Why does Kraft Foods Inc. use non-GAAP financial measures?

Kraft Foods Inc. uses non-GAAP financial measures like organic net revenues, underlying operating income, and operating EPS to provide investors with a better understanding of the company's ongoing operational performance and comparability by excluding the impact of specific items such as acquisitions, divestitures, currency fluctuations, and integration costs.

What specific items are excluded when calculating these non-GAAP measures?

Organic net revenues exclude acquisitions, divestitures (like the Starbucks CPG business), currency, and accounting calendar changes. Underlying operating income excludes costs from the Integration Program and acquisition-related costs (including Cadbury acquisition impacts). Operating EPS further excludes acquisition-related financing fees and a deferred tax charge related to U.S. health care legislation.

Where can I find the detailed financial statements and reconciliations?

The detailed financial statements and reconciliations of the non-GAAP financial measures to the most comparable GAAP financial measures are provided in Exhibit 99.1, which is the press release furnished with this Form 8-K.

MDLZ 8-K: Earnings & Results

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

The main purpose of this 8-K filing is to report Kraft Foods Inc.'s financial results for the first quarter ended March 31, 2011, and to furnish the accompanying earnings press release.

Summary

This Form 8-K filing from Kraft Foods Inc. (the predecessor to Mondelez International for this specific report date) on May 5, 2011, primarily serves to announce the company's financial results for the first quarter ended March 31, 2011. The report highlights the company's use of non-GAAP financial measures, including organic net revenues, underlying operating income, and operating EPS. These measures are presented to provide a clearer view of ongoing operational performance by excluding impacts from acquisitions, divestitures, currency fluctuations, and integration or acquisition-related costs. Investors are directed to the accompanying press release (Exhibit 99.1) for detailed financial data and reconciliations. The core purpose of this filing is to provide investors with the company's updated financial performance for the quarter. The emphasis on non-GAAP measures suggests management's intent to showcase the underlying health and growth trends of the business, particularly in the context of significant past events like the Cadbury acquisition. Investors should pay close attention to these adjusted figures for a more comparable view of the company's operational trends.

Key Highlights

1Kraft Foods Inc. filed an 8-K on May 5, 2011, to report its first quarter 2011 financial results.
2The report emphasizes the use of non-GAAP financial measures to provide a clearer view of performance.
3Key non-GAAP measures discussed include organic net revenues, underlying operating income, and operating EPS.
4Organic net revenues exclude impacts of acquisitions, divestitures (including the Starbucks CPG business), currency, and calendar changes.
5Underlying operating income excludes costs related to the Integration Program and acquisition-related costs (e.g., Cadbury acquisition).
6Operating EPS excludes integration costs, acquisition costs, financing fees, and the impact of U.S. health care legislation.
7The filing includes a press release (Exhibit 99.1) with supplemental financial data and reconciliations of non-GAAP to GAAP measures.

Mondelez International, Inc. 8-K Report, Financial Results (May 5, 2011)

Summary

Key Highlights

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