europe from October 2016 to December 2018 and President, Chocolate, Europe from August 2011 to September 2016. Mr. Gruber was formerly employed by Mondelēz International, in various capacities, from 1989 until 2000 and resumed his employment in September 2007. Mr.
We remain committed to driving longstanding and 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 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.
We are committed to equal pay for equal work, regardless of gender, race, ethnicity or other personal characteristics. To deliver on that commitment, we benchmark and set pay ranges based on market data and consider various factors such as an employee’s role and experience, job location and performance.
To deliver on that commitment, we benchmark and set pay ranges based on market data and consider various factors such as an employee’s role and experience, job location and performance. We also regularly review our compensation practices to promote fair and equitable pay.
Information about our Executive Officers The following are our executive officers as of February 3, 2023: Name Age Title Dirk Van de Put 62 Chief Executive Officer Luca Zaramella 53 Executive Vice President and Chief Financial Officer Paulette R.
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.
We also provide our annual CDP Climate Change, Water Security and Forests disclosure. 8 Table of Contents Intellectual Property Our intellectual property rights (including trademarks, patents, copyrights, registered designs, proprietary trade secrets, recipes, technology and know-how) are material to our business. We own numerous trademarks and patents in many countries around the world.
Intellectual Property Our intellectual property rights (including trademarks, patents, copyrights, registered designs, proprietary trade secrets, recipes, technology and know-how) are material to our business. We own numerous trademarks and patents in many countries around the world. Depending on the country, trademarks remain valid for as long as they are in use or their registration status is maintained.
Ramos 49 Executive Vice President, Chief Research and Development Officer Laura Stein 61 Executive Vice President, Corporate & Legal Affairs and General Counsel Gustavo C. Valle 58 Executive Vice President and President, North America Mr. Van de Put became Chief Executive Officer and a director in November 2017 and became Chairman of the Board of Directors in April 2018.
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.
By acting on results both at an aggregate enterprise level and a department/business/work group level, we have been able to enhance our culture and improve our overall engagement. We believe this reflects our ongoing efforts to focus on our employees, their well-being and the issues that matter to them.
By acting on results both at an aggregate enterprise level and a department/business/work group level, we have been able to enhance our culture and improve our overall engagement. Total Rewards : As part of our total rewards philosophy, we offer competitive compensation and benefits to attract and retain top talent.
We work to introduce new varieties of our core products, including new taste or nutrition profiles based on consumer preferences, such as Cadbury Dairy Milk chocolate bars with 30% less sugar, Sugar-free and Gluten-free Oreos and the Cadbury Plant Bar , a vegan (100% plant-based) sustainably-sourced cocoa chocolate bar wrapped in plant-based packaging.
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 .
Lozano spent more than 24 years at Danone in various leadership roles across Latin America including President, Danone Brazil. Mr. Ramos became Chief Research & Development Officer in November 2022. Before joining Mondelēz International, Mr.
Ramos became Chief Research & Development Officer in November 2022. Before joining Mondelēz International, Mr.
With the support of an independent third-party expert in this field, we conduct global pay equity reviews for salaried employees comparing employees in the same pay grade within a country/area to help identify any unsupported distinctions in pay between employees of different genders and races (as permitted by local country law).
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%.
At the end of 2022, women held 41% of global management roles (defined as Director and above) and 40% of executive leadership roles (defined as the Management Leadership Team plus one level below). In September 2020, we announced our goal to double Black representation in our U.S. management team by 2024.
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).
We have a clear strategic approach to making snacking right, so we can drive innovative, more sustainable business growth the right way for people and the planet. At our 2022 investor update, we unveiled the evolution of our growth strategy elevating sustainability as a fourth pillar in our long-term growth strategy now sitting alongside growth, execution and culture.
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.
These opportunities include mobilizing our consumer-facing brands and leveraging our partnerships with agencies and advertising platforms to drive change, equity and inclusion. 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.
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.
We also include specific DE&I metrics as a part of the strategic scorecard within our annual incentive plan for our CEO and other senior leaders. The scorecard is used consistently across the Company at both the corporate and region level and is linked directly to the four pillars of our strategy – growth, execution, culture and sustainability.
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.
He previously served as President Biscuits Business, South East Asia, Japan and Sales Asia Pacific from September 2015 to December 2015, President Markets and Sales Asia Pacific from September 2014 to September 2015 and President United Kingdom, Ireland and Nordics from September 2012 to August 2014. Prior to that, Mr. Brusadelli held various positions of increasing responsibility. Mr.
Iyer became Executive Vice President and President, Asia Pacific, Middle East and Africa in June 2023. He previously served as President India from August 2016 to June 2023. Prior to that, Mr. Iyer held various leadership positions of increasing responsibility at PepsiCo, Wrigley India Pvt Ltd and Bharti AXA General Insurance Company, India . Mr.
Alviti became Executive Vice President and Chief Human Resources Officer (now Executive Vice President and Chief People Officer) in June 2018. Before joining Mondelēz International, Ms. Alviti served as Senior Vice President and Chief Human Resources Officer of Foot Locker, Inc., a leading global retailer of athletically inspired shoes and apparel, from June 2013 to May 2018.
Iyer joined Mondelēz International in 2016. Ms. Lilak became Executive Vice President and Chief People Officer in January 2024. She formerly served as the Chief People Officer of Bumble Inc., a social networking company, from November 2021 to January 2023. Previously, Ms.
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Research, Development and Innovation We work to understand consumer needs and deliver snacks with consistent quality and taste. We continue to invest in a global network of technical centers to research and support our growth while continuing to innovate our processes.
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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.
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Mindful snacking and sustainability are a significant focus of our current research and development initiatives.
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In addition, we strive to continuously improve our work processes, tools and metrics to mitigate and prevent workplace injuries and enhance safety. We remain committed to providing a modern and flexible approach to how and where we work.
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Commodity costs have primarily increased due to recent supply chain disruptions. We expect commodity cost volatility to continue, and our commodity hedging activities cannot fully offset this volatility.
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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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Despite the recent and expected supply chain, transportation and labor disruptions, at this time we believe there will continue to be an adequate supply of the raw materials we use and that they will generally remain available.
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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.
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However, we continue to monitor the near-term and long-term impacts of the pandemic, geopolitical conditions, supply chain disruptions, inflationary pressures, climate change and related factors that could affect the availability or cost of raw materials, packaging and energy. For additional information, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations and Commodity Trends .
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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.
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In response to the COVID-19 pandemic, we will continue to take appropriate measures in our facilities including implementing temperature screening, social distancing, mask-wearing and work-from-home policies where applicable and in accordance with state and local guidelines. We remain committed to providing a modern and flexible approach to how and where we work.
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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.
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We work to reflect the diversity of ideas and people in our world and to maximize the power and potential of our employees. 6 Table of Contents In addition, we have many communities and sponsored programs tailored for our diverse workforce, including those that foster gender and race equality.
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Lilak was Senior Vice President, Chief Human Resources Officer at Dunkin’ Brands Group Inc., a multinational coffee and doughnut company, from July 2019 to November 2021. Prior to Dunkin’ Brands, Ms. Lilak spent 23 years with General Mills Inc., a global consumer foods manufacturer and marketer, in roles of increasing responsibility.
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For our U.S. leadership, Black employees held 5.5% of management roles (defined as Director and above) at the end of 2022 and 5.1% at the end of 2021. Our DE&I commitment is led from the top and driven throughout the organization by our Management Leadership Team, Board of Directors and Mondelēz Diversity, Equity & Inclusion Steering Committee.
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She served as Vice President, Human Resources for the North America Retail Segment from January 2016 to July 2019. Mr. Lozano became Executive Vice President and President, Latin America in May 2022.
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As an important step in our DE&I journey, we established a team, including C-suite officers, our Chief Diversity and Inclusion Officer, and other key senior leaders, charged with collectively setting the strategy and DE&I commitments across the organization.
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As a global employer, we recognize and value differences and are championing DE&I around the world. We are creating local and global opportunities to further racial equity and economic empowerment by expanding our DE&I initiatives across three key areas: colleagues, culture and communities.
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We also have dedicated talent programs that support and accelerate leadership development and strengthen our succession plans. Additionally, we understand the importance of maintaining competitive compensation, benefits and appropriate training that provides growth, developmental opportunities and multiple career paths within the Company.
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In 2022, we had over 16,000 colleagues actively participating in training that supported their well-being and provided them with new tools and resources to support remote work. We also launched initiatives to further agile ways of working and streamline decision-making processes to enhance productivity and employee engagement.
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We continue to build a winning growth culture and continue our commitment to work on the areas that matter to our people and build on our momentum. Total Rewards : As part of our total rewards philosophy, we offer competitive compensation and benefits to attract and retain top talent.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf our mitigation activities are not effective, if we are unable to price to cover increased costs or must reduce our prices, if increased prices affect demand for our products, 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.
Biggest changeIf 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.
Similarly, our failure or perceived failure to pursue or fulfill our goals, targets and objectives, to comply with ethical, environmental or other standards, regulations or expectations, or to satisfy various reporting standards with respect to these matters, within the timelines we announce, or at all, could have the same negative impacts, as well as expose us to government enforcement actions and private litigation.
Similarly, our failure or perceived failure to pursue or fulfill our goals, targets and objectives, to comply with ethical, environmental or other standards, regulations or expectations, or to satisfy various reporting standards with respect to these matters, within the timelines we announce, or at all, could have the same negative impacts, as well as expose us to government enforcement actions, fines and private litigation.
Those 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; 12 Table of Contents • 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.
Those 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.
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 including COVID-19, 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, 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.
Our success depends, in part, upon our ability to identify suitable transactions; negotiate favorable contractual terms; comply with applicable regulations and receive necessary consents, clearances and approvals (including regulatory and antitrust clearances and approvals); integrate or separate businesses; manage or achieve performance of ESG goals and initiatives; realize the full extent of the benefits, cost savings or synergies presented by strategic transactions; offset loss of revenue associated with divested brands or businesses; effectively implement control environment processes; minimize adverse effects on existing business relationships with suppliers and customers; achieve accurate estimates of fair value; minimize potential loss of customers or key employees; and minimize indemnities and potential disputes with buyers, sellers and strategic partners.
Our success depends, in part, upon our ability to identify suitable transactions; negotiate favorable contractual terms; comply with applicable regulations and receive necessary consents, clearances and approvals (including regulatory and antitrust clearances and approvals that may face increased scrutiny); integrate or separate businesses; manage or achieve performance of ESG goals and initiatives; realize the full extent of the benefits, cost savings or synergies presented by strategic transactions; offset loss of revenue associated with divested brands or businesses; effectively implement control environment processes; minimize adverse effects on existing business relationships with suppliers and customers; achieve accurate estimates of fair value; minimize potential loss of customers or key employees; and minimize indemnities and potential disputes with buyers, sellers and strategic partners.
During 2022, 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 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.
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 deflation, alter the buying behavior of consumers or disrupt our retail customer relationships.
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.
We face risks related to legal or tax claims or other regulatory enforcement actions. We operate around the world in many regulated 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 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.
Weather events such as floods, severe storms or water shortages that are partially caused or exacerbated by climate change might disrupt our business operations or those of our suppliers, their suppliers, our external 20 Table of Contents manufacturing partners, distributors or other business partners and could increase our insurance and other operating costs.
Weather events such as floods, severe storms or water shortages that are partially caused or exacerbated by climate change might disrupt our business operations or those of our suppliers, their suppliers, our external manufacturing partners, distributors or other business partners and could increase our insurance and other operating costs.
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.
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.
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.
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.
Various laws and regulations govern food production, sourcing, packaging and waste management, storage, distribution, sales, advertising, labeling and marketing, as well as intellectual property, competition, antitrust, trade and export controls, labor, tax, social and environmental matters, privacy, data protection, and health and safety practices.
Various laws and regulations govern food production, sourcing, packaging and waste management (including packaging containing PFAS), storage, distribution, sales, advertising, labeling and marketing, as well as intellectual property, competition, antitrust, trade and export controls, labor, tax, social and environmental matters, privacy, data protection, and health and safety practices.
We may need to increase or reallocate spending on existing and new distribution channels and technologies, marketing, advertising and new product innovation to protect or increase revenues, market share and brand significance.
We may need to increase or reallocate spending on existing and new distribution channels and technologies, marketing, advertising and new product innovation to maintain or increase revenues, market share and brand significance.
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.
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.
A significant product liability claim or other legal 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.
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.
Due to the constantly evolving and complex nature of security threats, 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 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.
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 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 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.
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.
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.
These risks could be magnified since the number of employees, contractors and others working outside of offices increased as a result of the COVID-19 pandemic. Additionally, continued geopolitical turmoil, including the ongoing war in Ukraine, has heightened the risk of cyberattacks.
These risks could be magnified since the number of employees, contractors and others working outside of offices increased since the COVID-19 pandemic. Additionally, continued geopolitical turmoil, including the ongoing war in Ukraine, has heightened the risk of cyberattacks.
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.
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.
Equity investments such as our investments in JDE Peet’s N.V. and Keurig Dr Pepper Inc., joint ventures 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 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.
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.
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.
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.
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.
Increasing 16 Table of Contents and disparate legal or regulatory restrictions on our labeling, advertising and consumer promotions, or our response to those restrictions, could limit our efforts to offer and deliver products that appeal to consumers.
Increasing and disparate legal or regulatory restrictions on our labeling, advertising and consumer promotions, or our response to those restrictions, could limit our efforts to offer and deliver products that appeal to consumers.
Factors that are hard to predict or beyond our 18 Table of Contents 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), cybersecurity incidents, labor shortages, strikes, operational and/or financial instability of our key suppliers and other vendors or service providers, government shutdowns or health pandemics such as COVID-19, 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 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.
The financial condition of our significant customers and business partners are affected by events that are largely beyond our control such as the COVID-19 pandemic. New regulations can also affect our commercial practices and our relationship with customers, suppliers or distributors.
The financial condition of our significant customers and business partners are affected by events that are largely beyond our control. New regulations can also affect our commercial practices and our relationship with customers, suppliers or distributors.
Weak economic conditions, recessions, inflation, equity market volatility or other factors, such as global or local pandemics and severe or unusual weather events, may affect consumer preferences and demand in ways that are hard to predict.
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.
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); 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 including COVID-19; forest fires; supplier capacity; and consumer or industrial demand.
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.
A sustained labor shortage or increased turnover rates within our employee base caused by COVID-19 or related issues such as vaccine mandates, or as a result of general macroeconomic factors (including high inflation and hyperinflation in certain markets), have led and in the future could continue to lead to increased costs, such as increased overtime to meet demand and increased wages to attract and retain employees.
A sustained labor shortage or increased turnover rates within our employee base as a result of general macroeconomic factors (including high inflation and hyperinflation in certain markets), have led and in the future could continue to lead to increased costs, such as increased overtime to meet demand and increased wages to attract and retain employees.
Failure to effectively address the continuing global focus on well-being, including changing consumer acceptance of certain ingredients, industrial manufacturing and processing, nutritional expectations of our products and the sustainability of our ingredients, our supply chain and our packaging (including plastic packaging and its ability to be recycled and other environmental impacts) could adversely affect our brands.
Actual or perceived failure to effectively address the continuing global focus on well-being, including changing consumer acceptance of certain ingredients, industrial manufacturing and processing, nutritional expectations of our products, the sustainability of our ingredients, our supply chain (including human rights and animal welfare issues) and our packaging (including plastic packaging and its ability to be recycled and other environmental impacts) could adversely affect our brands.
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 50% of our 78,000 employees outside the United States and approximately 28% of our 13,000 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 55% of our 79,000 employees outside the United States and approximately 21% of our 12,000 U.S. employees.
Competitor and customer pressures require that we timely and effectively respond to changes in distribution channels and technological developments that may require changes in our prices. These pressures could affect our ability to increase prices in response to commodity and other cost increases.
Competitor and customer pressures require that we timely and effectively respond to changes in relevant markets, including changes to distribution channels and technological developments. These pressures could affect our prices, including our ability to price in response to commodity and other cost increases.
If our sustainability practices do not meet evolving investor or other stakeholder expectations and standards, our reputation, our ability to attract or retain employees and our attractiveness as an investment, business partner or as an acquiror could be negatively impacted.
If our sustainability practices do not meet evolving investor or other stakeholder expectations and standards or if we are unable to satisfy all stakeholders, our reputation, our ability to attract or retain employees, our sales and our attractiveness as an investment, business partner or as an acquiror could be negatively impacted.
Other ongoing consequences of the war have included increased volatility of input prices, including for packaging materials, energy, commodities, other raw materials, labor and transportation; adverse changes in international trade policies and relations; increased exposure to foreign currency fluctuations, including volatility of the Russian ruble; constraints, volatility or disruptions in the credit and capital markets; increased costs to ensure compliance with global and local laws and regulations; and heightened risk to employee safety.
Other ongoing consequences of the war have included increased volatility of input prices, including for packaging materials, energy, commodities, other raw materials, labor and transportation; adverse changes in international trade policies and relations; increased exposure to foreign currency fluctuations, including volatility of the Russian ruble; constraints, volatility or disruptions in the credit and capital markets; increased costs to ensure compliance with global and local laws and regulations; difficulty protecting and enforcing our intellectual property rights; and heightened risk to employee safety including health and safety risks related to securing and maintaining facilities.
These include cocoa, which is a critical raw material for our chocolate and biscuit portfolios that is particularly sensitive to changes in climate, 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 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.
We are subject to risks from operating globally. We are a global company and generated 73.6% of our 2022 net revenues, 75.1% of our 2021 net revenues and 73.2% of our 2020 net revenues outside the United States. We manufacture and market our products in over 150 countries and have operations in approximately 80 countries.
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.
Disputes with significant customers, suppliers or distributors, including disputes related to pricing or performance, could adversely affect our ability to supply or deliver products or operate our business and could materially and adversely affect our product sales, financial condition and results of operations.
Disputes with significant customers, suppliers or distributors, including disputes related to pricing or performance and any resultant refusal to provide shelf and/or retail spaces for our products, could adversely affect our ability to supply or deliver products or operate our business and could materially and adversely affect our product sales, financial condition and results of operations.
Our failure to comply with existing laws and regulations, or to make changes necessary to comply with new or revised laws and regulations or evolving interpretations and application of existing laws and regulations, and differing or competing laws and regulations across the markets where our products are made, manufactured, distributed and sold, could materially and adversely affect our product sales, financial condition, results of operations and cash flows.
Our failure to comply with existing laws and regulations (or allegations thereof), or to make changes necessary to comply with new or revised laws and regulations or evolving interpretations and application of existing laws and regulations, and differing or competing laws and regulations across the markets where our products are made, manufactured, distributed and sold, could materially and adversely affect our product sales, financial condition, results of operations and cash flows, including as a result of higher compliance costs, higher capital expenditures and higher production costs.
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.
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 also focus on 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 the updated threat.
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.
In the United Kingdom, a ban on specific types of TV and 15 Table of Contents online advertising of food containing levels of fat, sugar or salt above specified thresholds is expected to go into effect in October 2025, and new measures restricting certain promotions are expected to go into effect in October 2023.
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.
Failure to effectively and timely assess new or developing trends, technological advancements or changes in distribution methods and set proper pricing, including as a result of inflation or weak economic conditions or recessions, or effective trade incentives could negatively impact demand for our products, our operating results, achievement of our strategic and financial goals and our ability to capitalize on new revenue or value-producing opportunities.
Failure to effectively and timely assess new or developing trends, technological advancements (including advancements such as artificial intelligence, machine learnings and augmented reality, which may become critical in understanding consumer preferences in the future) or changes in distribution methods and set proper pricing, including as a result of inflation or weak economic conditions or recessions, or effective trade incentives could negatively impact availability of or demand for our products, our operating results, achievement of our strategic and financial goals and our ability to capitalize on new revenue or value-producing opportunities.
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 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.
Additionally, new initiatives, such as those related to digital commerce and direct sales, that increase the amount of confidential information that we process and maintain increase our potential exposure to a cybersecurity breach.
Cyber threats to externally-hosted technology and business services are beyond our control. Additionally, new initiatives, such as those related to digital commerce and direct sales, that increase the amount of confidential information that we process and maintain increase our potential exposure to a cybersecurity breach.
Decreased agricultural productivity caused by climate change might 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 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 may not be able to operate in certain areas due to damage and safety concerns. We might also face 13 Table of Contents questions or negative scrutiny from stakeholders about our operations in Russia despite our role as a food company and our public statements about Ukraine and Russia.
We may not be able to operate in certain areas due to damage and safety concerns. We might also face questions or negative scrutiny from stakeholders about our operations in Russia despite our role as a food company and our public statements about Ukraine and Russia. The war in Ukraine has continued to result in worldwide geopolitical and macroeconomic uncertainty.
Government authorities regularly change laws and regulations as well as their interpretations of existing laws and regulations.
Government authorities regularly change laws and regulations, their interpretations of existing laws and regulations, and their enforcement priorities.
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. 17 Table of Contents Cybersecurity breaches of our or third-party systems, whether from circumvention of security systems, denial-of-service attacks or other cyberattacks such as hacking, phishing attacks, computer viruses, ransomware or malware, cyber extortion, employee or insider error, malfeasance, social engineering, physical breaches or other actions or attempts to exploit vulnerabilities may cause confidential information or Personally Identifiable Information belonging to us or our employees, customers, consumers, partners, suppliers, or governmental or regulatory authorities to be misused or breached.
We leverage third parties for various technology and business services who may experience cybersecurity breaches, whether from circumvention of security systems, denial-of-service attacks or other cyberattacks such as hacking, phishing attacks, computer viruses, ransomware or malware, cyber extortion, employee or insider error, malfeasance, social engineering, physical breaches or other actions or attempts to exploit vulnerabilities may cause confidential information or Personally Identifiable Information belonging to us or our employees, customers, 17 Table of Contents consumers, partners, suppliers, or governmental or regulatory authorities to be misused or breached.
At the end of 2022, the projected benefit obligation of the defined benefit pension plans we sponsor was $8.1 billion and plan assets were $8.7 billion.
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.
For example, consumers have increasingly focused on well-being, including reducing sodium and added sugar consumption, as well as the source and authenticity of ingredients in the foods they consume.
For example, consumers have increasingly focused on well-being, including reducing sodium and added sugar consumption or using weight-loss drugs to reduce consumption overall or change consumption patterns, as well as the source and authenticity of ingredients in the foods they consume.
As a global company, we are subject to taxation in the United States and various other countries and jurisdictions. As a result, our effective tax rate is determined based on the income and applicable tax rates in the various jurisdictions in which we operate.
As a result, our effective tax rate is determined based on the income and applicable tax rates in the various jurisdictions in which we operate.
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 in response to the COVID-19 pandemic.
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.
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 before these platforms or our own social media monitoring can detect this risk to our brand.
As the business and geopolitical environment continues to change, our operations and activity in Russia, which accounted for 4.0% of 2022 consolidated net revenues, or Ukraine, which accounted for 0.3% of 2022 consolidated net revenues, may decline or be further scaled back.
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.
For example, in 2022 we acquired Chipita, Clif Bar and Ricolino. Such transactions and investments present significant challenges and risks. We may not successfully identify potential strategic transactions to pursue, may not have counterparties willing to transact with us, or we may not successfully identify or manage the risks presented by these strategic transactions, or complete such transactions.
We may not successfully identify potential strategic transactions to pursue, may not have counterparties willing to transact with us, or we may not successfully identify or manage the risks presented by these strategic transactions, or complete such transactions.
We hedge a number of risks including exposures to foreign exchange rate movements and volatility of interest rates that could impact our future borrowing costs. Hedging of these risks could potentially subject us to counter-party credit risk. In addition, local economies, monetary policies and currency hedging availability affect our ability to hedge against currency-related economic losses.
Hedging of these risks could potentially subject us to counter-party credit risk. In addition, local economies, monetary policies and currency hedging availability affect our ability to hedge against currency-related economic losses.
Our failure to obtain or adequately protect our intellectual property rights, 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.
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.
Any of these occurrences could materially and adversely affect our reputation, brand health, ability to introduce new products or improve the quality of existing products, product sales, financial condition, results of operations, cash flows and stock price. 24 Table of Contents Financial Risks We face risks related to tax matters, including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes.
Any of these occurrences could materially and adversely affect our reputation, brand health, ability to introduce new products or improve the quality of existing products, product sales, financial condition, results of operations, cash flows and stock price.
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.
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 might not be able to successfully mitigate our exposure to currency risks due to factors such as continued global and local market volatility, actions by foreign governments, political uncertainty, inflation and limited hedging opportunities.
We might not be able to successfully mitigate our exposure to currency risks due to factors such as continued global and local market volatility, actions by foreign governments, trade disputes, economic sanctions, political uncertainty, inflation, interest rates and limited hedging opportunities. For instance, in December 2023, the Argentinean peso devalued significantly in excess of historic levels.
Based on our initial analysis of the provisions, we expect to meet the criteria of a large corporation but we do not believe this legislation will have a material impact on our consolidated financial statements; we will continue to evaluate it as additional guidance and clarification becomes available.
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. We are also subject to tax audits by governmental authorities.
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.
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.
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 the SEC’s proposed climate-related reporting requirements, and similar proposals by other international regulatory bodies.
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.
Demand for our products could decrease and our profitability could suffer if we fail to expand our product offerings successfully across product categories, rapidly develop products in faster growing and more profitable categories or reach consumers in efficient and effective ways leveraging data and analytics.
Demand for our products could decrease and our profitability could suffer if we fail to expand our product offerings successfully across product categories, rapidly develop products in faster growing and more profitable categories or reach consumers in efficient and effective ways leveraging data and analytics. 16 Table of Contents Negative perceptions concerning the health, environmental and social implications of certain food products, ingredients, packaging materials, and sourcing or production methods could influence consumer preferences and acceptance of some of our products and marketing programs.
We could also be subject to litigation, legal claims or regulatory actions in connection with the continued evolution of our sustainability and ESG-related initiatives.
Furthermore, as a result of the COVID-19 pandemic and supply chain challenges, there may be investigations, legal claims or litigation against us relating to our actions or decisions in response to these conditions. We could also be subject to litigation, legal claims or regulatory actions in connection with the continued evolution of our sustainability and ESG-related initiatives.
Third-party claims of intellectual property infringement might require us to pay monetary damages or enter into costly license agreements. We also may be subject to injunctions against development and sale of certain of our products, which could include removal of existing products from sale.
We also may be subject to injunctions against development and sale of certain of our products, which could include removal of existing products from sale.
Retail consolidation also increases the risk that adverse changes in our customers’ business operations or financial performance will have a corresponding material adverse effect on us.
Retail consolidation also increases the risk that adverse changes in our customers’ business operations or financial performance will have a corresponding material adverse effect on us. For example, if our customers cannot access sufficient funds or financing, then they may delay, decrease or cancel purchases of our products, or delay or fail to pay us for previous purchases.
We are also subject to tax audits by governmental authorities. Although we believe our tax estimates are reasonable, if a taxing authority disagrees with the positions we have taken, we could face additional tax liabilities, including interest and penalties.
Although we believe our tax estimates are reasonable, if a taxing authority disagrees with the positions we have taken, we could face additional tax liabilities, including interest and penalties. Unexpected results from one or more such tax audits could significantly adversely affect our effective tax rate, results of operations, cash flows and stock price.
The food and snacking industry is highly competitive. Our principal competitors include food, snack and beverage companies that operate globally, regionally and locally. Failure to effectively respond to challenges from our competitors could adversely affect our business.
Our principal competitors are food, snack and beverage companies that operate globally, regionally and locally, and, in many markets, include retailers with their own branded and private label products. Failure to effectively respond to actions, innovations or other challenges from our competitors could adversely affect our business.
We could also fail to effectively respond to evolving perceptions and goals of those in our workforce or whom we 22 Table of Contents might seek to hire, including in response to changes brought on by the COVID-19 pandemic, with respect to flexible working or other matters.
Changes in immigration laws and policies or restrictions could make it more difficult for us to recruit or relocate skilled employees. We could also fail to effectively respond to evolving perceptions and goals of those in our workforce or whom we might seek to hire with respect to flexible working or other matters.
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 our goal. 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.
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.
The war in Ukraine has continued to result in worldwide geopolitical and macroeconomic uncertainty. The war has materially disrupted commodity markets, including for wheat, energy and energy-related commodities, and is contributing to supply chain disruption and inflation.
The war continues to disrupt commodity markets, including for wheat, energy and energy-related commodities, and continues to contribute to supply chain disruption and inflation.
These risks could be heightened in light of increased pressure on our suppliers from supply chain challenges.
These risks could be heightened in light of increased pressure on our suppliers from supply chain challenges. Additionally, to the extent we are required to perform remote audits, these audits do not fully offset risks from the inability to conduct on-site audits.
For example, if our customers cannot access sufficient funds or financing, then they may delay, decrease or cancel purchases of our products, or delay or fail to pay us for previous purchases. 21 Table of Contents Failure to effectively respond to retail consolidation, increasing retail power and competition from retailer and other economy brands could materially and adversely affect our reputation, brands, product sales, financial condition, results of operations, cash flows and stock price.
Failure to effectively respond to retail consolidation, increasing retail power and competition from retailer and other economy brands could materially and adversely affect our reputation, brands, product sales, financial condition, results of operations, cash flows and stock price. We are subject to changes in our relationships with significant customers, suppliers and distributors.
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. The nature and degree of the various risks we face can also differ significantly among our regions and businesses.
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.
Unexpected results from one or more such tax audits could significantly adversely affect our effective tax rate, results of operations, cash flows and stock price. We are subject to currency exchange rate fluctuations. At December 31, 2022, we sold our products in over 150 countries and had operations in approximately 80 countries.
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.
Actions by our employees, contractors or agents 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. 23 Table of Contents Furthermore, as a result of the COVID-19 pandemic and supply chain challenges, there may be investigations, legal claims or litigation against us relating to our actions or decisions in response to these conditions.
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.
Any of these disruptions could have a negative impact on our business operations, financial performance, results of operations and stock price, and this impact could be material. 14 Table of Contents We operate in a highly competitive industry and we face risks related to the execution of our strategy and our timely response to channel shifts and pricing and other competitive pressures.
We operate in a highly competitive industry where we face risks related to the execution of our strategy as well as our ability or willingness to respond, timely or otherwise, to channel shifts, pricing and other competitive pressures. The food and snacking industry is highly competitive.
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Therefore, we are subject to risks inherent in global operations.
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The nature and degree of the various risks we face can also differ significantly among our regions and businesses.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAs of December 31, 2022 Number of Manufacturing Facilities Number of Distribution and Warehouse Facilities Latin America (1) 16 11 AMEA 45 29 Europe 63 10 North America 24 61 Total 148 111 Owned 128 15 Leased 20 96 Total 148 111 (1) Excludes our deconsolidated Venezuela operations.
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.
Item 2. Properties. On December 31, 2022, we had approximately 148 manufacturing and processing facilities in 46 countries and 111 distribution centers and warehouses worldwide that we owned or leased.
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 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeAs of December 31, Mondelēz International S&P 500 Performance Peer Group 2017 $ 100.00 $ 100.00 $ 100.00 2018 95.73 95.62 94.15 2019 134.43 125.72 119.40 2020 145.97 148.85 130.65 2021 169.14 191.58 149.35 2022 174.08 156.88 147.96 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, Kellogg Company, The Kraft Heinz Company, Nestlé S.A., PepsiCo, Inc., The Procter & Gamble Company and Unilever PLC. 28 Table of Contents Issuer Purchases of Equity Securities Our stock repurchase activity for each of the three months in the quarter ended December 31, 2022 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) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2) October 1-31, 2022 1,863,361 $ 56.55 1,847,134 $ 1,707 November 1-30, 2022 600,970 64.87 585,763 1,669 December 1-31, 2022 240,012 67.47 236,873 1,653 For the Quarter Ended December 31, 2022 2,704,343 59.37 2,669,770 (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 16,227 shares, 15,207 shares and 3,139 shares for the fiscal months of October, November and December 2022, respectively.
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.
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, 2023, there were 38,218 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 30, 2024, there were 36,216 holders of record of our Common Stock.
(2) Dollar values stated in millions. Our Board of Directors authorized the repurchase up to $23.7 billion of our Common Stock through December 31, 2023. Since the program inception on March 12, 2013 through December 31, 2022, we have repurchased $22.0 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. Since the program inception on January 1, 2023 through December 31, 2023, we have repurchased $1.6 billion.
Our Board of Directors authorized a new program for the repurchase of up to $6.0 billion of our Common Stock through December 31, 2025. This authorization, effective January 1, 2023, replaces our current share repurchase program. See related information in Note 13, Capital Stock.
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.
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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.

Item 7. Management's Discussion & Analysis

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

159 edited+43 added−75 removed79 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 (2) 0.01 — 0.01 Acquisition-related costs (2) 0.19 0.01 0.18 Divestiture-related costs (2) 0.01 0.01 — Net earnings from divestitures (2) (0.01) (0.03) 0.02 2017 Malware incident net recoveries (0.02) — (0.02) European Commission legal matter (2) 0.23 — 0.23 Incremental costs due to war in Ukraine (2) 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 and related expenses (3) 0.07 0.07 — Initial impacts from enacted tax law changes (4) 0.01 0.07 (0.06) Loss/(gain) on equity method investment transactions (5) 0.02 (0.39) 0.41 Equity method investee items (6) (0.01) 0.04 (0.05) Adjusted EPS $ 2.95 $ 2.85 $ 0.10 3.5 % Unfavorable currency translation 0.24 — 0.24 Adjusted EPS (constant currency) $ 3.19 $ 2.85 $ 0.34 11.9 % 62 Table of Contents For the Years Ended December 31, 2021 2020 $ Change % Change Diluted EPS attributable to Mondelēz International $ 3.04 $ 2.47 $ 0.57 23.1 % Simplify to Grow Program (2) 0.17 0.20 (0.03) Intangible asset impairment charges (2) 0.02 0.08 (0.06) Mark-to-market gains from derivatives (2) (0.17) (0.01) (0.16) Acquisition integration costs and contingent consideration adjustments (2) (0.02) — (0.02) Acquisition-related costs (2) 0.01 0.01 — Divestiture-related costs (2) 0.01 — 0.01 Net earnings from divestitures (2) (0.03) (0.08) 0.05 Costs associate with JDE Peet's transaction (2) — 0.20 (0.20) Remeasurement of net monetary position (2) 0.01 0.01 — Impact from pension participation changes (2) 0.02 0.01 0.01 Impact from resolution of tax matters (2) — (0.02) 0.02 Loss related to interest rate swaps (7) — 0.05 (0.05) Loss on debt extinguishment (3) 0.07 0.10 (0.03) Initial impacts from enacted tax law changes (4) 0.07 0.02 0.05 Gain on equity method investment transactions (5) (0.39) (0.55) 0.16 Equity method investee items (6) 0.04 0.05 (0.01) Adjusted EPS $ 2.85 $ 2.54 $ 0.31 12.2 % Favorable currency translation (0.09) — (0.09) Adjusted EPS (constant currency) $ 2.76 $ 2.54 $ 0.22 8.7 % (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, net earnings from divestitures were $1 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 $(5) million. • 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 consideration adjustments were $12 million, divestiture-related costs were $(8) million, net earnings from divestitures were $12 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 $(4) million. • 2020 taxes for the: Simplify to Grow Program were $(81) million, intangible asset impairment charges were $(33) million, mark-to-market gains from derivatives were $8 million, acquisition-related costs were zero, net earnings from divestitures were $26 million, costs associated with the JDE Peet's transaction were $250 million, loss on remeasurement of net monetary position were zero, impact from pension participation changes were $(2) million, impact from resolution of tax matters were $16 million, loss related to interest rate swaps were $(24) million, loss on debt extinguishment were $(46) million, initial impacts from enacted tax law changes were $36 million, gains on equity method investment transactions were $202 million and equity method investee items were $(4) million.
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.
(4) Refer to Note 2, Acquisitions and Divestitures , for more information on the November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar, January 3, 2022 acquisition of Chipita, April 1, 2021 acquisition of Gourmet Food, March 25, 2021 acquisition of a majority interest in Grenade, January 4, 2021 acquisition of the remaining 93% of equity in Hu and April 1, 2020 acquisition of a significant majority interest in Give & Go.
(5) Refer to Note 2, Acquisitions and Divestitures , for more information on the November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar, January 3, 2022 acquisition of Chipita, April 1, 2021 acquisition of Gourmet Food, March 25, 2021 acquisition of a majority interest in Grenade, January 4, 2021 acquisition of the remaining 93% of equity in Hu and April 1, 2020 acquisition of a significant majority interest in Give & Go.
The decrease in operating income margin was driven primarily by the year-over-year unfavorable change in mark-to-market gains/(losses) from currency and commodity hedging activities, the impact from the European Commission legal matter, higher acquisition-related costs, higher acquisition integration costs and contingent consideration adjustments, lower Adjusted Operating Income margin, incremental costs due to the war in Ukraine, higher intangible asset impairment charges, higher remeasurement of net monetary position and inventory step-up charges incurred in 2022, partially offset by lower costs for the Simplify to Grow Program, lapping the prior-year unfavorable impact from pension participation changes, lower divestiture-related costs and the impact of 2017 malware incident net recoveries.
The decrease in operating income margin was driven primarily by the year-over-year unfavorable change in mark-to-market gains/(losses) from currency and commodity hedging activities, the impact from the European Commission legal matter, higher acquisition-related costs, lower Adjusted Operating Income margin, higher acquisition integration costs and contingent consideration adjustments, incremental costs due to the war in Ukraine, higher intangible asset impairment charges, higher remeasurement of net monetary position and inventory step-up charges incurred in 2022, partially offset by lower costs for the Simplify to Grow Program, lapping the prior year unfavorable impact from pension participation changes, the impact of 2017 malware incident net recoveries and the impact of divestitures.
GAAP. The preparation of these financial statements requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates and assumptions.
The preparation of these financial statements requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates and assumptions.
While the costs of our principal raw materials fluctuate, we believe there will continue to be an adequate supply of the raw materials we use and that they will generally remain available. 56 Table of Contents Non-GAAP Financial Measures We use non-GAAP financial information and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results and provide additional insight and transparency on how we evaluate our business.
While the costs of our principal raw materials fluctuate, we believe there will continue to be an adequate supply of the raw materials we use and that they will generally remain available. 54 Table of Contents Non-GAAP Financial Measures We use non-GAAP financial information and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results and provide additional insight and transparency on how we evaluate our business.
(6) Acquisition-related costs, which includes transaction costs such as third party advisor, investment banking and legal fees, also includes one-time compensation expense related to the buyout of non-vested ESOP shares and realized gains or losses from hedging activities associated with acquisition funds. We exclude these items 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. (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.
Total selling, general and administrative expenses increased $1,121 million from 2021, due to a number of factors noted in the table above, including in part, the impact from the European Commission legal matter, the impact of acquisitions, higher acquisition-related costs, higher acquisition integration costs and contingent consideration adjustments, higher remeasurement loss of net monetary position, higher divestiture-related costs, incremental costs due to the war in Ukraine and lapping the prior-year favorable impact from the resolution of a tax matter, which were partially offset by a favorable currency impact related to expenses, lapping the prior-year unfavorable impact from pension participation changes, incremental expenses associated with the 2017 malware incident net recoveries and lower implementation costs incurred for the Simplify to Grow Program.
Total selling, general and administrative expenses increased $1,121 million from 2021, due to a number of factors noted in the table above, including in part, the impact from the European Commission legal matter, the impact of acquisitions, higher acquisition-related costs, higher acquisition integration costs and contingent consideration adjustments, higher remeasurement loss of net monetary position, higher divestiture-related costs, incremental costs due to the war in Ukraine and lapping the prior year favorable impact from the resolution of a tax matter, which were partially offset by a favorable currency impact related to expenses, lapping the prior year unfavorable impact from pension participation changes, 2017 malware incident net recoveries, lower implementation costs incurred for the Simplify to Grow Program and the impact from divestitures.
We believe that snacks continue to be a source of comfort as well as excitement and variety for consumers. Social media increasingly helps consumers find food trends, inspiration and connection on their social media and other feeds. Consumers are also interested in buying snacks conveniently, whether through same-day delivery apps, shipped sources or different retail settings.
We believe that snacks continue to be a source of comfort as well as excitement and variety for consumers. Social media increasingly helps consumers find food trends, inspiration and connection on their social media and other feeds. Consumers are also interested in buying snacks conveniently, whether through same-day delivery platforms, shipped sources or different retail settings.
Segment operating income decreased $611 million (29.2%), primarily due to higher raw material costs, the impact from the European Commission legal matter, unfavorable currency, incremental costs incurred due to the war in Ukraine, higher acquisition integration costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs and fixed asset impairment charges incurred in 2022.
Segment operating income decreased $611 million (29.2%), primarily due to higher raw material costs, the impact from the European Commission legal matter, unfavorable currency, incremental costs incurred due to the war in Ukraine, higher acquisition integration costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, unfavorable volume/mix and fixed asset impairment charges incurred in 2022.
Unfavorable currency changes decreased operating income by $319 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 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.
The decrease was driven primarily by higher raw material costs, unfavorable product mix and the impact of acquisitions, partially offset by higher net pricing and overhead cost leverage. 38 Table of Contents Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $2,717 million decreased by $1,583 million (36.8%) in 2022.
The decrease was driven primarily by higher raw material costs, unfavorable product mix and the impact of acquisitions, partially offset by higher net pricing and overhead cost leverage. 44 Table of Contents Net Earnings and Earnings per Share Attributable to Mondelēz International Net earnings attributable to Mondelēz International of $2,717 million decreased by $1,583 million (36.8%) in 2022.
(3) Constant currency operating results are calculated by dividing or multiplying, as appropriate, the current-period local currency operating results by the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period.
(4) Constant currency operating results are calculated by dividing or multiplying, as appropriate, the current-period local currency operating results by the currency exchange rates used to translate the financial statements in the comparable prior year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior year period.
(10) 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 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.
For a full discussion related to the financial condition for the fiscal year ended December 31, 2020, including a year-to-year comparison between 2021 and 2020, 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, 2021.
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.
(7) Acquisition integration costs and contingent consideration adjustments include one-time costs related to the integration of acquisitions as well as any adjustments made to the fair market value of contingent compensation liabilities that have been previously booked for earn-outs related to acquisitions that do not relate to employee compensation expense.
(8) Acquisition integration costs and contingent consideration adjustments include one-time costs related to the integration of acquisitions as well as any adjustments made to the fair market value of contingent compensation liabilities that have been previously booked for earn-outs related to acquisitions that do not relate to employee compensation expense.
We exclude these items to better facilitate comparisons of our underlying operating performance across periods. (8) In the third quarter of 2022, we began to exclude the one-time inventory step-up charges associated with acquired companies related to the fair market valuation of the acquired inventory. We exclude this item to better facilitate comparisons of our underlying operating performance across periods.
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.
Refer to Note 6, Goodwill and Intangible Assets , for additional information. 51 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. 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.
Unfavorable currency impacts decreased net revenues by $1,905 million, primarily due to the strength of the U.S. dollar relative to most currencies, including the euro, British pound sterling, Argentinean peso, Turkish lira, Australian dollar, Indian rupee, Polish zloty, Chinese yuan and Swedish krona, partially offset by the strength of a few currencies relative to the U.S. dollar, primarily the Russian ruble, Brazilian real and Mexican peso.
Unfavorable currency impacts decreased net revenues by $1,905 million, primarily due to the strength of the U.S. dollar relative to most currencies, including the euro, British pound sterling, Argentinean peso, Turkish lira, Australian dollar, Indian rupee, 42 Table of Contents Polish zloty, Chinese yuan and Swedish krona, partially offset by the strength of a few currencies relative to the U.S. dollar, primarily the Russian ruble, Brazilian real and Mexican peso.
Excluding these factors, selling, general and administrative expenses increased $474 million from 2021. The increase was driven primarily by higher overheads, in part due to increased investments in route-to-market capabilities, and higher advertising and consumer promotion costs.
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.
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 2022, 2021 and 2020, 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 2023, 2022 and 2021, there were no impairments of goodwill.
(10) 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. 45 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.
(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.
(4) Refer to Note 9, Debt and Borrowing Arrangements , for more information on the loss on debt extinguishment and related expenses. (5) Refer to Note 16, Income Taxes , for information on income taxes. (6) Refer to Note 7, Equity Method Investments , for more information on gains and losses on equity method investment transactions.
(4) Refer to Note 9, Debt and Borrowing Arrangements , for more information on the loss on debt extinguishment and related expenses. (5) Refer to Note 16, Income Taxes , for information on income taxes. (6) Refer to Note 7, Investments , for more information on gains on marketable securities and gains and losses on equity method investment transactions.
For U.S. income tax purposes only, the Company has determined that 100% of the distributions paid to its shareholders in 2022 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 2023 are characterized as a qualified dividend paid from U.S. earnings and profits.
(4) Non-GAAP adjustments related to the Simplify to Grow Program reflect costs incurred that relate to the objectives of our program to transform our supply chain network and organizational structure. Costs that do not meet the program objectives are not reflected in the non-GAAP adjustments.
(5) Non-GAAP adjustments related to the Simplify to Grow Program reflect costs incurred that relate to the objectives of our program to transform our supply chain network and organizational structure. Costs that do not meet the program objectives are not reflected in the non-GAAP adjustments.
Incremental costs related to increasing operations in other primarily European facilities are not included with these costs. (13) In the fourth quarter of 2022, we began to exclude the impact from the European Commission legal matter.
Incremental costs related to increasing operations in other primarily European facilities are not included with these costs. (14) In the fourth quarter of 2022, we began to exclude the impact from the European Commission legal matter.
We began to incur incremental costs directly related to the war including asset impairments, such as property and inventory losses, higher expected allowances for uncollectible accounts receivable and committed compensation. We have isolated and exclude these costs and related impacts from our operating results to facilitate evaluation and comparisons of our ongoing results.
We began to incur incremental costs directly related to the war including asset impairments, such as property and inventory losses, higher expected allowances for uncollectible accounts receivable and committed compensation. We have isolated and exclude these costs and related impacts as well as subsequent recoveries from our operating results to facilitate evaluation and comparisons of our ongoing results.
Organic Net Revenue increased in both 2022 and 2021 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.
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.
We adjust our product prices based on a number of variables including market factors, transportation, logistics and changes in our product input costs, and we have increased prices to control costs given recent significant cost inflation. 33 Table of Contents Operating Costs – Our operating costs include raw materials, labor, selling, general and administrative expenses, taxes, currency impacts and financing costs.
We adjust our product prices based on a number of variables including market factors, transportation, logistics and changes in our product input costs, and we have increased prices to control costs given significant cost inflation. Operating Costs Our operating costs include raw materials, labor, selling, general and administrative expenses, taxes, currency impacts and financing costs.
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 58 Table of Contents these disclosures.
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.
(5) Refer to Note 7, Equity Method Investments , for more information on the gains and losses on equity method investment transactions. (6) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees, such as acquisition and divestiture-related costs and restructuring program costs.
(5) Refer to Note 7, Investments , for more information on gains and losses on equity method investment transactions. (6) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's equity method investee, such as acquisition and divestiture-related costs, restructuring program costs.
As we record our share of KDP and JDE Peet’s ongoing earnings on a one-quarter lag basis, any KDP or JDE Peet’s ownership reductions are reflected as divestitures within our non-GAAP results the following quarter.
As we record our share of JDE Peet’s ongoing earnings on a one-quarter lag basis, any JDE Peet’s ownership reductions are reflected as divestitures within our non-GAAP results the following quarter.
In connection with our 2022 annual impairment testing, each of our reporting units had sufficient fair value in excess of carrying value.
In connection with our 2023 annual impairment testing, each of our reporting units had sufficient fair value in excess of carrying value.
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 investments in JDE Peet's and KDP also provide 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. Our investment in JDE Peet's provides us additional flexibility.
Refer to Note 9, Debt and Borrowing Arrangements , for more information on our debt and debt covenants. Commodity Trends We regularly monitor worldwide supply, commodity cost and currency trends so we can cost-effectively secure ingredients, packaging and fuel required for production.
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.
We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current rates and trends when appropriate. Our assumptions also reflect our historical experiences and management’s best judgment regarding future expectations. These and other assumptions affect the annual expense and obligations recognized for the underlying plans. As permitted by U.S.
We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current rates and trends when appropriate. Our assumptions also reflect our historical experiences and management’s best judgment regarding future expectations. These and other assumptions affect the annual expense and obligations recognized for the underlying plans.
Higher net pricing was reflected across all categories. The January 3, 2022 acquisition of Chipita added incremental net revenues of $685 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis) in 2022.
Higher net pricing was reflected across all categories. The January 3, 2022 acquisition of Chipita added incremental net revenues of $685 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis) through the one-year anniversary of the acquisition in 2022.
(7) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees, such as acquisition and divestiture-related costs and restructuring program costs. (8) Excludes the currency impact on interest expense related to our non-U.S. dollar-denominated debt which is included in currency translation.
(7) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's equity method investee, such as acquisition and divestiture-related costs, restructuring program costs and intangible asset impairment costs. (8) Excludes the currency impact on interest expense related to our non-U.S. dollar-denominated debt which is included in currency translation.
The November 1, 2022 acquisition of Ricolino added incremental net revenues of $98 million (constant currency basis), the August 1, 2022 acquisition of Clif Bar added incremental net revenues of $361 million, the January 3, 2022 acquisition of Chipita added incremental net revenues of $720 million (constant currency basis), the April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis).
The November 1, 2022 acquisition of Ricolino added incremental net revenues of $98 million (constant currency basis), the August 1, 2022 acquisition of Clif Bar added incremental net revenues of $361 million, the January 3, 2022 acquisition of Chipita added incremental net revenues of $720 million (constant currency basis), the April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) through the one-year anniversary of the acquisition in 2022 and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis) through the one-year anniversary of the acquisition in 2022.
Our debt-to-capitalization ratio was 0.46 at December 31, 2022 and 0.41 at December 31, 2021. The weighted-average term of our outstanding long-term debt was 8.2 years at December 31, 2022 and 9.5 years at December 31, 2021. Our average daily commercial borrowings were $1.6 billion in 2022, $0.5 billion in 2021 and $2.3 billion in 2020.
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.
GAAP, we generally amortize the effect of changes in the assumptions over future periods. The cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost), is deferred and included in expense on a straight-line basis over the average remaining service period of the employees expected to receive benefits.
We amortize the effect of changes in the assumptions over future periods to reflect the cost or benefit of plan changes, such as increasing or decreasing benefits for prior employee service (prior service cost). These changes are deferred and included in expense on a straight-line basis over the average remaining service period of the employees expected to receive benefits.
Favorable currency impact was due to the strength of the Canadian dollar relative to the U.S. dollar.
Unfavorable currency impact was due to the strength of the U.S. dollar relative to the Canadian dollar.
Overall, volume/mix was flat as gains in candy, gum, chocolate and refreshment beverages, were offset by declines in biscuits & baked snacks and cheese & grocery.
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.
This year, for our Europe and North America reporting units, we used a market-based, weighted-average cost of capital of 6.8% to discount the projected cash flows of those operations. For our Latin America and AMEA reporting units, we used a risk-rated discount rate of 9.8%.
This year, for our Europe and North America reporting units, we used a market-based, weighted-average cost of capital of 7.1% to discount the projected cash flows of those operations. For our Latin America and AMEA reporting units, we used a risk-rated discount rate of 10.1%.
For accounting purposes, we estimate the pension and postretirement healthcare benefit obligations utilizing assumptions and estimates for discount rates; expected returns on plan assets; expected compensation increases; employee-related factors such as turnover, retirement age and mortality; and health care cost trends.
Employee Benefit Plans We sponsor various employee benefit plans worldwide, including primarily pension plans and postretirement healthcare benefits. For accounting purposes, we estimate the pension and postretirement healthcare benefit obligations utilizing assumptions and estimates for discount rates; expected returns on plan assets; expected compensation increases; employee-related factors such as turnover, retirement age and mortality; and health care cost trends.
We continue to evaluate the situation in Ukraine and Russia and our ability to control our operating activities and businesses on an ongoing basis, and we continue to consolidate both our Ukrainian and Russian subsidiaries.
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.
During 2022, the primary drivers of the increase in our aggregate commodity costs were higher dairy, packaging, edible oils, energy, grains, sugar, nuts and other ingredient costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower cocoa costs.
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.
Similarly, within Adjusted EPS, our equity method investment net earnings exclude our proportionate share of our investees’ significant operating and non-operating items (16) . We also evaluate growth in our Adjusted EPS on a constant currency basis (3) .
Similarly, within Adjusted EPS, our equity method investment net earnings exclude our proportionate share of our investee’s significant operating and non-operating items (18) . We also evaluate growth in our Adjusted EPS on a constant currency basis (4) .
Developed markets net revenues increased 3.9% and developed markets Organic Net Revenue increased 7.0%. Emerging markets net revenues increased 20.3% and emerging markets Organic Net Revenue increased 22.0%.
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) .
Refer to Note 16, Income Taxes , for more information. (16) We have excluded our proportionate share of our equity method investees’ significant operating and non-operating items such as acquisition and divestiture related costs, restructuring program costs and initial impacts from enacted tax law changes, in order to provide investors with a comparable view of our performance across periods.
(18) We have excluded our proportionate share of our equity method investees’ significant operating and non-operating items such as acquisition and divestiture related costs, restructuring program costs and initial impacts from enacted tax law changes, in order to provide investors with a comparable view of our performance across periods.
For the Years Ended December 31, See Note 2022 2021 2020 (in millions, except percentages) Simplify to Grow Program Note 8 Restructuring Charges $ (36) $ (154) $ (156) Implementation Charges (87) (167) (207) Intangible asset impairment charges Note 6 (101) (32) (144) Mark-to-market (losses)/gains from derivatives (1) Note 10 (318) 277 19 Acquisition and divestiture-related costs Note 2 Acquisition integration costs and contingent consideration adjustments (1) (148) 40 (4) Inventory step-up (25) — — Acquisition-related costs (254) (25) (15) Net gain on acquisition and divestitures — 8 — Divestiture-related costs (18) (22) (4) Costs associated with JDE Peet's transaction Note 7 — — (48) 2017 Malware incident net recoveries 37 — — Incremental costs due to war in Ukraine (2) Note 1 (121) — — European Commission legal matter Note 14 (318) — — Remeasurement of net monetary position Note 1 (40) (13) (9) Impact from pension participation changes (1) Note 11 (10) (42) (11) Impact from resolution of tax matters (1) Note 14 — 7 48 Loss related to interest rate swaps Note 9 & 10 — — (103) Loss on debt extinguishment and related expenses Note 9 (129) (137) (185) Initial impacts from enacted tax law changes Note 16 (17) (100) (36) (Loss)/gain on equity method investment transactions (3) Note 7 (22) 740 989 Equity method investee items (4) 8 (61) (72) Effective tax rate Note 16 26.8 % 27.2 % 36.2 % (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 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.
On July 26, 2022, the Audit Committee, with authorization delegated from our Board of Directors, declared a quarterly cash dividend of $0.385 per share of Class A Common Stock, an increase of 10 percent, which would be $1.54 per common share on an annualized basis.
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.
At its July 2022 meeting, the Board of Directors approved a new $2 billion long-term financing authorization that replaced the prior long-term financing authorization of $7 billion. As of December 31, 2022, $1.5 billion of the long-term financing authorization remained available. Our total debt was $22.9 billion at December 31, 2022 and $19.5 billion at December 31, 2021.
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.
(14) The impact from pension participation changes represents the charges incurred when employee groups are withdrawn from multiemployer pension plans and other changes in employee group pension plan participation. We exclude these charges from our non–GAAP results because those amounts do not reflect our ongoing pension obligations.
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.
Diluted EPS attributable to Mondelēz International was $1.96 in 2022, down $1.08 (35.5%) from 2021. Adjusted EPS (1) was $2.95 in 2022, up $0.10 (3.5%) from 2021. Adjusted EPS on a constant currency basis was $3.19 in 2022, up $0.34 (11.9%) from 2021.
Diluted EPS attributable to Mondelēz International was $1.96 in 2022, down $1.08 (35.5%) from 2021. Adjusted EPS (1) was $2.79 in 2022, up $0.09 (3.3%) from 2021. Adjusted EPS on a constant currency basis was $3.02 in 2022, up $0.32 (11.9%) from 2021.
(6) 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 11, Benefit Plans , for more information. (8) Refer to Note 14, Commitments and Contingencies – Tax Matters , for more information.
(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.
We will continue to proactively manage our business in response to the evolving global economic environment and related uncertainty and business risks while also prioritizing and supporting our employees and customers. We continue to take steps to mitigate impacts to our supply chain, operations, technology and assets. War in Ukraine In February 2022, Russia began a military invasion of Ukraine.
We will continue to proactively manage our business in response to the evolving global economic environment, related uncertainty and business risks while also prioritizing and supporting our employees and customers. We continue to take steps to mitigate impacts to our supply chain, operations, technology and assets.
Segment operating income increased $398 million (29.0%), primarily due to higher net pricing, lower costs incurred for the Simplify to Grow Program, lapping a prior-year intangible asset impairment charge and the impact of acquisitions.
Unfavorable currency impact was due to the strength of the U.S. dollar relative to the Canadian dollar. Segment operating income increased $398 million (29.0%), primarily due to higher net pricing, lower costs incurred for the Simplify to Grow Program, lapping a prior year intangible asset impairment charge, the impact of acquisitions and the impact of divestitures.
(2) See the Adjusted Operating Income table above and the related footnotes for more information. (3) Refer to Note 9, Debt and Borrowing Arrangements , for more information on the loss on debt extinguishment and related expenses. (4) Refer to Note 16, Income Taxes , and the Non-GAAP Financial Measures section for more information.
(2) See the Adjusted Operating Income table above and the related footnotes for more information. (3) Refer to Note 9, Debt and Borrowing Arrangements , for more information on losses on debt extinguishment. (4) Refer to Note 16, Income Taxes , for information on income taxes.
We believe our tax positions comply with applicable tax laws and that we have properly accounted for uncertain tax positions. We recognize tax benefits in our financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained by the taxing authorities based on the technical merits of the position.
We recognize tax benefits in our financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained by the taxing authorities based on the technical merits of the position.
Unfavorable currency impacts were primarily due to the strength of the U.S. dollar relative to most currencies in the region including the Argentinean peso and Brazilian real.
Unfavorable currency impacts were primarily due to the strength of the U.S. dollar relative to a few currencies in the region, primarily the Argentinean peso, partially offset by the strength of most currencies relative to the U.S. dollar, primarily the Mexican peso and Brazilian real.
Higher raw material costs were in part due to higher foreign currency transaction costs on imported materials, as well as increased costs for edible oils, packaging, sugar, cocoa, grains, dairy and other ingredients.
Higher raw material costs were in part due to higher energy, sugar, grains, dairy, cocoa, packaging, edible oils and other ingredients costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials.
The April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) in the first quarter of 2022.
The April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) through the one-year anniversary of the acquisition in 2022.
Guarantees: As discussed in Note 14, Commitments and Contingencies , we enter into third-party guarantees primarily to cover the long-term obligations of our vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures. At December 31, 2022, we had no material third-party guarantees recorded on our consolidated balance sheets.
Guarantees As discussed in Note 14, Commitments and Contingencies , we enter into third-party guarantees primarily to cover the long-term obligations of our vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures.
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 uncertainty, increasing inflationary pressures, supply constraints, exchange rate volatility as well as ongoing effects from the COVID-19 pandemic.
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.
("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 Q4 2022, we announced an agreement to sell the developed market gum business with an anticipated closing of Q4 2023, subject to relevant antitrust approvals and closing conditions.
("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.
(5) Refer to Note 14, Commitments and Contingencies – Tax Matters , for more information. (6) Refer to Note 1, Summary of Significant Accounting Policies – War in Ukraine, for more information.
(6) Refer to Note 14, Commitments and Contingencies , for more information. 43 Table of Contents (7) Refer to Note 1, Summary of Significant Accounting Policies – War in Ukraine, for more information.
This is largely a result of business growth and acquisitions during the year.
This is largely a result of business growth and acquisitions completed during 2022.
Favorable volume/mix was driven by gains in candy, chocolate and gum, partially offset by a decline in biscuits & baked snacks which primarily reflected the impact of supply chain constraints on volume during the year. Unfavorable currency impact was due to the strength of the U.S. dollar relative to the Canadian dollar.
Favorable volume/mix was driven by gains in candy and chocolate, partially offset by a decline in biscuits & baked snacks which primarily reflected the impact of supply chain constraints on volume during the year.
(8) Refer to Note 14, Commitments and Contingencies – Tax Matters , for more information. (9) Refer to Note 11, Benefit Plans , for more information. During 2021, we realized higher net pricing and favorable volume/mix, which was largely offset by increased input costs.
(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.
Our segment net revenues and earnings were: For the Years Ended December 31, 2022 2021 2020 (in millions) Net revenues: Latin America $ 3,629 $ 2,797 $ 2,477 AMEA 6,767 6,465 5,740 Europe 11,420 11,156 10,207 North America 9,680 8,302 8,157 Net revenues $ 31,496 $ 28,720 $ 26,581 For the Years Ended December 31, 2022 2021 2020 (in millions) Earnings before income taxes: Operating income: Latin America $ 388 $ 261 $ 189 AMEA 929 1,054 821 Europe 1,481 2,092 1,775 North America 1,769 1,371 1,587 Unrealized gains/(losses) on hedging activities (mark-to-market impacts) (326) 279 16 General corporate expenses (245) (253) (326) Amortization of intangible assets (132) (134) (194) Net gain on acquisition and divestitures — 8 — Acquisition-related costs (330) (25) (15) Operating income 3,534 4,653 3,853 Benefit plan non-service income 117 163 138 Interest and other expense, net (423) (447) (608) Earnings before income taxes $ 3,228 $ 4,369 $ 3,383 46 Table of Contents Latin America 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 % For the Years Ended December 31, 2021 2020 $ change % change (in millions) Net revenues $ 2,797 $ 2,477 $ 320 12.9 % Segment operating income 261 189 72 38.1 % 2022 compared with 2021: Net revenues increased $832 million (29.7%), due to higher net pricing (23.7 pp), favorable volume/mix (8.2 pp) and the impact of acquisitions (3.5 pp), partially offset by unfavorable currency (4.4 pp) and the impact of divestitures (1.3 pp).
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).
We believe our current plans for each of these brands reduce the risk of impairment in future periods, but if the brand earnings expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then a brand or brands could become impaired in the future.
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.
Diluted EPS Diluted EPS Attributable to Mondelēz International for the Year Ended December 31, 2021 $ 3.04 Simplify to Grow Program (2) 0.17 Intangible asset impairment charges (2) 0.02 Mark-to-market gains from derivatives (2) (0.17) Acquisition integration costs and contingent consideration adjustments (2) (0.02) Acquisition-related costs (2) 0.01 Divestiture-related costs (2) 0.01 Net earnings from divestitures (2) (3) (0.03) Remeasurement of net monetary position (2) 0.01 Impact from pension participation changes (2) 0.02 Loss on debt extinguishment (4) 0.07 Initial impacts from enacted tax law changes (5) 0.07 Gain on equity method investment transactions (6) (0.39) Equity method investee items (7) 0.04 Adjusted EPS (1) for the Year Ended December 31, 2021 $ 2.85 Increase in operations 0.29 Decrease in equity method investment net earnings (0.01) Impact from acquisitions (2) 0.03 Changes in interest and other expense, net (8) (0.03) Changes in shares outstanding (9) 0.06 Adjusted EPS (constant currency) (1) for the Year Ended December 31, 2022 $ 3.19 Unfavorable currency translation (0.24) Adjusted EPS (1) for the Year Ended December 31, 2022 $ 2.95 Simplify to Grow Program (2) (0.07) Intangible asset impairment charges (2) (0.05) Mark-to-market losses from derivatives (2) (0.19) Acquisition integration costs and contingent consideration adjustments (2) (0.05) Inventory step-up (2) (0.01) Acquisition-related costs (2) (0.19) Divestiture-related costs (2) (0.01) Net earnings from divestitures (2) (3) 0.01 2017 Malware incident net recoveries 0.02 European Commission legal matter (2) (0.23) Incremental costs due to war in Ukraine (2) (0.09) Remeasurement of net monetary position (2) (0.03) Impact from pension participation changes (2) (0.01) Loss on debt extinguishment and related expenses (4) (0.07) Initial impacts from enacted tax law changes (5) (0.01) Loss on equity method investment transactions (6) (0.02) Equity method investee items (7) 0.01 Diluted EPS Attributable to Mondelēz International for the Year Ended December 31, 2022 $ 1.96 (1) Refer to the Non-GAAP Financial Measures section appearing later in this section.
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.
Overall, we do not expect negative effects to our funding sources that would have a material effect on our liquidity, and we continue to monitor our operations in Europe and related effects from the war in Ukraine. To date, we have been successful in generating cash and raising financing as needed.
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.
Refer to Note 2, Acquisitions and Divestitures , for more information. 36 Table of Contents Operating Income – Operating income decreased $1,119 million (24.0%) to $3,534 million in 2022, Adjusted Operating Income (1) increased $264 million (5.5%) to $5,029 million and Adjusted Operating Income on a constant currency basis increased $583 million (12.2%) to $5,348 million due to the following: Operating Income Change (in millions) Operating Income for the Year Ended December 31, 2021 $ 4,653 Simplify to Grow Program (2) 319 Intangible asset impairment charges (3) 32 Mark-to-market gains from derivatives (4) (279) Acquisition integration costs and contingent consideration adjustments (5) (40) Acquisition-related costs (5) 25 Net gain on acquisition and divestitures (5) (8) Divestiture-related costs (5) 22 Operating income from divestiture (5) (15) Remeasurement of net monetary position (6) 13 Impact from pension participation changes (7) 48 Impact from resolution of tax matters (8) (5) Adjusted Operating Income (1) for the Year Ended December 31, 2021 $ 4,765 Higher net pricing 2,754 Higher input costs (1,931) Favorable volume/mix 218 Higher selling, general and administrative expenses (474) Lower amortization of intangible assets 8 Impact from acquisitions (5) 56 Fixed asset and other impairment charges (48) Total change in Adjusted Operating Income (constant currency) (1) 583 12.2 % Unfavorable currency translation (319) Total change in Adjusted Operating Income (1) 264 5.5 % Adjusted Operating Income (1) for the Year Ended December 31, 2022 $ 5,029 Simplify to Grow Program (2) (122) Intangible asset impairment charges (3) (101) Mark-to-market losses from derivatives (4) (326) Acquisition integration costs and contingent consideration adjustments (5) (136) Inventory step-up (5) (25) Acquisition-related costs (5) (330) Divestiture-related costs (5) (18) Operating income from divestiture (5) 4 2017 Malware incident net recoveries 37 European Commission legal matter (8) (318) Incremental costs due to war in Ukraine (9) (121) Remeasurement of net monetary position (6) (40) Impact from pension participation changes (7) 1 Operating Income for the Year Ended December 31, 2022 $ 3,534 (24.0) % (1) Refer to the Non-GAAP Financial Measures section at the end of this item.
Operating Income Operating income decreased $(1,119) million ((24.0)%) to $3,534 million in 2022, Adjusted Operating Income (1) increased $232 million (5.0%) to $4,885 million and Adjusted Operating Income on a constant currency basis increased $544 million (11.7%) to $5,197 million due to the following: For the Years Ended December 31, 2022 2021 $ Change % Change (in millions) Operating Income $ 3,534 $ 4,653 $ (1,119) (24.0) % Simplify to Grow Program (2) 122 319 (197) Intangible asset impairment charges (3) 101 32 69 Mark-to-market losses/(gains) from derivatives (4) 326 (279) 605 Acquisition integration costs (5) 136 (40) 176 Inventory step-up (5) 25 — 25 Acquisition-related costs (5) 330 25 305 Net gain on acquisition (5) — (8) 8 Divestiture-related costs (5) 18 22 (4) Operating results from divestitures (5) (148) (127) (21) 2017 Malware incident recoveries, net (37) — (37) European Commission legal matter (6) 318 — 318 Incremental costs due to war in Ukraine (7) 121 — 121 Remeasurement of net monetary position (8) 40 13 27 Impact from pension participation changes (9) (1) 48 (49) Impact from resolution of tax matters (6) — (5) 5 Adjusted Operating Income (1) $ 4,885 $ 4,653 $ 232 5.0 % Unfavorable currency translation 312 — 312 Adjusted Operating Income (constant currency) (1) $ 5,197 $ 4,653 $ 544 11.7 % Key Drivers of Adjusted Operating Income (constant currency) $ Change Higher net pricing $ 2,736 Higher input costs (1,926) Favorable volume/mix 195 Higher selling, general and administrative expenses (478) Impact from acquisitions (5) 56 Lower amortization of intangible assets 8 Higher asset impairment charges (47) Total change in Adjusted Operating Income (constant currency) (1) $ 544 (1) Refer to the Non-GAAP Financial Measures section.
(2) Refer to Note 6, Goodwill and Intangible Assets, for more information. (3) Refer to Note 10, Financial Instruments , Note 18, Segment Reporting , and Non-GAAP Financial Measures section at the end of this item for more information on the unrealized gains/losses on commodity, forecasted currency and equity method investment transaction derivatives.
(2) Refer to Note 8, Restructuring Program , for more information. (3) Refer to Note 6, Goodwill and Intangible Assets , for more information. (4) Refer to Note 10, Financial Instruments , Note 18, Segment Reporting , and Non-GAAP Financial Measures for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.
(9) 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 to be consistent with our prior accounting for these remeasurement gains/losses for Venezuela when it was subject to highly inflationary accounting prior to deconsolidation in 2015.
(10) 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.
In 2022, we recorded $101 million of intangible asset impairment charges related to two biscuit brands in AMEA. The impairment charges were calculated as the excess of the carrying value over the estimated fair value of the intangible assets on a global basis and were recorded within asset impairment and exit costs.
The impairment charges were calculated as the excess of the carrying value over the estimated fair value of the intangible assets on a global basis and were recorded within asset impairment and exit costs.
Adjusted Operating Income margin decreased from 16.6% in 2021 to 16.0% in 2022.
Adjusted Operating Income margin decreased from 16.5% in 2021 to 15.8% in 2022.
Favorable currency impacts increased net revenues by $472 million, primarily due to the strength of several currencies relative to the U.S. dollar, including the euro, British pound sterling, Chinese yuan, Australian dollar, Canadian dollar, South African rand and Mexican peso, partially offset by the strength of the U.S. dollar relative to several currencies, including the Argentinean peso, Brazilian real and Turkish lira.
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.
(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 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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+0 added−2 removed16 unchanged
Biggest changeAs of December 31, 2022 and December 31, 2021, 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 12/31/22 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 Pre-Tax Earnings Impact Fair Value Impact At 12/31/21 Average High Low At 12/31/21 Average High Low (in millions) Instruments sensitive to: Interest rates $ 135 $ 104 $ 135 $ 79 Foreign currency rates $ 11 $ 11 $ 13 $ 9 Commodity prices 52 41 61 24 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, 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.
Input costs may fluctuate widely due to international demand, weather conditions, government policy and regulation and the macroeconomic environment. Refer to Recent Developments and Significant Items Affecting Comparability and Financial Outlook above for updates on recent supply chain, transportation, labor and other disruptions that are increasing operating costs and impacting our results.
Input costs may fluctuate widely due to international demand, weather conditions, government policy and regulation and the macroeconomic environment. Refer to Recent Developments and Significant Items Affecting Comparability and Financial Outlook above for updates on recent supply chain, labor and other disruptions that are increasing operating costs and impacting our results.
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. 64 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. 61 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, 2022 and 2021, 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, 2023 and 2022, 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. 65 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. 62 Table of Contents
We regularly evaluate our variable and fixed-rate debt as well as current and expected interest rates in the markets in which we raise capital. Our primary exposures include movements in U.S. Treasury rates, corporate credit spreads, commercial paper rates as well as limited debt tied to London Interbank Offered Rates (“LIBOR”).
We regularly evaluate our variable and fixed-rate debt as well as current and expected interest rates in the markets in which we raise capital. Our primary exposures include movements in U.S. Treasury rates, corporate credit spreads, commercial paper rates as well as limited debt tied to Secured Overnight Financing Rates (“SOFR”).
Removed
The last publication date of LIBOR rates against various currencies by the Financial Conduct Authority in the United Kingdom was December 31, 2021, with the publication of certain USD rates being phased out after June 30, 2023.
Removed
We did not have a significant impact to our financial position from the phase out of LIBOR, nor do we expect a significant impact from the remaining phase out given our current mix of variable and fixed-rate debt.

Other MDLZ 10-K year-over-year comparisons