Kraft 2009 Annual Report Download - page 97

Volume:
As of December 31, 2009, we had the following outstanding hedges:
Notional
Amount
(in millions)
Foreign exchange contracts -
intercompany loans $ 1,376
Foreign exchange contracts -
forecasted transactions 631
Commodity contracts 1,832
Interest rate contracts 2,350
Net investment hedge - euro notes 4,081
Note 13. Commitments and Contingencies:
Legal Proceedings:
We are involved, from time to time, in legal proceedings, claims, and governmental inspections or investigations, arising in the ordinary course of
our business. While we cannot predict with certainty the results of these matters, we do not expect that the ultimate costs to resolve these matters
will have a material effect on our financial results.
In 2009, we recorded an additional $50 million of charges for legal matters related to certain of our European operations. See Part I Item 3. Legal
Proceedings for a description of these matters. In 2008, we recorded charges of $72 million for legal matters related to certain of our U.S. and
European operations, including U.S. coffee operations.
Third-Party Guarantees:
We have third-party guarantees primarily covering the long-term obligations of our vendors. As part of those transactions, we guarantee that third
parties will make contractual payments or achieve performance measures. At December 31, 2009, the carrying amount of our third-party
guarantees on our consolidated balance sheet and the maximum potential payment under these guarantees was $29 million. Substantially all of
these guarantees expire at various times through 2018.
Leases:
Rental expenses were $505 million in 2009, $505 million in 2008 and $433 million in 2007. As of December 31, 2009, minimum rental
commitments under non-cancelable operating leases in effect at year-end were (in millions):
2010 $ 306
2011 243
2012 185
2013 103
2014 76
Thereafter 212
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Source: KRAFT FOODS INC, 10-K, February 25, 2010 Powered by Morningstar® Document Research℠