Press Release

Kodak Company Statement on U.S. Pension Plan

Issued by Kodak

Mar. 1, 2024

ROCHESTER, N.Y. -- In response to public media reports regarding Eastman Kodak Company’s U.S. pension fund, Kodak confirms that the Kodak Retirement Income Plan Committee (KRIPCO) has engaged NEPC, LLC, one of the country’s largest independent, investment research-driven consulting firms with approximately $1.6 trillion of assets under advisement, to perform the Outsourced Chief Investment Officer and investment fiduciary functions with respect to Kodak’s U.S. pension plan.  NEPC, an outside financial advisor to this plan since 2004, actively participates in the KRIPCO meetings.  KRIPCO chose NEPC to guide the plan through these turbulent times to ensure the health of the plan’s investment portfolio.

As reported in Kodak’s Form 10-K filed with the SEC with respect to the year ended December 31, 2022, the fair value of plan assets as of the reporting date was approximately $3.7 billion and the projected benefit obligation of the plan as of such date was approximately $2.5 billion, representing an over-funding of approximately $1.2 billion.  This over-funding represents almost all of the $1.2 billion of pension and other postretirement assets reported in Kodak’s Form 10-Q filed with the SEC for the quarter ended September 30, 2023.  Kodak, in conjunction with KRIPCO, has been exploring how best to preserve and maximize the value of the over-funding for the benefit of key stakeholders including current and former employees and Kodak shareholders.

There can be no assurances that Kodak will receive excess assets from the plan or concerning the timing or amount of any such receipt. All liabilities of the plan must be satisfied before any excess assets will revert to Kodak, and any amounts that ultimately revert to Kodak will depend on the amount of such liabilities and the future investment performance and value of the plan assets. Also, any amount received will be subject to material excise tax and other obligations.  To the extent Kodak receives net proceeds from excess plan assets, Kodak must use such proceeds to pay down its term loan obligations to defined levels as provided in its Amended and Restated Credit Agreement before such proceeds would be available for other purposes.

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