MDLZMondelez International

We use non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of business performance and as a factor in determining incentive compensation. We believe that the presentation of these non-GAAP financial measures, when considered together used in connection with results reported in accordance with U.S. GAAP, provide additional information to facilitate comparisons of our U.S. GAAP financial measures historical operating results and the reconciliations to the corresponding U.S. GAAP financial measures, provides enable a more complete comprehensive understanding of trends in our underlying operating results. We also believe that presenting these measures allows investors to view our performance using the factors same measures that management and trends affecting our Board of Directors use in evaluating our business than could be obtained absent these disclosures. Because performance and trends. However, non-GAAP financial measures vary among companies, the should be considered in addition to, and not as substitutes for, financial information prepared in accordance with U.S. GAAP. In addition, our non-GAAP financial measures presented in this report may not be the same as or comparable to similarly titled similar non-GAAP measures used presented by other companies. Our use of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for any U.S. GAAP financial measures. A limitation of these non-GAAP financial measures is they exclude items that have an impact on our U.S. GAAP reported results. The best way this limitation can be addressed is by evaluating our non-GAAP financial measures in combination with our U.S. GAAP reported results results. We have provided the reconciliations between the GAAP and carefully evaluating the tables that reconcile U.S. GAAP reported figures to the non-GAAP financial measures along with a discussion of our underlying GAAP results throughout our Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K, which can be found above under Consolidated Results of Operations. 10-K.

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. As of January On July 4th, 2025, the change in U.S. presidential administration and control of U.S. Congress may produce changes to U.S. tax legislation. In addition, aspects of U.S. tax laws may lead foreign jurisdictions to respond by enacting additional tax legislation that is unfavorable to us. As of December 31, 2024, numerous countries have now United States enacted the Organization of Economic Cooperation One Big Beautiful Bill Act (“OBBBA”). The legislation implemented many new U.S. domestic and Development’s model rules on a global minimum tax, with international tax provisions. Although the earliest effective date being for taxable years beginning after December 31, 2023. Important details of these minimum tax regimes are still being considered. Based on the U.S. Treasury provided some clarifying guidance available thus far, we do not expect this legislation to have a material impact on our consolidated financial statements, but we during 2025, it is expected they will continue to evaluate it as issue additional guidance in 2026. In addition, many U.S. states have not yet updated their laws to take into account the new federal legislation. It is possible that OBBBA, or interpretations under it, could change and clarification becomes available. could have an adverse effect on us, and such effect could be material.

We review long-lived assets, including definite-life intangible assets, for realizability on an ongoing basis. Changes in depreciation, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. We amortize definite-life intangible assets over their estimated useful lives and evaluate them for impairment as we do other long-lived assets. We review for impairment when conditions exist that indicate the carrying amount of the assets may not be fully recoverable. In those circumstances, we perform undiscounted operating cash flow analyses for asset groups group assets and liabilities at the lowest level for which such that the identifiable cash flows relating to the group are separately identifiable largely independent of the cash flows of other assets and liabilities. The carrying values of the assets or asset groups are compared with the related estimated undiscounted future cash flows to determine if an impairment exists. Any If the asset or asset group is impaired, the related impairment loss charge is calculated measured as the excess amount by which the carrying value of the asset’s carrying value over asset (or asset group) exceeds its estimated fair value. Fair value is estimated based on the discounted cash flows for the asset group over the remaining useful life or based on the expected cash proceeds for the asset less costs of disposal.

As previously disclosed, in November 2019, the European Commission informed us that it initiated an investigation into our alleged infringement of European Union competition law through certain practices allegedly restricting cross-border trade within the European Economic Area. On January 28, 2021, the European Commission announced it had taken the next procedural step in its investigation and opened formal proceedings. As previously disclosed, we have cooperated with the investigation. In the fourth quarter of 2022, we had accrued (in accordance with U.S. GAAP), on a pre-tax basis, a liability of €300 million ($321 million) within other current liabilities in the consolidated balance sheet and selling, general and administrative expenses in the consolidated statement of earnings as an estimate of the possible cost to resolve this matter. During the fourth quarter of 2023, we adjusted our accrual to a liability of €340 million ($375 million). In the second quarter of 2024, we reached a negotiated resolution in this matter and adjusted our accrual from matter. At that time, we had accrued on a pre-tax basis, a liability of €340 million to €337.5 million ($376 million), on a pre-tax basis. million). Pursuant to the terms of the agreed settlement, we fulfilled our payment obligation in August 2024. We do not anticipate any modification of our business practices and agreements that would have a material impact on our ongoing business operations within the European Union.