Company: KODK
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0000950170-25-040256
Chunk: 94

Company: EASTMAN KODAK CO
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1B
Chunk 94
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 of approximately $83 million at December 31, 2024. The decrease in the discount rate for Kodak’s major U.S. defined benefit pension plan from December 31, 2022 to December 31, 2023 resulted in an increase in the PBO of approximately $40 million at December 31, 2023.

Sensitivity Analysis:

The following table illustrates the sensitivity to a change to certain key assumptions used in the calculation of expense for the year ending December 31, 2024 and the PBO at December 31, 2024 for Kodak's major U.S. and non-U.S. defined benefit pension plans:

    Impact on 2025

    Impact on PBO

    Pre-Tax Pension Expense

    December 31, 2024

    Increase (Decrease)

    Increase (Decrease)

    (in millions)
     
    U.S.

    Non-U.S.

    U.S.

    Non-U.S.

    Change in assumption:

    25 basis point decrease in discount rate
     
    $
    5

    $
    —

    $
    38

    $
    11

    25 basis point increase in discount rate

    (5
    )

    —

    (37
    )

    (10
    )

    25 basis point decrease in EROA

    9

    1

    N/A

    N/A

    25 basis point increase in EROA

    (9
    )

    (1
    )
     
    N/A

    N/A

49

Total pension income from continuing operations before special termination benefits, curtailments and settlements for the major U.S. defined benefit pension plan was $151 million for 2024 and is expected to be approximately $76 million in 2025. The decrease in pension income for 2025 is driven primarily by lower EROA due to the change in investment strategy as discussed above. Pension expense from continuing operations before special termination benefits, curtailments and settlements for the major non-U.S. defined benefit pension plans was $3 million for 2024 and is projected to be less than $1 million in 2025.

Derivative Instruments:

Kodak’s major U.S. defined benefit plan utilizes derivative investments primarily to hedge liability interest rate risk to U.S. government bonds. Kodak’s major U.S. defined benefit pension plan’s derivative portfolio consists of exchange traded futures contracts. As of December