Kodak 2007 Annual Report Download - page 186

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PENSION BENEFITS FOR 2007
The Pension Benefits Table below shows the present value as of December 31, 2007 of the accumulated benefits payable to each of our
Named Executive Officers, including the number of years of service credited to each Named Executive Officer, under KRIP, KURIP and,
when applicable, their supplemental individual retirement arrangements. The methods and assumptions for calculating the present value of
accumulated benefits generally follow those set forth in statement No. 87 under GAAP and are consistent with those used in our financial
statements as described in Note 17 to the Notes to the Consolidated Financial Statements to the Company’s Form 10-K for the year ended
December 31, 2007. The present value has been calculated for all Named Executive Officers, with the exception of Ms. Hellyar, assuming
they will remain in service until the normal retirement age of 65, and that the benefit is payable as a lump sum. The present value of Ms.
Hellyar’s accumulated benefit assumed a benefit commencement at age 60, when she would be entitled to retire without any benefit
reduction, in the form of a straight life annuity.
Name Plan Name
Number of Years
of Credited Service
(#)
Present Value of
Accumulated Benefit
($)
Payments During
Last Fiscal Year
($)
A.M. Perez KRIP 4.75 $ 47,210 $ 0
KURIP 4.75 615,196 0
Individual Arrangement 15.63(1) 5,837,041 0
F.S. Sklarsky KRIP 1.17 11,580 0
KURIP 1.17 22,621 0
Individual Arrangement 1.17 88,266 0
P.J. Faraci KRIP 3.08 26,096 0
KURIP 3.08 95,693 0
Individual Arrangement 7.49(2) 688,651 0
J.T. Langley KRIP 4.42 42,943 0
KURIP 4.42 155,270 0
Individual Arrangement 4.42 410,873(3) 0
M.J. Hellyar KRIP 25.17 749,404 0
KURIP 25.17 1,996,345 0
(1) Mr. Perez has been employed with the Company for 4.75 years as of December 31, 2007. Under his individual arrangement, he has
accumulated 15.63 years, representing a difference of 10.88 years of additional service. Of Mr. Perez’s total accumulated benefit
shown above, $4,062,581 is attributable to his additional credited service as of December 31, 2007.
(2) Mr. Faraci has been employed with the Company for 3.08 years as of December 31, 2007. Under his individual arrangement, he has
accumulated 7.49 years, representing a difference of 4.41 years of additional service. Of Mr. Faraci's total accumulated benefit shown
above, $405,089 is attributable to his additional credited service as of December 31, 2007.
(3) Mr. Langley terminated with the Company on March 14, 2008 so his actual payments will be $51,034 under KRIP, $168,509 under
KURIP and $500,013 under his individual arrangement.
Tax-Qualified Retirement Plan (KRIP)
The Company funds a tax-qualified defined benefit pension plan (KRIP) for virtually all U.S. employees. Effective January 1, 2000, the
Company amended the plan to include a cash balance component. KRIP’s cash balance component covers all new employees hired after
March 31, 1999, including Messrs. Perez, Sklarsky, Langley and Faraci. Ms. Hellyar is the only Named Executive Officer who participates
in KRIP’s traditional defined benefit component.
Cash Balance Component
Under KRIP’s cash balance component, a hypothetical account is established for each participating employee and, for every month the
employee works, the employee’s account is credited with an amount equal to 4% of the employee’s monthly pay (i.e., base salary and
EXCEL awards, including allowances in lieu of salary for authorized periods of absence, such as illness, vacation or holidays). In addition,
the ongoing balance of the employee’s account earns interest at the 30-year Treasury bond rate. Employees vest in their account balance
after completing five years of service (three years effective January 1, 2008). Benefits under the cash balance component are payable
upon normal retirement (age 65), vested termination or death. Participants in the cash balance component of the plan may choose from
among optional forms of benefits such as a lump sum, a joint and survivor annuity, and a straight life annuity.