Kodak 2015 Annual Report Download - page 48

Major Non-U.S. Plans
December 31, 2014
Non - U.S.
(in millions)
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Measured at
NAV Total
Cash and cash equivalents $ 4 $ — $ — $ 32 $ 36
Equity Securities — 8 — 38 46
Debt Securities:
Government Bonds — 39 — 114 153
Inflation-Linked Bonds — — — 9 9
Investment Grade Bonds — 37 — — 37
Global High Yield & Emerging Market Debt — — — 11 11
Real Estate — 2 — — 2
Global Balanced Asset Allocation Funds — 1 — 90 91
Other:
Absolute Return — 4 — 7 11
Private Equity — — — 56 56
Insurance Contracts — 340 — — 340
Derivatives with unrealized gains 5 — — — 5
Derivatives with unrealized losses (2) — — — (2)
$ 7 $ 431 $ — $ 357 $795
For Kodak’s major non-U.S. defined benefit pension plans, equity investments are invested broadly in local equity, developed international and emerging markets.
Fixed income investments are comprised primarily of government and investment grade corporate bonds. Real estate investments primarily include investments in
limited partnerships that invest in office, industrial, and retail properties. Private equity investments are comprised of limited partnerships and fund-of-fund
investments that invest in distressed investments, venture capital and leveraged buyouts. Absolute return investments are comprised of a diversified portfolio of
hedge funds using equity, debt, commodity, and currency strategies held separate from the derivative-linked hedge funds described later in this footnote.
For Kodak’s major defined benefit pension plans, certain investment managers are authorized to invest in derivatives such as futures, swaps, and currency forward
contracts. Investments in derivatives are used to obtain desired exposure to a particular asset, index or bond duration and require only a portion of the total exposure
to be invested as cash collateral. In instances where exposures are obtained via derivatives, the majority of the exposure value is available to be invested, and is
typically invested, in a diversified portfolio of hedge fund strategies that generate returns in addition to the return generated by the derivatives. Of the December 31,
2015 investments shown in the major U.S. plans table above, 10% of the total pension assets represented equity securities exposure obtained via derivatives and are
reported in equity securities, and 24% of the total pension assets represented U.S. government bond exposure, at 18 years target duration, obtained via derivatives
and are reported in government bonds. Of the December 31, 2014 major U.S. plans investments, 9% and 25% of the total pension assets represented exposures to
equity securities and U.S. government bonds (at 18 years target duration), respectively, obtained from the use of derivatives, and are reported in those respective
classes.
Of the December 31, 2015 investments shown in the major Non-U.S. plans table above, 0% and 12% of the total pension assets represented derivatives exposures
to equity securities and government bonds (at 13 years target duration), respectively, and are reported in those respective classes. Of the December 31, 2014 major
Non-U.S. total pension investments, 1% and 9% of the total pension assets represented exposures to equity securities and government bonds (at 25 years target
duration), respectively, obtained from the use of derivatives, and are reported in those respective classes.
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