Kodak 2005 Annual Report Download - page 113

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The Company expects to contribute $264 million to its other postretirement benefi t plans in 2006.
The following other postretirement benefi ts, which refl ect expected future service, are expected to be paid.
(in millions) Medicare Part D (U.S.)
2006 $ 264 $ (27)
2007 273 (30)
2008 280 (33)
2009 286 (35)
2010 285 (37)
2011-2015 1,340 (200)
NOTE 19: ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
The components of accumulated other comprehensive (loss) income, net of tax, at December 31, 2005, 2004 and 2003 were as follows:
(in millions) 2005 2004 2003
Accumulated unrealized holding (losses) gains related to available-for-sale securities $ (8) $ — $ 11
Accumulated unrealized gains (losses) related to hedging activity 4 (2) (15)
Accumulated translation adjustments 109 328 100
Accumulated minimum pension liability adjustments (572) (416) (334)
Total $ (467) $ (90) $ (238)
NOTE 20: STOCK OPTION AND COMPENSATION PLANS
The Company’s stock incentive plans consist of the 2005 Omnibus Long-Term Compensation Plan (the 2005 Plan), the 2000 Omnibus Long-Term
Compensation Plan (the 2000 Plan), and the 1995 Omnibus Long-Term Compensation Plan (the 1995 Plan). The Plans are administered by the
Executive Compensation and Development Committee of the Board of Directors.
Under the 2005 Plan, 11 million shares of the Company’s common stock may be granted to employees between January 1, 2005 and
December 31, 2014. This share reserve may be increased by: shares that are forfeited pursuant to awards made under the 1995 and 2000 Plans;
shares retained for payment of tax withholding; shares issued in connection with reinvestments of dividends and dividend equivalents; shares
delivered for payment or satisfaction of tax withholding; shares reacquired on the open market using option exercise price cash proceeds; and awards
that otherwise do not result in the issuance of shares. The 2005 Plan is substantially similar to and is intended to replace the 2000 Plan, which
expired on January 18, 2005. Stock options are generally non-qualifi ed and are issued at prices not less than 100% of the per share fair market value
on the date of grant. Options granted under the 2005 Plan generally expire seven years from the date of grant, but may be forfeited or canceled earlier
if the optionee’s employment terminates prior to the end of the contractual term. The 2005 Plan also provides for Stock Appreciation Rights (SARs)
to be granted, either in tandem with options or freestanding. SARs allow optionees to receive payment equal to the increase in the Company’s stock
market price from the grant date to the exercise date. At December 31, 2005, no freestanding SARs were outstanding under the 2005 Plan.
Under the 2000 Plan, 22 million shares of the Company’s common stock were eligible for grant to a variety of employees between January 1, 2000
and December 31, 2004. The 2000 Plan is substantially similar to, and was intended to replace, the 1995 Plan, which expired on December 31, 1999.
Stock options are generally non-qualifi ed and are at prices not less than 100% of the per share fair market value on the date of grant, and the options
generally expire ten years from the date of grant, but may expire sooner if the optionee’s employment terminates. The 2000 Plan also provides for
SARs to be granted, either in tandem with options or freestanding. At December 31, 2005, 47,138 freestanding SARs were outstanding under the
2000 Plan at option prices ranging from $23.25 to $62.44. Compensation expense recognized in 2005 on those freestanding SARs, the majority of
which had option prices less than the market value of the Company’s underlying common stock, was not material.
Under the 1995 Plan, 22 million shares of the Company’s common stock were eligible for grant to a variety of employees between February 1, 1995
and December 31, 1999. Stock options are generally non-qualifi ed and are at prices not less than 100% of the per share fair market value on the date
of grant, and the options generally expire ten years from the date of grant, but may expire sooner if the optionee’s employment terminates. The 1995
Plan also provides for SARs to be granted, either in tandem with options or freestanding. At December 31, 2005, 249,665 freestanding SARs were
outstanding under the 1995 Plan at option prices ranging from $31.30 to $90.63.