Company: KODK
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0000950170-25-040256
Chunk: 220

Company: EASTMAN KODAK CO
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7
Chunk 220
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 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 31, 2024 and 2023 the notional amount of these derivative instruments was approximately $574 million and $384 million, respectively. Daily variation margin payments are made to or received from the counterparty for changes in the market value of futures contracts and are recorded as realized gains and losses in the actual return on plan assets balance. As these futures contracts have short-term maturities, the fair value of these derivative instruments at December 31, 2024 and 2023 was ($5) million and $1 million, respectively, which represents the unrealized losses and gains on