Kodak 2006 Annual Report Download - page 114

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The weighted-average assumptions used to determine the net postretirement benefit cost were as follows:
2006 2005
Discount rate 5.79% 5.50%
Salary increase rate 4.26% 4.34%
The weighted-average assumed healthcare cost trend rates used to compute the other postretirement amounts were as follows:
2006 2005
Healthcare cost trend 9.00% 10.00%
Rate to which the cost trend rate is assumed
to decline (the ultimate trend rate) 5.00% 5.00%
Year that the rate reaches the ultimate trend rate 2011 2011
Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plans. A one-percentage point change in
assumed healthcare cost trend rates would have the following effects:
(in millions) 1% increase 1% decrease
Effect on total service and interest cost $ 1 $ (5)
Effect on postretirement benefit obligation 18 (79)
The Company expects to contribute $273 million to its other postretirement benefit plans in 2007.
The following other postretirement benefits, which reflect expected future service, are expected to be paid.
(in millions) Medicare Part D (U.S.)
2007 $ 273 $ (20)
2008 277 (22)
2009 282 (24)
2010 286 (26)
2011 285 (27)
2012-2016 1,306 (143)
NOTE 19: ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
The components of accumulated other comprehensive (loss) income, net of tax, at December 31, 2006, 2005 and 2004 were as follows:
(in millions) 2006 2005 2004
Accumulated unrealized holding (losses) gains related to available-for-sale securities $ (10) $ (8) $ —
Accumulated unrealized gains (losses) related to hedging activity — 4 (2)
Accumulated translation adjustments 197 109 328
Accumulated minimum pension liability adjustments (436) (572) (416)
Adjustment to initially apply SFAS No. 158 for pension and (386) — —
other postretirement benefits
Total $ (635) $ (467) $ (90)