Kraft 2006 Annual Report Download - page 89

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The incremental effect of applying SFAS No. 158 on individual line items in the consolidated balance sheet at December 31, 2006 was as follows:
Before Application
of
SFAS No. 158
Adjustments
After Application
of
SFAS No. 158
(in millions)
Deferred income taxes $ 386 $ 1 $ 387
Total current assets 8,253 1 8,254
Prepaid pension assets 3,468 (2,300) 1,168
Other assets 716 13 729
Total assets 57,860 (2,286) 55,574
Accrued liabilities—other 1,596 8 1,604
Total current liabilities 10,465 8 10,473
Deferred income taxes 5,340 (1,410) 3,930
Accrued pension costs 804 218 1,022
Accrued postretirement health care costs 2,000 1,014 3,014
Other liabilities 1,564 (65) 1,499
Total liabilities 27,254 (235) 27,019
Accumulated other comprehensive losses (1,018) (2,051) (3,069)
Total shareholders' equity 30,606 (2,051) 28,555
Total liabilities and shareholders' equity 57,860 (2,286) 55,574
The amounts recorded in accumulated other comprehensive losses at December 31, 2006 consisted of the following:
U.S. and Non-U.S.
Pensions
Postretirement
Postemployment
Total
(in millions)
Net losses $ (2,864) $ (1,166) $ 65 $ (3,965)
Prior service cost (89) 143 54
Net transition obligation (4) (4)
Deferred income taxes 1,066 532 (25) 1,573
Amounts to be amortized (1,891) (491) 40 (2,342)
Reverse additional minimum pension liability, net
of taxes 291 291
Initial adoption of SFAS No. 158 $ (1,600) $ (491) $ 40 $ (2,051)
The Company sponsors 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.
The plan assets and benefit obligations of the Company's U.S. and Canadian pension plans are measured at December 31 of each year and all other non-U.S.
pension plans are measured at September 30 of each year. The benefit obligations of the Company's postretirement plans are measured at December 31 of each
year.
84
Source: KRAFT FOODS INC, 10-K, March 01, 2007