What are the main non-GAAP financial measures discussed in this report?

The main non-GAAP financial measures discussed are 'organic net revenues' (excluding acquisitions, divestitures, and currency), 'Combined Organic Net Revenues' (which includes the impact of significant acquisitions like Cadbury to reflect combined business growth), and 'Operating EPS' (which excludes integration, acquisition-related costs, and other one-time items).

Why is Kraft Foods using 'Combined Organic Net Revenues'?

Kraft Foods is using 'Combined Organic Net Revenues' to provide investors with a clearer picture of the organic growth rate of the combined business, specifically including the recently acquired Cadbury business, while excluding other acquisitions, divestitures, and currency impacts. This measure is intended to reflect the revenue performance on a going-forward basis for the integrated entity.

What types of costs are excluded from 'Operating EPS'?

Operating EPS excludes costs related to the integration program, acquisition-related costs (such as transaction fees, stamp taxes, and inventory revaluation), acquisition-related financing fees, and the impact of a deferred tax charge related to U.S. healthcare legislation. Management believes this provides a better reflection of ongoing earnings potential.

Is the information in the press release considered 'filed' with the SEC?

No, the report states that the information in the press release (Item 2.02) will not be deemed 'filed' for purposes of Section 18 of the Exchange Act or incorporated by reference in other filings, except as expressly set forth in such filings.

MDLZ 8-K: Earnings & Results

Summary

This Form 8-K filing from Kraft Foods Inc. (the predecessor to Mondelez International) on August 5, 2010, announces the company's second-quarter financial results for the period ended June 30, 2010. The report primarily serves to furnish a press release detailing these results, along with an explanation of the non-GAAP financial measures the company uses. Investors should note that the company is heavily discussing the integration and performance of the recently acquired Cadbury business, utilizing metrics like "Combined Organic Net Revenues" to provide a more comparable view of growth. The focus of the report is on the company's operational performance, particularly revenue growth. Kraft Foods is emphasizing "organic net revenues" and "Combined Organic Net Revenues" to provide clarity on underlying business performance, excluding the impacts of acquisitions, divestitures, and currency fluctuations. The company also details "Operating EPS" as a key non-GAAP measure to provide a forward-looking view, excluding significant integration and acquisition-related costs. This emphasis on non-GAAP metrics indicates management's strategy to highlight the operational momentum of the combined entity.

Key Highlights

1Kraft Foods Inc. announced its second-quarter 2010 earnings on August 5, 2010.
2The company is reporting "organic net revenues" and "Combined Organic Net Revenues" as key non-GAAP measures to demonstrate underlying growth, excluding currency, acquisitions, and divestitures.
3"Combined Organic Net Revenues" specifically includes the impact of the significant Cadbury acquisition to reflect the combined business's organic growth.
4"Operating EPS" is presented as a non-GAAP measure to offer a view of earnings per share, excluding costs related to integration, acquisitions, and certain other one-time impacts.
5The report includes reconciliations for non-GAAP measures to their most comparable GAAP financial measures.
6Segment operating income is also discussed as a management tool for evaluating segment performance, excluding items like hedging gains/losses and certain pension plan costs.
7The filing includes Exhibit 99.1, which is the full press release dated August 5, 2010, containing the detailed financial results and commentary.

Mondelez International, Inc. 8-K Report, Financial Results (Aug 5, 2010)

Summary

Key Highlights

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