Note 13 - Retirement Plans and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Retirement Benefits [Text Block]

NOTE 13: RETIREMENT PLANS AND OTHER POSTRETIREMENT BENEFITS

Components of the net periodic benefit cost for all major U.S. and non-U.S. defined benefit plans are as follows:

	Three Months Ended												Nine Months Ended
	September 30,												September 30,
	2023						2022						2023						2022
(in millions)	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	$	3		$	—		$	3		$	—		$	10		$	1		$	9		$	2
Interest cost		29			5			24			2			87			15			56			6
Expected return on plan assets		(64	)		(5	)		(45	)		(3	)		(192	)		(15	)		(133	)		(10	)
Amortization of:
Prior service cost (credit)		3			—			—			—			6			—			(3	)		—
Actuarial (gain) loss		(8	)		—			—			3			(22	)		1			—			8
Net pension (income) expense before special termination benefits		(37	)		—			(18	)		2			(111	)		2			(71	)		6
Special termination benefits		—			—			1			—			—			—			1			—
Total net pension (income) expense	$	(37	)	$	—		$	(17	)	$	2		$	(111	)	$	2		$	(70	)	$	6

The Kodak Retirement Income Plan (“KRIP”) was remeasured on May 31, 2023 due to a plan amendment which provided a lump sum service credit to eligible employees’ cash balance accounts.

As a result of the remeasurement and plan amendment, KRIP’s projected benefit obligation increased $38 million, including $9 million from a decrease in the discount rate used for the remeasurement, and $29 million due to the impact of the plan amendment. The discount rate assumption used in the May 31, 2023 remeasurement was 5.08% compared to 5.13% used in the December 31, 2022 remeasurement. The remeasurement decreased the fair value of KRIP’s plan assets by $80 million. The expected long‐term rate of return on plan assets assumption used in the May 31, 2023 remeasurement was unchanged from the rate used in the previous year‐end remeasurement (7.50%). The total impact of the remeasurement and plan amendment decreased KRIP’s funded status by $118 million.

KRIP was remeasured on May 31, 2022 due to a plan amendment. The plan amendment increased the employees’ crediting rates from 9% or 10% of pay based on employee classification to 12% or 13% of pay, retroactive to January 1, 2022. The plan amendment also provided a one‐time service credit to eligible employees’ cash balance accounts.

As a result of the remeasurement, KRIP’s projected benefit obligation decreased $345 million primarily driven by an increase in the discount rate ($376 million) partially offset by the impacts from the plan amendments ($28 million) and changes in other demographic assumptions ($3 million). The discount rate assumption used in the May 31, 2022 remeasurement was 4.16% compared to 2.54% used in the December 31, 2021 remeasurement. The remeasurement decreased the fair value of KRIP’s plan assets by $236 million. The expected long‐term rate of return on plan assets assumption used in the May 31, 2022 remeasurement was unchanged from the rate used in the previous year‐end remeasurement (5.20%). The net impact of the remeasurement increased KRIP's funded status by $109 million.