Kodak 2013 Annual Report Download - page 107

Table of Contents
2011 Activity
The $133 million of charges for the year 2011 includes $10 million of charges for accelerated depreciation and $2 million for inventory write-
downs, which were reported in Cost of sales in the accompanying Consolidated Statement of Operations, and $13 million which was reported
in discontinued operations. The remaining costs incurred of $108 million, including $92 million of severance costs, $15 million of exit costs,
and $1 million of long-lived asset impairments, were reported as Restructuring costs and other in the accompanying Consolidated Statement of
Operations. The severance and exit costs reserves require the outlay of cash, while long-lived asset impairments, accelerated depreciation and
inventory write-downs represent non-cash items.
The 2011 severance costs related to the elimination of approximately 1,225 positions, including approximately 575 manufacturing/service, 550
administrative and 100 research and development positions. The geographic composition of these positions includes approximately 725 in the
United States and Canada, and 500 throughout the rest of the world.
The charges of $133 million recorded in 2011 included $23 million applicable to the Graphics, Entertainment and Commercial Films Segment,
$6 million applicable to the Digital Printing and Enterprise Segment and $91 million that was applicable to manufacturing/service, research and
development, and administrative functions, which are shared across all segments. The remaining $13 million was applicable to discontinued
operations.
As a result of these initiatives, severance payments were paid during periods through 2012 since, in many instances, the employees whose
positions were eliminated can elect or are required to receive their payments over an extended period of time. In addition, certain exit costs,
such as long-term lease payments, were paid over periods throughout 2012 and beyond.
2012 Activity
The $271 million of charges for the year 2012 includes $13 million of charges for accelerated depreciation and $4 million for inventory write-
downs, which were reported in Cost of sales in the accompanying Consolidated Statement of Operations, and $39 million which was reported
as discontinued operations. The remaining costs incurred of $215 million, including $158 million of severance costs, $35 million of exit costs,
and $22 million of long-lived asset impairments, were reported as Restructuring costs and other in the accompanying Consolidated Statement
of Operations. The severance and exit costs reserves require the outlay of cash, while long-lived asset impairments, accelerated depreciation
and inventory write-downs represent non-cash items.
The 2012 severance costs related to the elimination of approximately 3,225 positions, including approximately 1,775 manufacturing/service,
1,050 administrative and 400 research and development positions. The geographic composition of these positions includes approximately 1,925
in the United States and Canada, and 1,300 throughout the rest of the world.
The charges of $271 million recorded in 2012 included $20 million applicable to the Graphics, Entertainment and Commercial Films Segment,
$93 million applicable to the Digital Printing and Enterprise Segment and $119 million that was applicable to manufacturing/service, research
and development, and administrative functions, which are shared across all segments. The remaining $39 million was applicable to
discontinued operations.
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(3) Severance reserve activity includes termination benefit charges of $186 million, and net curtailment and settlement losses related to these
actions of $1 million.
(4) Includes $100 million of severance related charges for pension plan curtailments, settlements, and special termination benefits, which are
reflected in Pension and other postretirement liabilities and Other long-term assets in the Consolidated Statement of Financial Position,
and $2 million for amounts reclassified as Liabilities subject to compromise.
(5) The $(12) million includes $(5) million for amounts reclassified as Liabilities subject to compromise, $(4) million of severance-related
charges for pension plan curtailments, which are reflected in Pension and other postretirement liabilities in Consolidated Statement of
Financial Position, and $(3) million of reserve adjustments due to the application of fresh start accounting, which were recorded as
Reorganization items, net in the Consolidated Statement of Operations.
(6)
The $1 million represents foreign currency translation adjustments.