Kraft 2009 Annual Report Download - page 81

Fair Value:
The aggregate fair value of our long-term debt, based on quoted prices in active markets for identical liabilities, was $19,769 million at
December 31, 2009 and $19,629 million at December 31, 2008.
The aggregate fair value of our third-party debt, based on market quotes, at December 31, 2009, was $20,222 million as compared with the
carrying value of $18,990 million. The aggregate fair value of our third-party debt at December 31, 2008, was $20,526 million as compared with
the carrying value of $20,251 million.
Interest and Other Expense:
Interest and other expense was:
For the Years Ended December 31,
2009 2008 2007
(in millions)
Interest and other expense, net:
Interest expense, external debt $ 1,260 $ 1,272 $ 739
Interest income, Altria and affiliates - - (74)
Other income, net (23) (32) (61)
Total interest and other expense, net $ 1,237 $ 1,240 $ 604
Note 8. Capital Stock:
Our articles of incorporation authorize 3.0 billion shares of Class A common stock, 2.0 billion shares of Class B common stock and 500 million
shares of preferred stock. Shares of Class A common stock issued, repurchased and outstanding were:
Shares Issued
Shares
Repurchased
Shares
Outstanding
Balance at January 1, 2007 555,000,000 (99,027,355) 455,972,645
Repurchase of shares - (111,516,043) (111,516,043)
Exercise of stock options and issuance of other
stock awards - 9,321,018 9,321,018
Conversion of Class B common shares to
Class A common shares 1,180,000,000 - 1,180,000,000
Balance at December 31, 2007 1,735,000,000 (201,222,380) 1,533,777,620
Repurchase of shares - (25,272,255) (25,272,255)
Shares tendered (Note 2) - (46,119,899) (46,119,899)
Exercise of stock options and issuance of other
stock awards - 6,915,974 6,915,974
Balance at December 31, 2008 1,735,000,000 (265,698,560) 1,469,301,440
Exercise of stock options and issuance of other
stock awards - 8,583,463 8,583,463
Balance at December 31, 2009 1,735,000,000 (257,115,097) 1,477,884,903
Effective on the date of our spin-off, Altria converted all of its Class B shares of Kraft Foods common stock into Class A shares of Kraft Foods
common stock. Following our spin-off, we only have Class A common stock outstanding. There were no Class B common shares or preferred
shares issued and outstanding at December 31, 2009, 2008 and 2007.
On August 4, 2008, we completed the split-off of the Post cereals business. In this transaction, approximately 46.1 million shares of Kraft Foods
Common Stock were tendered for $1,644 million.
At December 31, 2009, 146,863,809 shares of Common Stock were reserved for stock options and other stock awards.
In 2010, we expect to issue approximately 260 million additional shares of our Common Stock as part of the Cadbury acquisition.
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Source: KRAFT FOODS INC, 10-K, February 25, 2010 Powered by Morningstar® Document Research℠