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

The primary purpose of this 8-K filing is to announce that Kraft Foods Inc. (which would later become Mondelez International) expected its full-year 2011 earnings to be in line with its prior guidance. It also serves to define and explain the company's use of non-GAAP financial metrics like organic net revenues and Operating EPS.

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

The key non-GAAP measures are 'organic net revenues' and 'Operating EPS.' Organic net revenues aim to show revenue growth without the distorting effects of acquisitions, divestitures, currency fluctuations, and calendar shifts. Operating EPS is presented to exclude costs associated with major corporate actions such as the Cadbury acquisition, the spin-off of the North American Grocery business, and integration programs, providing a view of ongoing operational profitability.

Does this filing provide specific financial results for 2011?

No, this 8-K does not provide specific, detailed financial results for the year ended December 31, 2011. Instead, it states that the expected results are consistent with the company's previously issued outlook and directs investors to a press release (Exhibit 99.1) for further details and the definition of non-GAAP measures.

What impact does the Cadbury acquisition or the North American Grocery spin-off have on the reported non-GAAP metrics?

The Cadbury acquisition and the spin-off of the North American Grocery business are explicitly mentioned as events whose associated costs and impacts are excluded when calculating 'Operating EPS.' This is done to provide a clearer picture of the ongoing core business performance, separate from the significant costs and complexities of these large-scale corporate transactions.

MDLZ 8-K: Earnings & Results

Summary

Mondelez International, Inc. (formerly Kraft Foods Inc.) filed an 8-K on January 17, 2012, to report on its expected earnings for the year ended December 31, 2011. The company indicated that these preliminary results were consistent with its previously issued outlook. This filing also clarified its use of non-GAAP financial measures, specifically 'organic net revenues' and 'Operating EPS,' to provide a clearer view of its ongoing business performance by excluding the impact of acquisitions, divestitures, currency fluctuations, and other one-time charges. For investors, this 8-K signals that Kraft Foods was reaffirming its financial guidance heading into the close of the fiscal year 2011. The emphasis on non-GAAP measures highlights the company's strategic focus on presenting a performance narrative that removes the noise from significant corporate activities like the Cadbury acquisition and the planned spin-off of its North American Grocery business, allowing for better comparability of underlying operational trends.

Key Highlights

1Kraft Foods Inc. (soon to be Mondelez International) issued a press release on January 17, 2012, regarding its 2011 year-end earnings expectations.
2The company stated that its expected earnings for the year ended December 31, 2011, were consistent with its previously provided outlook.
3The filing provides definitions and justifications for using non-GAAP financial measures: 'organic net revenues' and 'Operating EPS'.
4Organic net revenues exclude impacts from acquisitions, divestitures (including the Starbucks CPG business), currency, and accounting calendar changes.
5Operating EPS excludes costs related to integration programs, acquisition costs (Cadbury, Starbucks), financing fees, spin-off costs (North American Grocery), and specific tax charges.
6Management believes these non-GAAP measures offer a better reflection of ongoing business performance and comparability.
7Exhibit 99.1 contains the press release announcing these results and financial measure clarifications.

Mondelez International, Inc. 8-K Report, Financial Results (Jan 17, 2012)

Summary

Key Highlights

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