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

The primary purpose of this 8-K filing is to officially furnish Kraft Foods Inc.'s press release announcing its financial results for the first quarter ended March 31, 2010. It provides investors with timely access to the company's earnings performance and related commentary.

What are the key non-GAAP financial measures discussed, and why are they important?

The key non-GAAP measures discussed are Organic Net Revenues, Combined Organic Net Revenues, and Operating EPS. Organic Net Revenues exclude currency, acquisitions, and divestitures for a clearer view of underlying business growth. Combined Organic Net Revenues, introduced due to the Cadbury acquisition, includes its impact from the acquisition date. Operating EPS adjusts for integration, acquisition, financing, and other one-time costs. Management uses these measures to offer a more comparable and forward-looking perspective on financial performance than standard GAAP measures alone.

How does the Cadbury acquisition factor into these financial measures?

The Cadbury acquisition is significant. Combined Organic Net Revenues specifically includes the financial impact of Cadbury from its acquisition date (February 2, 2010) through the end of the quarter, allowing for a clearer view of the combined entity's organic growth. Additionally, Operating EPS excludes costs directly related to the integration and financing of the Cadbury acquisition.

What is Segment Operating Income and how is it used?

Segment Operating Income is a measure used by management to assess the performance of different business segments and to allocate resources. It excludes certain items like unrealized hedging gains/losses, specific pension plan costs, general corporate expenses, and amortization of intangibles, providing a more focused view of operational profitability at the segment level.

MDLZ 8-K: Earnings & Results

Summary

This 8-K filing from Kraft Foods Inc. (precursor to Mondelez International) on May 6, 2010, primarily serves to furnish the company's first-quarter earnings press release for the period ending March 31, 2010. Investors should note that the filing details the company's financial performance and introduces several non-GAAP financial measures that management utilizes for a more forward-looking and comparable view of results. These measures are crucial for understanding the impact of significant events like the recent Cadbury acquisition. The company emphasizes "Organic Net Revenues" and "Combined Organic Net Revenues" to highlight revenue growth excluding currency fluctuations, acquisitions, and divestitures, with the latter specifically including the Cadbury acquisition's impact from its acquisition date. Furthermore, "Operating EPS" is presented as a measure that excludes integration costs, acquisition-related expenses, financing fees, and other one-time impacts, aiming to provide a clearer picture of ongoing operational profitability. Investors are advised to review these non-GAAP measures alongside GAAP results for a comprehensive understanding.

Key Highlights

1Kraft Foods Inc. filed an 8-K on May 6, 2010, to provide its Q1 2010 earnings press release.
2The filing introduces and defines key non-GAAP financial measures: Organic Net Revenues and Combined Organic Net Revenues.
3Combined Organic Net Revenues specifically accounts for the Cadbury acquisition, showing its impact from the acquisition date.
4Operating EPS is presented as a non-GAAP measure excluding integration, acquisition, financing, and other one-time costs for better comparability.
5Management uses these non-GAAP measures to provide a forward-looking perspective and improve comparability of results.
6Segment Operating Income is also detailed as a performance metric for evaluating segment results and resource allocation.
7Investors are instructed to consider these non-GAAP measures in conjunction with, not as a substitute for, GAAP financial results.

Mondelez International, Inc. 8-K Report, Financial Results (May 6, 2010)

Summary

Key Highlights

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