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Note 14 - Retirement Plans And Other Postretirement Benefits

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE 14: RETIREMENT PLANS AND OTHER POSTRETIREMENT BENEFITS

Components of the net periodic benefit cost for all major funded and unfunded U.S. and Non-U.S. defined benefit plans for the three and six months ended June 30, 2013 and 2012 are as follows:

	Three Months Ended June 30,												Six Months Ended June 30,
(in millions)	2013						2012						2013						2012
	U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.
Major defined benefit plans:
Service cost	$	8		$	3		$	12		$	2		$	16		$	5		$	24		$	6
Interest cost		43			35			50			39			86			71			104			78
Expected return on plan assets		(86	)		(40	)		(98	)		(40	)		(173	)		(80	)		(195	)		(84	)
Amortization of:
Recognized prior service cost		-			-			-			-			-			1			-			1
Recognized net actuarial loss		50			21			44			16			99			42			87			33
Pension expense before special termination benefits, curtailments, and settlements		15			19			8			17			28			39			20			34
Special termination benefits		-			-			2			-			-			-			56			-
Curtailment loss		1			13			-			-			1			13			-			-
Settlement loss		-			-			-			1			-			-			-			1
Net pension expense		16			32			10			18			29			52			76			35
Other plans including unfunded plans		-			2			-			2			-			8			-			6
Total net pension expense	$	16		$	34		$	10		$	20		$	29		$	60		$	76		$	41

The Pension expense before special termination benefits, curtailments, and settlements reported above for the three and six months ended June 30, 2013 includes $14 million and $29 million, respectively, which was reported as Discontinued operations. The Pension expense before special termination benefits, curtailments, and settlements reported above for the three and six months ended June 30, 2012 includes $15 million and $30 million, respectively, which was reported as Discontinued operations.

For the three and six months ended June 30, 2012, the $2 million and $56 million, respectively, of special termination benefits charges were incurred as a result of Kodak’s restructuring actions. These charges have been included in Restructuring costs and other in the Consolidated Statement of Operations. For the three and six months ended June 30, 2013, $5 million of curtailment losses were incurred as a result of Kodak’s restructuring actions, and have been included in Restructuring costs and other in the Consolidated Statement of Operations. The remaining curtailment losses of $9 million were incurred as a result of the planned divestiture of certain assets and liabilities of Kodak’s Personalized Imaging and Document Imaging businesses to the KPP, and have been included in Discontinued operations in the Consolidated Statement of Operations.

Kodak made contributions (funded plans) or paid benefits (unfunded plans) totaling approximately $19 million relating to its major U.S. and non-U.S. defined benefit pension plans for the six months ended June 30, 2013. The Company forecasts its contribution (funded plans) and benefit payment (unfunded plans) requirements for its major U.S. and non-U.S. defined benefit pension plans for the balance of 2013 to be approximately $18 million, exclusive of any payments to be determined through the Bankruptcy Proceedings for the U.S. non-qualified pension plans, as well as any payments to be made to the KPP as a part of the Global Settlement agreement reached with the Trustee of the KPP.

Postretirement benefit costs for the Company's U.S. and Canada postretirement benefit plans, which represent the Company's major postretirement plans, include:

	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2013			2012			2013			2012

Service cost	$	-		$	-		$	-		$	-
Interest cost		1			13			2			26
Amortization of:
Prior service credit		(29	)		(19	)		(57	)		(38	)
Recognized net actuarial loss		2			7			3			15
Total net postretirement benefit (income) expense	$	(26	)	$	1		$	(52	)	$	3

Kodak paid benefits, net of participant contributions, totaling approximately $2 million relating to its U.S. and Canada postretirement benefit plans for the six months ended June 30, 2013. Kodak expects to pay benefits, net of participant contributions, of approximately $6 million for these postretirement plans for the remainder of 2013.

The change in net postretirement benefit expense from the six months ended June 30, 2012 to the six months ended June 30, 2013 is primarily the result of modification, in 2012, of benefits provided by the U.S. postretirement benefit plan.

Curtailment events in the second quarter of 2013 resulted in the required remeasurement of certain of the plans’ obligations during the quarter, which decreased the retirement and other postretirement benefit plan obligation by $372 million.