Kraft 2006 Annual Report Download - page 90

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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, 2006 and 2005, were as follows:
U.S. Plans
Non-U.S. Plans
2006
2005
2006
2005
(in millions)
Benefit obligation at January 1 $ 6,305 $ 6,113 $ 3,762 $ 3,472
Service cost 170 165 95 80
Interest cost 354 345 169 170
Benefits paid (469) (530) (221) (179)
Settlements 45 87 (26)
Actuarial (gains) losses (132) 118 (40) 403
Currency 256 (207)
Other 13 7 84 23
Benefit obligation at December 31 6,286 6,305 4,079 3,762
Fair value of plan assets at January 1 6,326 6,294 2,764 2,445
Actual return on plan assets 1,002 313 288 400
Contributions 143 230 457 172
Benefits paid (469) (508) (221) (133)
Currency 185 (113)
Actuarial gains (losses) 25 (3) (7) (7)
Fair value of plan assets at December 31 7,027 6,326 3,466 2,764
Net pension asset (liability) recognized at December 31, 2006 $ 741 $ (613)
Funded status (plan assets in excess of (less than) benefit obligations) at December 31,
2005 21 (998)
Unrecognized actuarial losses 2,736 1,108
Unrecognized prior service cost 29 47
Additional minimum liability (69) (495)
Unrecognized net transition obligation 6
Net prepaid pension asset (liability) recognized at December 31, 2005 $ 2,717 $ (332)
The combined U.S. and non-U.S. pension plans resulted in a net prepaid pension asset of $128 million at December 31, 2006 and $2,385 million at
December 31, 2005. These amounts were recognized in the Company's consolidated balance sheets at December 31, 2006 and 2005, as follows:
2006
2005
(in billions)
Prepaid pension assets $ 1.2 $ 3.6
Other accrued liabilities (0.1)
Accrued pension costs (1.0) (1.2)
$ 0.1 $ 2.4
The accumulated benefit obligation, which represents benefits earned to date, for the U.S. pension plans was $5,584 million and $5,580 million at
December 31, 2006 and 2005, respectively. The
85
Source: KRAFT FOODS INC, 10-K, March 01, 2007