Kraft 2004 Annual Report Download - page 76

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Pension Plans
Obligations and Funded Status
The benefit obligations, plan assets and funded status of the Company’s pension plans at
December 31, 2004 and 2003, were as follows:
U.S. Plans Non-U.S. Plans
2004 2003 2004 2003
(in millions)
Benefit obligation at January 1 ..................... $5,546 $ 5,245 $ 2,910 $ 2,317
Service cost ................................. 141 135 67 58
Interest cost ................................. 347 338 156 136
Benefits paid ................................. (435) (412) (149) (132)
Settlements .................................. 30 29
Actuarial losses ............................... 478 199 131 124
Currency .................................... 315 392
Other ...................................... 6 12 42 15
Benefit obligation at December 31 ................... 6,113 5,546 3,472 2,910
Fair value of plan assets at January 1 ................ 5,802 4,965 1,866 1,337
Actual return on plan assets ...................... 639 1,038 203 204
Contributions ................................ 299 233 254 209
Benefits paid ................................. (443) (428) (106) (100)
Currency .................................... 218 216
Actuarial (losses) gains ......................... (3) (6) 10
Fair value of plan assets at December 31 .............. 6,294 5,802 2,445 1,866
Funded status (plan assets in excess of (less than)
benefit obligations) at December 31 .............. 181 256 (1,027) (1,044)
Unrecognized actuarial losses .................... 2,617 2,292 1,029 848
Unrecognized prior service cost ................... 26 23 54 55
Additional minimum liability ...................... (67) (85) (416) (367)
Unrecognized net transition obligation .............. 7 7
Net prepaid pension asset (liability) recognized ......... $2,757 $ 2,486 $ (353) $ (501)
The combined U.S. and non-U.S. pension plans resulted in a net prepaid pension asset of
$2,404 million and $1,985 million at December 31, 2004 and 2003, respectively. These amounts were
recognized in the Company’s consolidated balance sheets at December 31, 2004 and 2003, as prepaid
pension assets of $3,569 million and $3,243 million, respectively, for those plans in which plan assets
exceeded their accumulated benefit obligations, and as other liabilities of $1,165 million and
$1,258 million, respectively, for plans in which the accumulated benefit obligations exceeded their plan
assets.
For U.S. and non-U.S. pension plans, the change in the additional minimum liability in 2004 and
2003 was as follows:
U.S. Plans Non-U.S. Plans
2004 2003 2004 2003
(in millions)
Decrease (increase) in minimum liability included in other
comprehensive earnings (losses), net of tax ................... $14 $(9) $(36) $(59)
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