MONDELEZ INTERNATIONAL, INC. Item 7.01. Regulation FD Disclosure.
Mondel?zInternational, Inc. and subsidiaries (collectively, "we," "our" or "Mondel?z International") are furnishing this current report to provide supplemental non-GAAP financial information related to the retrospective impact of our decision to include the initial impacts from all enacted tax law changes, rather than only material tax law changes, in the definition of the items excluded from our non-GAAP financial measures. We added this exclusion to our non-GAAP financial measures as the initial impacts from all enacted tax law changes, as described further below, do not reflect our ongoing tax obligations under these changes. This change has resulted in the recasting of our historical non-GAAP financial results and 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.
Change to our Historical Non-GAAP Financial Results
Recently enactments of tax law changes have become more frequent, especially as governments address the fiscal effects related to COVID-19. These enactments can result in significant impacts on financial results. For example, tax rate increases were enacted inthe Netherlands inDecember 2020 and theUnited Kingdom inJune 2021 . In the past, we adjusted our non-GAAP financial measures to exclude the initial tax impacts caused by material tax reforms, specifically the 2017 U.S. tax reform and the 2019 Swiss tax reform. To standardize our treatment, we are modifying our definition of our non-GAAP financial measures to exclude initial impacts from all enacted tax law changes. Initial impacts include items such as the remeasurement of deferred tax balances and the transition tax from the 2017U.S. tax reform. This change will also be reflected in the definition of our proportionate share of our equity method investees' significant operating and non-operating items that we exclude from our non-GAAP financial measures. Therefore, we will remove these initial impacts from all enacted tax law changes not previously excluded from our non-GAAP financial results for Adjusted EPS for all historical periods presented. OurU.S. GAAP results, which include the historical initial impacts from these enacted tax law changes, will not change from what was previously reported.
Recast Amounts Reflecting Changes in Historical Non-GAAP Results
The change to our non-GAAP financial results for Adjusted EPS described above does not affect our non-GAAP financial results for Organic Net Revenue, Adjusted Gross Profit or Adjusted Operating Income for any period. This supplemental disclosure does not amend any disclosure contained in any of our priorSEC filings. See the chart below and Exhibit 99.1 for the unaudited GAAP and recast non-GAAP financial information for the first quarter of 2021, all quarters of 2020 and 2019 and years endedDecember 31, 2020 , and 2019. Mondel?z International, Inc. and Subsidiaries Recast Amounts Reflecting Impact from Enacted Tax Law Changes (in millions of U.S. dollars, except per share data) (Unaudited) 2019 2020 2019 2020 2021 FY FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Reported (GAAP) Equity method investment net earnings$ 501 $ 421 $ 166 $
109
$ 78 Provision for income taxes 2 1,224 189
216 (633 ) 230 148 341 391 344
212
Net earnings attributable to Mondel?z International 3,929 3,555 967
803 1,426 733 736 544 1,119 1,156
961
Diluted earnings per share attributable to Mondel?z International$ 2.69 $ 2.47 $ 0.66 $
0.55
$ 0.68 Adjusted (Non-GAAP) - As Recast Equity method investment net earnings$ 401 $ 438 $ 108 $ 95 $ 98 $ 100 $ 109 $ 113 $ 104 $ 112 $ 137 Provision for income taxes 850 892 199 206 166 279 198 126 285 283 252 Net earnings attributable to Mondel?z International 3,528 3,734 930 812 917 869 958 881 930 965 1,137 Diluted earnings per share attributable to Mondel?z International$ 2.42 $ 2.59 $ 0.64 $ 0.56 $ 0.63 $ 0.60 $ 0.66 $ 0.61 $ 0.64 $ 0.67 $ 0.80 2
--------------------------------------------------------------------------------
Financial Schedules
Exhibit 99.1 to this Form 8-K contains financial schedules that provide the reconciliations for our recast non-GAAP financial results for Adjusted EPS, due to the change in definition to exclude the initial impacts from all enacted tax law changes, for the first quarter of 2021, all quarters of 2020 and 2019 and years endedDecember 31, 2020 and 2019.
• Schedule 1 provides reconciliations of the differences between the recast
Adjusted (non-GAAP) financial measures and their most directly comparable
reported (GAAP) financial measures. Equity method investment net earnings and
Provision for income taxes are components used to calculate net earnings and
diluted earnings per share attributable to Mondel?z International.
• Schedule 2 provides reconciliations between the reported diluted EPS
attributable to Mondel?z International (GAAP) and the recast Adjusted EPS
(non-GAAP) for comparative periods.
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. For additional information regarding our non-GAAP financial measures, see Exhibit 99.2.
Item 9.01. Financial Statements and Exhibits.
(d) The following exhibits are being furnished with this Current Report on Form
8-K.
99.1 Financial schedules - Unaudited GAAP and Non-GAAP Financial Information.
99.2 Non-GAAP Financial Measures - Additional Information.
104 The cover page from Mondel?z
8-K, formatted in Inline XBRL (included as Exhibit 101).
3
--------------------------------------------------------------------------------
© Edgar Online, source
