Note 20 - Retirement Plans

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Retirement Benefits [Text Block]

NOTE 20: RETIREMENT PLANS

Substantially all U.S. employees are covered by a noncontributory defined benefit plan, the Kodak Retirement Income Plan (“KRIP” or the "U.S. Plan"), which is funded by Company contributions to an irrevocable trust fund. The funding policy for KRIP is to contribute amounts sufficient to meet minimum funding requirements as determined by employee benefit and tax laws plus any additional amounts the Company determines to be appropriate. Assets in the trust fund are held for the sole benefit of participating employees and retirees.

For U.S. employees hired prior to March 1999, KRIP’s benefits were generally based on a formula recognizing length of service and final average earnings. KRIP included a separate cash balance formula for all U.S. employees hired after February 1999, as well as employees hired prior to that date who opted into the cash balance formula during a special election period. Effective January 1, 2015 the KRIP was amended to provide that all participants accrue benefits under a single, revised cash balance formula (the “Cash Balance Plan”). The Cash Balance Plan credits employees’ hypothetical accounts with an amount equal to a specified percentage of their pay, plus interest based on the 30-year Treasury bond rate. In May 2022, the KRIP plan was amended to increase the employees’ crediting rates from 9% or 10% of pay based on employee classification to 12% or 13% of pay, retroactive to January 1, 2022. The plan amendment also provided a one-time service credit to eligible employees’ cash balance accounts.

Many subsidiaries and branches operating outside the U.S. have defined benefit retirement plans covering substantially all employees. Contributions by Kodak for these plans are typically deposited under government or other fiduciary-type arrangements. Retirement benefits are generally based on contractual agreements that provide for benefit formulas using years of service and/or compensation prior to retirement. The actuarial assumptions used for these plans reflect the diverse economic environments within the various countries in which Kodak operates.

Information on the major funded and unfunded U.S. and Non-U.S. defined benefit pension plans is presented below. The information for the U.S. for all years presented relates to KRIP. The composition of the major Non-U.S. plans may vary from year to year. If the major Non-U.S. plan composition changes, prior year data is conformed to ensure comparability.

Obligations and Funded Status:

The measurement date used to determine the pension obligation for all funded and unfunded U.S. and Non-U.S. defined benefit plans is December 31.

	Year Ended						Year Ended
	December 31, 2022						December 31, 2021
(in millions)	U.S.			Non-U.S.			U.S.			Non-U.S.
Change in Benefit Obligation
Projected benefit obligation at beginning of period	$	3,132		$	816		$	3,476		$	912
Service cost		13			3			11			3
Interest cost		80			9			47			5
Benefit payments		(294	)		(44	)		(318	)		(48	)
Plan Amendments		28			—			—			—
Actuarial (gain) loss		(479	)		(165	)		(86	)		21
Special termination benefits		2			—			2			—
Currency adjustments		—			(42	)		—			(77	)
Projected benefit obligation at end of period	$	2,482		$	577		$	3,132		$	816
Change in Plan Assets
Fair value of plan assets at beginning of period	$	4,105		$	626		$	3,707		$	696
Actual Return on plan assets		(152	)		(31	)		716			32
Employer contributions		—			5			—			7
Benefit payments		(294	)		(44	)		(318	)		(48	)
Currency adjustments		—			(30	)		—			(61	)
Fair value of plan assets at end of period	$	3,659		$	526		$	4,105		$	626
Over (under) funded status at end of period	$	1,177		$	(51	)	$	973		$	(190	)
Accumulated benefit obligation at end of period	$	2,482		$	568		$	3,130		$	800

An actuarial gain of $479 million related to the U.S. Plan's projected benefit obligation ("PBO") was recognized in 2022, primarily driven by an increase in the discount rate ($582 million), partially offset by a loss associated with updated mortality assumptions ($105 million).  Additionally, a prior service cost was recognized as a result of a plan amendment ($28 million).  In 2021, a PBO actuarial gain of $86 million was recognized for the U.S. Plan driven primarily by an increase in the discount rate ($105 million). The Non-U.S. PBO actuarial gain of $165 million recognized in 2022 was driven primarily by an increase in the discount rates, whereas the loss in 2021 was driven primarily by changes in inflation and other demographic assumptions partially offset by an increase in discount rates.

The actual return on plan assets for the U.S. Plan was a loss of $152 million for the year ended  December 31, 2022 and a gain of $716 million for the year ended  December 31, 2021. The loss for 2022 reflects lower than expected bond performance due to rising interest rates, and the gain for 2021 reflects higher expected returns for the U.S. private equity and hedge fund portfolios. The total net realized losses from derivative investments for 2022 and 2021 were approximately ($128) million and ($23) million, respectively. Refer to discussion below on derivative instruments for further information.

The weighted-average assumptions used to determine the benefit obligation amounts for all major funded and unfunded U.S. and Non-U.S. defined benefit plans were as follows:

	As of December 31,
	2022						2021						2020
	U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.
Discount rate		5.13	%		3.93	%		2.54	%		1.48	%		2.09	%		1.01	%
Salary increase rate		1.00	%		2.71	%		1.00	%		2.39	%		3.50	%		1.56	%
Interest crediting rate for cash balance plan		4.00	%	NA				2.00	%	NA				1.75	%	NA

Amounts recognized in the Consolidated Statement of Financial Position for all major funded and unfunded U.S. and Non-U.S. defined benefit plans are as follows (in millions):

	As of December 31,
	2022					2021
	U.S.		Non-U.S.			U.S.		Non-U.S.
Pension and other postretirement assets	$	1,177	$	42		$	973	$	36
Pension and other postretirement liabilities		—		(93	)		—		(226	)
Net amount recognized	$	1,177	$	(51	)	$	973	$	(190	)

Information with respect to the major funded and unfunded U.S. and Non-U.S. defined benefit plans with a projected benefit obligation in excess of the fair value of plan assets is as follows (in millions):

`	As of December 31,
	2022				2021
	U.S.		Non-U.S.		U.S.		Non-U.S.
Projected benefit obligation	$	—	$	209	$	—	$	575
Fair value of plan assets		—		116		—		349

Information with respect to the major funded and unfunded U.S. and Non-U.S. defined benefit plans with an accumulated benefit obligation in excess of the fair value of plan assets is as follows (in millions):

	As of December 31,
	2022				2021
	U.S.		Non-U.S.		U.S.		Non-U.S.
Accumulated benefit obligation	$	—	$	201	$	—	$	560
Fair value of plan assets		—		116		—		349

Amounts recognized in accumulated other comprehensive income (loss) in shareholders’ equity for all major funded and unfunded U.S. and Non-U.S. defined benefit plans consist of (in millions):

	As of December 31,
	2022						2021
	U.S.			Non-U.S.			U.S.		Non-U.S.
Prior service credit	$	(25	)	$	2		$	6	$	2
Net actuarial gain (loss)		594			(43	)		445		(177	)
Total	$	569		$	(41	)	$	451	$	(175	)

Other changes in major plan assets and benefit obligations recognized in Other comprehensive income (loss) are as follows (in millions):

	Year Ended December 31,
	2022					2021						2020
	U.S.			Non-U.S.		U.S.			Non-U.S.			U.S.			Non-U.S.
Newly established gain (loss)	$	149		$	120	$	635		$	(4	)	$	—		$	(38	)
Newly established prior service cost		(28	)		—		—			—			—			—
Amortization of:
Prior service credit		(3	)		—		(7	)		—			(7	)		—
Net actuarial loss		—			10		30			9			15			7
Net loss recognized in expense due to settlement		—			—		—			—			9			—
Total income (loss) recognized in Other comprehensive income	$	118		$	130	$	658		$	5		$	17		$	(31	)

For the year ended December 31, 2022, the U.S. gain consisted of the PBO actuarial gain of $479 million partially offset by asset actuarial losses of $330 million and the non-U.S. gain primarily consisted of the PBO actuarial gain of $165 million partially offset by asset actuarial losses of $45 million.  For the year ended December 31, 2021, the U.S. gain consisted of asset actuarial gains of $549 million and the PBO actuarial gain of $86 million.

Pension Income:

Pension income for all defined benefit plans included (in millions):

	Year Ended December 31,
	2022						2021						2020
	U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.
Major defined benefit plans:
Service cost	$	13		$	3		$	11		$	3		$	11		$	3
Interest cost		80			9			47			5			86			9
Expected return on plan assets		(178	)		(14	)		(167	)		(15	)		(196	)		(19	)
Amortization of:
Prior service credit		(3	)		—			(7	)		—			(7	)		—
Actuarial loss		—			10			30			9			15			7
Pension income before special termination benefits		(88	)		8			(86	)		2			(91	)		—
Special termination benefits		2			—			2			—			3			—
Settlement losses		—			—			—			—			9			—
Net pension income for major defined benefit plans		(86	)		8			(84	)		2			(79	)		—
Other plans including unfunded plans		—			—			—			(2	)		—			1
Net pension (income), expense	$	(86	)	$	8		$	(84	)	$	—		$	(79	)	$	1

The $9 million settlement loss for the year ended December 31, 2020 was incurred as a result of lump sum payments from KRIP.

The special termination benefits for each of the years ended December 31, 2022, 2021 and 2020 were incurred as a result of Kodak’s restructuring actions and, therefore, have been included in Restructuring costs and other in the Consolidated Statement of Operations for those periods.

The weighted-average assumptions used to determine net pension (income) expense for all the major funded and unfunded U.S. and Non-U.S. defined benefit plans were as follows:

	Year Ended December 31,
	2022						2021						2020
	U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.
Effective rate for service cost		3.45	%		1.60	%		2.11	%		1.17	%		2.97	%		1.48	%
Effective rate for interest cost		2.97	%		1.20	%		1.42	%		0.70	%		2.58	%		1.19	%
Salary increase rate		1.00	%		2.39	%		3.50	%		1.56	%		3.50	%		1.72	%
Expected long-term rate of return on plan assets		5.30	%		2.67	%		5.20	%		2.56	%		6.00	%		3.27	%
Interest crediting rate for cash balance plan		2.58	%	NA				1.75	%	NA				2.50	%	NA

The expected return on plan assets (“EROA”) is a long-term rate of return which is based on a combination of formal asset and liability studies that include forward-looking return expectations given the current asset allocation.

Kodak uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligations to relevant projected cash outflows.

Plan Asset Investment Strategy

The investment strategy underlying the asset allocation for the pension assets is to achieve an optimal return on assets with an acceptable level of risk while providing for the long-term liabilities and maintaining sufficient liquidity to pay current benefits and other cash obligations of the plans. This is primarily achieved by investing in a broad portfolio constructed of various asset classes including equity, debt, real estate, private equity, hedge funds and other assets and instruments. In addition, the U.S. Plan uses derivative investments primarily to hedge liability interest rate risk to U.S. government bonds. Other investment objectives include maintaining broad diversification between and within asset classes and investment managers and managing asset volatility relative to plan liabilities.

Every three years, or when market conditions have changed materially, each of Kodak’s major pension plans will undertake an asset allocation or asset and liability modeling study. The asset allocation and expected return on the plans’ assets are individually set to provide for benefits and other cash obligations within each country’s legal investment constraints.

Actual allocations may vary from the target asset allocations due to market value fluctuations, the length of time it takes to implement changes in strategy, and the timing of cash contributions and cash requirements of the plans. The asset allocations are monitored and are rebalanced in accordance with the policy set forth for each plan.

Plan Asset Risk Management

Kodak evaluates its defined benefit plans’ asset portfolios for the existence of significant concentrations of risk. Types of concentrations that are evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, individual fund and single investment manager. As of December 31, 2022 two investment management firms (Loomis Sayles and Income Research + Management) each managed 10% of plan assets. In 2021 there were no significant concentrations (defined as greater than 10% of plan assets) of risk in Kodak’s defined benefit plan assets. 

The Company’s weighted-average asset allocations for its major U.S. defined benefit pension plan by asset category, are as follows:

	As of December 31,
	2022			2021			2022 Target
Asset Category
Equity securities		0	%		5	%	0%
Debt securities		20	%		11	%	18-24%
Real estate		1	%		1	%	0%
Cash and cash equivalents		7	%		5	%	0-10%
Global balanced asset allocation funds		0	%		8	%	0%
Private equity		30	%		26	%	23-28%
Hedge funds (1)		42	%		44	%	46-58%
Total		100	%		100	%

⁽¹⁾ The 2022 target for hedge funds includes a policy allocation to U.S. government bonds that is obtained via treasury futures contracts.

Kodak’s weighted-average asset allocations for its major Non-U.S. defined benefit pension plans by asset category, are as follows:

	As of December 31,
	2022			2021			2022 Target
Asset Category
Equity securities		6	%		6	%	0-10%
Debt securities		16	%		17	%	10-20%
Real estate		2	%		2	%	0-5%
Cash and cash equivalents		4	%		2	%	0-5%
Global balanced asset allocation funds		0	%		0	%	0%
Hedge Funds		4	%		5	%	0-10%
Private equity		8	%		7	%	0-10%
Insurance contracts		60	%		61	%	25-75%
Total		100	%		100	%

Derivative Investments

The U.S. Plan derivative instruments consist of direct investments in exchange traded futures contracts. Government bond exposure is obtained via U.S. government bond futures. Foreign currency futures contracts are used to partially hedge foreign currency risk.

As of December 31, 2022 and 2021, the notional amount for exchange traded futures contracts approximated $389 million and $1.0 billion, respectively. Realized gains and losses from these derivative investments are included in the gain on plan assets balance. The total fair value of these derivative instruments at December 31, 2022 and 2021 was $0 million and $10 million, respectively, which represents the unrealized gains and losses on these contracts and is included in the derivative line items in the table of plan assets below. The U.S. defined benefit pension plan is required to maintain cash on deposit to collateralize its obligations under its futures contracts. As of December 31, 2022 and 2021, approximately $9 million and $17 million, respectively, were on deposit in cash and Treasury bills to fulfill these requirements and are included in the cash and cash equivalents asset class in the table below.

The U.S. Plan invests in a diversified portfolio of hedge funds that may utilize derivative instruments to execute their investment strategy. Any gains or losses, as well as changes in the fair value of derivative investments held by the hedge fund, are included in the hedge fund’s net asset value.

Fair Value Measurements

Kodak’s plan assets are accounted for at fair value and are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement, with the exception of investments for which fair value is measured using the net asset value (“NAV”) per share expedient. Kodak’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value of assets and their placement within the fair value hierarchy levels.

The fair value of Kodak’s U.S. defined benefit pension plan assets at December 31, 2022 and 2021 by asset class are presented in the tables below:

U.S. Plan

December 31, 2022

	U.S.
	Quoted Prices
	in Active
	Markets for		Significant		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Measured at
(in millions)	(Level 1)		(Level 2)		(Level 3)		NAV		Total
Cash and cash equivalents	$	251	$	—	$	—	$	—	$	251
Debt Securities:
Government bonds		—		39		—		—		39
Investment grade bonds		—		717		—		—		717
Real estate		—		—		—		29		29
Other:
Hedge funds		—		—		—		1,528		1,528
Private Equity		—		—		3		1,092		1,095
	$	251	$	756	$	3	$	2,649	$	3,659

U.S. Plan

December 31, 2021

	U.S.
	Quoted Prices
	in Active
	Markets for		Significant		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Measured at
(in millions)	(Level 1)		(Level 2)		(Level 3)		NAV		Total
Cash and cash equivalents	$	202	$	—	$	—	$	—	$	202
Global equity securities funds		—		—		—		201		201
Debt Securities:
Investment grade bonds		—		440		—		—		440
Real estate		—		—		—		36		36
Global balanced asset allocation funds		—		—		—		327		327
Other:
Hedge funds		—		6		—		1,801		1,807
Private Equity		—		—				1,082		1,082
Derivatives with unrealized gains		10		—		—		—		10
	$	212	$	446	$	—	$	3,447	$	4,105

Assets not utilizing the NAV per share expedient are valued as follows:

⁽¹⁾ Cash and cash equivalents are primarily held in short term investment funds and are used for benefit and fee payments, as well as for margin and liquidity requirements associated with the U.S. Plan’s derivative instrument contracts.

⁽²⁾ Debt securities are traded on an active market and are valued using a market approach based on the closing price on the last business day of the year.

Investments Valued at NAV

Kodak performs an investment-by-investment analysis to determine if the investment meets the requirements to be measured at NAV. For investments with lagged pricing, Kodak uses the latest available net asset values and considers expected return and other relevant material events for the year-end valuation of these investments.

The total fair value, unfunded commitments and redemption provisions for the U.S defined benefit pension plan’s investments valued at NAV are as follows:

Investments Valued at NAV at December 31, 2022
			Unfunded		Redemption	Redemption
(in millions):	Fair Value		Commitments		Frequency	Notice Period
Real estate	$	29	$	—	N/A	N/A
Private equity		1,092		229	N/A	N/A
Hedge Funds		1,528		26	Bi-Monthly, Monthly, Quarterly, Semi-Annual, and Annual	5-365 days
Total	$	2,649	$	255

Investments Valued at NAV at December 31, 2021
			Unfunded		Redemption	Redemption
(in millions):	Fair Value		Commitments		Frequency	Notice Period
Global equity securities fund	$	201	$	—	Monthly, Quarterly	6-90 days
Real estate		36		—	N/A	N/A
Global balanced asset allocation funds		327		—	Monthly	6-15 days
Private equity		1,082		262	N/A	N/A
Hedge Funds		1,801		26	Bi-Monthly, Monthly, Quarterly, Semi-Annual, and Annual	5-365 days
Total	$	3,447	$	288

Global Equity Securities Funds hold a broad diversified portfolio of U.S. equity, developed international equity, and emerging markets equity securities. These investments are primarily valued by the fund administrator based on a market or income valuation methodology depending on the specific type of security or instrument held. The U.S. Plan redeemed its investment in the Global Equity Securities Funds in 2022.

Real estate investments primarily include investments in limited partnerships that invest in office, industrial, retail and apartment properties. Investments are primarily valued by the fund manager based on independent appraisals, discounted cash flow models, cost and comparable market transactions. The term of each fund is typically 10 or more years and the fund’s investors do not have an option to redeem their interest in the fund but receive distributions through the liquidation of the underlying investments.

The Global Balanced Asset Allocation Fund investments are commingled funds that hold a diversified portfolio of passive market exposures, including equities, debt, currencies and commodities that uses an equal risk parity allocation strategy. These investments are primarily valued by the fund manager based on a market or income valuation methodology depending on the specific type of security or instrument held. The U.S. Plan redeemed its investment in the Global Balanced Asset Allocation Funds in 2022.

Private equity investments are primarily comprised of direct limited partnerships and fund-of-fund investments that invest in distressed investments, venture capital, leveraged buyouts and special situations. Private equity investments are valued by the fund manager primarily based on independent appraisals, discounted cash flow models, cost, and comparable market transactions. The term of each fund is typically 10 or more years and the fund’s investors do not have an option to redeem their interest in the fund. The investors in the fund receive distributions through the liquidation of the underlying investments in the fund.

The U.S. Plan invests in a portfolio of hedge funds to supplement the return generated by its exchange traded futures contracts as well as in a separate portfolio of hedge funds where the objective is to seek a higher absolute return. Hedge fund investments are made through direct investments in individual hedge funds. The hedge fund investments substantially consist of a diversified portfolio of hedge funds that use equity, debt, commodity, currency strategies and derivative instruments. The U.S. defined benefit pension plan evaluates several factors for investing in hedge funds including investment strategy, return, risk, liquidity, correlation to other funds and the number of funds to achieve a diversified portfolio of hedge funds.

Hedge funds are typically valued by each fund’s third-party fund administrator based upon the valuation of the underlying securities and instruments, primarily by applying a market or income valuation methodology as appropriate depending on the specific type of security or instrument held. The U.S. defined benefit pension plan maintains cash and Treasury bills as liquidity reserves that serve as variation margin for the U.S. Treasury futures contracts directly held by the U. S. Plan to hedge its liability duration. Approximately $90 million and $87 million of cash liquidity reserves associated with hedge funds as of December 31, 2022 and 2021, respectively, are included in the cash and cash equivalents asset class in the table above.

The tables below summarize Kodak’s U.S. Plan investments in hedge funds by type for those investments valued at NAV:

U.S. Plan:

December 31, 2022

			Redemption	Redemption
(in millions)	Net Asset Value		Frequency	Notice Period
Multi-strategy hedge funds	$	495	Quarterly	45-90 days
Relative value hedge funds		331	Bi-monthly, Quarterly	6-120 days
Directional hedge funds		167	Monthly	5 days
Equity long/short hedge funds		227	Quarterly	45-90 days
Sector specialist hedge funds		135	Quarterly, Semi-Annually	60-90 days
Long-biased hedge funds		159	Quarterly, Annually	60-90 days
Event driven hedge funds		14	Quarterly	90 days
	$	1,528

December 31, 2021

			Redemption	Redemption
(in millions)	Net Asset Value		Frequency	Notice Period
Multi-strategy hedge funds	$	653	Monthly, Quarterly	15-90 days
Relative value hedge funds		354	Bi-monthly, Quarterly	6-365 days
Directional hedge funds		260	Bi-monthly, Quarterly	5-30 days
Equity long/short hedge funds		225	Quarterly	45-90 days
Sector specialist hedge funds		107	Quarterly	90 days
Long-biased hedge funds		138	Quarterly, Annually	60-75 days
Event driven hedge funds		64	Quarterly	90 days
	$	1,801

Hedge funds typically have the right to restrict redemption requests beyond Kodak’s control. In these cases, redemptions may extend beyond the general redemption terms outlined in the table above. Certain hedge fund investments have no redemption rights and will become liquid only upon sale by the hedge fund managers. As of  December 31, 2022 and 2021, these investments represented approximately 1% and 5% of the hedge funds investments valued at NAV, respectively.

Liquidity

Approximately 29% of total U.S. Plan assets as of December 31, 2022 are invested in real estate funds, private equity funds and other investments where the U.S. Plan receives distributions through the liquidation of the underlying investments. Liquidity of U.S. Plan assets is managed to minimize the likelihood that these investments would need to be sold to cover benefit payments, derivative losses, or any other short-term need.

The total unfunded commitments, if and when they are called over the term of each investment, are expected to be funded by the available liquidity in the U.S. Plan consistent with historical experience.

The fair value of Kodak’s major non-U.S. defined benefit pension plans assets at December 31, 2022 and 2021 by asset class are presented in the tables below:

Major Non-U.S. Plans

December 31, 2022

	Non - U.S.
	Quoted Prices
	in Active
	Markets for		Significant		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Measured at
(in millions)	(Level 1)		(Level 2)		(Level 3)		NAV		Total
Cash and cash equivalents	$	21	$	—	$	—	$	—	$	21
Equity securities		31		—		—		—		31
Debt securities:
Investment grade bonds		35		45		—		—		80
Global high yield & emerging market debt		2		—		—		—		2
Real estate		—		—		—		11		11
Other:
Hedge Funds		—		—		—		20		20
Private equity		—		—		—		43		43
Insurance contracts		—		29		289		—		318
	$	89	$	74	$	289	$	74	$	526

Major Non-U.S. Plans

December 31, 2021

	Non - U.S.
	Quoted Prices
	in Active
	Markets for		Significant		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Measured at
(in millions)	(Level 1)		(Level 2)		(Level 3)		NAV		Total
Cash and cash equivalents	$	13	$	—	$	—	$	—	$	13
Equity securities		38		—		—		—		38
Debt securities:
Investment grade bonds		49		56		—		—		105
Global high yield & emerging market debt		2		—		—		—		2
Real estate		—		—		—		12		12
Other:
Hedge funds		—		—		—		32		32
Private equity		—		—		—		42		42
Insurance contracts		—		40		342		—		382
	$	102	$	96	$	342	$	86	$	626

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. Global Balanced Asset Allocation investments are commingled funds that hold a diversified portfolio of passive market exposures, including equities, debt, currencies and commodities. Hedge fund investments are comprised of a diversified portfolio of hedge funds using equity, debt, commodity and currency instruments. Private equity investments are comprised of limited partnerships and fund-of-fund investments that invest in distressed investments, venture capital and leveraged buyouts. Insurance contracts are typically annuities from life insurance companies covering specific pension obligations.

For investments in real estate and private equity funds, the investors do not have an option to redeem their interest in the fund. The investors in the fund receive distributions through the liquidation of the underlying investments in the fund. There are no material unfunded commitments as of December 31, 2022 and 2021.

Of the December 31, 2022 and 2021 investments shown in the major Non-U.S. plans table above, there are no material derivative exposures.

The following is a reconciliation of the beginning and ending balances of level 3 assets of Kodak’s major U.S. and non-U.S. defined benefit pension plans:

	U.S.
			Net Realized and Unrealized Gains
					Relating to
	Balance at		Relating to		Assets		Net Purchases,		Balance at
	January 1,		Assets		Sold During the		Sales and		December 31,
(in millions)	2022		Still Held		Period		Settlements		2022
Private Equity		—		—		—		3		3
Total	$	-	$	—	$	—	$	3	$	3

	U.S.
			Net Realized and Unrealized Gains
						Relating to
	Balance at		Relating to			Assets		Net Purchases,		Balance at
	January 1,		Assets			Sold During the		Sales and		December 31,
(in millions)	2021		Still Held			Period		Settlements		2021
Private Equity		5		(5	)		—		—		—
Total	$	5	$	(5	)	$	—	$	—	$	—

	U.S.
			Net Realized and Unrealized Gains
						Relating to
	Balance at		Relating to			Assets		Net Purchases,		Balance at
	January 1,		Assets			Sold During the		Sales and		December 31,
(in millions)	2020		Still Held			Period		Settlements		2020
Private Equity		7		(2	)		—		—		5
Total	$	7	$	(2	)	$	—	$	—	$	5

	Non - U.S.
			Net Realized and Unrealized Gains
						Relating to
	Balance at		Relating to			Assets		Net Purchases,		Balance at
	January 1,		Assets			Sold During the		Sales and		December 31,
	2022		Still Held			Period		Settlements		2022
Insurance Contracts		342		(53	)		—		—		289
Total	$	342	$	(53	)	$	—	$	—	$	289

	Non - U.S.
			Net Realized and Unrealized Gains
						Relating to
	Balance at		Relating to			Assets		Net Purchases,		Balance at
	January 1,		Assets			Sold During the		Sales and		December 31,
	2021		Still Held			Period		Settlements		2021
Insurance Contracts		291		(37	)		—		88		342
Total	$	291	$	(37	)	$	—	$	88	$	342

	Non - U.S.
			Net Realized and Unrealized Gains
					Relating to
	Balance at		Relating to		Assets		Net Purchases,		Balance at
	January 1,		Assets		Sold During the		Sales and		December 31,
	2020		Still Held		Period		Settlements		2020
Insurance Contracts		273		18		—		—		291
Total	$	273	$	18	$	—	$	—	$	291

The following pension benefit payments, which reflect expected future service, are expected to be paid (in millions):

	U.S.		Non-U.S.
2023	$	290	$	43
2024		258		42
2025		248		41
2026		237		40
2027		226		39
2028 - 2032		976		182