XML 79 R28.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Note 19 - Retirement Plans | 12 Months Ended
--- | ---
Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract] |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 19: RETIREMENT PLANS Substantially all U.S. employees are covered by a noncontributory defined benefit plan, the Kodak Retirement Income Plan (“KRIP”), which is funded by the Company contributions to an irrevocable trust fund. The funding policy for KRIP is to contribute amounts sufficient to meet minimum funding requirements as determined by employee benefit and tax laws plus any additional amounts the Company determines to be appropriate. Assets in the trust fund are held for the sole benefit of participating employees and retirees. They are composed of corporate equity and debt securities, U.S. government securities, partnership investments, interests in pooled funds, commodities, real estate, and various types of interest rate, foreign currency, debt, and equity market financial instruments. For U.S. employees hired prior to March 1999 KRIP’s benefits are generally based on a formula recognizing length of service and final average earnings. KRIP includes a separate cash balance formula for all U.S. employees hired after February 1999 (the “Cash Balance Plan”). All U.S. employees hired prior to that date were granted the option to choose the traditional KRIP plan or the Cash Balance Plan. Written elections were made by employees in 1999, and were effective January 1, 2000. The Cash Balance Plan credits employees' hypothetical accounts with an amount equal to 4% of their pay, plus interest based on the 30-year Treasury bond rate. In addition, for employees participating in the Cash Balance Plan and the Company's defined contribution plan, the Savings and Investment Plan (“SIP”), the Company matches dollar-for-dollar on the first 1% contributed to SIP and $.50 for each dollar on the next 4% contributed. The Company’s contributions to SIP were $6 million and $8 million for 2013 and 2012, respectively. The Company also sponsored unfunded non-qualified defined benefit plans for certain U.S. employees, primarily executives. The pre-petition obligations associated with these plans were discharged upon emergence pursuant to the terms of the Plan (see Retirees’ Settlement under Note 2, “Emergence from Voluntary Reorganization under Chapter 11 Proceedings”). The plans were discontinued upon emergence. Many subsidiaries and branches operating outside the U.S. have defined benefit retirement plans covering substantially all employees. Contributions by Kodak for these plans are typically deposited under government or other fiduciary-type arrangements. Retirement benefits are generally based on contractual agreements that provide for benefit formulas using years of service and/or compensation prior to retirement. The actuarial assumptions used for these plans reflect the diverse economic environments within the various countries in which Kodak operates. The measurement date used to determine the pension obligation for all funded and unfunded U.S. and Non-U.S. defined benefit plans is December 31. Information regarding the major funded and unfunded U.S. and Non-U.S. defined benefit plans follows:
|  | Successor |  |  | Predecessor |
(in millions) |  | Four Months Ended December 31, 2013 |  |  | Eight Months Ended August 31, 2013 |  |  | Year-Ended December 31, 2012 |
|  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |
Change in Benefit Obligation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of period |  | $ | 4,970 |  |  | $ | 1,073 |  |  | $ | 5,575 |  |  | $ | 4,264 |  |  | $ | 5,259 |  |  | $ | 3,652 |
Transfers |  |  | - |  |  |  | - |  |  |  | (206 | ) |  |  | - |  |  |  | - |  |  |  | - |
Service cost |  |  | 7 |  |  |  | 2 |  |  |  | 20 |  |  |  | 6 |  |  |  | 48 |  |  |  | 10 |
Interest cost |  |  | 68 |  |  |  | 11 |  |  |  | 120 |  |  |  | 95 |  |  |  | 206 |  |  |  | 156 |
Participant contributions |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | 2 |
Plan amendments |  |  | - |  |  |  | (6 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Benefit payments |  |  | (124 | ) |  |  | (29 | ) |  |  | (249 | ) |  |  | (139 | ) |  |  | (422 | ) |  |  | (226 | )
Actuarial (gain) loss |  |  | (28 | ) |  |  | 6 |  |  |  | (270 | ) |  |  | (103 | ) |  |  | 385 |  |  |  | 560 |
Curtailments |  |  | - |  |  |  | - |  |  |  | (20 | ) |  |  | (7 | ) |  |  | - |  |  |  | (34 | )
Settlements |  |  | (532 | ) |  |  | (3 | ) |  |  | - |  |  |  | (2,892 | ) |  |  | - |  |  |  | (8 | )
Special termination benefits |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 99 |  |  |  | - |
Currency adjustments |  |  | - |  |  |  | 20 |  |  |  | - |  |  |  | (152 | ) |  |  | - |  |  |  | 152 |
Projected benefit obligation at end of period |  | $ | 4,361 |  |  | $ | 1,074 |  |  | $ | 4,970 |  |  | $ | 1,073 |  |  | $ | 5,575 |  |  | $ | 4,264 |
Change in Plan Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of period |  | $ | 4,647 |  |  | $ | 891 |  |  | $ | 4,848 |  |  | $ | 2,479 |  |  | $ | 4,763 |  |  | $ | 2,436 |
Actual gain on plan assets |  |  | 192 |  |  |  | 29 |  |  |  | 47 |  |  |  | 79 |  |  |  | 500 |  |  |  | 157 |
Employer contributions |  |  | 1 |  |  |  | 5 |  |  |  | 1 |  |  |  | 22 |  |  |  | 7 |  |  |  | 29 |
Participant contributions |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | 2 |
Settlements |  |  | (532 | ) |  |  | (2 | ) |  |  | - |  |  |  | (1,465 | ) |  |  | - |  |  |  | (8 | )
Benefit payments |  |  | (124 | ) |  |  | (29 | ) |  |  | (249 | ) |  |  | (139 | ) |  |  | (422 | ) |  |  | (226 | )
Currency adjustments |  |  | - |  |  |  | 13 |  |  |  | - |  |  |  | (86 | ) |  |  | - |  |  |  | 89 |
Fair value of plan assets at end of period |  | $ | 4,184 |  |  | $ | 907 |  |  | $ | 4,647 |  |  | $ | 891 |  |  | $ | 4,848 |  |  | $ | 2,479 |
Under Funded Status at end of period |  | $ | (177 | ) |  | $ | (167 | ) |  | $ | (323 | ) |  | $ | (182 | ) |  | $ | (727 | ) |  | $ | (1,785 | )
Accumulated benefit obligation at end of period |  | $ | 4,309 |  |  | $ | 1,054 |  |  |  |  |  |  |  |  |  |  | $ | 5,497 |  |  | $ | 4,233 |
The transfers of $206 million in the eight months ended August 31, 2013 represent pre-petition obligations related to the U.S. non-qualified pension plans which were discharged pursuant to the terms of the Plan. The settlement amounts above of $532 million for the U.S. in the Successor period are a result of lump sum payments from KRIP. The settlement amounts for the Non-U.S. in the eight months ended August 31, 2013 are primarily a result of the Global Settlement. Amounts recognized in the Consolidated Statement of Financial Position for all major funded and unfunded U.S. and Non-U.S. defined benefit plans are as follows:
|  | As of December 31, |
|  | Successor |  |  | Predecessor |
(in millions) |  | 2013 |  |  | 2012 |
|  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |
Other long-term assets |  | $ | - |  |  | $ | 4 |  |  | $ | - |  |  | $ | 2 |
Other current liabilities |  |  | - |  |  |  | (1 | ) |  |  | - |  |  |  | - |
Pension and other postretirement liabilities |  |  | (177 | ) |  |  | (170 | ) |  |  | - |  |  |  | (272 | )
Liabilities held for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,515 | )
Liabilities subject to compromise |  |  | - |  |  |  | - |  |  |  | (727 | ) |  |  | - |
Net amount recognized |  | $ | (177 | ) |  | $ | (167 | ) |  | $ | (727 | ) |  | $ | (1,785 | )
Information with respect to the major funded and unfunded U.S. and Non-U.S. defined benefit plans with an accumulated benefit obligation in excess of plan assets is as follows:
|  | As of December 31, |
|  | Successor |  |  | Predecessor |
(in millions) |  | 2013 |  |  | 2012 |
|  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |
Projected benefit obligation |  | $ | 4,361 |  |  | $ | 1,043 |  |  | $ | 5,575 |  |  | $ | 4,229 |
Accumulated benefit obligation |  |  | 4,309 |  |  |  | 1,024 |  |  |  | 5,497 |  |  |  | 4,198 |
Fair value of plan assets |  |  | 4,184 |  |  |  | 873 |  |  |  | 4,848 |  |  |  | 2,441 |
Amounts recognized in accumulated other comprehensive income (loss) for all major funded and unfunded U.S. and Non-U.S. defined benefit plans consist of:
|  | As of December 31, |
|  | Successor |  |  | Predecessor |
(in millions) |  | 2013 |  |  | 2012 |
|  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |
Prior service credit (cost) |  | $ | - |  |  | $ | 6 |  |  | $ | (5 | ) |  | $ | (25 | )
Net actuarial gain (loss) |  |  | 86 |  |  |  | 8 |  |  |  | (2,237 | ) |  |  | (2,202 | )
Total |  | $ | 86 |  |  | $ | 14 |  |  | $ | (2,242 | ) |  | $ | (2,227 | )
Other changes in plan assets and benefit obligations recognized in Other comprehensive income (expense) are as follows:
|  | Successor |  |  | Predecessor |
|  | Four Months Ended December 31, 2013 |  |  | Eight Months Ended August 31, 2013 |  |  | Year-Ended December 31, 2012 |
(in millions) |  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |
Newly established gain (loss) |  | $ | 97 |  |  | $ | 8 |  |  | $ | 81 |  |  | $ | 75 |  |  | $ | (275 | ) |  | $ | (567 | )
Newly established prior service credit |  |  | - |  |  |  | 6 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 3 |
Net actuarial loss |  |  | - |  |  |  | - |  |  |  | 124 |  |  |  | 56 |  |  |  | 173 |  |  |  | 66 |
Prior service cost (credit) recognized due to curtailment |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 13 |  |  |  | - |  |  |  | (1 | )
Net curtailment gain not recognized in expense |  |  | - |  |  |  | - |  |  |  | 20 |  |  |  | 7 |  |  |  | - |  |  |  | 34 |
Net (gain) loss recognized in expense due to settlements |  |  | (11 | ) |  |  | - |  |  |  | - |  |  |  | 1,542 |  |  |  | - |  |  |  | 3 |
Total Income (loss) recognized in Other comprehensive income before fresh start accounting |  | $ | 86 |  |  | $ | 14 |  |  | $ | 226 |  |  | $ | 1,694 |  |  | $ | (101 | ) |  | $ | (462 | )
Effect of application of fresh start accounting |  |  |  |  |  |  |  |  |  | $ | 2,016 |  |  | $ | 533 |  |  |  |  |  |  |  |  |
The Company does not expect to recognize any amounts recorded in accumulated other comprehensive loss as components of net periodic benefit cost over the next year. Pension (income) expense for all defined benefit plans included:
Pension (income) expense for all defined benefit plans included: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Successor |  |  | Predecessor |
(in millions) |  | Four Months Ended |  |  | Eight Months Ended |  |  | Year Ended December 31, |
|  | December 31, 2013 |  |  | August 31, 2013 |  |  | 2012 |  |  | 2011 |
|  | 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 |  | $ | 7 |  |  | $ | 2 |  |  | $ | 20 |  |  | $ | 6 |  |  | $ | 48 |  |  | $ | 10 |  |  | $ | 50 |  |  | $ | 16 |
Interest cost |  |  | 68 |  |  |  | 11 |  |  |  | 120 |  |  |  | 95 |  |  |  | 206 |  |  |  | 156 |  |  |  | 254 |  |  |  | 180 |
Expected return on plan assets |  |  | (123 | ) |  |  | (15 | ) |  |  | (236 | ) |  |  | (107 | ) |  |  | (389 | ) |  |  | (164 | ) |  |  | (435 | ) |  |  | (209 | )
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | 1 |  |  |  | 1 |  |  |  | 3 |  |  |  | 1 |  |  |  | 4 |
Actuarial loss |  |  | - |  |  |  | - |  |  |  | 124 |  |  |  | 56 |  |  |  | 173 |  |  |  | 66 |  |  |  | 69 |  |  |  | 52 |
Pension (income) expense before special termination benefits, curtailments and settlements |  |  | (48 | ) |  |  | (2 | ) |  |  | 29 |  |  |  | 51 |  |  |  | 39 |  |  |  | 71 |  |  |  | (61 | ) |  |  | 43 |
Special termination benefits |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 99 |  |  |  | - |  |  |  | 28 |  |  |  | 1 |
Curtailment (gains) losses |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 13 |  |  |  | - |  |  |  | (1 | ) |  |  |  |  |  |  | 4 |
Settlement (gains) losses |  |  | (11 | ) |  |  | (1 | ) |  |  | - |  |  |  | 114 |  |  |  | - |  |  |  | 3 |  |  |  |  |  |  |  | 10 |
Net pension (income) expense for major defined benefit plans |  |  | (59 | ) |  |  | (3 | ) |  |  | 29 |  |  |  | 178 |  |  |  | 138 |  |  |  | 73 |  |  |  | (33 | ) |  |  | 58 |
Other plans including unfunded plans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 7 |  |  |  | - |  |  |  | 11 |  |  |  | - |  |  |  | 12 |
Net pension (income) expense |  | $ | (59 | ) |  | $ | (3 | ) |  | $ | 29 |  |  | $ | 185 |  |  | $ | 138 |  |  | $ | 84 |  |  | $ | (33 | ) |  | $ | 70 |
The pension (income) expense before special termination benefits, curtailments, and settlements reported above for the eight months ended August 31, 2013 (Predecessor) includes $38 million which was reported as Discontinued operations. The Pension expense before special termination benefits, curtailments, and settlements reported above for the years ended December 31, 2012 and December 31, 2011 includes $53 million and $30 million, respectively, which was reported as Discontinued operations. The special termination benefits of $99 million and $29 million for the years ended December 31, 2012 and 2011, respectively, were incurred as a result of Kodak's restructuring actions and, therefore, have been included in Restructuring costs and other in the Consolidated Statement of Operations for those respective periods. For 2011, $3 million of the curtailment losses and $1 million of the settlement losses were incurred as a result of Kodak’s restructuring actions and, therefore, have been included in Restructuring costs and other in the Consolidated Statement of Operations for 2011. For 2012, $1 million of the settlement losses were incurred as a result of Kodak’s restructuring actions and, therefore, have been included in Restructuring costs and other in the Consolidated Statement of Operations for 2012. For the eight months ended August 31, 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 $8 million have been included in Discontinued operations in the Consolidated Statement of Operations. The $114 million of settlement losses were incurred as a result of the Global Settlement, and have been included in Discontinued operations in the Consolidated Statement of Operations. The weighted-average assumptions used to determine the benefit obligation amounts for all major funded and unfunded U.S. and Non-U.S. defined benefit plans were as follows:
|  | Successor |  |  | Predecessor |
|  | December 31, 2013 |  |  | August 31, 2013 |  |  | December 31, 2012 |
|  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |
Discount rate |  |  | 4.50 | % |  |  | 3.19 | % |  |  | 4.25 | % |  |  | 3.14 | % |  |  | 3.50 | % |  |  | 3.55 | %
Salary increase rate |  |  | 3.37 | % |  |  | 2.65 | % |  |  | 3.39 | % |  |  | 2.69 | % |  |  | 3.40 | % |  |  | 2.84 | %
The weighted-average assumptions used to determine net pension (income) expense for all the major funded and unfunded U.S. and Non-U.S. defined benefit plans were as follows:
|  | Successor |  |  | Predecessor |
|  | Four Months Ended |  |  | Eight Months Ended |  |  | Year Ended December 31, |
|  | December 31, 2013 |  |  | August 31, 2013 |  |  | 2012 |  |  | 2011 |
|  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |  |  | U.S. |  |  | Non-U.S. |
Discount rate |  |  | 4.25 | % |  |  | 3.14 | % |  |  | 4.25 | % |  |  | 3.14 | % |  |  | 4.25 | % |  |  | 4.41 | % |  |  | 5.24 | % |  |  | 4.95 | %
Salary increase rate |  |  | 3.39 | % |  |  | 2.69 | % |  |  | 3.39 | % |  |  | 2.69 | % |  |  | 3.45 | % |  |  | 2.98 | % |  |  | 3.99 | % |  |  | 3.89 | %
Expected long-term rate of return on plan assets |  |  | 8.20 | % |  |  | 5.35 | % |  |  | 8.12 | % |  |  | 6.54 | % |  |  | 8.52 | % |  |  | 7.02 | % |  |  | 8.43 | % |  |  | 7.64 | %
Plan Asset Investment Strategy The investment strategy underlying the asset allocation for the pension assets is to achieve an optimal return on assets with an acceptable level of risk while providing for the long-term liabilities, and maintaining sufficient liquidity to pay current benefits and other cash obligations of the plans. This is primarily achieved by investing in a broad portfolio constructed of various asset classes including equity and equity-like investments, debt and debt-like investments, real estate, private equity and other assets and instruments. Long duration bonds and Treasury bond futures are used to partially match the long-term nature of plan liabilities. Other investment objectives include maintaining broad diversification between and within asset classes and fund managers, and managing asset volatility relative to plan liabilities. Every three years, or when market conditions have changed materially, each of Kodak’s major pension plans will undertake an asset allocation or asset and liability modeling study. The asset allocation and expected return on the plans’ assets are individually set to provide for benefits and other cash obligations within each country’s legal investment constraints. Actual allocations may vary from the target asset allocations due to market value fluctuations, the length of time it takes to implement changes in strategy, and the timing of cash contributions and cash requirements of the plans. The asset allocations are monitored, and are rebalanced in accordance with the policy set forth for each plan. The total plan assets attributable to the major U.S. defined benefit plans at December 31, 2013 relate to KRIP. The expected long-term rate of return on plan assets assumption (“EROA”) is based on a combination of formal asset and liability studies that include forward-looking return expectations given the current asset allocation. A review of the EROA as of December 31, 2013, based upon the current asset allocation and forward-looking expected returns for the various asset classes in which KRIP invests, resulted in an EROA of 7.8%. As with KRIP, the EROA assumptions for certain of Kodak’s other pension plans were reassessed as of December 31, 2013. The annual expected return on plan assets for the major non-U.S. pension plans range from 2.4% to 7.2% based on the plans’ respective asset allocations as of December 31, 2013. Plan Asset Risk Management Kodak evaluates its defined benefit plans’ asset portfolios for the existence of significant concentrations of risk. Types of concentrations that are evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, and individual fund. As of December 31, 2013 and 2012, there were no significant concentrations (defined as greater than 10 percent of plan assets) of risk in Kodak’s defined benefit plan assets. The Company's weighted-average asset allocations for its major U.S. defined benefit pension plans by asset category, are as follows:
|  | As of December 31, |  |  |  |
|  | Successor |  |  | Predecessor |  |  |  |
|  | 2013 |  |  | 2012 |  |  | 2013 Target |
Asset Category |  |  |  |  |  |  |  |  |
Equity securities |  |  | 16 | % |  |  | 25 | % |  |  | 22 | - | 32 | %
Debt securities |  |  | 30 | % |  |  | 38 | % |  |  | 34 | - | 44 | %
Real estate |  |  | 5 | % |  |  | 4 | % |  |  | 0 | - | 10 | %
Cash and cash equivalents |  |  | 14 | % |  |  | 2 | % |  |  | 0 | - | 6 | %
Global balanced asset allocation funds |  |  | 13 | % |  |  | 11 | % |  |  | 9 | - | 15 | %
Other |  |  | 22 | % |  |  | 20 | % |  |  | 14 | - | 20 | %
Total |  |  | 100 | % |  |  | 100 | % |  |  |  |  |  |
The Company's weighted-average asset allocations for its major Non-U.S. defined benefit pension plans by asset category, are as follows:
|  | As of December 31, |  |  |  |
|  | Successor |  |  | Predecessor |  |  |  |
|  | 2013 |  |  | 2012 |  |  | 2013 Target |
Asset Category |  |  |  |  |  |  |  |  |
Equity securities |  |  | 18 | % |  |  | 13 | % |  |  | 15 | - | 25 | %
Debt securities |  |  | 30 | % |  |  | 40 | % |  |  | 25 | - | 35 | %
Real estate |  |  | 1 | % |  |  | 2 | % |  |  | 0 | - | 4 | %
Cash and cash equivalents |  |  | 3 | % |  |  | 2 | % |  |  | 0 | - | 6 | %
Global balanced asset allocation funds |  |  | 6 | % |  |  | 3 | % |  |  | 4 | - | 10 | %
Other |  |  | 42 | % |  |  | 40 | % |  |  | 35 | - | 45 | %
Total |  |  | 100 | % |  |  | 100 | % |  |  |  |  |  |
Fair Value Measurements Kodak’s asset allocations by level within the fair value hierarchy at December 31, 2013 and 2012 are presented in the tables below for Kodak’s major defined benefit plans. Kodak’s plan assets were accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Kodak’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value of assets and their placement within the fair value hierarchy levels. Major U.S. Plans December 31, 2013
|  | U.S. |
(in millions) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
Cash and cash equivalents |  | $ | - |  |  | $ | 587 |  |  | $ | - |  |  | $ | 587 |
Equity Securities |  |  | - |  |  |  | 481 |  |  |  | 183 |  |  |  | 664 |
Debt Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government Bonds |  |  | - |  |  |  | 224 |  |  |  | 205 |  |  |  | 429 |
Inflation-Linked Bonds |  |  | - |  |  |  | 39 |  |  |  | 105 |  |  |  | 144 |
Investment Grade Bonds |  |  | - |  |  |  | 234 |  |  |  | - |  |  |  | 234 |
Global High Yield & Emerging Market Debt |  |  | - |  |  |  | 263 |  |  |  | 178 |  |  |  | 441 |
Real Estate |  |  | - |  |  |  | - |  |  |  | 200 |  |  |  | 200 |
Global Balanced Asset Allocation Funds |  |  | - |  |  |  | 540 |  |  |  | - |  |  |  | 540 |
Other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private Equity |  |  | - |  |  |  | - |  |  |  | 951 |  |  |  | 951 |
Derivatives with unrealized gains |  |  | 16 |  |  |  | - |  |  |  | - |  |  |  | 16 |
Derivatives with unrealized losses |  |  | (22 | ) |  |  | - |  |  |  | - |  |  |  | (22 | )
|  | $ | (6 | ) |  | $ | 2,368 |  |  | $ | 1,822 |  |  | $ | 4,184 |
Major U.S. Plans December 31, 2012
|  | U.S. |
(in millions) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
Cash and cash equivalents |  | $ | - |  |  | $ | 83 |  |  | $ | - |  |  | $ | 83 |
Equity Securities |  |  | 221 |  |  |  | 804 |  |  |  | 163 |  |  |  | 1,188 |
Debt Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government Bonds |  |  | - |  |  |  | 538 |  |  |  | 201 |  |  |  | 739 |
Inflation-Linked Bonds |  |  | - |  |  |  | 111 |  |  |  | 104 |  |  |  | 215 |
Investment Grade Bonds |  |  | - |  |  |  | 386 |  |  |  | - |  |  |  | 386 |
Global High Yield & Emerging Market Debt |  |  | - |  |  |  | 324 |  |  |  | 201 |  |  |  | 525 |
Real Estate |  |  | - |  |  |  | - |  |  |  | 198 |  |  |  | 198 |
Global Balanced Asset Allocation Funds |  |  | - |  |  |  | 530 |  |  |  | - |  |  |  | 530 |
Other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Private Equity |  |  | - |  |  |  | - |  |  |  | 1,002 |  |  |  | 1,002 |
Insurance Contracts |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | 1 |
Derivatives with unrealized gains |  |  | 7 |  |  |  | - |  |  |  | - |  |  |  | 7 |
Derivatives with unrealized losses |  |  | (26 | ) |  |  | - |  |  |  | - |  |  |  | (26 | )
|  | $ | 202 |  |  | $ | 2,777 |  |  | $ | 1,869 |  |  | $ | 4,848 |
For Kodak’s major U.S. defined benefit pension plans, equity investments are invested broadly in U.S. equity, developed international equity, and emerging markets. Fixed income investments are comprised primarily of long duration U.S. Treasuries and global government bonds, U.S. below investment-grade corporate bonds, as well as U.S. and emerging market companies’ debt securities diversified by sector, geography, and through a wide range of market capitalizations. Real estate investments include investments in office, industrial, retail and apartment properties. Private equity investments are primarily comprised of limited partnerships and fund-of-fund investments that invest in distressed investments, venture capital, leveraged buyout and special situation funds. Natural resource investments in oil and gas partnerships and timber funds are also included in this category. Major Non-U.S. Plans December 31, 2013
|  | Non - U.S. |
(in millions) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
Cash and cash equivalents |  | $ | - |  |  | $ | 25 |  |  | $ | - |  |  | $ | 25 |
Equity Securities |  |  | - |  |  |  | 151 |  |  |  | 15 |  |  |  | 166 |
Debt Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government Bonds |  |  | - |  |  |  | 121 |  |  |  | 32 |  |  |  | 153 |
Inflation-Linked Bonds |  |  | - |  |  |  | 30 |  |  |  | - |  |  |  | 30 |
Investment Grade Bonds |  |  | - |  |  |  | 62 |  |  |  | - |  |  |  | 62 |
Global High Yield & Emerging Market Debt |  |  | - |  |  |  | 24 |  |  |  | - |  |  |  | 24 |
Real Estate |  |  | - |  |  |  | 6 |  |  |  | 5 |  |  |  | 11 |
Global Balanced Asset Allocation Funds |  |  | - |  |  |  | 53 |  |  |  | - |  |  |  | 53 |
Other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Absolute Return |  |  | - |  |  |  | 36 |  |  |  | - |  |  |  | 36 |
Private Equity |  |  | - |  |  |  | 2 |  |  |  | 54 |  |  |  | 56 |
Insurance Contracts |  |  | - |  |  |  | 294 |  |  |  | - |  |  |  | 294 |
Derivatives with unrealized gains |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | 1 |
Derivatives with unrealized losses |  |  | (4 | ) |  |  | - |  |  |  | - |  |  |  | (4 | )
|  | $ | (3 | ) |  | $ | 804 |  |  | $ | 106 |  |  | $ | 907 |
Major Non-U.S. Plans December 31, 2012
|  | Non - U.S. |
(in millions) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
Cash and cash equivalents |  | $ | - |  |  | $ | 57 |  |  | $ | - |  |  | $ | 57 |
Equity Securities |  |  | 43 |  |  |  | 276 |  |  |  | 13 |  |  |  | 332 |
Debt Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government Bonds |  |  | - |  |  |  | 145 |  |  |  | 7 |  |  |  | 152 |
Inflation-Linked Bonds |  |  | - |  |  |  | 275 |  |  |  | 251 |  |  |  | 526 |
Investment Grade Bonds |  |  | - |  |  |  | 74 |  |  |  | - |  |  |  | 74 |
Global High Yield & Emerging Market Debt |  |  | - |  |  |  | 229 |  |  |  | - |  |  |  | 229 |
Real Estate |  |  | - |  |  |  | 5 |  |  |  | 44 |  |  |  | 49 |
Global Balanced Asset Allocation Funds |  |  | - |  |  |  | 71 |  |  |  | - |  |  |  | 71 |
Other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Absolute Return |  |  | - |  |  |  | 324 |  |  |  | - |  |  |  | 324 |
Private Equity |  |  | - |  |  |  | 2 |  |  |  | 322 |  |  |  | 324 |
Insurance Contracts |  |  | - |  |  |  | 338 |  |  |  | - |  |  |  | 338 |
Derivatives with unrealized gains |  |  | 4 |  |  |  | - |  |  |  | - |  |  |  | 4 |
Derivatives with unrealized losses |  |  | (1 | ) |  |  | - |  |  |  | - |  |  |  | (1 | )
|  | $ | 46 |  |  | $ | 1,796 |  |  | $ | 637 |  |  | $ | 2,479 |
For Kodak’s major non-U.S. defined benefit pension plans, equity investments are invested broadly in local equity, developed international and emerging markets. Fixed income investments are comprised primarily of long duration government and corporate bonds with some emerging market debt. Real estate investments include investments in primarily office, industrial, and retail properties. Private equity investments are comprised of limited partnerships and fund-of-fund investments that invest in distressed investments, venture capital and leveraged buyout funds. Absolute return investments are comprised of a diversified portfolio of hedge funds using equity, debt, commodity, and currency strategies held separate from the derivative-linked hedge funds described later in this footnote. Cash and cash equivalents are valued utilizing cost approach valuation techniques. Equity and debt securities are valued using a market approach based on the closing price on the last business day of the year (if the securities are traded on an active market), or based on the proportionate share of the estimated fair value of the underlying assets (net asset value). Other investments are valued using a combination of market, income, and cost approaches, based on the nature of the investment. Absolute return investments are primarily valued based on net asset value derived from observable market inputs. Real estate investments are valued primarily based on independent appraisals and discounted cash flow models, taking into consideration discount rates and local market conditions. Private equity investments are valued primarily based on independent appraisals, discounted cash flow models, cost, and comparable market transactions, which include inputs such as discount rates and pricing data from the most recent equity financing. Insurance contracts are primarily valued based on contract values, which approximate fair value. Some of the plans’ assets, primarily absolute return, real estate, and private equity, do not have readily determinable market values due to the nature of these investments. For these investments, fund manager or general partner estimates were used where available. The estimates for the absolute return assets are derived from observable inputs, based on the fair value of the underlying positions, which have readily available market prices. For investments with lagged pricing, Kodak used the available net asset values, and also considered expected return, subsequent cash flows and material events. For all of Kodak’s major defined benefit pension plans, investment managers are selected that are expected to provide best-in-class asset management for their particular asset class, and expected returns greater than those expected from existing salable assets, especially if this would maintain the aggregate volatility desired for each plan’s portfolio. Investment managers are retained for the purpose of managing specific investment strategies within contractual investment guidelines. Certain investment managers are authorized to invest in derivatives such as futures, swaps, and currency forward contracts. Investments in futures and swaps are used to obtain targeted exposure to a particular asset, index or bond duration and only require a portion of the cash to gain exposure to the notional value of the underlying investment. The remaining cash is available to be deployed and in some cases is invested in a diversified portfolio of various uncorrelated hedge fund strategies that provide added returns at a lower level of risk. Of the investments shown in the major U.S. plans table above, 10%, 10%, and 3% of the total assets as of December 31, 2013 reported in equity securities, government bonds, and inflation-linked bonds, respectively and 11%, 15% and 4% of the total assets as of December 31, 2012 reported in equity securities, government bonds, and inflation-linked bonds, respectively are reflective of the exposures gained from the use of derivatives, and are invested in a diversified portfolio of hedge funds using equity, debt, commodity, and currency strategies. Of the investments shown in the major Non-U.S. plans table above, 1%, and 10% of the total assets as of December 31, 2013 reported in equity securities and government bonds, respectively, and 3%, 4% and 20% of the total assets as of December 31, 2012 reported in equity securities, government bonds, and inflation-linked bonds, respectively, are reflective of the exposures gained from the use of derivatives, and are invested in a diversified portfolio of hedge funds using equity, debt, commodity, and currency strategies. Foreign currency contracts and swaps are used to partially hedge foreign currency risk. Additionally, Kodak’s major defined benefit pension plans invest in government bond futures or local government bonds to partially hedge the liability risk of the plans. The following is a reconciliation of the beginning and ending balances of level 3 assets of Kodak’s major U.S. defined benefit pension plans: (in millions)
|  | Successor |
|  | U.S. |
|  | Balance at September 1, 2013 |  |  | Net Realized and Unrealized Gains/(Losses) |  |  | Net Purchases and Sales |  |  | Net Transfer Into/(Out of) Level 3 |  |  | Balance at December 31, 2013 |
Equity Securities |  | $ | 176 |  |  | $ | 9 |  |  | $ | (2 | ) |  | $ | - |  |  | $ | 183 |
Government Bonds |  |  | 204 |  |  |  | 5 |  |  |  | (4 | ) |  |  | - |  |  |  | 205 |
Inflation-Linked Bonds |  |  | 111 |  |  |  | (4 | ) |  |  | (2 | ) |  |  | - |  |  |  | 105 |
Global High Yield & Emerging Market Debt |  |  | 140 |  |  |  | 38 |  |  |  | - |  |  |  | - |  |  |  | 178 |
Real Estate |  |  | 204 |  |  |  | 6 |  |  |  | (10 | ) |  |  | - |  |  |  | 200 |
Private Equity |  |  | 959 |  |  |  | 52 |  |  |  | (60 | ) |  |  | - |  |  |  | 951 |
Total |  | $ | 1,794 |  |  | $ | 106 |  |  | $ | (78 | ) |  | $ | - |  |  | $ | 1,822 |
|  | Predecessor |
|  | U.S. |
|  | Balance at January 1, 2013 |  |  | Net Realized and Unrealized Gains/(Losses) |  |  | Net Purchases and Sales |  |  | Net Transfer Into/(Out of) Level 3 |  |  | Balance at August 31, 2013 |
Equity Securities |  | $ | 163 |  |  | $ | 16 |  |  | $ | 5 |  |  | $ | (8 | ) |  | $ | 176 |
Government Bonds |  |  | 201 |  |  |  | 17 |  |  |  | (15 | ) |  |  | 1 |  |  |  | 204 |
Inflation-Linked Bonds |  |  | 104 |  |  |  | 12 |  |  |  | (5 | ) |  |  | - |  |  |  | 111 |
Global High Yield & Emerging Market Debt |  |  | 201 |  |  |  | 27 |  |  |  | (5 | ) |  |  | (83 | ) |  |  | 140 |
Real Estate |  |  | 198 |  |  |  | 21 |  |  |  | (15 | ) |  |  | - |  |  |  | 204 |
Private Equity |  |  | 1,002 |  |  |  | 39 |  |  |  | (82 | ) |  |  | - |  |  |  | 959 |
Total |  | $ | 1,869 |  |  | $ | 132 |  |  | $ | (117 | ) |  | $ | (90 | ) |  | $ | 1,794 |
|  | Predecessor |
|  | U.S. |
|  | Balance at January 1, 2012 |  |  | Net Realized and Unrealized Gains/(Losses) |  |  | Net Purchases and Sales |  |  | Net Transfer Into/(Out of) Level 3 |  |  | Balance at December 31, 2012 |
Equity Securities |  | $ | 136 |  |  | $ | 16 |  |  | $ | 11 |  |  | $ | - |  |  | $ | 163 |
Government Bonds |  |  | 237 |  |  |  | 27 |  |  |  | (63 | ) |  |  | - |  |  |  | 201 |
Inflation-Linked Bonds |  |  | 260 |  |  |  | 21 |  |  |  | (177 | ) |  |  | - |  |  |  | 104 |
Global High Yield & Emerging Market Debt |  |  | - |  |  |  | 24 |  |  |  | 177 |  |  |  | - |  |  |  | 201 |
Absolute Return |  |  | 135 |  |  |  | 10 |  |  |  | 20 |  |  |  | (165 | ) |  |  | - |
Real Estate |  |  | 213 |  |  |  | (9 | ) |  |  | (6 | ) |  |  | - |  |  |  | 198 |
Private Equity |  |  | 971 |  |  |  | 126 |  |  |  | (95 | ) |  |  | - |  |  |  | 1,002 |
Total |  | $ | 1,952 |  |  | $ | 215 |  |  | $ | (133 | ) |  | $ | (165 | ) |  | $ | 1,869 |
The following is a reconciliation of the beginning and ending balances of level 3 assets of Kodak’s major Non-U.S. defined benefit pension plans (in millions):
|  | Successor |
|  | Non-U.S. |
|  | Balance at September 1, 2013 |  |  | Net Realized and Unrealized Gains/(Losses) |  |  | Net Purchases and Sales |  |  | Net Transfer Into/(Out of) Level 3 |  |  | Balance at December 31, 2013 |
Equity Securities |  | $ | 15 |  |  | $ | 1 |  |  | $ | (1 | ) |  | $ | - |  |  | $ | 15 |
Government Bonds |  |  | 30 |  |  |  | 2 |  |  |  | - |  |  |  | - |  |  |  | 32 |
Inflation-Linked Bonds |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Real Estate |  |  | 7 |  |  |  | - |  |  |  | (2 | ) |  |  | - |  |  |  | 5 |
Private Equity |  |  | 55 |  |  |  | 1 |  |  |  | (2 | ) |  |  | - |  |  |  | 54 |
Total |  | $ | 107 |  |  | $ | 4 |  |  | $ | (5 | ) |  | $ | - |  |  | $ | 106 |
|  | Predecessor |
|  | Non-U.S. |
|  | Balance at January 1, 2013 |  |  | Net Realized and Unrealized Gains/(Losses) |  |  | Net Purchases and Sales |  |  | Net Transfer Into/(Out of) Level 3 |  |  | Balance at August 31, 2013 |
Equity Securities |  | $ | 13 |  |  | $ | 2 |  |  | $ | - |  |  | $ | - |  |  | $ | 15 |
Government Bonds |  |  | 7 |  |  |  | 4 |  |  |  | 19 |  |  |  | - |  |  |  | 30 |
Inflation-Linked Bonds |  |  | 251 |  |  |  | 21 |  |  |  | (272 | ) |  |  | - |  |  |  | - |
Real Estate |  |  | 44 |  |  |  | (5 | ) |  |  | (32 | ) |  |  | - |  |  |  | 7 |
Private Equity |  |  | 322 |  |  |  | (26 | ) |  |  | (241 | ) |  |  | - |  |  |  | 55 |
Total |  | $ | 637 |  |  | $ | (4 | ) |  | $ | (526 | ) |  | $ | - |  |  | $ | 107 |
on-US |  | Predecessor |
|  | Non-U.S. |
|  | Balance at January 1, 2012 |  |  | Net Realized and Unrealized Gains/(Losses) |  |  | Net Purchases and Sales |  |  | Net Transfer Into/(Out of) Level 3 |  |  | Balance at December 31, 2012 |
Equity Securities |  | $ | 6 |  |  | $ | 1 |  |  | $ | 6 |  |  | $ | - |  |  | $ | 13 |
Government Bonds |  |  | 6 |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | 7 |
Inflation-Linked Bonds |  |  | 251 |  |  |  | 21 |  |  |  | 13 |  |  |  | (34 | ) |  |  | 251 |
Real Estate |  |  | 55 |  |  |  | 2 |  |  |  | (13 | ) |  |  | - |  |  |  | 44 |
Private Equity |  |  | 312 |  |  |  | 28 |  |  |  | (18 | ) |  |  | - |  |  |  | 322 |
Total |  | $ | 630 |  |  | $ | 53 |  |  | $ | (12 | ) |  | $ | (34 | ) |  | $ | 637 |
Kodak expects to contribute approximately $0 million and $18 million in 2014 for the major U.S. and Non-U.S. defined benefit pension plans, respectively. The following pension benefit payments, which reflect expected future service, are expected to be paid:
(in millions) |  | U.S. |  |  | Non-U.S. |
2014 |  | $ | 370 |  |  | $ | 77 |
2015 |  |  | 360 |  |  |  | 72 |
2016 |  |  | 349 |  |  |  | 68 |
2017 |  |  | 339 |  |  |  | 64 |
2018 |  |  | 330 |  |  |  | 61 |
2019-2023 |  |  | 1,538 |  |  |  | 295 |

X
- Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration