Consider the following statement about the use of forward-looking information on Kraft’s Web site.

Required;

1. What was the safe harbor provision of the Private Securities Litigation Reform Act of 1995?
What was its intended purpose?

2. Does Kraft have to make similar statements about reports prepared for internal (managerial) use? Would you expect to see more or less forward-looking information in internal reports than external reports?

3. Can you think of other words that accountants might use to describe what they expect to happen in the future other than “strategy,” “expects,” “plans,” “anticipates,” “believes,” “will,” “continues,” “estimates,” “intends,” “projects,” “goals,” or “targets”?

4. Go to the Web site of another public company and find a similar statement about the use of forward-looking information. Alternatively, you can search for “forward-looking information” and “safe harbor” using a search engine such as Google. What factors does the company list as potential reasons that actual results may differ from the “forward-looking” information?

Why does the company list these factors?

Transcribed Image Text:

Horos KRAFT tatement Corporate Switch Sites Search Ga Kraft Foods Inc. - Foward Looking Statement The Company and its representatives may from time to time make written or oral forward-looking statements, including statements contained in the Company's fillings with the SEC and in its reports to shareholders. One can identify these forward-looking statements by use of words such as "strategy," "expects," "plans." "anticipates," "believes," "will continues," "estimates," "intends." "projects," "goals," "targets" and other words of similar meaning One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are based on our assumptions and estimates and are subject to risks and uncertainties. In connection with the "safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company is hereby identifying important factors that could cause actual results and outcomes to differ materially from those contained in any forward-looking statement made by or on behalf of the Company, any such statement is qualified by reference to the following cautionary statements. Each of the Company's segments is subject to intense competition, changes in consumer preferences, the effects of changing prices for its raw matenals and local economic conditions. Their results are dependent upon their continued ability to promote brand equity successfully, to anticipate and respond to new consumer trends, to develop new products and markets, to broaden brand portfolios int order to compete effectively with lower priced products in a consolidating environment at the retail and manufacturing levels, and to improve productivity. The Company's results are also dependent on its ability to consummate and successfully integrate acquisitions. including its ability to derive cost savings from the integration of Nabisco's operations with the Company. In addition, the Company Is subject to the effects of foreign economies, currency movements and fluctuations in levels of customer inventories. The Company's benefit expense is subject to the investment performance of pension plan assets, interest rates and cost increases for medical benefits offered to employees and retirees. The food industry continues to be subject to recalls if products become adulterated or misbranded. liability if product consumption causes injury, Ingredient disclosure and labeling laws and regulations and the possibility that consumers could lose confidence in the safety and quality of certain food products. Developments in any of these areas, which are more fully described elsewhere in this document and which descriptions are incorporated into this section by reference, could cause the Company's results to differ materially from results that have been or may be projected by or on behalf of the Company. The Company cautions that the foregoing list of important factors is not exclusive. Any forward-looking statements are made as of the date of the document in which they appear. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company