Kodak 2009 Annual Report Download - page 100

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For the Company’s major U.S. defined benefit pension plans, equity investments are invested broadly in U.S. equity, developed
international equity, and emerging markets. Fixed income investments are comprised primarily of long duration U.S. Treasuries and
global government bonds, as well as U.S. and emerging market companies’ debt securities diversified by sector, geography, and
through a wide range of market capitalizations. Real estate investments include investments in office, industrial, retail and apartment
properties. Other investments include private equity, hedge funds and natural resource investments. Private equity investments are
primarily comprised of limited partnerships and fund-of-fund investments that invest in distressed investments, venture capital,
leveraged buyout and special situation funds. Natural resource investments in oil and gas partnerships and timber funds are also
included in this category. Absolute return investments are comprised of hedge funds that use equity long-short strategies.
Non-U.S.
(in millions)
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Total
Cash and cash equivalents $ - $ 98 $ - $ 98
Equity securities 218 163 - 381
Debt securities:
Government Bonds 432 116 - 548
Inflation-Linked Bonds 46 301 - 347
Investment Grade Bonds 43 64 - 107
Global High Yield & Emerging Market Debt 87 93 - 180
Other:
Absolute Return - 78 - 78
Real Estate - 4 99 103
Private Equity - 2 242 244
Insurance Contracts - 471 - 471
Derivatives with unrealized gains 3 - - 3
Derivatives with unrealized losses (24) (3) - (27)
$ 805 $ 1,387 $ 341 $ 2,533
For the Company’s major non-U.S. defined benefit pension plans, equity investments are invested broadly in local equity, developed
international and emerging markets. Fixed income investments are comprised primarily of long duration government and corporate
bonds with some emerging market debt. Real estate investments include investments in primarily office, industrial, and retail
properties. Other investments include private equity, hedge funds, and insurance contracts. Private equity investments are
comprised of limited partnerships and fund-of-fund investments that invest in distressed investments, venture capital and leveraged
buyout funds. Absolute return investments are comprised of hedge funds that use equity long-short strategies.
Cash and cash equivalents are valued utilizing cost approach valuation techniques. Equity securities and debt securities are valued
using a market approach based on the closing price on the last business day of the year (if the securities are traded on an active
market), or based on the proportionate share of the estimated fair value of the underlying assets (net asset value). Other
investments are valued using a combination of market, income, and cost approaches, based on the nature of the investment.
Absolute return investments are primarily valued based on net asset value. Real estate investments are primarily valued based on
independent appraisals and discounted cash flow models. Private equity investments are primarily valued based on independent
appraisals, discounted cash flow models, cost, and comparable market transactions. Insurance contracts are primarily valued based
on contract values, which approximate fair value.
Some of the plans’ assets, primarily absolute return, real estate, and private equity, do not have readily determinable market values
due to the nature of these investments. For these investments, fund manager or general partner estimates were used where
available. For investments with lagged pricing, the Company used the available net asset values, and also considered expected
return, subsequent cash flows and material events.