Kodak 2012 Annual Report Download - page 112

Table of Contents
NOTE 22: ACCUMULATED OTHER COMPREHENSIVE LOSS
The components of Accumulated other comprehensive loss, net of tax, were as follows:
See Note 20, “Retirement Plans,” and Note 21, “Other Postretirement Benefits,” regarding the pension and other postretirement plan obligation
changes.
NOTE 23: STOCK OPTION AND COMPENSATION PLANS
Kodak recognized stock-based compensation expense in the amount of $7 million, $20 million and $21 million for the years ended
December 31, 2012, 2011 and 2010, respectively. There were no proceeds from the issuance of common stock through stock option plans for the
years ended December 31, 2012, 2011, or 2010.
Of the expense amounts noted above, compensation expense related to stock options during the years ended December 31, 2012, 2011 and 2010
was $2 million, $3 million and $4 million, respectively. Compensation expense related to unvested stock and performance awards during the
years ended December 31, 2012, 2011 and 2010 was $5 million, $17 million and $17 million, respectively.
Kodak’s stock incentive plans consist of the 2005 Omnibus Long-Term Compensation Plan (the “2005 Plan”), and the 2000 Omnibus Long-
Term Compensation Plan (the “2000 Plan”). The Plans are administered by the Restructuring and Executive Compensation Committee of the
Board of Directors. Stock options are generally non-qualified and are at exercise prices not less than 100% of the per share fair market value on
the date of grant. Stock-based compensation awards granted under Kodak’s stock incentive plans are generally subject to a three-year vesting
period from the date of grant.
Under the 2005 Plan, 11 million shares of the Company’s common stock may be granted to employees between January 1, 2005 and
December 31, 2014. This share reserve may be increased by: shares that are forfeited pursuant to awards made under the 2000 and 2005 Plans;
shares retained for payment of tax withholding; shares delivered for payment or satisfaction of tax withholding; shares reacquired on the open
market using cash proceeds from option exercises; and awards that otherwise do not result in the issuance of shares. The 2005 Plan is
substantially similar to and is intended to replace the 2000 Plan, which expired on January 18, 2005. Options granted under the 2005 Plan
generally expire seven years from the date of grant, but may be forfeited or canceled earlier if the optionee’s employment terminates prior to the
end of the contractual term. The 2005 Plan provides for, but is not limited to, grants of unvested stock, performance awards, and Stock
Appreciation Rights (“SARs”), either in tandem with options or freestanding. SARs allow optionees to receive payment equal to the increase in
the market price of the Company’s stock from the grant date to the exercise date. As of December 31, 2012, 10,000 freestanding SARs were
outstanding under the 2005 Plan at an option price of $7.50. Compensation expense recognized for the years ended December 31, 2012, 2011,
and 2010 on those freestanding SARs was not material.
Under the 2000 Plan, 22 million shares of the Company’s common stock were eligible for grant to a variety of employees between January 1,
2000 and December 31, 2004. The 2000 Plan was substantially similar to, and was intended to replace, the 1995 Plan, which expired on
December 31, 1999. The options generally expire ten years from the date of grant, but may expire sooner if the optionee’s employment
terminates. The 2000 Plan provided for, but was not limited to, grants of unvested stock, performance awards, and SARs, either in tandem with
options or freestanding. As of December 31, 2012, 4,450 freestanding SARs were outstanding under the 2000 Plan at option prices ranging from
$23.25 to $27.55. Compensation expense recognized for the years ended December 31, 2012, 2011, and 2010 on those freestanding SARs was
not material.
108
As of December 31,
(in millions)
2012
2011
2010
Unrealized holdings gains related to available-for-sale securities
$
1
$
1
$
—
Realized and unrealized (losses) gains from hedging activity,net of tax
(2
)
(7
)
2
Currency translation adjustments
318
333
315
Pension and other postretirement benefit plan obligation changes, net of tax
(2,933
)
(2,993
)
(2,452
)
Total
$
(2,616
)
$
(2,666
)
$
(2,135
)