Business Context and Reporting Period
This Form 8-K, dated January 15, 2025, is a current report filed by Mondelez International, Inc. under Item 7.01 (Regulation FD Disclosure). The filing provides supplemental non-GAAP financial information regarding the retrospective impact of the sale of the company's remaining 85.9 million shares in JDE Peet's (JDEP) to JAB Holdings Company. The transaction was completed on November 29, 2024, for approximately €2.2 billion ($2.4 billion).
Key Financial Metrics and Recast Data
The filing does not report new GAAP revenue, profit, or cash flow figures for a specific reporting period. Instead, it presents recast historical non-GAAP financial results to remove the equity method investment net earnings from JDEP, which were previously included. The filing provides the following recast Adjusted (Non-GAAP) metrics (in millions, except per share data):
| Period | Net Earnings (Recast) | Diluted EPS (Recast) |
|---|---|---|
| Fiscal Year 2022 | $3,698 | $2.67 |
| Fiscal Year 2023 | $4,221 | $3.08 |
| Fiscal Year 2024 (YTD Sep) | $3,653 | $2.71 |
| Q3 2024 | $1,277 | $0.95 |
U.S. GAAP results, which include historical equity method investment net earnings from JDEP, remain unchanged from prior presentations.
Material Changes Versus Prior Periods
The primary material change is the accounting treatment of the JDEP investment. Previously, the impact of the share sale was considered a divestiture in the quarter following the sale due to a one-quarter lag in reporting JDEP's results. As of the end of 2024, with no remaining equity method investment, the company now treats the sale as a divestiture beginning with the fourth quarter ended December 31, 2024. Consequently, historical non-GAAP results have been recast to exclude JDEP equity method net earnings for all presented periods to facilitate trend analysis.
Guidance, Outlook, and Management Commentary
Management states that the recast non-GAAP results provide additional transparency on how the company evaluates its business and facilitate comparisons of historical operating results. The filing does not contain new forward-looking guidance, updated outlooks, or specific risk factors beyond the standard disclosure that non-GAAP measures are not deemed "filed" under the Exchange Act. The filing references Exhibit 99.1 for detailed reconciliations between GAAP and recast non-GAAP measures.
Important Facts for Investor Verification
- Verify the exact timing of the JDEP divestiture recognition in future quarterly reports to ensure consistency with the new Q4 2024 baseline.
- Review Exhibit 99.1 for the detailed reconciliation of the differences between reported GAAP and recast non-GAAP Operating Income and Net Earnings.
- Confirm that U.S. GAAP financial statements in future filings will continue to include historical JDEP equity earnings, while non-GAAP measures will exclude them.
- Note that the filing does not amend any prior SEC filings; it only provides supplemental recast information.