Kodak 2011 Annual Report Download - page 110

A one-percentage point change in assumed healthcare cost trend rates would have the following effects:
The following other postretirement benefits, which reflect expected future service, are expected to be paid:
Benefit plans in the U.S. are subject to the bankruptcy proceedings. On February 27, 2012, the Company made a motion to the Bankruptcy Court
requesting approval to terminate certain retiree Medicare supplemental benefits. As of December 31, 2011 those benefits represent approximately $220
million of the Company’s other postretirement benefit plans’ net benefit obligation. If the motion is approved by the Court, expected cash payments
reflected in the table above would be reduced.
NOTE 20: ACCUMULATED OTHER COMPREHENSIVE LOSS
The components of Accumulated other comprehensive loss, net of tax, were as follows:
See Note 18, “Retirement Plans,” and Note 19, “Other Postretirement Benefits,” regarding the pension and other postretirement plan obligation activity.
NOTE 21: STOCK OPTION AND COMPENSATION PLANS
The Company recognized stock-based compensation expense in the amount of $20 million, $21 million and $20 million for the years ended December
31, 2011, 2010 and 2009, respectively. There were no proceeds from the issuance of common stock through stock option plans for the years ended
December 31, 2011, 2010, or 2009.
Of the expense amounts noted above, compensation expense related to stock options during the years ended December 31, 2011, 2010 and 2009 was $3
million, $4 million and $5 million, respectively. Compensation expense related to unvested stock and performance awards during the years ended
December 31, 2011, 2010 and 2009 was $17 million, $17 million and $15 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
(in millions)
1% increase
1% decrease
Effect on total service and interest cost
$
1
$
(1
)
Effect on postretirement benefit obligation
21
(18
)
(in millions)
2012
$
119
2013
112
2014
108
2015
103
2016
99
2017
-
2021
443
As of December 31,
(in millions)
2011
2010
2009
Unrealized holding gains related to available
-
for
-
sale securities
$
1
$
-
$
-
Realized and unrealized (losses) gains from hedging activity, net of tax
(7
)
2
6
Currency translation adjustments
333
315
235
Pension and other postretirement benefit plan obligation activity, net of tax
(2,993
)
(2,452
)
(2,001
)
Total
$
(2,666
)
$
(2,135
)
$
(1,760
)
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