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Note 20 - Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Changes in Projected Benefit Obligations

The measurement date used to determine the pension obligation for all funded and unfunded U.S. and Non-U.S. defined benefit plans is December 31.

	Year Ended December 31, 2020						Year Ended December 31, 2019
(in millions)	U.S.			Non-U.S.			U.S.			Non-U.S.
Change in Benefit Obligation
Projected benefit obligation at beginning of period	$	3,475		$	834		$	3,405		$	834
Service cost		11			3			10			3
Interest cost		86			9			122			13
Benefit payments		(277	)		(47	)		(349	)		(48	)
Actuarial loss		299			39			284			36
Settlements		(121	)		—			—			—
Special termination benefits		3			—			3			—
Currency adjustments		—			74			—			(4	)
Projected benefit obligation at end of period	$	3,476		$	912		$	3,475		$	834

Change in Plan Assets
Fair value of plan assets at beginning of period	$	3,610		$	661		$	3,445		$	671
Gain on plan assets		495			20			514			28
Employer contributions		—			7			—			10
Benefit payments		(277	)		(47	)		(349	)		(48	)
Settlements		(121	)		—			—			—
Currency adjustments		—			55			—			—
Fair value of plan assets at end of period	$	3,707		$	696		$	3,610		$	661

Over (under) funded status at end of period	$	231		$	(216	)	$	135		$	(173	)

Accumulated benefit obligation at end of period	$	3,473		$	903		$	3,474		$	825

Amounts Recognized in Consolidated Statement of Financial Position

The settlement amount of $121 million for the U.S. for the year ended December 31,2020 represents lump sum payments from KRIP.

Amounts recognized in the Consolidated Statement of Financial Position for all major funded and unfunded U.S. and Non-U.S. defined benefit plans are as follows (in millions):

	As of December 31,
	2020					2019
	U.S.		Non-U.S.			U.S.		Non-U.S.
Other long-term assets	$	231	$	16		$	135	$	26
Pension and other postretirement liabilities		—		(232	)		—		(199	)
Net amount recognized	$	231	$	(216	)	$	135	$	(173	)

Major Funded and Unfunded Defined Benefit Plans With Projected Benefit Obligation in Excess of Plan Assets

Information with respect to the major funded and unfunded U.S. and Non-U.S. defined benefit plans with a projected benefit obligation in excess of plan assets is as follows (in millions):

`	As of December 31,
	2020				2019
	U.S.		Non-U.S.		U.S.		Non-U.S.
Projected benefit obligation	$	—	$	618	$	—	$	568
Fair value of plan assets		—		386		—		368

Major Funded and Unfunded Defined Benefit Plans With Accumulated Benefit Obligation in Excess of Plan Assets

Information with respect to the major funded and unfunded U.S. and Non-U.S. defined benefit plans with an accumulated benefit obligation in excess of plan assets is as follows (in millions):

	As of December 31,
	2020				2019
	U.S.		Non-U.S.		U.S.		Non-U.S.
Accumulated benefit obligation	$	—	$	609	$	—	$	559
Fair value of plan assets		—		386		—		368

Amounts Recognized in Accumulated Other Comprehensive Loss For All Major Funded and Unfunded Defined Benefit Plans

Amounts recognized in accumulated other comprehensive (loss) income for all major funded and unfunded U.S. and Non-U.S. defined benefit plans consist of (in millions):

	As of December 31,
	2020						2019
	U.S.			Non-U.S.			U.S.			Non-U.S.
Prior service credit	$	13		$	2		$	20		$	3
Net actuarial loss		(220	)		(182	)		(244	)		(151	)
Total	$	(207	)	$	(180	)	$	(224	)	$	(148	)

Changes in Major Plan Assets and Benefit Recognized in Other Comprehensive Income (Loss)

Other changes in major plan assets and benefit obligations recognized in Other comprehensive income (expense) are as follows (in millions):

	Year Ended December 31,
	2020						2019
	U.S.			Non-U.S.			U.S.			Non-U.S.
Newly established gain (loss)	$	—		$	(38	)	$	16		$	(30	)
Amortization of:
Prior service credit		(7	)		—			(7	)		—
Net actuarial loss		15			7			—			5
Curtailment gain recognized in expense		—			—			(2	)		—
Net loss recognized in expense due to settlement		9			—			—			—
Total income (loss) recognized in Other comprehensive income	$	17		$	(31	)	$	7		$	(25	)

Pension Income From Continuing Operations For All Defined Benefit Plans

Pension income for all defined benefit plans included (in millions):

	Year Ended December 31,
	2020						2019
	U.S.			Non-U.S.			U.S.			Non-U.S.
Major defined benefit plans:
Service cost	$	11		$	3		$	10		$	3
Interest cost		86			9			122			13
Expected return on plan assets		(196	)		(19	)		(214	)		(22	)
Amortization of:
Prior service credit		(7	)		—			(7	)		—
Actuarial loss		15			7			—			5
Pension income before special termination benefits		(91	)		—			(89	)		(1	)
Special termination benefits		3			—			3			—
Curtailment gains		—			—			(2	)		—
Settlement losses		9			—			—			—
Net pension income for major defined benefit plans		(79	)		—			(88	)		(1	)
Other plans including unfunded plans		—			1			—			(3	)
Net pension (income), expense	$	(79	)	$	1		$	(88	)	$	(4	)

Weighted-average Assumptions Used to Determine Benefit Obligation Amounts

The weighted-average assumptions used to determine the benefit obligation amounts for all major funded and unfunded U.S. and Non-U.S. defined benefit plans were as follows:

	As of December 31,
	2020						2019
	U.S.			Non-U.S.			U.S.			Non-U.S.
Discount rate		2.09	%		1.01	%		2.97	%		1.44	%
Salary increase rate		3.50	%		1.56	%		3.50	%		1.72	%
Interest crediting rate for cash balance plan		1.75	%	NA				2.50	%	NA

Weighted-average Assumptions Used to Determine Net Pension (Income) Expenses

The weighted-average assumptions used to determine net pension (income) expense for all the major funded and unfunded U.S. and Non-U.S. defined benefit plans were as follows:

	Year Ended December 31,
	2020						2019
	U.S.			Non-U.S.			U.S.			Non-U.S.
Effective rate for service cost		2.97	%		1.48	%		4.03	%		2.47	%
Effective rate for interest cost		2.58	%		1.19	%		3.75	%		1.89	%
Salary increase rate		3.50	%		1.72	%		3.50	%		2.06	%
Expected long-term rate of return on plan assets		6.00	%		3.27	%		6.50	%		3.46	%
Interest crediting rate for cash balance plan		2.50	%	NA				2.50	%	NA

Weighted-average Asset Allocation By Assets Category

The Company’s weighted-average asset allocations for its major U.S. defined benefit pension plan by asset category, are as follows:

	As of December 31,
	2020			2019			2020 Target
Asset Category
Equity securities		10	%		10	%	5-15%
Debt securities		42	%		44	%	35-45%
Real estate		1	%		1	%	0-10%
Cash and cash equivalents		2	%		1	%	0-10%
Global balanced asset allocation funds		14	%		15	%	10-20%
Other		31	%		29	%	25-35%
Total		100	%		100	%

Kodak’s weighted-average asset allocations for its major Non-U.S. defined benefit pension plans by asset category, are as follows:

	As of December 31,
	2020			2019			2020 Target
Asset Category
Equity securities		5	%		5	%	0-10%
Debt securities		33	%		31	%	25-35%
Real estate		2	%		2	%	0-10%
Cash and cash equivalents		2	%		2	%	0-10%
Global balanced asset allocation funds		5	%		5	%	0-10%
Other		53	%		55	%	50-60%
Total		100	%		100	%

Fair Value Measurement of Plan Assets

Major U.S. Plans

December 31, 2020

	U.S.
(in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measured at NAV		Total
Cash and cash equivalents	$	—		$	—	$	—	$	66	$	66

Equity Securities		—			—		—		383		383

Debt Securities:
Government Bonds		1			—		—		1,101		1,102
Investment Grade Bonds		—			446		—				446

Real Estate		—			—		—		37		37

Global Balanced Asset Allocation Funds		—			—		—		514		514

Other:
Absolute Return		—			5		—		442		447
Private Equity		—			—		5		711		716
Derivatives with unrealized gains		3			—		—		—		3
Derivatives with unrealized losses		(7	)		—		—		—		(7	)
	$	(3	)	$	451	$	5	$	3,254	$	3,707

Major U.S. Plans

December 31, 2019

	U.S.
(in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measured at NAV		Total
Cash and cash equivalents	$	—		$	—	$	—	$	38	$	38

Equity Securities		4			—		—		374		378

Debt Securities:
Government Bonds		—			—		—		1,110		1,110
Investment Grade Bonds		—			457		—		—		457

Real Estate		—			—		—		42		42

Global Balanced Asset Allocation Funds		—			—		—		544		544

Other:
Absolute Return		—			—		—		370		370
Private Equity		—			—		7		680		687
Derivatives with unrealized gains		2			—		—		—		2
Derivatives with unrealized losses		(18	)		—		—		—		(18	)
	$	(12	)	$	457	$	7	$	3,158	$	3,610

Major Non-U.S. Plans

December 31, 2020

	Non - U.S.
(in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measured at NAV		Total
Cash and cash equivalents	$	10	$	—	$	—	$	7	$	17

Equity Securities		36		—		—		—		36

Debt Securities:
Government Bonds		—		—		—		48		48
Investment Grade Bonds		87		90		—		—		177
Global High Yield & Emerging Market Debt		2		—		—		—		2

Real Estate		—		—		—		12		12

Global Balanced Asset Allocation Funds		—		—		—		38		38

Other:
Private Equity		—		—		—		30		30
Insurance Contracts		—		45		291		—		336
	$	135	$	135	$	291	$	135	$	696

Major Non-U.S. Plans

December 31, 2019

	Non - U.S.
(in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measured at NAV		Total
Cash and cash equivalents	$	5	$	—	$	—	$	8	$	13

Equity Securities		—		—		—		33		33

Debt Securities:
Government Bonds		—		—		—		51		51
Inflation-Linked Bonds		—		—		—		4		4
Investment Grade Bonds		—		61		—		65		126
Global High Yield & Emerging Market Debt		—		—		—		26		26

Real Estate		—		—		—		11		11

Global Balanced Asset Allocation Funds		—		—		—		34		34

Other:
Absolute Return		—		—		—		7		7
Private Equity		—		—		—		38		38
Insurance Contracts		—		317		—		—		317
Derivatives with unrealized gains		1		—		—		—		1
	$	6	$	378	$	—	$	277	$	661

Reconciliation of Beginning and Ending Balances of Assets Measured With Significant Unobservable Inputs

The following is a reconciliation of the beginning and ending balances of level 3 assets of Kodak’s major U.S. and non-U.S. defined benefit pension plans:

	U.S.
			Net Realized and Unrealized Gains
(in millions)	Balance at January 1, 2020		Relating to Assets Still Held			Relating to Assets Sold During the Period		Net Purchases, Sales and Settlements		Balance at December 31, 2020
Private Equity		7		(2	)		—		—		5
Total	$	7	$	(2	)	$	—	$	—	$	5

	U.S.
			Net Realized and Unrealized Gains
(in millions)	Balance at January 1, 2019		Relating to Assets Still Held		Relating to Assets Sold During the Period		Net Purchases, Sales and Settlements			Balance at December 31, 2019
Private Equity		6		2		—		(1	)		7
Total	$	6	$	2	$	—	$	(1	)	$	7

	Non - U.S.
			Net Realized and Unrealized Gains
(in millions)	Balance at January 1, 2020 ⁽¹⁾		Relating to Assets Still Held		Relating to Assets Sold During the Period		Net Purchases, Sales and Settlements		Balance at December 31, 2020
Insurance Contracts		273		18		—		—		291
Total	$	273	$	18	$	—	$	—	$	291

⁽¹⁾

During 2020 the Company reclassified certain investments from Level 2 to Level 3.

Pension Benefit Payments Which Reflects Future Services Expected to Be Paid From the Plans

The following pension benefit payments, which reflect expected future service, are expected to be paid (in millions):

	U.S.		Non-U.S.
2021	$	297	$	50
2022		284		49
2023		270		48
2024		259		47
2025		246		46
2026 - 2030		1,059		212