Kodak 2013 Annual Report Download - page 124

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Table of Contents
The weighted-average assumptions used to determine the net benefit obligations were as follows:
The weighted-average assumptions used to determine the net postretirement benefit cost were as follows:
The weighted-average assumed healthcare cost trend rates used to compute the other postretirement amounts were as follows:
A one-percentage point change in assumed healthcare cost trend rates would have the following effects:
Kodak expects to make $8 million of benefit payments for its U.S. and Canada unfunded other postretirement benefit plans in 2014.
The following other postretirement benefits, which reflect expected future service, are expected to be paid.
NOTE 21: EARNINGS PER SHARE
All outstanding shares of common stock of the Predecessor Company were cancelled as of the Effective Date. The Successor Company issued
a total of 41.8 million shares of new common stock on the Effective Date.
Basic earnings per share computations are based on the weighted-average number of shares of common stock outstanding during the period.
Weighted-average basic and diluted shares outstanding were 41.7 million, 272.7 million, 271.8 million and 269.1 million for the four months
ended December 31, 2013, eight months ended August 31, 2013, and years ended December 31, 2012 and December 31, 2011, respectively.
As a result of the net loss from continuing operations presented for the four months ended December 31, 2013, Kodak calculated diluted
earnings per share using weighted-average basic shares outstanding for that period, as utilizing diluted shares would be anti-dilutive to loss per
share. If the Successor Company had reported earnings from continuing operations for the four months ended December 31, 2013, 0.2 million
shares of Kodak’s common stock from unvested share-based awards were dilutive and would have been included in the computation of diluted
earnings per share. Potential shares of Kodak’s common stock related to the assumed conversion of approximately 1.7 million outstanding
warrants to purchase common shares would have been included in the computation of diluted earnings per share, as these securities were
dilutive.
PAGE 117
Successor
Predecessor
December 31,
August 31,
December 31,
2013
2013
2012
Discount rate
4.24
%
4.02
%
2.97
%
Salary increase rate
2.50
%
2.50
%
2.50
%
Successor
Predecessor
(in millions)
For the Four
Months Ended
December 31, 2013
For the Eight
Months Ended
August 31, 2013
For the Year
Ended December
31, 2012
For the Year
Ended December
31, 2011
Discount rate
4.02
%
2.97
%
4.25
%
5.03
%
Salary increase rate
2.50
%
2.50
%
3.09
%
4.05
%
Successor
Predecessor
2013
2012
Healthcare cost trend
6.61
%
7.08
%
Rate to which the cost trend rate is assumed to decline (the ultimate
trend rate)
5.00
%
5.00
%
Year that the rate reaches the ultimate trend rate
2020
2019
(in millions)
1% increase
1% decrease
Effect on total service and interest cost
$
—
$
—
Effect on postretirement benefit obligation
6
(5
)
(in millions)
2014
$
8
2015
7
2016
7
2017
6
2018
5
2019
2023
22