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

The primary purpose of this Form 8-K is to officially submit Kraft Foods Inc.'s press release announcing its second-quarter 2012 financial results, filed on August 2, 2012. It also serves to define and explain the non-GAAP financial measures the company uses for reporting performance.

Why does Kraft Foods Inc. use non-GAAP financial measures like Organic Net Revenues and Adjusted Operating Income?

Kraft Foods Inc. uses these non-GAAP measures to provide investors with a clearer understanding of the company's underlying business performance. These measures exclude certain costs and impacts, such as those from integration, restructuring, and the anticipated spin-off, as well as currency fluctuations and divestitures, allowing for better comparability of results over time and across different business activities.

What is 'Spin-Off Costs' and why is it excluded from certain financial measures?

Spin-Off Costs refer to the expenses incurred in relation to the planned separation of Kraft Foods Inc.'s North American grocery business from its global snacks business. These costs, including transaction fees and other related expenses, are excluded from measures like Adjusted Operating Income and Operating EPS to present a view of the ongoing operational profitability without the impact of these one-time, significant transaction-related expenses.

Is this filing related to the formation of Mondelez International?

Yes, this filing relates to Kraft Foods Inc. as it existed before the major corporate restructuring. The spin-off of the North American grocery business was planned for October 2012, which would result in the company formerly known as Kraft Foods Inc. separating into two distinct entities: the global snacks company, which would become Mondelez International, and the North American grocery business, which would retain the Kraft Foods name.

MDLZ 8-K: Earnings & Results

Summary

This Form 8-K filing from Kraft Foods Inc., dated August 2, 2012, primarily serves to furnish the company's second-quarter earnings press release for the period ending June 30, 2012. Investors should note that this report predates the official spin-off that would create Mondelez International. The filing introduces and defines several non-GAAP financial measures used by management to provide a clearer view of the company's underlying operational performance and comparability. These include Organic Net Revenues, Adjusted Operating Income, Adjusted Segment Operating Income, and Operating EPS, all of which exclude significant costs related to integration, restructuring, and the then-upcoming spin-off of the North American grocery business. The company emphasizes that these non-GAAP measures are intended to supplement, not replace, GAAP financial results. Management utilizes segment operating income as a key metric for evaluating performance and resource allocation, specifically excluding items such as unrealized hedging gains/losses and certain pension plan costs to offer better transparency into segment results. While specific Q2 2012 financial figures are detailed in the furnished press release (Exhibit 99.1), this 8-K itself acts as a notification and a mechanism to provide those results to the public and the SEC.

Key Highlights

1Kraft Foods Inc. is furnishing its second-quarter 2012 earnings press release as an exhibit to this 8-K.
2The company is providing clear definitions for several non-GAAP financial measures, including Organic Net Revenues, Adjusted Operating Income, Adjusted Segment Operating Income, and Operating EPS.
3These non-GAAP measures are used to exclude costs associated with the Integration Program, Restructuring Program, and Spin-Off Costs for improved comparability.
4Management uses Segment Operating Income to assess segment performance, excluding items like unrealized hedging gains/losses and certain pension plan costs.
5The filing emphasizes that non-GAAP measures should be viewed alongside, not as a substitute for, GAAP results.
6This report was filed on August 2, 2012, and relates to the second quarter ending June 30, 2012, prior to the formal separation into Mondelez International and the new Kraft Foods Group.

Mondelez International, Inc. 8-K Report, Financial Results (Aug 2, 2012)

Summary

Key Highlights

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