NOTE 17: OTHER POSTRETIREMENT BENEFITS

Kodak provides continued access to medical and dental benefits through lifetime COBRA coverage for certain eligible U.S. retirees and long-term disability recipients who elected such coverage, along with their spouses, dependents and survivors. In Canada, Kodak provides medical, dental, life insurance, and survivor income benefits to eligible retirees. In the U.K., Kodak provides medical benefits to eligible retirees. The other postretirement benefit plans in the U.S., Canada, and the U.K. are closed to new participants. Information on the U.S., Canada and U.K. other postretirement plans is presented below.

The measurement date used to determine the net benefit obligation for Kodak's other postretirement benefit plans is December 31.

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

	Year Ended December 31,
	2016			2015
Net benefit obligation at beginning of period	$	78		$	86
Interest cost		2			3
Plan participants’ contributions		5			7
Actuarial loss (gain)		1			(8	)
Benefit payments		(10	)		(12	)
Currency adjustments		(2	)		2
Net benefit obligation at end of period	$	74		$	78

Underfunded status at end of period	$	(74	)	$	(78	)

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

	As of December 31,
	2016			2015
Other current liabilities	$	(5	)	$	(5	)
Pension and other postretirement liabilities		(69	)		(73	)
	$	(74	)	$	(78	)

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

	As of December 31,
	2016			2015
Net actuarial gain	$	(5	)	$	(8	)

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

	Year Ended December 31,
	2016		2015
Newly established loss (gain)	$	1	$	(8	)
Amortization of:
Net actuarial gain		2		-
Total loss (gain) recognized in Other comprehensive (loss) income	$	3	$	(8	)

Other postretirement benefit cost included:

	Year Ended December 31,
	2016			2015		2014
Components of net postretirement benefit cost:
Service cost	$	—		$	—	$	—
Interest cost		2			3		4
Amortization of:
Actuarial gain		(2	)		—		—
Other postretirement benefit cost from continuing operations	$	—		$	3	$	4

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

	Year Ended December 31,
	2016			2015
Discount rate		3.44	%		3.60	%
Salary increase rate		2.35	%		1.80	%

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

	Year Ended December 31,
	2016			2015			2014
Effective rate for interest cost		2.85	%		3.49	%		4.28	%
Salary increase rate		1.80	%		2.60	%		2.50	%

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

	2016			2015
Healthcare cost trend		5.68	%		5.81	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.38	%		4.21	%
Year that the rate reaches the ultimate trend rate		2022			2022

Assumed healthcare cost trend rates effect the amounts reported for the healthcare plans. A one-percentage point change in assumed healthcare cost trend rates would have the following effects:

	1% increase		1% decrease
Effect on total service and interest cost	$	—	$	—
Effect on postretirement benefit obligation		4		(4	)

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

2017	$	5
2018		4
2019		4
2020		4
2021		4
2022-2026		19