Kodak 2014 Annual Report Download - page 96

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Major Non-U.S. Plans
December 31, 2013
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.
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
$
-
$
21
$
-
$
21
Equity Securities
-
137
15
152
Debt Securities:
Government Bonds
-
101
32
133
Inflation
-
Linked Bonds
-
10
-
10
Investment Grade Bonds
-
62
-
62
Global High Yield & Emerging Market Debt
-
24
-
24
Real Estate
-
4
5
9
Global Balanced Asset Allocation Funds
-
53
-
53
Other:
Absolute Return
-
36
-
36
Private Equity
-
2
54
56
Insurance Contracts
-
295
-
295
Derivatives with unrealized gains
1
-
-
1
Derivatives with unrealized losses
(4
)
-
-
(4
)
$
(3
)
$
745
$
106
$
848
93