Equity method investments consist of our investments in entities in which we maintain an equity ownership interest and apply the equity method of accounting due to our ability to exert significant influence over decisions relating to their operating and financial affairs. Revenue and expenses of our equity method investees are not consolidated into our financial statements; rather, our proportionate share of the earnings of each investee is reflected as equity method investment net earnings. The carrying values of our equity method investments are also impacted by our proportionate share of items impacting the investee's accumulated other comprehensive income or losses and other items, such as our share of investee dividends.

Our equity method investments include, but are not limited to, our ownership interests in JDE Peet's (Euronext Amsterdam: "JDEP"), Keurig Dr Pepper Inc. (NASDAQ: "KDP"), Dong Suh Foods Corporation and Dong Suh Oil & Fats Co. Ltd. As of December 31, 2020, we owned 22.9%, 8.4%, 50.0% and 49.0%, respectively, of these companies' outstanding shares.

Our investments accounted for under the equity method of accounting totaled $6,036 million as of December 31, 2020 and $7,178 million as of December 31, 2019. We recorded equity earnings and cash dividends of $421 million and $246 million in 2020, equity earnings and cash dividends of $501 million and $250 million in 2019 and equity earnings and cash dividends of $484 million and $180 million in 2018.

Based on the quoted closing prices as of December 31, 2020, the combined fair value of our publicly-traded investments in JDEP and KDP was $8.9 billion, and for each investment, its fair value exceeded its carrying value.

On March 7, 2016, we exchanged a portion of our 43.5% JDE equity interest for a new equity interest in Keurig Green Mountain, Inc. ("Keurig"). Following the transaction, our JDE equity interest became 26.5% and our new Keurig equity interest was 24.2%. During 2016, we recorded the difference between the $2.0 billion fair value of Keurig and our basis in the exchanged JDE shares as a gain of $43 million. During 2019, we determined an adjustment to accumulated other comprehensive losses related to our JDE investment was required, which reduced our previously reported gain by $29 million. We recorded the adjustment as a loss on equity method transactions.

On July 9, 2018, Keurig closed on its definitive merger agreement with Dr Pepper Snapple Group, Inc., and formed KDP, a publicly traded company. Following the close of the transaction, our 24.2% investment in Keurig together with our shareholder loan receivable became a 13.8% investment in KDP. During 2018, we recorded a net pre-tax gain of $778 million (or $586 million after-tax). In connection with this transaction, we changed our accounting principle during the third quarter of 2018 to reflect our share of Keurig's historical and KDP's ongoing earnings on a one-quarter lag basis while we continue to record dividends when cash is received. We determined a lag was preferable as it enables us to continue to report our quarterly and annual results on a timely basis and to record our share of KDP’s ongoing results once KDP has publicly reported its results. The change was retrospectively applied to all prior periods presented.

On March 4, 2020, we participated in a secondary offering of KDP shares and sold approximately 6.8 million shares, which reduced our ownership interest by 0.5% to 13.1% of the total outstanding shares. We received $185 million of proceeds and recorded a pre-tax gain of $71 million (or $54 million after-tax) during the first quarter of 2020.

On August 3, 2020, we sold approximately 14.1 million shares of KDP, which reduced our ownership interest by 1.0% to 12.1% of the total outstanding shares. We received $414 million of proceeds and recorded a pre-tax gain of $181 million (or $139 million after-tax) during the third quarter of 2020.

On September 9, 2020, we sold approximately 12.5 million shares of KDP, which reduced our ownership interest by 0.9% to 11.2% of the total outstanding shares. We received $363 million of proceeds and recorded a pre-tax gain of $154 million (or $119 million after-tax) during the third quarter of 2020.

On November 17, 2020, we participated in a secondary offering of KDP shares and sold approximately 40.0 million shares, which reduced our ownership interest by 2.8% to 8.4% of the total outstanding shares. We received

We hold two director positions on the KDP board as well as additional governance rights. As we continue to have significant influence, we continue to account for our investment in KDP under the equity method, resulting in recognizing our share of their earnings within our earnings and our share of their dividends within our cash flows.

In May 2020, JDE Peet’s B.V. (renamed JDE Peet’s N.V. immediately prior to Settlement (as defined below), “JDE Peet’s”) consummated the offering, listing and trading of its ordinary shares on Euronext Amsterdam, a regulated market operated by Euronext Amsterdam N.V. (the “admission”). In connection with this transaction, JDE Peet’s and the selling shareholders, including us, agreed to sell at a price of €31.50 per ordinary share a total of approximately 82.1 million ordinary shares, including ordinary shares subject to an over-allotment option. The ordinary shares were listed and first traded on May 29, 2020, and payment for, and delivery of, the ordinary shares sold in the offering (excluding ordinary shares subject to the over-allotment option) took place on June 2, 2020 (“Settlement”).

Prior to Settlement, we exchanged our 26.4% ownership interest in JDE for a 26.5% equity interest in JDE Peet’s. We did not invest new capital in connection with the transaction and the exchange was accounted for as a change in interest transaction. Upon Settlement, we sold approximately 9.7 million of our ordinary shares in JDE Peet’s in the offering for gross proceeds of €304 million ($343 million). We subsequently sold approximately 1.4 million additional shares and received gross proceeds of €46 million ($51 million) upon exercise of the over-allotment option. Following Settlement and the exercise of the over-allotment option, we held a 22.9% equity interest in JDE Peet’s. During the second quarter of 2020, we recorded a preliminary gain of $121 million, net of $33 million released from accumulated other comprehensive losses, and $48 million of transaction costs. During the third quarter of 2020, we increased our preliminary gain by $10 million to $131 million.

As was the case in our ownership interest in JDE, we have significant influence with respect to JDE Peet’s, and we will continue to account for our investment in JDE Peet’s under the equity method, resulting in recognizing our share of JDE Peet’s earnings within our earnings and our share of JDE Peet’s dividends within our cash flows. In the second quarter of 2020, in connection with this transaction, we changed our accounting principle to reflect our share of JDE’s historical and JDE Peet’s ongoing earnings on a one-quarter lag basis, although we continue to record dividends when cash is received. We determined a lag was preferable as it enables us to continue to report our quarterly and annual results on a timely basis, while recording our share of JDE Peet’s ongoing results after JDE Peet’s has publicly reported its results. This change in accounting principle was applied retrospectively to all periods.

The following tables show the primary line items on the consolidated statements of earnings and comprehensive earnings and the consolidated balance sheet that changed as a result of the reporting lag for JDE Peet's. The consolidated statements of cash flow and equity were also updated to reflect these changes.


	For the Years Ended
	December 31, 2019				December 31, 2018
	As Reported		As Recast		As Reported		As Recast
	(in millions, except per share data)
Statements of Earnings
Equity method investment net earnings	$	442	$	501	$	548	$	484
Net earnings	3,885		3,944		3,395		3,331
Net earnings attributable to Mondelēz International	3,870		3,929		3,381		3,317
Earnings per share attributable to Mondelēz International:
Basic EPS	$	2.68	$	2.72	$	2.30	$	2.25
Diluted EPS	$	2.65	$	2.69	$	2.28	$	2.23

Statements of Other Comprehensive Earnings
Currency translation adjustment	$	299	$	300	$	(865)	$	(910)
Pension and other benefit plans	116		133		284		331
Derivative cash flow hedges	(45)		(45)		(54)		(54)
Total other comprehensive earnings/(losses)	370		388		(635)		(633)
Comprehensive earnings/(losses) attributable to Mondelēz International	4,242		4,319		2,748		2,686


	As of December 31, 2019
	As Reported		As Recast
	(in millions)
Balance Sheet
Equity method investments	$	7,212	$	7,178
Total assets	64,549		64,515
Retained earnings	26,653		26,615
Accumulated other comprehensive losses	(10,258)		(10,254)
Total Mondelēz International shareholders' equity	27,275		27,241
Total equity	27,351		27,317


	As of December 31,
	2020		2019
	(in millions)
Current assets	$	5,922	$	5,523
Noncurrent assets	72,941		69,587
Total assets	$	78,863	$	75,110
Current liabilities	$	11,784	$	9,823
Noncurrent liabilities	27,752		28,193
Total liabilities	$	39,536	$	38,016
Equity attributable to shareowners of investees	$	39,161	$	37,058
Equity attributable to noncontrolling interests	166		36
Total net equity of investees	$	39,327	$	37,094
Mondelēz International ownership interests	8-50%		13-50%
Equity method investments (1)	$	6,036	$	7,178


	For the Years Ended December 31,
	2020		2019		2018
	(in millions)
Net revenues	$	20,112	$	19,361	$	14,419
Gross profit	9,856		9,781		5,989
Income from continuing operations	2,078		2,216		1,753
Net income	2,078		2,216		1,753
Net income attributable to investees	$	2,070	$	2,206	$	1,742
Mondelēz International ownership interests	8-50%		13-50%		13-50%
Mondelēz International share of investee net income	$	421	$	501	$	472
Keurig shareholder loan interest income	—		—		12
Equity method investment net earnings	$	421	$	501	$	484

(1)Includes a basis difference of approximately $519 million as of December 31, 2020 and $333 million as of December 31, 2019 between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees’ equity.