Kraft 2004 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2004 Kraft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 95

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95

Note 10. Capital Stock:
The Company’s articles of incorporation authorize 3.0 billion shares of Class A common stock,
2.0 billion shares of Class B common stock and 500 million shares of preferred stock. Shares of Class A
common stock issued, repurchased and outstanding were as follows:
Shares Shares
Shares Issued Repurchased Outstanding
Balance at January 1, 2002 ..................... 555,000,000 — 555,000,000
Repurchase of shares ......................... (4,383,150) (4,383,150)
Exercise of stock options ....................... 2,000 2,000
Balance at December 31, 2002 ................... 555,000,000 (4,381,150) 550,618,850
Repurchase of shares ......................... (12,508,908) (12,508,908)
Exercise of stock options and issuance of other stock
awards .................................. 3,827,182 3,827,182
Balance at December 31, 2003 ................... 555,000,000 (13,062,876) 541,937,124
Repurchase of shares ......................... (21,543,660) (21,543,660)
Exercise of stock options and issuance of other stock
awards .................................. 4,961,610 4,961,610
Balance at December 31, 2004 ................... 555,000,000 (29,644,926) 525,355,074
Kraft repurchases its Class A common stock in open market transactions. On December 14, 2004,
Kraft completed a multi-year $700 million Class A common stock repurchase program, acquiring
21,718,847 Class A shares at an average price of $32.23 per share. During 2004, repurchases under the
$700 million program were 20,135,247 shares at a cost of $650 million, or $32.28 per share. On
December 14, 2004, the Company commenced repurchasing shares under a new $1.5 billion Class A
common stock repurchase program that was authorized by the Board of Directors on December 2, 2004.
Through December 31, 2004, repurchases under the $1.5 billion program were 1,408,413 shares at a
cost of $50 million, or $35.49 per share. On December 3, 2003, Kraft completed a $500 million Class A
common stock repurchase program, acquiring 15,308,458 Class A shares at an average price of $32.66
per share.
In addition, 1.18 billion Class B common shares were issued and outstanding at December 31, 2004
and 2003. Altria Group, Inc. holds 276.5 million Class A common shares and all of the Class B common
shares at December 31, 2004. There are no preferred shares issued and outstanding. Class A common
shares are entitled to one vote each, while Class B common shares are entitled to ten votes each.
Therefore, Altria Group, Inc. holds 98.0% of the combined voting power of the Company’s outstanding
capital stock at December 31, 2004. At December 31, 2004, 66,663,515 shares of common stock were
reserved for stock options and other stock awards.
64