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Table of Contents
Kodak does not utilize financial instruments for trading or other speculative purposes.
Fair Value
The fair values of marketable securities are determined using quoted prices in active markets for identical assets (Level 1 fair value
measurements). Fair values of Kodak’s forward contracts are determined using other observable inputs (Level 2 fair value measurements), and
are based on the present value of expected future cash flows (an income approach valuation technique) considering the risks involved and using
discount rates appropriate for the duration of the contracts. Transfers between levels of the fair value hierarchy are recognized based on the
actual date of the event or change in circumstances that caused the transfer. There were no transfers between levels of the fair value hierarchy
during the year ended December 31, 2012.
Fair values of long-
term borrowings are determined by reference to quoted market prices, if available, or by pricing models based on the value of
related cash flows discounted at current market interest rates. The carrying values of cash and cash equivalents and trade receivables (which are
not shown in the table above) approximate their fair values.
Foreign Exchange
Foreign exchange gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved
are included in Other income (charges), net in the accompanying Consolidated Statement of Operations. The net effects of foreign currency
transactions, including changes in the fair value of foreign exchange contracts, are shown below:
83
Value Of Items Recorded At Fair Value
As of December 31, 2012
(in millions)
Total
Level 1
Level 2
Level 3
ASSETS
Marketable securities
Short
-
term available
-
for
-
sale
Other current assets
$
4
$
4
$
—
$
—
Long
-
term available
-
for
-
sale
Other long
-
term assets
7
7
—
—
Derivatives
Short
-
term foreign exchange contracts
Receivables, net
1
—
1
—
LIABILITIES
Derivatives
Short
-
term foreign exchange contracts
Other current liabilities
1
—
1
—
Value Of Items Not Recorded At Fair Value
As of December 31, 2012
Total
Level 1
Level 2
Level 3
ASSETS
Marketable securities
Long
-
term held
-
to
-
maturity
Other long
-
term assets
Carrying value
$
23
$
23
$
—
$
—
Fair value
23
23
—
—
LIABILITIES
Debt
Short-term debt
Short-term borrowings
and current portion of
long
-
term debt
Carrying value
699
—
699
—
Fair value
27
—
27
—
Long-term debt
Long-term debt, net of
current portion
Carrying value
740
—
740
—
Fair value
1,265
—
1,265
—
Debt subject to compromise
Liabilities subject to
compromise
Carrying value
683
—
683
—
Fair value
72
—
72
—