Kodak 2014 Annual Report Download - page 77

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In the event of a default under the Company’s Term Credit Agreements, the ABL Credit Agreement, or a default under any derivative contract or similar obligation of
Kodak, subject to certain minimum thresholds, the derivative counterparties would have the right, although not the obligation, to require immediate settlement of some or
all open derivative contracts at their then-current fair value, but with liability positions netted against asset positions with the same counterparty. At December 31, 2014,
Kodak had open derivative contracts in liability positions with a total fair value of $1 million.
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 (charges) income, net in the Consolidated Statement of Operations). The notional amount of such contracts open at December 31, 2014 and 2013 was
approximately $334 million and $536 million, respectively. The majority of the contracts of this type held by Kodak are denominated in euros.
Derivatives Not Designated as Hedging Instruments, Foreign Exchange Contracts
Location of Gain or (Loss) Recognized in Income on Derivatives
Gain (Loss) Recognized in Income on Derivative
Successor
Predecessor
(in millions)
For the Year
Ended
December 31,
2014
For the Four
Months Ended
December 31,
2013
For the Eight
Months Ended
August 31,
2013
For the Year
Ended
December 31,
2012
Other (charges) income, net
$
10
$
(14
)
$
2
$
-
74