Kodak 2008 Annual Report Download - page 88

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86
The Company also sponsors unfunded defined benefit plans for certain U.S. employees, primarily executives. The benefits of these
plans are obtained by applying KRIP provisions to all compensation, including amounts being deferred, and without regard to the
legislated qualified plan maximums, reduced by benefits under KRIP. Employees covered by the Cash Balance plan also receive an
additional benefit equal to 3% of their annual pensionable earnings. The Company suspended this additional benefit for 2009.
Many subsidiaries and branches operating outside the U.S. have defined benefit retirement plans covering substantially all
employees. Contributions by the Company for these plans are typically deposited under government or other fiduciary-type
arrangements. Retirement benefits are generally based on contractual agreements that provide for benefit formulas using years of
service and/or compensation prior to retirement. The actuarial assumptions used for these plans reflect the diverse economic
environments within the various countries in which the Company operates.
The measurement date used to determine the pension obligation for all funded and unfunded U.S. and Non-U.S. defined benefit
plans is December 31.
Information regarding the major funded and unfunded U.S. and Non-U.S. defined benefit plans follows:
(in millions) 2008 2007
U.S. Non-U.S. U.S. Non-U.S.
Change in Benefit Obligation
Projected benefit obligation at January 1 $ 4,963 $ 4,236 $ 5,557 $ 4,067
Acquisitions/divestitures 3 - - 4
Service cost 54 20 71 27
Interest cost 307 219 304 205
Participant contributions - 6 - 10
Plan amendment 3 (7) 7 -
Benefit payments (576) (255) (408) (274)
Actuarial (gain) loss (186) (396) 47 51
Curtailments (2) (2) (97) (33)
Settlements - (7) (579) (51)
Special termination benefits 36 4 61 14
Currency adjustments - (801)-216
Projected benefit obligation at December 31 $ 4,602 $ 3,017 $ 4,963 $ 4,236
Change in Plan Assets
Fair value of plan assets at January 1 $ 7,098 $ 3,641 $ 6,820 $ 3,419
Acquisitions/divestitures - - - 2
Actual (loss) return on plan assets (1,453) (495) 1,227 260
Employer contributions 29 72 38 74
Participant contributions - 6 - 10
Settlements - (7) (579) (57)
Benefit payments (576) (255) (408) (274)
Currency adjustments - (601)- 207
Fair value of plan assets at December 31 $ 5,098 $ 2,361 $ 7,098 $ 3,641
Over (Under) Funded Status at December 31 $ 496 $ (656) $ 2,135 $ (595)
Accumulated benefit obligation at December 31 $ 4,392 $ 2,936 $ 4,708 $ 4,097
The significant decline in funded status was primarily due to plan asset performance.