Kodak 2001 Annual Report Download - page 63

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amortization) to interest ratio. In the event of violation of the covenant,
the facility would not be available for borrowing until the covenant
provisions were waived, amended or satisfied. The Company does not
anticipate that a violation is likely to occur.
Long-Term Debt
Description and Maturity
Interest Rates Dates
of 2001 of 2001
Borrowings Borrowings
(in millions) 2001 2000
Notes:
3.74% 2003 $10 $–
6.38%–8.25% 2002–2006 959 473
9.20%–9.95% 2003–2021 191 191
Debentures:
1.11%–3.16% 2003–2004 42 61
Other:
2.42% 2004 190 –
5.94%–6.66% 2002–2010 430 591
1,822 1,316
Current portion of
long-term debt (156) (150)
Long-term debt,
net of current portion $1,666 $1,166
Annual maturities (in millions) of long-term debt outstanding at
December 31, 2001 are as follows: 2002: $13; 2003: $394; 2004: $379;
2005: $333; 2006: $500; 2007 and beyond: $47.
During the second quarter of 2001, the Company issued Medium-
Term Notes consisting of floating-rate notes in the amount of $150
million maturing on September 16, 2002 and 6.375% fixed notes in the
amount of $500 million maturing on June 15, 2006. The proceeds from
this offering were used to pay down a portion of the Company’s
outstanding commercial paper.
The Company has a shelf registration statement for medium-term
notes of which $1.35 billion remains available for issuance.
Note 9: Other Long-Term Liabilities
(in millions) 2001 2000
Deferred compensation $164 $166
Minority interest in Kodak companies 84 93
Environmental liabilities 162 113
Deferred income taxes 81 61
Other 229 248
Total $720 $681
The Other component above consists of other miscellaneous long-term
liabilities which, individually, are less than 5% of the Total liabilities
component in the Consolidated Statement of Financial Position, and
therefore, have been aggregated in accordance with Regulation S-X.
Note 10: Commitments and Contingencies
Environmental Cash expenditures for pollution prevention and waste
treatment for the Company’s current manufacturing facilities were as
follows:
(in millions) 2001 2000 1999
Recurring costs for
pollution prevention and
waste treatment $68 $72 $69
Capital expenditures
for pollution prevention
and waste treatment 27 36 20
Site remediation costs 235
Total $97 $111 $ 94
At December 31, 2001 and 2000, the Company’s undiscounted accrued
liabilities for environmental remediation costs amounted to $162 million
and $113 million, respectively. These amounts are reported in other long-
term liabilities.
The Company is currently implementing a Corrective Action Program
required by the Resource Conservation and Recovery Act (RCRA) at the
Kodak Park site in Rochester, NY. As part of this Program, the Company
has completed the RCRA Facility Assessment (RFA), a broad-based
environmental investigation of the site. The Company is currently in the
process of completing, and in some cases has completed, RCRA Facility
Investigations (RFIs) and Corrective Measures Studies (CMS) for areas at
the site. At December 31, 2001, estimated future remediation costs of
$70 million are accrued on an undiscounted basis by the Company and
are included in remediation accruals reported in other long-term liabilities.
61