Kodak 2012 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2012 Kodak annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 202

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202

Table of Contents
The location and amounts of gains and losses related to derivatives reported in the Consolidated Statement of Operations are shown in the
following tables:
Foreign Currency Forward Contracts
Kodak’s foreign currency forward contracts used to mitigate currency risk related to existing foreign currency denominated assets and liabilities
are not designated as hedges, and are marked to market through net (loss) earnings at the same time that the exposed assets and liabilities are re-
measured through net (loss) earnings (both in Other income (charges), net in the Consolidated Statement of Operations). The notional amount of
such contracts open at December 31, 2012 was approximately $651 million. The majority of the contracts of this type held by Kodak are
denominated in euros and Swiss francs.
Silver Forward Contracts
Kodak may enter into silver forward contracts that are designated as cash flow hedges of commodity price risk related to forecasted purchases of
silver. Kodak had no open hedges as of December 31, 2012.
In January 2012, Kodak terminated all its existing hedges at a loss of $5 million. These hedges were designated as secured agreements under the
Second Amended and Restated Credit Agreement and needed to be settled prior to the termination of that facility in conjunction with the
Company’s DIP Credit Agreement. Hedge gains and losses related to these silver forward contracts were reclassified into Cost of sales in the
Consolidated Statement of Operations as the related silver containing products were sold to third parties. These gains or losses transferred to
Cost of sales are generally offset by increased or decreased costs of silver purchased in the open market. At December 31, 2012, there were no
existing gains or losses to be reclassified to Cost of sales within the next twelve months.
85
Derivatives in Cash Flow Hedging
Relationships
Gain (Loss) Recognized in OCI on
Derivative (Effective Portion)
Gain (Loss) Reclassified from
Accumulated OCI Into Cost of
Sales (Effective Portion)
Gain (Loss) Recognized in
Income on Derivative
(Ineffective Portion and
Amount Excluded from
Effectiveness Testing)
For the Year Ended ended December 31,
For the Year Ended December 31,
For the Year Ended December 31,
(in millions)
2012
2011
2010
2012
2011
2010
2012
2011
2010
Commodity contracts
$
1
$
5
$
6
$
(6
)
$
14
$
10
$
—
$
—
$
—
Foreign exchange contracts
—
—
(
2
)
—
—
(
2
)
—
—
—
Derivatives Not Designated
as Hedging Instruments
Location of Gain or (Loss)
Recognized in Income on
Derivative
Gain (Loss) Recognized in
Income on Derivative
For the Year Ended December 31,
(in millions)
2012
2011
2010
Foreign exchange contracts
Other income (charges), net
$
—
$
11
$
32