Summary
This Form 8-K filing by Kraft Foods Inc. (now Mondelez International, Inc.) on August 4, 2009, primarily announces the company's second-quarter 2009 earnings release, dated August 3, 2009. The filing itself does not contain the detailed financial statements but rather refers investors to an attached press release (Exhibit 99.1) for the full results. This report highlights Kraft Foods' use of non-GAAP financial measures, including organic net revenues and segment operating income, to provide a clearer view of ongoing operational performance and segment profitability. It also explains the rationale behind excluding certain items from these non-GAAP measures, such as the impact of acquisitions/divestitures, currency fluctuations, hedging activities, and specific pension plan costs, aiming for improved comparability and transparency for investors. Furthermore, the report introduces discretionary cash flow as a key metric for assessing operational efficiency and financial health. Discretionary cash flow is defined as cash flow from operations less capital expenditures, plus voluntary pension contributions. Investors are encouraged to review these non-GAAP measures alongside GAAP results, understanding that definitions and calculations may vary across companies. The filing also references the completion of a five-year Restructuring Program that concluded in 2008, noting its impact and costs.
Key Highlights
- 1Kraft Foods Inc. reported its second-quarter 2009 financial results via a press release dated August 3, 2009.
- 2The company emphasizes its use of non-GAAP financial measures such as 'organic net revenues' to provide a clearer picture of ongoing performance, excluding impacts from acquisitions, divestitures, and currency.
- 3Segment operating income is presented as a key performance indicator, with specific exclusions for hedging gains/losses and certain pension plan costs to enhance transparency and comparability.
- 4Discretionary cash flow is highlighted as a primary metric for assessing financial health and operational efficiency, calculated as operating cash flow less capital expenditures, plus voluntary pension contributions.
- 5The report mentions the conclusion of Kraft Foods' five-year Restructuring Program in 2008.
- 6Investors are advised to consider non-GAAP measures in conjunction with, and not as a substitute for, GAAP financial results.
- 7The filing includes Exhibit 99.1, which contains the detailed earnings press release with supplemental financial data and reconciliations.