Kraft 2005 Annual Report Download - page 80

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MERRILL CORPORATION FLANGST// 9-MAR-06 02:25 DISK126:[06CHI5.06CHI1135]EA1135A.;8
mrll.fmt Free: 235D*/300D Foot: 0D/ 0D VJ RSeq: 5 Clr: 0
DISK024:[PAGER.PSTYLES]UNIVERSAL.BST;51
KRAFT FOODS-FSC CERTIFIED-10K/AR Proj: P1102CHI06 Job: 06CHI1135 File: EA1135A.;8
Merrill Corporation/Chicago (312) 786-6300 Page Dim: 8.250X 10.750Copy Dim: 38. X 54.3
Pension Plans
Obligations and Funded Status
The benefit obligations, plan assets and funded status of the Company’s pension plans at
December 31, 2005 and 2004, were as follows:
U.S. Plans Non-U.S. Plans
2005 2004 2005 2004
(in millions)
Benefit obligation at January 1 ........................ $6,113 $5,546 $3,472 $2,910
Service cost ................................... 165 141 80 67
Interest cost ................................... 345 347 170 156
Benefits paid ................................... (530) (435) (179) (149)
Settlements .................................... 87 30
Actuarial losses ................................. 118 478 403 131
Currency ...................................... (207) 315
Other ........................................ 7 6 23 42
Benefit obligation at December 31 ..................... 6,305 6,113 3,762 3,472
Fair value of plan assets at January 1 .................. 6,294 5,802 2,445 1,866
Actual return on plan assets ........................ 313 639 400 203
Contributions ................................... 230 299 172 254
Benefits paid ................................... (508) (443) (133) (106)
Currency ...................................... (113) 218
Actuarial (losses) gains ........................... (3) (3) (7) 10
Fair value of plan assets at December 31 ................ 6,326 6,294 2,764 2,445
Funded status (plan assets in excess of (less than)
benefit obligations) at December 31 ................. 21 181 (998) (1,027)
Unrecognized actuarial losses ...................... 2,736 2,617 1,108 1,029
Unrecognized prior service cost ..................... 29 26 47 54
Additional minimum liability ........................ (69) (67) (495) (416)
Unrecognized net transition obligation ................. 6 7
Net prepaid pension asset (liability) recognized ............ $2,717 $2,757 $ (332) $ (353)
The combined U.S. and non-U.S. pension plans resulted in a net prepaid pension asset of
$2,385 million and $2,404 million at December 31, 2005 and 2004, respectively. These amounts were
recognized in the Company’s consolidated balance sheets at December 31, 2005 and 2004, as prepaid
pension assets of $3,617 million and $3,569 million, respectively, for those plans in which plan assets
exceeded their accumulated benefit obligations, and as other liabilities of $1,232 million and
$1,165 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 2005 and
2004 was as follows:
U.S. Plans Non-U.S. Plans
2005 2004 2005 2004
(in millions)
Decrease (increase) in minimum liability included in other
comprehensive earnings (losses), net of tax ............ $— $14 $(48) $(36)
79
6 C Cs: 55655