Kraft 2010 Annual Report Download - page 93
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Volume:
As of December 31, 2010 and 2009, we had the following notional amounts of outstanding hedges:
2010 2009
(in millions)
Foreign exchange contracts:
Intercompany loans and forecasted interest payments $ 2,183 $ 1,376
Forecasted transactions 1,946 631
Commodity contracts 630 1,832
Interest rate contracts 5,167 2,350
Net investment hedge - euro notes 3,814 4,081
Net investment hedge - pound sterling notes 1,015 -
Note 13. Commitments and Contingencies:
Legal Proceedings:
We routinely are involved in legal proceedings, claims, and governmental inspections or investigations, arising in the ordinary course of our business.
On February 1, 2011, we received a subpoena from the SEC. The subpoena, issued in connection with an investigation under the Foreign Corrupt Practices
Act, primarily relates to a Cadbury facility in India that we acquired in the Cadbury acquisition and primarily requests information regarding dealings with
Indian governmental agencies and officials to obtain approvals related to the operation of that facility. We are cooperating with the U.S. government in its
investigation of these matters.
While we cannot predict with certainty the results of this or any other legal matters in which we are currently involved, we do not expect that the ultimate
costs to resolve any of these matters will have a material effect on our financial results.
In 2010, we recorded an insignificant amount of legal charges. In 2009, we recorded $50 million of charges for legal matters related to certain of our
European 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, 2010, the carrying amount of our third-party guarantees on our consolidated
balance sheet and the maximum potential payment under these guarantees was $26 million. Substantially all of these guarantees expire at various times
through 2018.
Leases:
Rental expenses were $514 million in 2010, $505 million in 2009, and $505 million in 2008. As of December 31, 2010, minimum rental commitments under
non-cancelable operating leases in effect at year-end were (in millions):
2011 $ 470
2012 324
2013 225
2014 169
2015 130
Thereafter 244
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