Kraft 2012 Annual Report Download - page 73

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Components of Net Postemployment Costs:
Net postemployment costs consisted of the following for the years ended December 29, 2012, December 31, 2011, and
December 31, 2010:
2012 2011 2010
(in millions)
Service cost $ 4 $ 2 $ 2
Interest cost 2 1 2
Market-based changes 2 2 -
Actuarial (gains) / losses (1) 21 (1)
Other -16 -
Net postemployment costs $7$42$3
Other postemployment costs primarily relate to the recognition of the partially funded Canadian postemployment plan.
As of December 29, 2012, we do not expect to amortize any prior service cost / (credit) for the other postemployment
benefit plans from accumulated other comprehensive earnings / (losses) into net postemployment costs during 2013.
Note 11. Financial Instruments
Fair Value of Derivative Instruments:
The fair values of derivative instruments recorded in the consolidated balance sheet as of December 29, 2012 and
December 31, 2011 were:
2012 2011
Asset
Derivatives
Liability
Derivatives
Asset
Derivatives
Liability
Derivatives
(in millions) (in millions)
Derivatives designated as hedging
instruments:
Commodity contracts $ 7 $ 11 $ 9 $ 2
Foreign exchange contracts 8 3 3 -
Interest rate contracts - - - 25
$15$14$12$27
Derivatives not designated as hedging
instruments:
Commodity contracts 24 34 50 68
Total fair value $ 39 $ 48 $ 62 $ 95
The fair value of our asset derivatives is recorded within other current assets and the fair value of our liability derivatives is
recorded within other current liabilities.
The fair values of our derivative instruments at December 29, 2012 were determined using:
Total
Fair Value of Net
Asset / (Liability)
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(in millions)
Commodity contracts $ (14) $ (7) $ (7) $ -
Foreign exchange contracts 5 - 5 -
Interest rate contracts - - - -
Total derivatives $ (9) $ (7) $ (2) $ -
71