Note 21 - Other Postretirement Benefits

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Postemployment Benefits Disclosure [Text Block]

NOTE 21: OTHER POSTRETIREMENT BENEFITS

In Canada, Kodak provides medical, dental, life insurance, and survivor income benefits to eligible retirees.  The plan is closed to new participants. Information on the Canada other postretirement benefit plan is presented below.

The measurement date used to determine the net benefit obligation for the Canada other postretirement benefit plan is December 31.

Changes in Kodak’s benefit obligation and funded status were as follows (in millions):

	Year Ended December 31,
	2022			2021
Net benefit obligation at beginning of period	$	52		$	58
Interest cost		1			1
Actuarial (gain) loss		(7	)		(5	)
Benefit payments		(3	)		(2	)
Net benefit obligation at end of period		43			52
Underfunded status at end of period		(43	)		(52	)

Amounts recognized in the Consolidated Statement of Financial Position consist of (in millions):

	As of December 31,
	2022			2021
Other current liabilities	$	(3	)	$	(3	)
Pension and other postretirement liabilities		(40	)		(49	)
	$	(43	)	$	(52	)

Amounts recognized in Accumulated other comprehensive loss consist of (in millions):

	As of December 31,
	2022		2021
Net actuarial gain	$	11	$	4

Changes in benefit obligations recognized in Other comprehensive loss (income) consist of (in millions):

	Year Ended December 31,
	2022		2021
Newly established gain	$	7	$	5
Total gain recognized in Other comprehensive income	$	7	$	5

Other postretirement benefit cost included:

	Year Ended December 31,
	2022		2021		2020
Components of net postretirement benefit cost:
Service cost	$	—	$	—	$	—
Interest cost		1		1		1
Other postretirement benefit cost from continuing operations	$	1	$	1	$	1

The weighted-average assumptions used to determine the net benefit obligations were as follows:

	As of December 31,
	2022			2021
Discount rate		5.15	%		2.97	%
Salary increase rate		2.10	%		1.85	%

The weighted-average assumptions used to determine the net postretirement benefit cost were as follows:

	Year Ended December 31,
	2022			2021			2020
Effective rate for interest cost		2.53	%		1.81	%		2.78	%
Salary increase rate		1.85	%		1.70	%		1.80	%

The weighted-average assumed healthcare cost trend rates used to compute the other postretirement amounts were as follows:

	2022			2021
Healthcare cost trend		5.64	%		5.34	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		3.57	%		3.32	%
Year that the rate reaches the ultimate trend rate	2043			2041

The following other postretirement benefits, which reflect expected future service, are expected to be paid (in millions):

2023	$	3
2024		3
2025		3
2026		3
2027		3
2028 - 2032		12