Kraft 2001 Annual Report Download - page 57

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Kraft Foods Inc.
51
Geographic data for operating revenues, total assets and long-lived
assets (which consist of all non-current assets, other than goodwill
and other intangible assets and prepaid pension assets) were
as follows:
(in millions)
For the Years Ended December 31, 2001 2000 1999
Operating revenues:
United States $23,078 $16,910 $16,540
Europe 6,062 6,642 7,500
Other 4,735 2,980 2,757
Total operating revenues $33,875 $26,532 $26,797
(in millions)
At December 31, 2001 2000 1999
Total assets:
United States $43,889 $40,454 $19,429
Europe 7,366 7,630 8,292
Other 4,543 3,987 2,615
Total assets $55,798 $52,071 $30,336
Long-lived assets:
United States $ 6,750 $ 6,684 $ 3,904
Europe 2,136 2,116 2,021
Other 1,274 1,912 971
Total long-lived assets $10,160 $10,712 $ 6,896
Note 14. Benefit Plans:
The Company and its subsidiaries sponsor noncontributory defined
benefit pension plans covering substantially all U.S. employees.
Pension coverage for employees of the Company’s non-U.S.
subsidiaries is provided, to the extent deemed appropriate, through
separate plans, many of which are governed by local statutory
requirements. In addition, the Company’s U.S. and Canadian
subsidiaries provide health care and other benefits to substantially
all retired employees. Health care benefits for retirees outside the
United States and Canada are generally covered through local
government plans.
Pension Plans: Net pension (income) cost consisted of the
following for the years ended December 31, 2001, 2000 and 1999:
(in millions) U.S. Plans Non-U.S. Plans
2001 2000 1999 2001 2000 1999
Service cost $ 107 $69 $76 $45 $37 $40
Interest cost 339 213 212 112 98 100
Expected return on
plan assets (648) (523) (511) (126) (103) (97)
Amortization:
Net gain on adoption
of SFAS No. 87 (11) (11) (1) (1)
Unrecognized net
(gain) loss from
experience
differences (21) (36) (15) (1) (1) 2
Prior service cost 876544
Settlements (12) (34) (41)
Net pension
(income) cost $(227) $(315) $(284) $35 $34 $48
In 2001 and 2000, retiring employees elected lump-sum payments,
resulting in settlement gains of $12 million and $34 million,
respectively. During 2001, the Company announced that it was
offering a voluntary early retirement program to certain eligible
salaried employees in the United States. The program is expected
to eliminate approximately 750 employees and will result in a pre-
tax charge of approximately $140 million upon final employee
acceptance in the first quarter of 2002. During 1999, the Company
instituted an early retirement and workforce reduction program that
resulted in settlement gains, net of additional termination benefits of
$41 million.