Summary
This 8-K filing from Kraft Foods Inc. (which would later become Mondelez International, Inc.) reports on the company's financial results for the fourth quarter and full year ended December 31, 2011. The primary focus of the filing is the dissemination of earnings information and the clarification of its non-GAAP financial measures. Investors should note that the company utilizes several non-GAAP metrics, including organic net revenues, underlying operating income, operating EPS, and adjusted free cash flow, to provide a clearer view of ongoing operational performance by excluding one-time impacts from acquisitions, divestitures, integration programs, and spin-off related costs. The company also details how it defines and uses segment operating income to evaluate performance and allocate resources, excluding items like unrealized hedging gains/losses and certain pension plan costs to better reflect segment-level operational results. The filing emphasizes that these non-GAAP measures are presented to supplement, not replace, GAAP financial results and may differ from those used by other companies.
Key Highlights
- 1Kraft Foods Inc. reported its fourth quarter and full year 2011 financial results on February 21, 2012.
- 2The company utilizes and explains several non-GAAP financial measures, including organic net revenues, underlying operating income, operating EPS, and adjusted free cash flow.
- 3These non-GAAP measures are used to provide a better reflection of ongoing operational performance by excluding impacts from acquisitions (e.g., Cadbury), divestitures (e.g., Starbucks CPG business), integration programs, and spin-off related costs.
- 4Organic net revenues are presented to exclude currency fluctuations, acquisitions, divestitures, and accounting calendar changes.
- 5Underlying operating income and operating EPS exclude costs related to integration programs, acquisition expenses, and spin-off preparations.
- 6Adjusted free cash flow is defined as cash flow from operations less capital expenditures, adjusted for incremental pension contributions and taxes paid on specific asset sales.
- 7Segment operating income is disclosed as a key metric for evaluating segment performance, excluding unrealized hedging gains/losses and certain pension plan costs.