Mondelēz International Inc. (NASDAQ:MDLZ)

Current Income Tax Expense

The current income tax expense exhibits variability over the analyzed period. It starts at a relatively high value of US$ 1,294 million at the end of 2020, decreases to US$ 985 million in 2021, and further declines to US$ 907 million in 2022. However, in 2023, there is a marked increase to US$ 1,574 million, followed by a reduction to US$ 1,212 million in 2024. This pattern suggests fluctuating current tax obligations, likely reflecting changes in taxable income or tax rates.

Deferred Income Tax Expense

The deferred income tax expense shows more pronounced volatility and swings between positive and negative values. It begins with a negative amount of US$ -70 million in 2020, indicating a deferred tax benefit. This shifts sharply to a positive expense of US$ 205 million in 2021, then reverts to negative figures in 2022 and 2023 (US$ -42 million and US$ -37 million, respectively). In 2024, the deferred tax expense rises significantly to US$ 257 million. This erratic movement likely reflects timing differences in recognizing income and expenses for tax purposes or changes in tax planning strategies.

Provision for Income Taxes

The overall provision for income taxes mirrors a general pattern similar to current taxes but incorporates the deferred element, resulting in smoother but still fluctuating values. It starts at US$ 1,224 million in 2020, decreases modestly to US$ 1,190 million in 2021, and then declines more substantially to US$ 865 million in 2022. In 2023, the provision rises sharply to US$ 1,537 million, reaching its highest point in the period, before slightly declining to US$ 1,469 million in 2024. This indicates that total tax expenses are sensitive to changes in both current and deferred components, with significant variation over time, potentially related to earnings and tax law changes.

U.S. Federal Statutory Tax Rate

The U.S. federal statutory tax rate remained constant at 21% throughout the five-year period, indicating a stable baseline for tax calculations.

State and Local Income Taxes, Net of Federal Tax Benefit

This component showed variability, starting at 1.6% in 2020 and fluctuating in subsequent years, reaching a negative impact in 2023 before rising again to 1.2% in 2024. The 2023 negative figure suggests that state and local tax benefits might have exceeded the liabilities that year.

Foreign Rate Differences

The foreign rate differences displayed significant variability with negative impact in 2021 (-1.6%), followed by a steady increase from 2.0% in 2022 to 3.0% in 2024. This trend implies increasingly positive effects from foreign tax rate differences on the overall tax rate.

Changes in Judgment on Realizability of Deferred Tax Assets

These changes largely had a minor negative effect across the period, oscillating slightly around zero but never exceeding -2.2% in absolute terms, indicating relatively stable assumptions about deferred tax assets.

Net Change in Tax Accruals

The net changes were predominantly negative from 2020 to 2023, reflecting reductions in tax accruals, but moved to a slight positive impact of 0.5% in 2024, suggesting increased accruals or potential tax uncertainties in that year.

Tax Accrual on Investment in KDP, Including Tax Impact of Share Sales

This factor showed a declining trend in its impact, from a substantial 6.7% in 2020 to only 0.5% in 2022, then recovering slightly to 2.8% in 2023, with data missing for 2024. The reduction indicates decreasing tax accruals related to this investment over time.

Excess Tax Benefits from Equity Compensation

The benefits consistently contributed a negative effect on the effective tax rate, ranging from -1.0% in 2020 to a smaller impact of -0.4% in the last two years, showing a diminishing role of equity compensation in reducing the tax rate.

Tax Legislation

The impact of tax legislation changes varied, increasing from 1.0% in 2020 to a peak of 2.3% in 2021, then tapering back to a minimal 0.2% in 2024. This indicates fluctuating influences of legislative changes on tax rates.

Business Sales

Business sales had a notable effect only in 2020 (7.4%) and minor fluctuations afterwards, including a slight negative impact in 2023 (-0.5%), suggesting that divestitures influenced tax metrics primarily in 2020.

Tax Benefit from Legal Entity Reorganization

Available only for 2024, this item reduced the tax rate by 2.3%, pointing to a notable one-time benefit from restructuring efforts in that year.

Foreign Tax Provisions under TCJA (GILTI, FDII and BEAT)

The influence of these foreign tax provisions decreased over time from 1.1% in 2020 to 0.5% in 2024, showing a diminishing associated tax cost or benefit impact related to these provisions.

Tax Impacts from the European Commission Legal Matter

Beginning in 2022, this item exerted positive pressure on the tax rate (2.1%), then a slight negative adjustment (-0.4%) in 2023, reflecting the resolution or adjustment of this legal matter’s tax consequences over time.

Non-deductible Expenses and Other, Including Buyout of Clif Bar ESOP

This expense was recorded only in 2022 with a 2.2% impact, indicating a one-time event increasing the tax burden in that year.

Other

Other miscellaneous factors had a negligible positive impact of 0.3% in 2020, with no data in subsequent years.

Effective Tax Rate

The effective tax rate demonstrated a clear downward trend from 36.2% in 2020 to 23.5% in 2024, revealing an overall improvement in tax efficiency or tax rate reduction efforts during the period.

The financial data reveals several notable trends and shifts across multiple categories over the five-year period.

Accrued postretirement and postemployment benefits

There is a clear downward trend from 2020 to 2023, decreasing significantly from 137 million USD to 45 million USD, followed by a slight increase to 50 million USD in 2024. This suggests a reduction in obligations or improved management of these benefits over the period.

Accrued pension costs

The data shows a dramatic decrease from 251 million USD in 2020 to 23 million USD in 2021, with no data for 2022, and a negative balance recorded from 2022 onward, reaching -74 million USD by 2024. The negative accrued pension costs in the last three years could indicate pension asset surpluses or adjustments in pension accounting.

Other employee benefits

This category remains relatively stable with minor fluctuations between 150 and 156 million USD, reflecting consistent employee-related expenses.

Accrued expenses

Accrued expenses increased substantially from 420 million USD in 2020 to a peak of 649 million USD in 2022, then slightly declined but remained elevated at around 640 million USD in 2023 and 2024. This pattern may point to rising operational liabilities or increased expenses accrued for payment.

Loss carryforwards

Values fluctuate modestly between 648 million USD and 701 million USD, showing no clear upward or downward trend. This stability indicates consistent past losses available for tax relief.

Tax credit carryforwards

This category remains stable around the 780 to 800 million USD range, with a slight decrease to 736 million USD in 2024. The fluctuation is minimal, suggesting steady utilization or accumulation of tax credits.

Other (Assets)

Other assets vary over time, starting at 535 million USD in 2020, decreasing to 468 million USD in 2021, and fluctuating thereafter, peaking at 589 million USD in 2023 and falling to 527 million USD in 2024. This volatility indicates varying asset recognition or disposals.

Deferred income tax assets

Deferred tax assets decline from 2932 million USD in 2020 to 2680 million USD in 2021, then steadily increase to 2925 million USD by 2023 before slightly decreasing to 2795 million USD in 2024. This pattern implies fluctuations in timing differences or future deductible amounts subject to tax.

Valuation allowance

Valuation allowance, reflecting potential realizability issues, remains fairly stable around -1277 to -1359 million USD, peaking in magnitude in 2023. Such consistency suggests the company maintains a stable estimate of deferred tax assets that may not be realized.

Net deferred income tax assets

Net deferred tax assets show a decline from 1655 million USD in 2020 to 1400 million USD in 2021, improve to 1566 million USD in 2023, and slightly decrease again to 1504 million USD in 2024. This aligns with changes in deferred tax assets and valuation allowance, indicating variability in net future tax benefits.

Intangible assets

Intangible assets display a consistent negative value indicating an asset rather than a liability, with a slight increase in magnitude from -2951 million USD in 2020 to -3279 million USD in 2022, then a gradual reduction in magnitude to -3083 million USD in 2024. This suggests either amortization or impairment adjusting the intangible asset base.

Property, plant, and equipment (PP&E)

PP&E values oscillate, beginning at -747 million USD in 2020, improving slightly in 2021 (-638 million USD), followed by increases in negative magnitude, reaching -777 million USD in 2024. These fluctuations may reflect capital expenditures, disposals, or depreciation changes.

Other (Liabilities)

Negative "Other" liabilities increase in magnitude over time from -513 million USD in 2020 to -662 million USD in 2024. This suggests growing obligations or accruals categorized under this heading.

Deferred income tax liabilities

Deferred tax liabilities steadily increase from -4211 million USD in 2020 to -4596 million USD in 2024, signaling higher taxable temporary differences or deferred tax obligations over time.

Net deferred income tax assets (liabilities)

Excluding valuation allowance, net deferred income tax liabilities grow from -2556 million USD in 2020 to -3092 million USD in 2024, indicating an increasing net tax liability position on the balance sheet.

Overall, the data suggests a trend of reduced pension-related liabilities, stable employee benefit costs, increasing accrued expenses and liabilities, and fluctuating deferred tax assets and liabilities. The growing deferred tax liabilities and net tax liabilities imply increasing timing differences leading to future taxable amounts. Intangible assets and property, plant, and equipment show moderate adjustments consistent with amortization and depreciation patterns.

The analysis of the deferred income tax assets and liabilities over the period from December 31, 2020, to December 31, 2024, reveals distinct trends that may impact the company's tax position and financial strategy.

Deferred Income Tax Assets

There is a consistent decrease in deferred income tax assets during the analyzed period. Starting at 790 million US dollars in 2020, the assets declined sharply to 541 million in 2021, followed by a further reduction to 473 million in 2022. This downward trend continues moderately in 2023 and 2024, reaching 333 million. This sustained decline suggests a reduction in the future tax benefits that the company expects to realize from deductible temporary differences or carryforwards.

Deferred Income Tax Liabilities

Deferred income tax liabilities show a relatively stable pattern with minor fluctuations. The liabilities started at 3346 million US dollars in 2020, increased marginally to 3444 million in 2021, then slightly decreased to 3437 million in 2022, followed by a more noticeable decrease to 3292 million in 2023. However, in 2024, there is a rebound to 3425 million. Overall, the level of deferred income tax liabilities remains substantially higher than the assets throughout the period, indicating that the company expects significant future taxable temporary differences.

In summary, the downward trend in deferred income tax assets contrasted with the relatively stable but high deferred tax liabilities suggests a potential tightening of the company's net deferred tax asset position. This may reflect changes in tax planning strategies, asset composition, or variations in tax regulations and rates over the period examined.

The data reveals several notable trends in the financial position and performance over the five-year period under review.

Total Assets

Both reported and adjusted total assets exhibit a fluctuating pattern. From 2020 to 2021, total assets slightly decreased, followed by a steady increase in 2022 and 2023, reaching a peak near 71,400 million US dollars reported, and 70,983 million adjusted in 2023. In 2024, total assets declined again to approximately 68,500 million reported and 68,164 million adjusted, indicating some asset base contraction after the prior growth.

Total Liabilities

The trend in total liabilities shows an initial decrease from 2020 to 2021, both in reported and adjusted figures. This was followed by a sharp increase in 2022, reaching new highs of approximately 44,241 million reported and 40,804 million adjusted. A decline occurs again in the subsequent years 2023 and 2024, implying efforts toward liability reduction or repayment after the spike.

Shareholders’ Equity

Reported shareholders’ equity demonstrates volatility with an upward trend in 2021 and 2023, but declines in 2022 and 2024. Adjusted shareholders’ equity presents a similar fluctuating pattern but remains consistently higher than reported equity throughout the period. This might reflect adjustments related to deferred income tax impact or other accounting considerations, contributing to a more stable equity base.

Net Earnings Attributable to Mondelēz International

Net earnings show significant volatility. Both reported and adjusted earnings increased notably from 2020 to 2021, with adjusted earnings slightly outperforming reported figures. In 2022, earnings declined sharply to the lowest level in the period reviewed. A strong recovery is evident in 2023 with earnings peaking above earlier years, followed by a slight decrease in 2024. The consistency between reported and adjusted earnings values is high, with adjustments marginally impacting the net earnings reported.

Overall, the financial data illustrates a dynamic financial situation characterized by cyclical changes in asset base, liabilities, and profitability. The adjustments made, presumably related to deferred income taxes, appear to moderate the volatility, especially in equity and net earnings figures. The spikes in liabilities and the fluctuations in earnings could suggest periods of strategic investment, funding activities, or market impact factors affecting the company's financial outcomes during these years.

Net Profit Margin Trends

The reported net profit margin showed fluctuations over the five-year period, starting at 13.37% in 2020, rising to a peak of 14.97% in 2021, then declining sharply to 8.63% in 2022. It recovered to 13.77% in 2023, followed by a slight decrease to 12.65% in 2024. The adjusted net profit margin, which accounts for income tax adjustments, followed a similar trajectory but generally recorded marginally higher values than the reported figures each year, ending at 13.36% in 2024. The trends indicate volatility particularly in 2022, with a subsequent recovery.

Total Asset Turnover Trends

The total asset turnover ratio demonstrated consistent improvement across the period under review. The reported ratio increased steadily from 0.39 in 2020 to 0.53 in 2024. The adjusted total asset turnover mirrored this upward trend closely, starting slightly higher at 0.40 in 2020 and also reaching 0.53 in 2024. This pattern suggests enhanced efficiency in asset utilization to generate revenues across the years.

Financial Leverage Trends

Financial leverage displayed moderate variability. Reported financial leverage decreased from 2.46 in 2020 to 2.37 in 2021, then peaked at 2.65 in 2022 before declining and stabilizing around 2.52 to 2.54 in the last two years. Adjusted financial leverage followed a similar trend at lower absolute levels, starting at 2.22 in 2020, dipping slightly in 2021, rising in 2022, and then stabilizing at 2.27 in 2023 and 2024. These figures indicate mild fluctuations in the company's use of debt relative to equity, with a general tendency toward moderate leverage.

Return on Equity (ROE) Patterns

ROE reflected notable changes, with the reported figures rising from 12.89% in 2020 to 15.21% in 2021, dropping to 10.11% in 2022, and then sharply increasing to a high of 17.5% in 2023, before a slight decline to 17.12% in 2024. Adjusted ROE followed a similar pattern, but at consistently lower levels, ranging from 11.57% to 16.21%. The 2022 decrease is prominent, followed by substantial improvement, highlighting variability in profitability relative to shareholder equity.

Return on Assets (ROA) Development

ROA trends show that reported ROA increased from 5.24% in 2020 to 6.41% in 2021, fell significantly to 3.82% in 2022, then rebounded to 6.95% in 2023 and slightly decreased to 6.73% in 2024. Adjusted ROA similarly decreased in 2022 but ended higher at 7.14% in 2024 compared to the reported figure. The data suggests a dip in asset profitability in 2022 with recovery and slight improvement in subsequent years.

Overall Insights

The data reflects a period of volatility around 2022 across most profitability metrics, which is followed by a recovery phase through 2023 and 2024. Efficiency in asset utilization improved steadily throughout the period, while financial leverage remained relatively stable with minor fluctuations. Profitability ratios such as net profit margin, ROE, and ROA reveal that the company faced challenges in 2022 but managed a strong rebound, indicating resilience in financial performance. Adjusted figures, accounting for tax impacts, generally show slightly lower profitability and leverage levels, confirming the relevance of deferred tax considerations in analyzing true financial performance.

The financial data reveals notable fluctuations in the net earnings and profit margins over the five-year period under review. Both reported and adjusted net earnings demonstrate a general pattern of variability, with significant decreases and recoveries marked across the years.

Reported Net Earnings

The reported net earnings attributable to the company increased from $3,555 million in 2020 to $4,300 million in 2021, representing a substantial growth. However, this was followed by a sharp decline to $2,717 million in 2022. The earnings then rebounded considerably in 2023 to $4,959 million before slightly decreasing to $4,611 million in 2024.

Adjusted Net Earnings

A similar trend is observable in the adjusted net earnings. These rose from $3,485 million in 2020 to $4,505 million in 2021, then dropped to $2,675 million in 2022. Subsequently, they increased again to $4,922 million in 2023 and further improved to $4,868 million in 2024, surpassing the reported figures in the final year.

Reported Net Profit Margin

The reported net profit margin correspondingly rose from 13.37% in 2020 to 14.97% in 2021, indicating improved profitability. This margin then declined sharply to 8.63% in 2022, reflecting reduced efficiency or increased costs. Although there was a recovery to 13.77% in 2023, the margin reduced again to 12.65% in 2024.

Adjusted Net Profit Margin

The adjusted net profit margin exhibited a somewhat more volatile pattern. It improved from 13.11% in 2020 to a peak of 15.69% in 2021. The margin then decreased markedly to 8.49% in 2022, mirroring the trend in reported margins. There was a rebound to 13.67% in 2023, followed by an increase to 13.36% in 2024, slightly higher than the reported figure in that year.

Overall, the financial data reflects cycles of growth followed by contraction, most notably a decline in 2022 across all measures, succeeded by a recovery period in 2023 and stabilization or slight improvement in 2024. The close alignment of reported and adjusted figures indicates consistency in the adjustments made for income tax effects. Profit margins and earnings trends suggest sensitivity to market or operational conditions during the period, with resilience demonstrated by the post-2022 recovery.

Analysis of the financial data reveals several notable trends in the reported and adjusted totals for Mondelēz International Inc. over the five-year period.

Total Assets

The reported total assets show a slight fluctuation over the period, beginning at US$67,810 million in 2020, followed by a modest decrease to US$67,092 million in 2021. This is succeeded by an increase in 2022 to US$71,161 million and a marginal rise in 2023 to US$71,391 million, before declining again in 2024 to US$68,497 million. The adjusted total assets exhibit a similar pattern but at consistently slightly lower values, starting at US$67,020 million in 2020 and moving to US$66,551 million in 2021. Subsequent increases occur in 2022 and 2023, reaching US$70,688 million and US$70,983 million respectively, followed by a decrease to US$68,164 million in 2024.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios illustrate a positive upward trend across all periods. The reported total asset turnover increases steadily from 0.39 in 2020, reaching 0.43 in 2021, 0.44 in 2022, and then more significantly rising to 0.50 in 2023 and 0.53 in 2024. The adjusted total asset turnover follows a very similar progression, starting slightly higher at 0.40 in 2020, moving through 0.43 in 2021, and 0.45 in 2022, before accelerating to 0.51 in 2023 and matching the reported ratio at 0.53 in 2024.

The steady improvement in total asset turnover ratios suggests enhanced efficiency in utilizing the asset base to generate revenue. Despite fluctuations in the asset base values, the company appears to manage its resources more effectively year on year. The slight divergence between reported and adjusted figures, with the adjusted values consistently marginally lower in asset totals and slightly higher in turnover ratios, may reflect the effects of adjustments related to deferred income tax or other accounting treatments that refine the measurement of asset utilization.

Overall, the data indicates a positive operational trend, with stability in asset levels accompanied by increasing asset productivity over the five-year span.

The financial data over the period from December 31, 2020, to December 31, 2024, reveals notable trends in the company's assets, equity, and financial leverage, both on a reported and adjusted basis.

Total Assets

Reported total assets exhibit a fluctuating pattern, starting at 67,810 million US dollars in 2020, declining slightly to 67,092 million in 2021, then increasing to peak at 71,391 million in 2023, before decreasing again to 68,497 million by the end of 2024. A similar trend is observed in adjusted total assets, which move closely with the reported figures but are consistently slightly lower. The adjusted total assets start at 67,020 million in 2020, decrease to 66,551 million in 2021, rise to 70,983 million in 2023, and then decline to 68,164 million in 2024.

Shareholders' Equity

The reported shareholders’ equity shows some volatility, beginning at 27,578 million in 2020, increasing to 28,269 million in 2021, then falling to 26,883 million in 2022. It rises again to 28,332 million in 2023 and decreases to 26,932 million in 2024. The adjusted shareholders’ equity consistently reports higher values compared to the reported figures, reflecting adjustments likely related to income tax considerations. It starts at 30,134 million in 2020, climbs to 31,172 million in 2021, decreases to 29,847 million in 2022, rises again to 31,216 million in 2023, and finally declines to 30,024 million in 2024. The adjusted equity also exhibits a cyclical pattern similar to the reported equity but remains at a higher level throughout the period.

Financial Leverage

Reported financial leverage ratios fluctuate during the period, starting from 2.46 in 2020, dropping to 2.37 in 2021, then increasing sharply to 2.65 in 2022, decreasing to 2.52 in 2023, and slightly increasing to 2.54 in 2024. Adjusted financial leverage shows a similar trend but maintains lower values compared to the reported ratios. It declines from 2.22 in 2020 to 2.13 in 2021, rises to 2.37 in 2022, then reduces to 2.27 in both 2023 and 2024. The lower adjusted leverage ratios reflect the impact of deferred tax-related adjustments on the equity base and overall financial structure.

Overall, the data indicates a cyclical pattern in both assets and equity levels, with peaks generally occurring around 2023 followed by declines in 2024. Adjusted figures provide a consistently more conservative view of both equity and leverage, suggesting the presence of deferred income tax adjustments that affect the financial structure. Financial leverage ratios, while somewhat volatile, remain within a moderate range, with adjustments generally reducing reported leverage, thereby potentially indicating a slightly stronger adjusted equity base than reported figures might imply.

The financial data of Mondelēz International exhibits notable fluctuations and trends over the five-year period from 2020 to 2024.

Net Earnings

Reported net earnings show a general increase from 2020 to 2024, with a dip in 2022. The earnings rose from 3,555 million US dollars in 2020 to a peak of 4,959 million in 2023 before slightly decreasing to 4,611 million in 2024. Adjusted net earnings follow a similar pattern, indicating adjustments did not significantly alter the earnings trend. Both reported and adjusted figures highlight significant recovery and growth after the 2022 decline.

Shareholders' Equity

The reported total shareholders’ equity fluctuated within a narrow range during the period, increasing from 27,578 million US dollars in 2020 to 28,269 million in 2021, then declining and slightly recovering to 26,932 million by 2024. Adjusted shareholders’ equity is consistently higher than reported figures, suggesting positive adjustments. Adjusted equity peaked in 2021 at 31,172 million and showed a decreasing trend afterward but remained above the 2020 level throughout the period.

Return on Equity (ROE)

Reported ROE shows an upward trajectory overall, climbing from 12.89% in 2020 to a high of 17.5% in 2023, with a minor decrease to 17.12% in 2024. Adjusted ROE follows a comparable pattern but remains consistently lower than the reported figures. The adjusted ROE starts at 11.57% in 2020, dips to 8.96% in 2022, then recovers to 16.21% in 2024, indicating that adjustments influence the return measurement but do not alter the overall trend.

Overall, the data reflects a resilient performance with recovery after 2022 across earnings and return metrics. The adjusted figures indicate conservative valuation but align closely with reported results, supporting the reliability of the financial position and profitability trends during the reviewed period.

The financial data indicates varying trends across the five-year period ending in 2024. Net earnings, both reported and adjusted, exhibit noticeable fluctuations. Reported net earnings peaked in 2023 at 4,959 million US dollars, following a decline in 2022 to 2,717 million. Despite a decrease in 2024 to 4,611 million, the earnings remained higher than in 2020 and 2021. Adjusted net earnings mirror this pattern, with a peak in 2023 of 4,922 million, a dip in 2022 to 2,675 million, and a subsequent recovery to 4,868 million in 2024. These dynamics suggest operational or market influences affecting profitability particularly in 2022, with significant recovery afterward.

Total assets

The reported total assets show relative stability, with minor fluctuations from 67,810 million in 2020 to a high of 71,391 million in 2023, then declining to 68,497 million in 2024. Adjusted total assets follow a similar trend with values slightly lower than reported totals, peaking in 2023 at 70,983 million before falling to 68,164 million in 2024. This trend indicates moderate asset base growth with a slight contraction in the most recent year.

Return on Assets (ROA)

Reported ROA trends reflect those of net earnings and assets, increasing from 5.24% in 2020 to 6.41% in 2021, then declining sharply to 3.82% in 2022. A strong rebound occurs in 2023 to 6.95%, with a slight decrease to 6.73% in 2024. Adjusted ROA values are generally higher than reported ROA, indicating a more favorable view when adjusting for deferred tax impacts or similar items, moving from 5.2% in 2020 to a peak of 7.14% in 2024. The patterns confirm profitability challenges in 2022, followed by recovery and improved asset utilization efficiency in subsequent years.

Overall, the company experienced a dip in earnings and efficiency metrics in 2022, followed by a strong recovery in 2023 and sustained performance into 2024. Asset levels remained fairly consistent with marginal increases and a slight reduction at the end of the period. The adjustments to net earnings and assets provide a slightly more optimistic scenario, reflected in higher adjusted ROA, suggesting that underlying operational performance, when normalized for tax and other adjustments, is robust.