Mondelez International MDLZ · USD

Note 18. Segment Reporting We manufacture and market primarily snack food products, including chocolate, biscuits and baked snacks, as well as gum & candy, cheese & grocery and powdered beverages. We manage our global business and report operating results through geographic units. We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise across our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions.Our operations and management structure are organized into four operating segments which are also our reportable segments:•Latin America•AMEA•Europe•North AmericaOur Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer. Our CODM uses segment operating income in the annual plan and forecasting process and considers actual versus plan variances in assessing the performance of the segment. The CODM also uses segment operating income as an input to the overall compensation measures for segment management under our incentive compensation plans. Segment operating income excludes certain mark-to-market impacts on commodity and foreign currency derivatives (which are primarily a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. We exclude these items from segment operating income in order to provide better transparency of our segment operating results. Furthermore, we centrally manage benefit plan non-service income and interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the segment profitability measure that our CODM reviews. Additionally, assets for reportable segments are not disclosed as such information is not regularly reviewed by the Company's CODM.

Note 11. Commitments and Contingencies Legal ProceedingsWe routinely are involved in various pending or threatened legal proceedings, claims, disputes, regulatory matters and governmental inquiries, inspections or investigations arising in the ordinary course of or incidental to our business, including those noted below in this section. We record provisions in the consolidated financial statements for pending legal matters when we determine that an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. For matters we have not provided for that are reasonably possible to result in an unfavorable outcome, management is unable to estimate the possible loss or range of loss or such amounts have been determined to be immaterial. At present we believe that the ultimate outcome of these legal proceedings and regulatory and governmental matters, individually and in the aggregate, will not materially harm our financial position, results of operations or cash flows. However, legal proceedings and regulatory and governmental matters are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial fines, civil or criminal penalties, and other expenditures. In addition, in matters for which conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices or requiring other equitable remedies. An unfavorable outcome might result in a material adverse impact on our business, results of operations or financial position.On April 1, 2015, the U.S. Commodity Futures Trading Commission ("CFTC") filed a complaint against Kraft Foods Group and Mondelēz Global LLC (“Mondelēz Global”) in the U.S. District Court for the Northern District of Illinois (the "District Court") related to the trading of December 2011 wheat futures contracts that occurred prior to the spin-off of Kraft Foods Group. The complaint alleged that Mondelēz Global: (1) manipulated or attempted to manipulate the wheat markets during the fall of 2011; (2) violated position limit levels for wheat futures; and (3) engaged in non-competitive trades. On May 13, 2022, the District Court approved a settlement agreement between the CFTC and Mondelēz Global.

Note 8. Debt and Borrowing Arrangements Short-Term BorrowingsOur short-term borrowings and related weighted-average interest rates consisted of: As of December 31, 20252024AmountOutstandingWeighted-Average RateAmountOutstandingWeighted-Average Rate(in millions, except percentages)Commercial paper$2,614 3.5 %$— — %Bank loans74 7.7 %71 12.1 %Total short-term borrowings$2,688 $71 Our uncommitted and committed credit facilities available include: As of December 31, 20252024Facility AmountBorrowed AmountFacility AmountBorrowed Amount(in millions)Uncommitted credit facilities$882 $71 $784 $71 Credit facilities (1):February 19, 2025— — 1,500 — February 18, 20261,500 — — — February 23, 2027— — 4,500 — February 19, 20304,500 — — — (1)On February 19, 2025, our $1.5 billion 364-day senior unsecured revolving credit agreement dated as of February 21, 2024 expired and we entered into a $1.5 billion 364-day senior unsecured revolving credit agreement that will expire on February 18, 2026. Additionally, we early terminated our $4.5 billion five-year senior unsecured revolving credit agreement dated as of February 23, 2022, and entered into a $4.5 billion five-year senior unsecured revolving credit agreement that will expire on February 19, 2030.We maintain senior unsecured revolving credit facilities for general corporate purposes, including working capital needs, and to support our commercial paper program. The revolving credit agreements include a covenant that we maintain a minimum shareholders' equity of at least $25.0 billion, excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with any mark-to-market accounting for pensions and other retirement plans. At December 31, 2025, we complied with this covenant. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security.During 2023, we repaid $2.0 billion in term loans related to 2022 credit facility borrowings.Long-Term DebtOur long-term debt consisted of (interest rates are as of December 31, 2025): As of December 31, 2025 (1)2024 (in millions)U.S. dollar notes, 1.250% to 7.000% (weighted-average effective rate 3.660%), due through 2050$9,180 $8,834 Euro notes, 0.000% to 2.375% (weighted-average effective rate 0.

Note 16. Income Taxes Earnings/(losses) from continuing operations before income taxes and the provision for income taxes consisted of: For the Years Ended December 31, 202520242023 (in millions)Earnings/(losses) from continuing operations before income taxes:United States$750 $1,688 $1,500 Outside United States2,264 4,573 4,380 $3,014 $6,261 $5,880 Provision for income taxes:United States federal:Current$102 $268 $667 Deferred54 98 (167)156 366 500 State and local:Current(3)83 123 Deferred8 28 (50)5 111 73 Total United States161 477 573 Outside United States:Current667 861 784 Deferred(46)131 180 Total outside United States621 992 964 Total provision for income taxes$782 $1,469 $1,537 The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate as follows: For the Year Ended December 31, 2025(in millions)U.S. federal statutory rate$633 21.0 %State and local income taxes, net of federal tax effect37 1.2 %Foreign tax effects:Brazil:Nontaxable or nondeductible items(34)(1.1)%Other - Brazil10 0.3 %China55 1.8 %Germany:Nontaxable or nondeductible items(44)(1.5)%Other - Germany7 0.2 %Russia:Cross-border tax laws - withholding tax 33 1.1 %Other - Russia24 0.8 %Singapore(37)(1.2)%Switzerland:Changes in valuation allowances45 1.5 %Other - Switzerland(44)(1.5)%Other foreign jurisdictions162 5.4 %Effects of changes in tax laws or rates enacted in the current period— — %Effects of cross-border tax laws (net of foreign tax credits):Global intangible low-taxed income57 1.9 %Other (64)(2.1)%Tax credits(17)(0.6)%Changes in valuation allowances35 1.2 %Nontaxable or nondeductible items10 0.3 %Changes in unrecognized tax benefits(88)(2.9)%Other2 0.1 %Effective tax rate$782 25.9 %The following states make up more than 50% of state income tax expense: California, Illinois, Texas, New Jersey and Pennsylvania. For the Years Ended December 31, 20242023U.S. federal statutory rate21.0%21.0%Increase/(decrease) resulting from:State and local income taxes, net of federal tax benefit1.2%(0.1)%Foreign rate differences3.0%2.0%Changes in judgment on realizability of deferred tax assets(0.2)%(0.1)%Net change in tax accruals0.5%(0.2)%Tax accrual on investment in KDP (including tax impact of share sales)—%2.8%Excess tax benefits from equity compensation(0.4)%(0.4)%Tax legislation 0.2%1.4%Business sales—%(0.5)%Tax benefit from legal entity reorganization(2.3)%—%Foreign tax provisions under TCJA (GILTI, FDII and BEAT) (1)0.5%0.

Note 5. Leases We have operating and finance leases for manufacturing and distribution facilities, vehicles, equipment and office space. Our leases generally have remaining lease terms of 1 to 14 years, some of which include options to extend the leases for up to 10 years. The components of lease costs were as follows:For the Years Ended December 31,202520242023(in millions)Operating lease cost$246 $234 $223 Finance lease cost:Amortization of ROU assets160 144 130 Interest on lease liabilities21 18 15 Short-term lease cost17 15 12 Variable lease cost527 637 766 Sublease income(3)(3)(4)Total lease cost$968 $1,045 $1,142 Supplemental cash flow information related to leases was as follows:For the Years Ended December 31,202520242023(in millions)Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows from operating leases$(241)$(228)$(222)Operating cash flows from finance leases(21)(18)(15)Financing cash flows from finance leases(155)(139)(125)ROU assets obtained in exchange for lease obligations:Operating leases$141 $272 $197 Finance leases251 124 163 Supplemental balance sheet information related to leases was as follows:As of December 31,20252024(in millions)Operating LeasesOperating lease ROU assets$731 $767 Other current liabilities$164 $172 Long-term operating lease liabilities599 623 Total operating lease liabilities$763 $795 Finance LeasesProperty, plant and equipment, net$402 $292 Current portion of long-term debt$137 $126 Long-term debt286 183 Total finance lease liabilities$423 $309 Weighted Average Remaining Lease TermOperating leases6.3 years6.7 yearsFinance leases4.2 years3.3 yearsWeighted Average Discount RateOperating leases5.4 %5.5 %Finance leases4.8 %5.

Note 2. Acquisitions and Divestitures EvirthOn November 1, 2024, we acquired Evirth (Shanghai) Industrial Co., Ltd. (“Evirth”), a leading manufacturer of cakes and pastries in China. The acquisition will continue to expand our growth in the cakes and pastries categories. The cash consideration paid for Evirth totaled ¥1.8 billion ($255 million), net of cash received.The purchase price was primarily allocated to definite-lived intangible assets and goodwill. Within definite-lived intangible assets, we allocated $117 million to customer relationships which have an estimated useful life of 17 years. The fair value of customer relationships at the acquisition date was determined using the multi-period excess earnings method, which is an income approach. The fair value measurements are classified as Level 3 in the fair value hierarchy because they use significant unobservable inputs. Significant assumptions used in assessing the fair values of the intangible assets include discounted cash flows, customer attrition rates and discount rates.Goodwill of $125 million was determined as the excess of the purchase price over the fair value of the net assets acquired and arises principally as a result of expansion opportunities and synergies across China. None of the goodwill recognized will be deductible for income tax purposes. All of the goodwill was assigned to the AMEA operating segment. For further detail, refer to Note 6, Goodwill and Intangible Assets.Developed Market Gum On October 1, 2023, we completed the sale of our developed market gum business in the United States, Canada and Europe to Perfetti Van Melle Group, excluding the Portugal business which we retained pending regulatory approval. After obtaining the regulatory approval, we completed the sale of the Portugal business to Perfetti Van Melle Group on October 23, 2023. We received cash proceeds of $1.4 billion. We recorded a pre-tax gain of $108 million on the sale and $83 million in divestiture-related costs in 2023. This disposition was not considered a strategic shift that would have a major effect on our operations or financial results; therefore, the results of the disposed business were not classified as discontinued operations.

Cybersecurity risk management is overseen both as a critical component of our overall risk management program and as a standalone program. We have implemented a risk-based, cross-functional approach to identifying, preventing and mitigating cybersecurity threats and incidents, while also implementing controls and procedures that provide for the prompt escalation of certain cybersecurity incidents so that decisions regarding the public disclosure and reporting of such incidents can be made by management in a timely manner. Our cybersecurity program is designed to leverage people, processes, and technology to identify and respond to cybersecurity threats in a timely manner. Our vendor cybersecurity risk management program supports the planning, automation, and management of cybersecurity risk with enrolled suppliers and other third parties, focusing on risk-based assessments. Our employees undergo annual security awareness training to enhance their understanding of cybersecurity threats and their ability to identify and escalate potential cybersecurity events. We also employ systems and processes designed to oversee, identify, and reduce the potential impact of a security incident at a third-party vendor, service provider or customer or otherwise implicating the third-party technology and systems we use.We assess, identify, and manage risks from cybersecurity threats through various mechanisms, which may include tabletop exercises to test our preparedness and incident response process, business unit assessments, control gap analyses, threat modeling, penetration tests, vulnerability scanning, internal audits, and external audits of our cybersecurity program. We also leverage assessors, consultants, auditors and third-party service providers to inform our understanding of the cybersecurity threat landscape and enable risk-based measures to defend against evolving threats. Additionally, we maintain cybersecurity insurance to mitigate costs that may be associated with a cybersecurity incident.

Note 7. InvestmentsEquity Method InvestmentsOur current equity method investments primarily relate to our ownership interests in Dong Suh Foods Corporation and Dong Suh Oil & Fats Co. Ltd. As of December 31, 2025, we owned 50.0% and 49.0%, respectively, of these companies' outstanding shares. Our ownership interests may change over time due to investee stock-based compensation arrangements, share issuances or other equity-related transactions.Our investments accounted for under the equity method of accounting totaled $667 million as of December 31, 2025 and $635 million as of December 31, 2024. We recorded equity earnings and cash dividends of $65 million and $45 million in 2025, equity earnings and cash dividends of $168 million and $115 million in 2024 and equity earnings and cash dividends of $160 million and $137 million in 2023. The activity during 2024 and 2023 included our prior investment in JDE Peet’s N.V. (Euronext Amsterdam: “JDEP”).JDEP TransactionsOn August 24, 2025, Keurig Dr Pepper Inc. (Nasdaq: “KDP”) and JDEP entered into a definitive agreement under which KDP would acquire JDEP. As a result of that definitive agreement, we became entitled to a cash payment of €145 million ($169 million) from JAB Holding Company (“JAB”) that we received in 2025. The related gain is reported within gain/(loss) on equity method investment transactions in the consolidated statements of earnings.In the first quarter of 2024 we recorded an impairment charge of €612 million ($665 million) related to our JDEP investment. This charge was included within gain/(loss) on equity method investment transactions in the consolidated statements of earnings. In the fourth quarter of 2024, we sold our remaining 85.9 million shares in JDEP to JAB. We received €2.2 billion ($2.3 billion) of proceeds and recorded a gain of €313 million ($332 million). In 2023, we sold approximately 9.9 million shares of JDEP, which reduced our ownership interest by 2.0 percentage points, from 19.7% to 17.7%. We received cash proceeds of €255 million ($279 million) and recorded a loss of €21 million ($23 million). Marketable SecuritiesDuring the first quarter of 2023, our ownership in KDP fell to below 5% of the outstanding shares, resulting in a change in the accounting for our KDP investment, from equity method investment accounting to accounting for equity interests with readily determinable fair values ("marketable securities") as we no longer retained significant influence.