Kraft 2013 Annual Report Download - page 41

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39
Dividends:
We paid dividends of $1,207 million in 2013. On December 17, 2013, our Board of Directors declared a $0.525 per
common share dividend, which was paid on January 17, 2014. In connection with this dividend, we recorded $313
million of dividends payable as of December 28, 2013. No dividends were paid in 2012 or 2011. The present
annualized dividend rate is $2.10 per common share. The declaration of dividends is subject to the discretion of our
Board of Directors and depends on various factors, including our net earnings, financial condition, cash
requirements, future prospects, and other factors that our Board of Directors deems relevant to its analysis and
decision making.
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with U.S. GAAP, we present Organic Net
Revenues, which is considered a non-GAAP financial measure. We define Organic Net Revenues as net revenues
excluding the impact of transactions with International, acquisitions, divestitures (including the termination
of a full line of business due to the loss of a licensing or distribution arrangement, and the complete exit of business
out of a foreign country), currency and the 53rd week of shipments in 2011. We calculate the impact of currency on
net revenues by holding exchange rates constant at the previous year's exchange rate. We believe that presenting
Organic Net Revenues is useful because it (i) provides both management and investors more meaningful
information regarding financial performance by excluding certain items, (ii) permits investors to view our
performance using the same tools that management uses to budget, make operating and strategic decisions, and
evaluate our historical performance, and (iii) otherwise provides information that may be useful to investors in
evaluating Kraft.
We believe that the presentation of Organic Net Revenues, when considered together with the corresponding
GAAP financial measure and the reconciliation to that measure, provides investors with a more clear understanding
of the factors and trends affecting our business than could be obtained absent these disclosures. Non-GAAP
financial measures should be viewed in addition to, and not as an alternative for, our results prepared in accordance
with GAAP. In addition, the non-GAAP measures we use may differ from non-GAAP measures used by other
companies, and other companies may not define the non-GAAP measures we use in the same way. A
reconciliation of Organic Net Revenues to net revenues is set forth below.