Kodak 2009 Annual Report Download - page 105

103
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 $ 2 $ (1)
Effect on postretirement benefit obligation 29 (25)
The Company expects to make $148 million of benefit payments for its unfunded other postretirement benefit plans in 2010.
The following other postretirement benefits, which reflect expected future service, are expected to be paid:
(in millions)
2010 $ 148
2011 142
2012 140
2013 126
2014 119
2015-2019 511
NOTE 19: ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
The components of Accumulated other comprehensive (loss) income, net of tax, were as follows:
(in millions) As of December 31,
2009 2008 2007
Realized and unrealized gains (losses) from hedging activity, net of tax $ 6 $ (6) $ 10
Currency translation adjustments 235 231 312
Pension and other postretirement benefit plan obligation activity, net of tax (2,001) (974) 131
Total $ (1,760) $ (749) $ 453
See Note 17, “Retirement Plans,” in the Notes to Financial Statements regarding the pension and other postretirement plan
obligation activity.
NOTE 20: STOCK OPTION AND COMPENSATION PLANS
The Company recognized stock-based compensation expense in the amount of $20 million, $18 million and $20 million for the years
ended December 31, 2009, 2008 and 2007, respectively. The impacts on the Company's cash flows for 2009, 2008 and 2007 were
not material. Stock-based compensation costs for employees related to manufacturing activities were included in the costs
capitalized in inventory at period end.
Of the expense amounts noted above, compensation expense related to stock options during the years ended December 31, 2009,
2008 and 2007 was $5 million, $10 million and $10 million, respectively. Compensation expense related to unvested stock and
performance awards during the years ended December 31, 2009, 2008 and 2007 was $15 million, $8 million and $10 million,
respectively.
The Company’s stock incentive plans consist of the 2005 Omnibus Long-Term Compensation Plan (the “2005 Plan”), the 2000
Omnibus Long-Term Compensation Plan (the “2000 Plan”), and the 1995 Omnibus Long-Term Compensation Plan (the “1995
Plan”). The Plans are administered by the Executive Compensation and Development Committee of the Board of Directors. Stock
options are generally non-qualified and are at exercise prices not less than 100% of the per share fair market value on the date of
grant. Stock-based compensation awards granted under the Company’s stock incentive plans are generally subject to a three-year
vesting period from the date of grant.
Under the 2005 Plan, 11 million shares of the Company's common stock may be granted to employees between January 1, 2005
and December 31, 2014. This share reserve may be increased by: shares that are forfeited pursuant to awards made under the
1995, 2000, and 2005 Plans; shares retained for payment of tax withholding; shares delivered for payment or satisfaction of tax
withholding; shares reacquired on the open market using cash proceeds from option exercises; and awards that otherwise do not
result in the issuance of shares. The 2005 Plan is substantially similar to and is intended to replace the 2000 Plan, which expired on
January 18, 2005. Options granted under the 2005 Plan generally expire seven years from the date of grant, but may be forfeited or
canceled earlier if the optionee's employment terminates prior to the end of the contractual term. The 2005 Plan provides for, but is
not limited to, grants of unvested stock, performance awards, and Stock Appreciation Rights (“SARs”), either in tandem with options