Kodak 2004 Annual Report Download - page 155

REPORTS
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2 0 0 5 ฀ N O T I C E ฀ O F ฀ A N N U A L ฀ M E E T I N G ฀ A N D ฀ P R O X Y ฀ S T A T E M E N T
The฀Audit฀Committee฀of฀Eastman฀Kodak฀Company’s฀Board฀of฀Directors฀is฀composed฀solely฀of฀independent฀directors฀and฀operates฀under฀a฀written฀charter฀
adopted฀by฀the฀Board฀and฀most฀recently฀amended฀on฀February฀17,฀2004.฀A฀copy฀of฀the฀Committee’s฀charter฀can฀be฀found฀at฀our฀website฀at฀฀ ฀
www.kodak.com/go/governance.
Management฀is฀responsible฀for฀the฀Company’s฀internal฀control฀over฀financial฀reporting,฀the฀Company’s฀disclosure฀controls฀and฀procedures฀and฀preparing฀
the฀Company’s฀consolidated฀financial฀statements.฀The฀Company’s฀independent฀registered฀public฀accounting฀firm฀(independent฀accountants),฀Pricewa-
terhouseCoopers฀LLP฀(PwC),฀is฀responsible฀for฀performing฀an฀independent฀audit฀of฀the฀consolidated฀financial฀statements฀and฀of฀its฀internal฀control฀over฀
financial฀reporting฀in฀accordance฀with฀standards฀of฀the฀Public฀Company฀Accounting฀Oversight฀Board฀(United฀States)฀and฀for฀issuing฀a฀report฀of฀the฀results.฀
As฀outlined฀in฀its฀charter,฀the฀Committee฀is฀responsible฀for฀overseeing฀these฀processes.฀฀
During฀2004,฀the฀Committee฀met฀and฀held฀discussions฀with฀management฀and฀the฀independent฀accountants฀on฀a฀regular฀basis.฀Management฀represented฀
to฀the฀Committee฀that฀the฀Company’s฀consolidated฀financial฀statements฀were฀prepared฀in฀accordance฀with฀accounting฀principles฀generally฀accepted฀in฀the฀
United฀States,฀and฀the฀Committee฀reviewed฀and฀discussed฀the฀audited฀consolidated฀financial฀statements฀with฀management฀and฀the฀independent฀accoun-
tants.฀
The฀Committee฀discussed฀with฀the฀independent฀accountants฀the฀matters฀specified฀by฀Statement฀on฀Auditing฀Standards฀No.฀61,฀“Communications฀with฀Au-
dit฀Committee.”฀The฀independent฀accountants฀provided฀to฀the฀Committee฀the฀written฀disclosures฀required฀by฀the฀Independence฀Standards฀Board฀Standard฀
No.฀1,฀“Independence฀Discussion฀With฀Audit฀Committees.”฀The฀Committee฀discussed฀with฀the฀independent฀accountants฀their฀independence.
The฀Committee฀discussed฀with฀the฀Company’s฀internal฀auditors฀and฀independent฀accountants฀the฀plans฀for฀their฀audits.฀The฀Committee฀met฀with฀the฀inter-
nal฀auditors฀and฀independent฀accountants,฀with฀and฀without฀management฀present. The internal auditors and independant accountants discussed or provided
to the Committee the฀results฀of฀their฀examinations,฀their฀evaluations฀of฀the Company's internal control over financial reporting, the Company's disclosure ฀
controls฀and฀procedures฀and฀the฀quality฀of฀the฀Company’s฀financial฀reporting.
In฀reliance฀on฀these฀reviews,฀discussions and reports,฀the฀Committee฀recommended฀that฀the฀Board฀approve฀the฀audited฀financial฀statements฀for฀inclusion฀in฀
the Company’s฀Annual฀Report฀on฀Form฀10-K฀for฀the฀year฀ended฀December฀31,฀2004,฀and฀the฀Board฀accepted฀the฀Committee’s฀recommendations.
The฀following฀fees฀were฀paid฀to฀PwC฀for฀services฀rendered฀in฀2004฀and฀2003:
฀(in฀millions)฀ ฀ 2004฀ ฀ 2003
฀Audit฀Fees฀$฀18.4฀$฀8.7฀฀
฀ Audit-Related฀Fees฀ ฀ 0.4฀ ฀ 5.0฀ ฀ ฀
฀ Tax฀Fees฀ ฀ 1.2฀ ฀ 1.7฀ ฀
฀ All฀Other฀Fees฀ ฀ 0.0฀฀ ฀ 0.2
฀฀$฀฀20.0 ฀$฀15.6
The฀Audit฀Fees฀related฀primarily฀to฀the฀annual฀audit฀of฀the฀Company’s฀consolidated฀financial฀statements฀(including฀$7.1฀million฀in฀2004฀related฀to฀Section฀
404฀internal฀control฀assessment฀under฀the฀Sarbanes-Oxley฀Act฀of฀2002)฀included฀in฀the฀Company’s฀Annual฀Report฀on฀Form฀10-K,฀quarterly฀reviews฀of฀
interim฀financial฀statements฀included฀in฀the฀Company’s฀Quarterly฀Reports฀on฀Forms฀10-Q,฀statutory฀audits฀of฀certain฀of฀the฀Company’s฀subsidiaries฀and฀
services฀relating฀to฀filings฀under฀the฀Securities฀Act฀of฀1933฀and฀the฀Securities฀Exchange฀Act฀of฀1934.
The฀Audit-Related฀Fees฀related฀primarily฀to฀advisory฀services฀provided฀in฀connection฀with฀the฀Sarbanes-Oxley฀Act,฀due฀diligence฀related฀to฀merger฀and฀
acquisition฀activity,฀audits฀of฀the฀Company’s฀employee฀benefit฀plans฀and฀accounting฀and฀reporting฀consultations฀relating฀to฀new฀accounting฀standards.
Tax฀Fees฀in฀2004฀consisted฀of฀$0.8฀million฀for฀tax฀compliance฀services฀and฀$0.4฀million฀for฀tax฀planning฀and฀advice.฀Tax฀Fees฀in฀2003฀consisted฀of฀$1.1฀
million฀for฀tax฀compliance฀services฀and฀$0.6฀million฀for฀tax฀planning฀and฀advice.
The฀Committee฀appointed฀PwC฀as฀the฀Company’s฀independent฀accountants.฀In฀addition,฀the฀Committee฀expects฀to฀approve฀the฀scope฀of฀non-audit฀services฀
anticipated฀to฀be฀performed฀by฀PwC฀in฀2005฀and฀the฀estimated฀budget฀for฀those฀services.฀The฀Committee฀adopted฀an฀Audit฀and฀Non-Audit฀Services฀Pre-
Approval฀Policy,฀a฀copy฀of฀which฀is฀attached฀to฀this฀Proxy฀Statement฀as฀Exhibit฀V.
฀ William฀H.฀Hernandez,฀Chair฀
฀ Richard฀S.฀Braddock
฀ Timothy฀M.฀Donahue
฀ Paul฀H.฀O’Neill
฀ Hector฀de฀J.฀Ruiz
nReport฀of฀the฀Audit฀Committee