What are 'organic net revenues' and why does Kraft Foods use them?

Organic net revenues is a non-GAAP financial measure that excludes the impact of acquisitions, divestitures (including the Starbucks CPG business), currency fluctuations, and accounting calendar changes. Kraft Foods uses this measure because management believes it better reflects the company's revenues on a going-forward basis and provides improved comparability by removing volatility and one-time effects.

What is 'Operating EPS' and what costs are excluded?

Operating EPS (Earnings Per Share) is another non-GAAP measure used by Kraft Foods. It excludes costs related to the Integration Program, acquisition-related costs (including transaction fees and Cadbury inventory revaluation), acquisition-related financing fees, the impact of a deferred tax charge from U.S. health care legislation, and spin-off-related costs associated with the proposed separation of the North American grocery business. Operating EPS on a constant currency basis further excludes year-over-year currency impacts.

Where can I find the detailed financial information and reconciliations?

The detailed financial data, including reconciliations of the non-GAAP financial measures to their most comparable GAAP measures for the twelve months ended December 31, 2011, and 2010, are available in the attached schedules to the press release and presentation slides, which are furnished as Exhibits 99.1 and 99.2 to this Form 8-K.

MDLZ 8-K: Regulation FD

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

The main purpose of this 8-K filing is to provide investors with information that was presented by Kraft Foods Inc. executives at the Consumer Analyst Group of New York 2012 Conference. This includes a press release and presentation slides which offer insights into the company's strategy and financial performance.

Summary

This Form 8-K filing by Kraft Foods Inc. (the predecessor to Mondelez International, Inc.) on February 21, 2012, primarily serves as a disclosure regarding presentations made by company executives at the Consumer Analyst Group of New York 2012 Conference. It includes a press release and presentation slides, which are furnished as exhibits. The key focus for investors is the discussion of forward-looking financial performance and strategy, particularly the use of non-GAAP financial measures. The company emphasizes metrics like 'organic net revenues' and 'Operating EPS' (both on a reported and constant currency basis) to provide a clearer view of underlying business performance, excluding the impacts of acquisitions, divestitures, currency fluctuations, and integration/spin-off related costs.

Key Highlights

1Kraft Foods Inc. (predecessor to Mondelez International) disclosed information presented at the Consumer Analyst Group of New York 2012 Conference.
2The filing includes a press release (Exhibit 99.1) and presentation slides (Exhibit 99.2) from the conference.
3The company provided forward-looking insights and strategic updates.
4Emphasis was placed on non-GAAP financial measures, including 'organic net revenues' and 'Operating EPS'.
5Organic net revenues exclude impacts of acquisitions, divestitures, currency, and accounting calendar changes.
6Operating EPS excludes costs related to integration programs, acquisitions (like Cadbury), and the proposed spin-off of the North American grocery business.
7The company aims to provide improved comparability of results by excluding these one-time or volatile items.

Mondelez International, Inc. 8-K Report, Regulation FD Disclosure (Feb 21, 2012)

Summary

Key Highlights

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