Kodak 2008 Annual Report Download - page 104

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(4) Includes a pre-tax goodwill impairment charge of $785 million (included in Other operating expenses (income), net), which
increased net loss from continuing operations by $781 million; pre-tax restructuring and rationalization charges of $103 million
($3 million included in Cost of goods sold and $100 million included in Restructuring costs, rationalization and other), which
increased net loss from continuing operations by $96 million; foreign contingency adjustments (included in Cost of goods
sold), which reduced net loss from continuing operations by $3 million; a pre-tax legal contingency of $21 million (included in
SG&A), which increased net loss from continuing operations by $21 million; a pre-tax gain related to property sales, net of
impairment charges of $4 million, which reduced net loss from continuing operations by $4 million; and discrete tax items,
which increased net loss from continuing operations by $2 million.
(5) Includes pre-tax restructuring charges of $151 million ($66 million included in cost of goods sold and $85 million included in
restructuring costs, rationalization and other), which increased net loss from continuing operations by $141 million; a gain of $9
million related to property sales, which reduced net loss from continuing operations by $9 million; and a reversal of a tax
reserve, which reduced net loss from continuing operations by $56 million.
(6) Includes pre-tax restructuring charges of $316 million ($21 million included in cost of goods sold and $295 million included in
restructuring costs, rationalization and other), which increased net loss from continuing operations by $248 million; a pre-tax
gain of $40 million related to property and asset sales, which decreased net loss from continuing operations by $27 million; $6
million pre-tax of asset impairment charges, which increased net loss from continuing operations by $4 million; and tax
adjustments, which increased net loss from continuing operations by $39 million.
(7) Includes pre-tax restructuring charges of $127 million ($27 million included in cost of goods sold and $100 million included in
restructuring costs, rationalization and other), which decreased net earnings from continuing operations by $96 million; and tax
adjustments, which increased net earnings from continuing operations by $8 million.
(8) Includes pre-tax restructuring charges of $68 million ($5 million included in cost of good sold and $63 million included in
restructuring costs, rationalization and other), which decreased net earnings from continuing operations by $44 million; $51
million pre-tax of asset impairment charges related to the Lucky and MUTEC investments, which decreased net earnings from
continuing operations by $49 million; a pre-tax gain of $108 million related to property and asset sales, which increased net
earnings from continuing operations by $83 million; $6 million pre-tax for the establishment of a loan reserve, which decreased
net earnings from continuing operations by $4 million; a $9 million foreign export charge contingency, which decreased net
earnings from continuing operations by $9 million; and tax adjustments, which decreased net earnings from continuing
operations by $11 million.
(9) Refer to Note 22, “Discontinued Operations” for a discussion regarding earnings (loss) from discontinued operations.
(10) Each quarter is calculated as a discrete period and the sum of the four quarters may not equal the full year amount. The
Company's diluted net earnings (loss) per share in the above table may include the effect of contingent convertible debt
instruments.
(11) Effective January 1, 2008, the Company changed its cost allocation methodologies related to employee benefits and corporate
expenses. Prior period gross profit from continuing operations results have been revised to conform to the current period
presentation. A summary of the impact to gross profit from continuing operations for each quarter of 2007 is as follows:
(in millions)
Three Months
Ended
March 31, 2007
Three Months
Ended
June 30, 2007
Three Months
Ended
September 30,
2007
Three Months
Ended
December 31,
2007
Year Ended
December 31,
2007
Cost of goods sold $ (8) $ (7) $ (6)
$(7)
$ (28)
Selling, general and
administrative costs 4 4 3
3
14
Research and
development costs 4 3 3
4
14
$-$-$-
$-
$-
Changes in Estimates Recorded During the Fourth Quarter December 31, 2007
During the fourth quarter ended December 31, 2007, the Company recorded a charge of approximately $24 million, net of tax,
related to changes in estimate with respect to certain of its employee benefit and compensation accruals. These changes in
estimates negatively impacted the results for the fourth quarter by $.08 per share.