KRAFT is an American multinational confectionery, food and beverage giant, second to Nestle in the world ranking.

It has branched out into many different brands, into 170 different countries, 12 of which earn more than $1 billion per year. Its North American unit consists of Kraft, the world's largest-selling cheese brand; cookie and cracker baker Nabisco; and milk-dunking favorite Oreos. The Oscar Mayer, Kraft, Cadbury, Philadelphia, Maxwell House, Nabisco, Oreo, Trident, Jacobs, Milka, and LU brands have revenues of at least $1 billion; more than 70 of its brands regularly hit the $100 million mark. The company acquired UK candymaker Cadbury in early 2010. To note, Kraft announced plans in 2011 to split into two publicly traded firms. Effect of Inflation on Kraft Kraft Foods Inc. reported a 24% drop in the quarterly net income in February 2011 as the food giant suffers from input cost inflation and weak consumer spending. The companys attribute came in first at $540 million, or 31 cents a share. That was down 24% from the year-earlier quarter when the food giant made $710 million, or 48 cents a share. Operating income in the latest period was $1.24 billion, or 46 cents a share.Net revenue rose 30% to $13.8 billion, mostly from Krafts acquisition of British chocolate company Cadbury. Combined organic net revenue rose 5.7% in the period. Kraft noted that the operating profit margin was 9%, 240 basis points lower than the prior year. In contrast, the company expected to make a profit of 47 cents a share on sales of $13.33 billion, according to the average estimate of analysts surveyed by FactSet Research. To note, Kraft shares slipped 0.8% to $30.85 in after-hours trading on February 2011.

Revenue Trend

Date range: March 31, 2007-December 31, 2011 (Graph taken from http://ycharts.com/companies/KFT/revenue_growth) Kraft revenue growth holds a 48th percentile on the over-all ranking with 2291 of
4424, with 42nd in the sector for consumer goods (227 of 393) and 33rd in the industry with 8 of 12 for Food. Total revenue growth for Kraft over the five-year range is 6.64%. Income Tax Accounting Policy

Kraft recognizes tax benefits in its financial statements when uncertain tax positions are likely than not to sustain. The amount Kraft Foods Inc. recognizes is measured to be as the largest amount of benefit larger than 50%. The food giant also recognizes deferred tax assets for deductible temporary differences, operating loss carry-forwards and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance if its more likely to not have the same proportion, or all, of the deferred tax assets will not be realized.

Kraft Foods Inc., income tax expense (benefit), continuing operations USD $ in millions 12 months ended Dec 31, 2011 371 95 Dec 31, 2010 91 47 Dec 31, 2009 425 95 Dec 31, 2008 416 65 Dec 31, 2007 722 116

United States federal State and local

Outside United States Current United States federal State and local Outside United States Deferred Provision for income taxes

1,113 1,579 63 55 -472 -354 1,225

763 901 322 61 -137 246 1,147

701 1,221 108 -39 -31 38 1,259

507 988 -61 -27 -172 -260 728

660 1,498 -306 -55 -361 1,137

Source: Based on data from Kraft Foods Inc. Annual Reports