Kodak 2013 Annual Report Download - page 96

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Table of Contents
Kodak does not utilize financial instruments for trading or other speculative purposes.
Fair Value
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 four
months ended December 31, 2013 or the eight months ended August 31, 2013.
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, restricted cash, investments
in trust 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:
Derivative Financial Instruments
Kodak, as a result of its global operating and financing activities, is exposed to changes in foreign currency exchange rates, commodity prices,
and interest rates, which may adversely affect its results of operations and financial position. Kodak manages such exposures, in part, with
derivative financial instruments.
PAGE 90
Value Of Items Not Recorded At Fair Value
As of December 31, 2012 (Predecessor)
(in millions)
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
686
—
686
—
Long-term debt
Long-term debt, net of current
portion
Carrying value
740
—
740
—
Fair value
606
—
606
—
Debt subject to compromise
Liabilities subject to compromise
Carrying value
683
—
683
—
Fair value
72
—
72
—
Successor
Predecessor
Four Months
Ended
Eight Months
Ended
Year Ended December 31,
(in millions)
December 31, 2013
August 31, 2013
2012
2011
Net loss
$
(5
)
$
(7
)
$
(14
)
$
(15
)