Kraft 2009 Annual Report Download - page 92

Components of Net Postretirement Health Care Costs:
Net postretirement health care costs consisted of the following for the years ended December 31, 2009, 2008 and 2007:
2009 2008 2007
(in millions)
Service cost $ 35 $ 44 $ 46
Interest cost 174 183 177
Amortization:
Net loss from experience differences 44 55 58
Prior service credit (32) (28) (26)
Other expense - - 5
Net postretirement health care
costs $ 221 $ 254 $ 260
As of December 31, 2009, we expected to amortize from accumulated other comprehensive earnings / (losses) into net postretirement health care
costs during 2010:
• an estimated $50 million of net loss from experience differences; and
• an estimated $31 million of prior service credit.
We used the following weighted-average assumptions to determine our net postretirement cost for the years ended December 31:
U.S. Plans Canadian Plans
2009 2008 2007 2009 2008 2007
Discount rate 6.10% 6.10% 5.90% 7.60% 5.80% 5.00%
Health care cost trend rate 7.00% 7.50% 8.00% 9.00% 9.00% 8.50%
Future Benefit Payments:
Our estimated future benefit payments for our postretirement health care plans at December 31, 2009 were:
U.S. Plans
Canadian
Plans
(in millions)
2010 $ 206 $ 10
2011 209 10
2012 208 10
2013 208 11
2014 207 11
2015-2019 1,026 62
Other Costs:
We made contributions to multiemployer medical plans totaling $35 million in 2009, $33 million in 2008 and $33 million in 2007.
89
Source: KRAFT FOODS INC, 10-K, February 25, 2010 Powered by Morningstar® Document Research℠