Kodak 2002 Annual Report Download - page 38

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Financials
38
Using a sensitivity analysis based on estimated fair value of
short-term and long-term borrowings, if available market interest
rates had been 10% (about 37 basis points) higher at
December 31, 2002, the fair value of short-term and long-term
borrowings would have decreased $1 million and $15 million,
respectively. Using a sensitivity analysis based on estimated fair
value of short-term and long-term borrowings, if available market
interest rates had been 10% (about 43 basis points) higher at
December 31, 2001, the fair value of short-term and long-term
borrowings would have decreased $1 million and $28 million,
respectively.
The Company’s financial instrument counterparties are high-
quality investment or commercial banks with significant
experience with such instruments. The Company manages
exposure to counterparty credit risk by requiring specific
minimum credit standards and diversification of counterparties.
The Company has procedures to monitor the credit exposure
amounts. The maximum credit exposure at December 31, 2002
was not significant to the Company.