What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to formally submit Kraft Foods Inc.'s press release announcing its financial results for the third quarter ended September 30, 2008, to the SEC. It provides investors with access to the company's latest earnings information.

Why is Kraft Foods Inc. using non-GAAP financial measures?

Kraft Foods Inc. uses non-GAAP financial measures to provide a more meaningful comparison of its current and prior period operating results. These measures exclude certain items that management believes do not reflect the company's fundamental business performance, such as restructuring program costs, asset impairments, and gains or losses from divestitures, thereby offering a clearer view of ongoing operational trends.

What is 'organic net revenue' and why is it important?

Organic net revenue is a non-GAAP measure that excludes the impact of acquisitions, divestitures, and currency fluctuations. Management believes this metric is important because it better reflects the company's revenue generation from its existing businesses on a going-forward basis, providing improved comparability of sales performance over time.

How did commodity hedging activities affect the company's earnings in Q3 2008?

The company reported a significant negative impact on its EPS growth from commodity hedging activities in the third quarter of 2008. This was primarily due to approximately $140 million in unrealized losses from these activities, which negatively impacted EPS growth by about 14 percentage points. Realized gains from prior quarters partially offset this impact.

MDLZ 8-K: Earnings & Results

Summary

This 8-K filing from Kraft Foods Inc. (predecessor to Mondelez International) on October 29, 2008, primarily serves to furnish a press release detailing the company's third-quarter 2008 earnings. Investors should note that Kraft Foods is reporting its results using both Generally Accepted Accounting Principles (GAAP) and various non-GAAP financial measures. The company emphasizes that these non-GAAP measures, which exclude items like restructuring charges, asset impairments, and gains/losses on divestitures, are presented to provide a clearer view of underlying business performance and facilitate year-over-year comparisons. Key non-GAAP metrics discussed include organic net revenues (excluding acquisitions, divestitures, and currency impacts) and adjusted earnings per share (EPS). The company also highlights the significant impact of commodity hedging activities on its EPS, noting a substantial negative impact in the current quarter due to unrealized losses. Management believes these non-GAAP disclosures offer valuable insights into the fundamental business performance by isolating elements that can distort comparability. Investors are advised to review these non-GAAP measures alongside the company's GAAP results and to check the company's website for detailed reconciliations, as definitions may vary from other companies.

Key Highlights

1Kraft Foods Inc. filed an 8-K on October 29, 2008, furnishing its third-quarter 2008 earnings press release.
2The company reported results under both GAAP and non-GAAP measures, with non-GAAP measures excluding items like restructuring costs and asset impairments.
3Management believes non-GAAP measures provide better comparability and reflect underlying business performance.
4Organic net revenues, excluding acquisitions, divestitures, and currency impacts, is a key non-GAAP metric for top-line performance.
5Significant negative impact on EPS was reported due to unrealized losses from commodity hedging activities.
6Reconciliations of non-GAAP measures to GAAP are available on the company's website.

Mondelez International, Inc. 8-K Report, Financial Results (Oct 29, 2008)

Summary

Key Highlights

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