Kraft 2007 Annual Report Download - page 80

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Note 7. Accumulated Other Comprehensive Losses:
The components of accumulated other comprehensive losses were:
Currency
Translation
Adjustments
Pension and
Other Benefits
Derivatives
Accounted for
as Hedges Total
(in millions)
Balances at January 1, 2005 $ (890) $ (321) $ 6 $ (1,205)
Other comprehensive earnings / (losses),
net of income taxes:
Currency translation adjustments (400) - - (400)
Additional minimum pension liability (48) (48)
Change in fair value of derivatives
accounted for as hedges - - (10) (10)
Total other comprehensive earnings (458)
Balances at December 31, 2005 $ (1,290) $ (369) $ (4) $ (1,663)
Other comprehensive earnings / (losses),
net of income taxes:
Currency translation adjustments 567 - - 567
Additional minimum pension liability - 78 - 78
Total other comprehensive earnings 645
Initial adoption of FASB Statement
No. 158, net of income taxes - (2,051) - (2,051)
Balances at December 31, 2006 $ (723) $ (2,342) $ (4) $ (3,069)
Other comprehensive earnings / (losses),
net of income taxes:
Currency translation adjustments 672 (78) - 594
Amortization of experience losses and
prior service costs - 154 - 154
Pension settlement - 45 - 45
Net actuarial gain arising during
period - 410 - 410
Change in fair value of derivatives
accounted for as hedges - - 31 31
Total other comprehensive earnings 1,234
Balances at December 31, 2007 $ (51) $ (1,811) $ 27 $ (1,835)
Note 8. Stock Plans:
Under the Kraft 2005 Performance Incentive Plan (the “2005 Plan”), we may grant to eligible employees awards of stock
options, stock appreciation rights, restricted stock, restricted and deferred stock units, and other awards based on our Common
Stock, as well as performance-based annual and long-term incentive awards. We may issue a maximum of 150 million shares of
our Common Stock under the 2005 Plan, of which no more than 45 million shares may be awarded as restricted stock. In
addition, in 2006, our Board of Directors adopted and the stockholders approved, the Kraft 2006 Stock Compensation Plan for
Non-Employee Directors (the “2006 Directors Plan”). The 2006 Directors Plan replaced the Kraft 2001 Directors Plan. Under
the 2006 Directors Plan, we may grant up to 500,000 shares of Common Stock to members of the Board of Directors who are
not our full-time employees. At December 31, 2007, there were 110,980,293 shares available to be granted under the 2005 Plan
and 457,018 shares available to be granted under the 2006 Directors Plan. Restricted shares available for grant under the 2005
Plan at December 31, 2007, were 30,422,325.
Bifurcation of Stock Awards at Distribution:
At Distribution, as described in Note 1, Summary of Significant Accounting Policies, Altria stock awards were modified through
the issuance of Kraft stock awards, and accordingly the Altria stock awards were split into two instruments. Holders of Altria
stock options received: 1) a new Kraft option to acquire shares of Kraft Common Stock; and 2) an adjusted Altria stock option
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