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Note 21: Other Postretirement Benefits | 12 Months Ended
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Dec. 31, 2012
Postemployment Benefits Disclosure [Text Block] | NOTE 21: OTHER POSTRETIREMENT BENEFITS The Company provided U.S. medical, dental, life insurance, and survivor income benefits to eligible retirees, long-term disability recipients and their spouses, dependents and survivors. Generally, to be eligible for these benefits, former employees leaving the Company , prior to January 1, 1996 were required to be 55 years of age with ten years of service or their age plus years of service must have equaled or exceeded 75. For those leaving the Company after December 31, 1995, former employees must be 55 years of age with ten years of service or have been eligible as of December 31, 1995. These benefits are paid from the general assets of the Company as they are incurred. The Company's subsidiary in Canada offers similar postretirement benefits. On November 7, 2012, the Bankruptcy Court entered an order approving a settlement agreement between the Debtors and the Retiree Committee appointed by the U.S. Trustee. Refer to Note 1, “Bankruptcy Proceedings” for additional information on the settlement agreement reached with the Retiree Committee. As a result of the settlement agreement, the plan’s obligations were re-measured as of November 1, 2012. The re-measurement resulted in a reduction of the accumulated postretirement benefit obligation (“APBO”) by approximately $1.2 billion. Approximately $739 million of the reduction in the APBO relates to benefits that have been eliminated. This settlement gain was reduced by the recognition of net actuarial losses from Accumulated other comprehensive loss, of approximately $510 million in the Consolidated Statement of Operations resulting in a net settlement gain of approximately $229 million. The net settlement gain was recorded as part of Reorganization items, net in the Consolidated Statement of Operations. While retiree medical and dental benefits have been significantly reduced, the Company expects to have some ongoing cost associated with the COBRA continuation coverage of medical benefits. The reduction in medical benefits is a negative plan amendment resulting in an APBO reduction of approximately $460 million that was recognized as a component of Accumulated other comprehensive loss and will be amortized in income over approximately 10 years. The Company also eliminated all postretirement benefits for active employees. As a result, Kodak recorded a curtailment gain of approximately $9 million. The gain was recorded as part of Reorganization items, net in the Consolidated Statement of Operations. The measurement date used to determine the net benefit obligation for Kodak's other postretirement benefit plans is December 31. Changes in Kodak’s benefit obligation and funded status for the U.S. and Canada other postretirement benefit plans were as follows:
(in millions) |  | 2012 |  |  | 2011 |
Net benefit obligation at beginning of year |  | $ | 1,294 |  |  | $ | 1,348 |
Service cost |  |  | 1 |  |  |  | 1 |
Interest cost |  |  | 44 |  |  |  | 65 |
Plan participants’ contributions |  |  | 17 |  |  |  | 20 |
Plan amendments |  |  | (460 | ) |  |  | - |
Actuarial loss (gain) |  |  | 117 |  |  |  | (4 | )
Settlements |  |  | (738 | ) |  |  | - |
Benefit payments |  |  | (134 | ) |  |  | (134 | )
Other |  |  | (6 | ) |  |  | - |
Currency adjustments |  |  | 2 |  |  |  | (2 | )
Net benefit obligation at end of year |  | $ | 137 |  |  | $ | 1,294 |
Underfunded status at end of year |  | $ | (137 | ) |  | $ | (1,294 | )
Amounts recognized in the Consolidated Statement of Financial Position for Kodak’s U.S. and Canada plans consisted of:
|  | As of December 31, |
(in millions) |  | 2012 |  |  | 2011 |
Other current liabilities |  | $ | (23 | ) |  | $ | (122 | )
Pension and other postretirement liabilities |  |  | (114 | ) |  |  | (1,172 | )
|  | $ | (137 | ) |  | $ | (1,294 | )
Amounts recognized in Accumulated other comprehensive income (loss) for Kodak’s U.S. and Canada plans consisted of:
|  | As of December 31, |
(in millions) |  | 2012 |  |  | 2011 |
Prior service credit |  | $ | 1,118 |  |  | $ | 751 |
Net actuarial loss |  |  | (73 | ) |  |  | (492 | )
|  | $ | 1,045 |  |  | $ | 259 |
Changes in benefit obligations recognized in Other comprehensive income (loss) for Kodak’s U.S. and Canada plans were as follows:
(in millions) |  | As of December 31, |
|  | 2012 |  |  | 2011 |
Newly established (loss) gain |  | $ | (117 | ) |  | $ | 4 |
Newly established prior service credit |  |  | 460 |  |  |  | - |
Amortization of: |  |  |  |  |  |  |  |
Prior service credit |  |  | (83 | ) |  |  | (77 | )
Net actuarial loss |  |  | 26 |  |  |  | 32 |
Prior service credit recognized due to curtailment |  |  | (9 | ) |  |  | - |
Net loss recognized in expense due to settlement |  |  | 510 |  |  |  | - |
Total amount recognized in Other comprehensive loss |  | $ | 787 |  |  | $ | (41 | )
Other postretirement benefit cost from continuing operations for Kodak's U.S. and Canada plans included:
|  | For the Year Ended December 31, |
(in millions) |  | 2012 |  |  | 2011 |  |  | 2010 |
Components of net postretirement benefit cost: |  |  |  |  |  |  |  |  |
Service cost |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |
Interest cost |  |  | 44 |  |  |  | 64 |  |  |  | 70 |
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |
Prior service credit |  |  | (83 | ) |  |  | (77 | ) |  |  | (76 | )
Actuarial loss |  |  | 26 |  |  |  | 32 |  |  |  | 28 |
Other postretirment benefit cost (income) before curtailments and settlements |  | $ | (12 | ) |  | $ | 20 |  |  | $ | 23 |
Curtailment gains |  |  | (9 | ) |  |  | - |  |  |  | - |
Settlement gains |  |  | (228 | ) |  |  | - |  |  |  | - |
Net other postretirement benefit cost (income) from continuing operations |  | $ | (249 | ) |  | $ | 20 |  |  | $ | 23 |
The prior service credit and net actuarial loss estimated to be amortized from Accumulated other comprehensive loss into net periodic benefit cost over the next year is $113 million and $5 million, respectively. The weighted-average assumptions used to determine the net benefit obligations were as follows:
|  | As of December 31, |
|  | 2012 |  |  | 2011 |
Discount rate |  |  | 2.97 | % |  |  | 4.25 | %
Salary increase rate |  |  | 2.50 | % |  |  | 3.41 | %
The weighted-average assumptions used to determine the net postretirement benefit cost were as follows:
|  | For the Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Discount rate |  |  | 4.25 | % |  |  | 5.03 | % |  |  | 5.53 | %
Salary increase rate |  |  | 3.09 | % |  |  | 4.05 | % |  |  | 3.90 | %
The weighted-average assumed healthcare cost trend rates used to compute the other postretirement amounts were as follows:
|  | 2012 |  |  | 2011 |
Healthcare cost trend |  |  | 7.08 | % |  |  | 7.47 | %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) |  |  | 5.00 | % |  |  | 5.00 | %
Year that the rate reaches the ultimate trend rate |  |  | 2019 |  |  |  | 2017 |
A one-percentage point change in assumed healthcare cost trend rates would have the following effects:
(in millions) |  | 1% increase |  |  | 1% decrease |
Effect on total service and interest cost |  | $ | - |  |  | $ | - |
Effect on postretirement benefit obligation |  |  | 8 |  |  |  | (7 | )
Kodak expects to make $23 million of benefit payments for its unfunded other postretirement benefit plans in 2013. The following other postretirement benefits, which reflect expected future service, are expected to be paid:
(in millions) |  |  |
2013 |  | $ | 23 |
2014 |  |  | 14 |
2015 |  |  | 12 |
2016 |  |  | 11 |
2017 |  |  | 10 |
2018-2021 |  |  | 34 |

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- Definition The entire disclosure for postemployment benefits, which may include supplemental unemployment benefits, obligations recognized for all types of benefits provided to former or inactive employees, their beneficiaries, and covered dependents after employment but before retirement. Disclosure may also include discussion that an obligation for postemployment benefits is not accrued in accordance with regulation only because the amount cannot be reasonably estimated. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -SubTopic 10 -Section 25 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6410138&loc=d3e79691-111665 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6410195&loc=d3e80090-111668 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 112 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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