Kodak 2009 Annual Report Download - page 104

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Other postretirement benefit cost from continuing operations for the Company's U.S., United Kingdom and Canada plans included:
For the Year Ended December 31,
(in millions) 2009 2008 2007
Components of net postretirement benefit cost:
Service cost $ 1 $ 4 $ 8
Interest cost 92 136 165
Amortization of:
Prior service credit (71) (53) (38)
Actuarial loss 22 17 49
Other postretirement benefit cost before curtailments and
settlements 44 104 184
Curtailment losses (gains) 1 (86) (8)
Settlement gains - (2) (1)
Net other postretirement benefit cost from continuing
operations $ 45 $ 16 $ 175
Included in the curtailment gains of $86 million for the year ended December 31, 2008 was a $79 million curtailment gain related to
changes to the Company’s U.S. postretirement benefit plan affecting its post-September 1991 retirees beginning January 1, 2009, as
discussed above.
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 $75 million and $27 million, respectively.
The U.S. plan represents approximately 93% and 95%, respectively, of the total other postretirement net benefit obligation as of
December 31, 2009 and 2008 and, therefore, the weighted-average assumptions used to compute the other postretirement benefit
amounts approximate the U.S. assumptions.
The weighted-average assumptions used to determine the net benefit obligations were as follows:
As of December 31,
2009 2008
Discount rate 5.54% 7.00%
Salary increase rate 3.90% 4.00%
The weighted-average assumptions used to determine the net postretirement benefit cost were as follows:
For the Year Ended December 31,
2009 2008 2007
Discount rate 6.59% 7.23% 5.98%
Salary increase rate 3.96% 4.48% 4.49%
The weighted-average assumed healthcare cost trend rates used to compute the other postretirement amounts were as follows:
2009 2008
Healthcare cost trend 8.00% 8.00%
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 2013 2012