What is the main purpose of this 8-K filing for Kraft Foods Inc.?

The primary purpose of this 8-K filing is to officially report and furnish Kraft Foods Inc.'s earnings press release for the second quarter ended June 30, 2011. This provides investors with the company's financial performance results and management's commentary.

Why does Kraft Foods Inc. emphasize non-GAAP financial measures like Organic Net Revenues?

Kraft Foods Inc. emphasizes non-GAAP measures to provide investors with a clearer perspective on the company's core operational performance. These measures exclude volatile or one-time factors such as currency fluctuations, acquisitions (e.g., Cadbury), divestitures (e.g., Starbucks CPG business), and integration costs, which can obscure the underlying business trends when looking at GAAP figures alone.

What specific items are excluded when calculating the company's non-GAAP measures like Underlying Operating Income and Operating EPS?

When calculating Underlying Operating Income and Operating EPS, Kraft Foods Inc. excludes costs related to the Integration Program, acquisition-related costs (including transaction fees and taxes), U.K. stamp taxes, the impact of Cadbury inventory revaluation, acquisition-related financing fees, and the effect of a deferred tax charge from U.S. health care legislation. These exclusions aim to present a more consistent view of operational profitability.

How should investors interpret the use of non-GAAP financial measures by Kraft Foods Inc.?

Investors should view these non-GAAP financial measures as supplementary information to the company's GAAP results. While they are intended to offer better comparability and insight into ongoing operations, they may differ from non-GAAP measures used by other companies. A thorough analysis should consider both GAAP and non-GAAP figures, along with the provided reconciliations.

MDLZ 8-K: Earnings & Results

Summary

This 8-K filing from Kraft Foods Inc. (which would later become Mondelez International) on August 4, 2011, announces the company's financial results for the second quarter ended June 30, 2011. The report primarily serves to furnish the earnings press release, providing investors with key financial performance data. Notably, the company emphasizes its use of non-GAAP financial measures such as organic net revenues, underlying operating income, and Operating EPS. These measures are presented to offer a clearer view of the company's ongoing operational performance by excluding the impact of acquisitions, divestitures (specifically mentioning the Starbucks CPG business), currency fluctuations, integration program costs, and other one-time charges related to the Cadbury acquisition. Investors are encouraged to consider these non-GAAP measures alongside GAAP results for a comprehensive understanding of the company's financial health and operational trends.

Key Highlights

1Kraft Foods Inc. (precursor to Mondelez International) reported its Q2 2011 financial results via an 8-K filing.
2The filing primarily furnished the earnings press release dated August 4, 2011.
3The company highlighted its use of non-GAAP financial measures to provide a clearer view of ongoing performance.
4Key non-GAAP measures discussed include Organic Net Revenues, Underlying Operating Income, and Operating EPS.
5These non-GAAP measures are used to exclude the impact of acquisitions (like Cadbury), divestitures (Starbucks CPG), currency fluctuations, integration costs, and other one-time items.
6Management believes these non-GAAP metrics offer improved comparability and reflect ongoing operational performance.
7Investors are advised to review both GAAP and non-GAAP measures for a complete financial picture.

Mondelez International, Inc. 8-K Report, Financial Results (Aug 4, 2011)

Summary

Key Highlights

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