Company: KODK
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0000950170-25-040256
Chunk: 98

Company: EASTMAN KODAK CO
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1B
Chunk 98
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 also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

    Retirement Benefits – U.S. Plan Projected Benefit Obligation

     Description of the Matter
     
     As described in Note 19 to the consolidated financial statements, at December 31, 2024 the Company’s projected benefit obligation for its U.S. Plan was $2,184 million and the fair value of plan assets was $3,128 million, resulting in an overfunded status of $944 million. The projected benefit obligation for the U.S. Plan was measured using actuarial techniques that incorporate management’s assumption for the discount rate, as well as other assumptions. Auditing the projected benefit obligation of the U.S. Plan was complex and required the involvement of specialists as a result of certain assumptions, including the discount rate, used in the measurement process. The discount rate has a significant effect on the projected benefit obligation. 

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    How We Addressed the Matter in Our Audit
     
    We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company's controls that address the risks of material misstatement relating to the measurement and valuation of the projected benefit obligation. For example, we tested controls over management’s review of the inputs used to calculate the projected benefit obligation and management's controls over the discount rate.Our audit procedures included, among others, evaluating the methodology used to determine the projected benefit obligation and the discount rate. For example, we involved actuarial specialists to assist in evaluating management’s methodology for determining the discount rate that reflects the amount and duration of the benefit payments used to measure the projected benefit obligation. We also tested the completeness and accuracy of the underlying data used in the actuarial calculations.

/s/ Ernst & Young LLP

We have served as the Company