Kodak 2008 Annual Report Download - page 177

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in 2007 in the form of fully-vested shares of common stock, which were settled on March 27, 2008. Named Executive Officers did
not receive any non-equity incentive compensation in 2006 and 2008 because no EXCEL awards were earned for those years.
(5) This column reports the aggregate change in the present value of the Named Executive Officer's accumulated benefits under
KRIP, KURIP and supplemental individual retirement arrangements, to the extent a Named Executive Officer participates, and
the estimated above-market interest, if any, earned during the year on deferred compensation balances. The breakdown of these
figures is shown in the table below:
2006 2007 2008
Executive Pension
Value
Above-
Market
Interest (a)
Total
Value
Pension
Value
Above-
Market
Interest (a)
Total
Value
Pension
Value(b)
Above-
Market
Interest (a)
Total
Value
A.M.
Perez $3,192,022 $22,576 $3,214,598 $491,469 $28,091 $519,560 $3,434,567 $3,728 $3,438,295
F.S.
Sklarsky 18,303 — 18,303 104,165 —104,165 119,720 — 119,720
P.J.
Faraci 319,305 — 319,305 386,094 —386,094 341,208 — 341,208
M.J.
Hellyar 1,098,877 3,553 1,102,430 0 4,093 4,093 0 517 517
R.L.
Berman N/A N/A N/A N/A N/A N/A 98,186 2,571 100,757
Former Executive
J.T.
Langley 144,232 26,928 171,160 167,844 44,225 212,069 110,470 5,823 116,293
(a) A Named Executive Officer’s deferral account balances are credited with interest at the “prime rate” as reported in the
Wall Street Journal, compounded monthly. Above-market interest is calculated as the difference between the prime
rate and 120% of the Applicable Federal Rate (AFR) for the corresponding month.
(b) With the exception of Mr. Perez, the 2008 Pension Values are generally consistent with the 2007 Pension Values. Mr.
Perez’s 2008 Pension Value increased primarily due to the EXCEL bonus paid in 2008 (earned in 2007), as well as
changes in actuarial assumptions. The primary actuarial assumption changes were an increase in the discount rate, a
decrease in the lump sum interest rate, and an update to the lump sum mortality table. Due to the fact that Mr. Perez is
close to age 65, the upward influence of the lump sum assumption changes greatly outweighed the downward
influence of the increased discount rate. Neither Mr. Sklarsky nor Mr. Faraci were significantly impacted by the
assumption changes due to their ages and specific pension provisions. Both Ms. Hellyar and Mr. Berman were
impacted by the KURIP plan amendment to require distribution in the form of a lump sum, which eliminated potential
early retirement subsidies. The KURIP amendment was adopted to comply with the terms of Section 409A of the Code,
which triggers immediate taxation on deferred compensation if the receiving employee has control over the form of
payment. To avoid this tax implication, KURIP now requires all participants to take their benefit in the form of a lump
sum. For participants covered by the traditional defined benefit component of KURIP, such as Ms. Hellyar and Mr.
Berman, the change eliminated potential early retirement subsidies that were only available if an annuity form of benefit
was chosen. The plan change reduced Ms. Hellyar’s pension value by $177,018 from last year and Mr. Berman’s
pension value by $64,154 from last year. Due to this plan change and the change in assumptions, Ms. Hellyar had
negative pension values for 2008 so her accrual for 2008, in total, was ($210,064). Despite the KURIP amendment and
the assumption changes, Mr. Berman still had a positive pension accrual for 2008, which totaled $98,186.