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Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Benefit Plans
Note 11. Benefit Plans

Pension Plans

Obligations and Funded Status
The projected benefit obligations, plan assets and funded status of our pension plans were:
 U.S. PlansNon-U.S. Plans
 2024202320242023
 (in millions)
Projected benefit obligation at January 1$1,206 $1,193 $7,404 $6,878 
Service cost3 3 59 54 
Interest cost60 64 283 303 
Benefits paid(41)(45)(446)(424)
Settlements paid(48)(63)(1)— 
Actuarial losses/(gains)
3 54 (271)235 
Divestitures
— — — (6)
Currency— — (312)337 
Other— — 37 27 
Projected benefit obligation at December 311,183 1,206 6,753 7,404 
Fair value of plan assets at January 11,277 1,265 7,907 7,389 
Actual return on plan assets8 114 42 423 
Contributions4 6 109 162 
Benefits paid(41)(45)(446)(424)
Settlements paid(48)(63)(1)— 
Divestitures
— — — (4)
Currency— — (324)362 
Other— — 10 (1)
Fair value of plan assets at December 311,200 1,277 7,297 7,907 
Net pension assets at December 31$17 $71 $544 $503 

The accumulated benefit obligation, which represents benefits earned to the measurement date, for U.S. pension plans was $1.2 billion at December 31, 2024 and December 31, 2023. The accumulated benefit obligation for non-U.S. pension plans was $6.6 billion at December 31, 2024 and $7.3 billion at December 31, 2023.

The actuarial (gain)/loss for all pension plans in 2024 and 2023 was primarily related to changes in assumptions including discount rates used to measure the benefit obligations of those plans.

The combined U.S. and non-U.S. pension plans resulted in a net pension asset of $561 million as of December 31, 2024 and a net pension asset of $574 million as of December 31, 2023. We recognized these amounts in our consolidated balance sheets as follows:
 As of December 31,
 20242023
 (in millions)
Prepaid pension assets$987 $1,043 
Other current liabilities(35)(32)
Accrued pension costs(391)(437)
$561 $574 
Certain of our U.S. and non-U.S. plans are underfunded with accumulated benefit obligations in excess of plan assets. For these plans, the projected benefit obligations, accumulated benefit obligations and the fair value of plan assets were:
 U.S. PlansNon-U.S. Plans
 As of December 31,As of December 31,
 2024202320242023
 (in millions)
Projected benefit obligation$24 $25 $557 $646 
Accumulated benefit obligation24 25 514 594 
Fair value of plan assets2 2 157 201 

We used the following weighted-average assumptions to determine our benefit obligations under the pension plans:
 U.S. PlansNon-U.S. Plans
 As of December 31,As of December 31,
 2024202320242023
Discount rate5.18 %5.22 %4.45 %4.03 %
Rate of compensation increase4.00 %4.00 %3.10 %3.22 %

Year-end discount rates for our U.S., Canadian, Eurozone and U.K. plans were developed from a model portfolio of high quality, fixed-income debt instruments with durations that match the expected future cash flows of the benefit obligations. Year-end discount rates for our remaining non-U.S. plans were developed from local bond indices that match local benefit obligations as closely as possible. Changes in our discount rates were primarily the result of changes in bond yields year-over-year.

For the periods presented, we measure service and interest costs by applying the specific spot rates along a yield curve used to measure plan obligations to the plans’ liability cash flows. We believe this approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve.

Mondelēz Global LLC Retirement Plan Update
During the third quarter of 2024, we entered into an agreement with two third party insurance companies for the Mondelēz Global LLC Retirement Plan (“MDLZ Global Plan”), the pension plan for US salaried employees. The agreement features a buy-in of the plan assets with an option to elect a future buy-out conversion. As part of the buy-in, all of the MDLZ Global Plan assets were transferred to the insurance companies in exchange for an annuity contract during the third quarter of 2024 to further reduce the risk of plan asset value volatility. The annuity contract provides all future benefit plan payments to the MDLZ Global Plan participants upon execution of the plan amendment to terminate the plan. However, we continue to retain the primary benefit obligation until the buy-out conversion is completed. Upon election of the buy-out conversion, we will transfer full responsibility of the MDLZ Global Plan obligations to the insurance companies, at which time we will derecognize the assets and liabilities of the pension plan and realize a settlement loss as a component of net periodic pension cost.

The plan amendment to terminate the MDLZ Global Plan was executed on December 31, 2024 and we intend to execute the buy-out conversion in 2025.
Components of Net Periodic Pension Cost
Net periodic pension cost consisted of the following:
 U.S. PlansNon-U.S. Plans
 For the Years Ended December 31,For the Years Ended December 31,
 202420232022202420232022
 (in millions)
Service cost$3 $3 $5 $59 $54 $88 
Interest cost60 64 51 283 303 172 
Expected return on plan assets(89)(99)(79)(428)(403)(353)
Amortization:
Net loss
— — 6 64 42 57 
Prior service cost/(benefit)1 1 1 — (1)(2)
Curtailment expense/(credit)
— — — (1)— 8 
Settlement losses and other expenses14 17 14 1 1 2 
Net periodic pension benefit
$(11)$(14)$(2)$(22)$(4)$(28)

We determine our expected rate of return on plan assets from the plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term returns by asset class. For the U.S. plans, we determine the expected return on plan assets component of net periodic (benefit)/cost using a calculated market-related value of plan assets methodology that averages gains and losses on the plan assets over a four-year period to determine future pension expense. For our non-U.S. plans, we utilize a similar approach with varying cost recognition periods for some plans, and with others, we determine the expected return on plan assets based on asset fair values as of the measurement date.

We used the following weighted-average assumptions to determine our net periodic pension cost:
 U.S. PlansNon-U.S. Plans
 For the Years Ended December 31,For the Years Ended December 31,
 202420232022202420232022
Discount rate5.22 %5.55 %3.01 %4.03 %4.51 %1.74 %
Expected rate of return
on plan assets		6.25 %6.25 %4.50 %5.54 %5.41 %3.44 %
Rate of compensation increase4.00 %4.00 %4.00 %3.20 %3.22 %2.84 %
Plan Assets
The fair value of pension plan assets was determined using the following fair value measurements:
 As of December 31, 2024
Asset CategoryTotal Fair
Value		Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
 (in millions)
U.S. equity securities$1 $1 $— $— 
Pooled funds - equity securities833 751 82 — 
Total equity securities834 752 82 — 
Government bonds1,854 70 1,784 — 
Pooled funds - fixed-income securities945 825 120 — 
Corporate bonds and
   fixed-income securities
563 243 320 — 
Buy-in annuity contracts and other
2,082 — — 2,082 
Total fixed-income securities5,444 1,138 2,224 2,082 
Real estate222 159 — 63 
Private equity3 — — 3 
Cash and other
87 77 9 1 
Total assets in the fair value hierarchy$6,590 $2,126 $2,315 $2,149 
Investments measured at net asset value1,811 
Total investments at fair value$8,401 
 As of December 31, 2023
Asset CategoryTotal Fair
Value		Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
 (in millions)
U.S. equity securities$3 $3 $— $— 
Pooled funds - equity securities935 863 72 — 
Total equity securities938 866 72 — 
Government bonds2,485 59 2,426 — 
Pooled funds - fixed-income securities839 718 121 — 
Corporate bonds and
   fixed-income securities
902 203 699 — 
Buy-in annuity contracts and other
1,464 — — 1,464 
Total fixed-income securities5,690 980 3,246 1,464 
Real estate249 182 — 67 
Private equity4 — — 4 
Cash and other
122 103 18 1 
Total assets in the fair value hierarchy$7,003 $2,131 $3,336 $1,536 
Investments measured at net asset value2,084 
Total investments at fair value$9,087 

We excluded plan assets of $96 million at December 31, 2024 and $97 million at December 31, 2023 from the above tables related to certain insurance contracts as they are reported at contract value, in accordance with authoritative guidance.
Fair value measurements
•Level 1 – includes primarily U.S and non-U.S. equity securities and government bonds valued using quoted prices in active markets.
•Level 2 – includes primarily pooled funds, including assets in real estate pooled funds, valued using net asset values of participation units held in common collective trusts, as reported by the managers of the trusts and as supported by the unit prices of actual purchase and sale transactions. Level 2 plan assets also include corporate bonds and other fixed-income securities, valued using independent observable market inputs, such as matrix pricing, yield curves and indices.
•Level 3 – includes investments valued using unobservable inputs that reflect the plans’ assumptions that market participants would use in pricing the assets, based on the best information available.
•Fair value estimates for pooled funds are calculated by the investment advisor when reliable quotations or pricing services are not readily available for certain underlying securities. The estimated value is based on either cost or last sale price for most of the securities valued in this fashion.
•Fair value estimates for private equity investments are calculated by the general partners using the market approach to estimate the fair value of private investments. The market approach utilizes prices and other relevant information generated by market transactions, type of security, degree of liquidity, restrictions on the disposition, latest round of financing data, company financial statements, relevant valuation multiples and discounted cash flow analyses.
•Fair value estimates for private debt placements are calculated using standardized valuation methods, including income-based techniques such as discounted cash flow projections or market-based techniques utilizing public and private transaction multiples as comparables.
•Fair value estimates for real estate investments are calculated by investment managers using the present value of future cash flows expected to be received from the investments, based on valuation methodologies such as appraisals, local market conditions, and current and projected operating performance.
•Fair value estimates for buy-in annuity policies (excluding the MDLZ Global Plan buy-in) are calculated on a replacement policy value basis by discounting the projected cash flows of the plan members using a discount rate based on risk-free rates and adjustments for estimated levels of insurer pricing. Fair value of the MDLZ Global Plan buy-in annuity is set equal to the estimated contract value as of December 31, 2024.
•Net asset value – primarily includes equity funds, fixed income funds, real estate funds, hedge funds and private equity investments for which net asset values are normally used.

Changes in our Level 3 plan assets included:
Asset CategoryJanuary 1,
2024
Balance		Net Realized
and Unrealized
Gains/
(Losses)		Net Purchases,
Issuances and
Settlements		Net Transfers
Into/(Out of)
Level 3		Currency
Impact		December 31,
2024
Balance
 (in millions)
Buy-in annuity contracts and other
$1,471 $(62)$702 $— $(29)$2,082 
Real estate62 — — — 1 63 
Private equity and other3 — — — 1 4 
Total Level 3 investments$1,536 $(62)$702 $— $(27)$2,149 
Asset CategoryJanuary 1,
2023
Balance		Net Realized
and Unrealized
Gains/
(Losses)		Net Purchases,
Issuances and
Settlements		Net Transfers
Into/(Out of)
Level 3		Currency
Impact		December 31,
2023
Balance
 (in millions)
Buy-in annuity contracts and other
$1,540 $60 $(227)$— $98 $1,471 
Real estate70 (2)— — (6)62 
Private equity and other4 — — — (1)3 
Total Level 3 investments$1,614 $58 $(227)$— $91 $1,536 

The increase in Level 3 pension plan investments during 2024 was related to net purchases, issuances and settlements, including the purchase of the MDLZ Global Plan buy-in annuity, partially offset by a decreased return on plan assets and currency impact. The decrease in Level 3 pension plan investments during 2023 was related to net purchases, issuances and settlements of corporate bonds and other fixed income securities, partially offset by currency impact and net realized and unrealized gains.
The percentage of fair value of pension plan assets was:
 U.S. PlansNon-U.S. Plans
 As of December 31,As of December 31,
Asset Category2024202320242023
Equity securities4%15%14%16%
Fixed-income securities21%85%64%63%
Real estate——4%4%
Buy-in annuity contracts
75%—17%16%
Cash——1%1%
Total100%100%100%100%

For the MDLZ Global Plan, our assets have been exchanged for buy-in annuity contracts to cover all plan liabilities. For our remaining U.S. plans, our investment strategy is to reduce our funded status risk in part through appropriate asset allocation within our plan assets. We attempt to maintain our target asset allocation by rebalancing between asset classes as we make monthly benefit payments. The strategy involves using indexed U.S. equity and international equity securities and actively managed U.S. investment grade fixed-income securities (which constitute 95% or more of fixed-income securities) with smaller allocations to high yield fixed-income securities.

For our non-U.S. plans, the investment strategy is subject to local regulations and the asset/liability profiles of the plans in each individual country. In aggregate, the asset allocation targets of our non-U.S. plans are broadly characterized as a mix of approximately 13% equity securities, 56% fixed-income securities, 27% buy-in annuity contracts and 4% real estate.

Employer Contributions
In 2024, we contributed $4 million to our U.S. pension plans and $86 million to our non-U.S. pension plans. In addition, employees contributed $23 million to our non-U.S. plans. We make contributions to our pension plans in accordance with local funding arrangements and statutory minimum funding requirements. Discretionary contributions are made to the extent that they are tax deductible and do not generate an excise tax liability. In 2025, we estimate that our pension contributions will be $11 million to our U.S. plans and $68 million to our non-U.S. plans based on current tax laws. Our actual contributions may be different due to many factors, including changes in tax and other benefit laws, significant differences between expected and actual pension asset performance or interest rates.

Future Benefit Payments
The estimated future benefit payments from our pension plans at December 31, 2024 were (in millions):
 202520262027202820292030-2034
U.S. Plans$945$17$18$18$19$103
Non-U.S. Plans4144144204224292,204

The increase in estimated benefit payments for U.S. plans in 2025 is reflective of the expected MDLZ Global Plan buy-out.

Multiemployer Pension Plans
In accordance with obligations we have under collective bargaining agreements, we made contributions to multiemployer pension plans for continuing participation and these amounts were not material. Our contributions are based on our contribution rates under our collective bargaining agreements, the number of our eligible employees and fund surcharges.

On July 11, 2019, we received a withdrawal liability assessment from the Bakery and Confectionery Union and Industry International Pension Fund and recorded a discounted liability of $491 million requiring pro-rata monthly payments over 20 years beginning in the third quarter of 2019. Within interest and other expense, net, we recorded accreted interest of $10 million in 2024, $10 million in 2023 and $11 million 2022. As of December 31, 2024, the remaining discounted withdrawal liability was $311 million, with $16 million recorded in other current liabilities and $295 million recorded in long-term other liabilities.
Other Costs
We sponsor and contribute to employee defined contribution plans. These plans cover eligible salaried, non-union and union employees. Our contributions and costs are determined by the matching of employee contributions, as defined by the plans. Amounts charged to expense in continuing operations for defined contribution plans totaled $68 million in 2024 and $66 million in 2023 and 2022.

Postretirement Benefit Plans

Obligations
The changes in and the amount of the accrued benefit obligation of U.S. and non-U.S. plans were:
 As of December 31,
 20242023
 (in millions)
Accrued benefit obligation at January 1$205 $233 
Service cost1 1 
Interest cost10 12 
Benefits paid(17)(16)
Plan amendments— (22)
Currency(7)2 
Actuarial gains
(9)(5)
Accrued benefit obligation at December 31183 205 
Fair value of plan assets at January 1
70 — 
Employer Contributions14 76 
Benefit Payments(17)(12)
Actual Return on Assets7 6 
Fair value of plan assets at December 31$74 $70 

The fair value of plan assets as of December 31, 2024 pertain to the U.S. plan as our postretirement health care plans are funded in the U.S.
The current portion of our accrued postretirement benefit obligation of $11 million at both December 31, 2024 and December 31, 2023 was included in other current liabilities.

The actuarial gains for all postretirement plans in 2024 and 2023 were driven by gains related to assumption changes including discount rates used to measure the benefit obligations of those plans.

We used the following weighted-average assumptions to determine our postretirement benefit obligations:
 U.S. PlansNon-U.S. Plans
 As of December 31,As of December 31,
 2024202320242023
Discount rate5.70 %5.20 %5.77 %5.72 %
Health care cost trend rate assumed for next year
6.50 %6.75 %5.04 %5.07 %
Ultimate health care cost trend rate
5.00 %5.00 %4.64 %4.63 %
Year that the rate reaches the ultimate trend rate2031203120402040

Year-end discount rates for our U.S., Canadian and U.K. plans were developed from a model portfolio of high quality, fixed-income debt instruments with durations that match the expected future cash flows of the benefit obligations. Year-end discount rates for our remaining non-U.S. plans were developed from local bond indices that match local benefit obligations as closely as possible. Changes in our discount rates were primarily the result of changes in bond yields year-over-year. Our expected health care cost trend rate is based on historical costs.
For the periods presented, we measure service and interest costs for other postretirement benefits by applying the specific spot rates along a yield curve used to measure plan obligations to the plans’ liability cash flows. We believe this approach provides a good measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve.

Components of Net Periodic Postretirement Health Care Costs
The net periodic postretirement (benefit)/cost was $(11) million, $(5) million and $12 million for the years ended December 31, 2024, 2023 and 2022, respectively.

We used the following weighted-average assumptions to determine our net periodic postretirement health care cost:
 U.S. PlansNon-U.S. Plans
 For the Years Ended December 31,For the Years Ended December 31,
 202420232022202420232022
Discount rate5.20%5.53%2.96%5.72%6.07%3.81%
Expected rate of return
on plan assets		7.25%—————
Health care cost trend rate6.50%7.00%5.50%5.04%5.98%5.72%

Future Benefit Payments
Our estimated future benefit payments for our postretirement health care plans at December 31, 2024 were (in millions):
 202520262027202820292030-2034
U.S. Plans$10$9$9$8$8$34
Non-U.S. Plans4445524

Other Costs
We made contributions to multiemployer medical plans totaling $17 million in 2024, $18 million in 2023 and $17 million in 2022. These plans provide medical benefits to active employees and retirees under certain collective bargaining agreements.

Postemployment Benefit Plans

Obligations
Our postemployment plans are not funded. The changes in and the amount of the accrued benefit obligation were:
 As of December 31,
 20242023
 (in millions)
Accrued benefit obligation at January 1$92 $47 
Service cost9 4 
Interest cost7 3 
Benefits paid(21)(25)
Actuarial losses
6 63 
Accrued benefit obligation at December 31$93 $92 

The accrued benefit obligation was determined using a weighted-average discount rate of 9.1% in 2024 and 8.1% in 2023, an assumed weighted-average ultimate annual turnover rate of 0.8% in 2024 and 2023, assumed compensation cost increases of 4.0% in 2024 and 2023 and assumed benefits as defined in the respective plans.

Postemployment costs arising from actions that offer employees benefits in excess of those specified in the respective plans are charged to expense when incurred.
Components of Net Periodic Postemployment Costs
The net periodic postemployment cost was $20 million, $4 million and zero for the years ended December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024, the estimated net gain for the postemployment benefit plans that we expect to amortize from accumulated other comprehensive earnings/(losses) into net periodic postemployment costs during 2025 is approximately $4 million.