Note 12: Retirement Plans And Other Postretirement Benefits

6 Months Ended

Jun. 30, 2012

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE 12:  RETIREMENT PLANS AND OTHER POSTRETIREMENT BENEFITS

Components of the net periodic benefit cost for all major funded and unfunded U.S. and Non-U.S. defined benefit plans for the three and six months ended June 30, 2012 and 2011 are as follows:

	Three Months Ended June 30,												Six Months Ended June 30,
(in millions)	2012						2011						2012						2011
	U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.
Major defined benefit plans:
Service cost	$	12		$	2		$	12		$	4		$	24		$	6		$	25		$	8
Interest cost		50			39			64			46			104			78			127			91
Expected return on plan assets		(98	)		(40	)		(109	)		(53	)		(195	)		(84	)		(218	)		(105	)
Amortization of:
Recognized prior service cost		-			-			1			1			-			1			1			2
Recognized net actuarial loss		44			16			17			13			87			33			34			26
Pension expense (income) before special termination benefits, curtailments, and settlements		8			17			(15	)		11			20			34			(31	)		22
Special termination benefits		2			-			6			-			56			-			17			1
Settlement loss		-			1			-			-			-			1			-			-
Net pension expense (income)		10			18			(9	)		11			76			35			(14	)		23
Other plans including unfunded plans		-			2			-			3			-			6			-			6
Total net pension expense (income) from continuing operations	$	10		$	20		$	(9	)	$	14		$	76		$	41		$	(14	)	$	29

For the three months ended June 30, 2012 and 2011, $2 million and $6 million, respectively, of special termination benefits charges were incurred as a result of the Company's restructuring actions.  For the six months ended June 30, 2012 and 2011, $56 million and $18 million, respectively, of special termination benefits charges were incurred as a result of the Company's restructuring actions.  These charges have been included in Restructuring costs and other in the Consolidated Statement of Operations.

The Company made contributions (funded plans) or paid benefits (unfunded plans) totaling approximately $17 million relating to its major U.S. and non-U.S. defined benefit pension plans for the six months ended June 30, 2012.  If Kodak Limited’s 2012 contribution to the Kodak Pension Plan is not deferred, the Company would expect its contribution (funded plans) and benefit payment (unfunded plans) requirements for its major U.S. and non-U.S. defined benefit pension plans for the balance of 2012 to be approximately $86 million.  See Eastman Kodak Company Guarantee in Note 2, “Chapter 11 Filing,” for further discussion of the proposed deferral.

Postretirement benefit costs for the Company's U.S. and Canada postretirement benefit plans, which represent the Company's major postretirement plans, include:

(in millions)	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Service cost	$	-		$	1		$	-		$	1
Interest cost		13			16			26			33
Amortization of:
Prior service credit		(19	)		(20	)		(38	)		(39	)
Recognized net actuarial loss		7			8			15			16
Total net postretirement benefit expense	$	1		$	5		$	3		$	11

The Company paid benefits totaling approximately $61 million relating to its U.S. and Canada postretirement benefit plans for the six months ended June 30, 2012.  The Company expects to pay benefits of approximately $55 million for these postretirement plans for the balance of 2012.