Kodak 2004 Annual Report Download - page 32
Download and view the complete annual report
Please find page 32 of the 2004 Kodak annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Financials
30
E A S T M A N K OD A K C O M PA N Y
Long-livedAsset
Exit Impairments
Numberof Severance Costs andInventory Accelerated
(dollarsinmillions) Employees Reserve Reserve Total Write-downs Depreciation
Q3,2003charges 1,700 $123 $ — $123 $ 1 $ 14
Q3,2003utilization (100) (3) — (3) (1) (14)
Balanceat9/30/03 1,600 120 — 120 — —
Q4,2003charges 2,150 103 40 143 109 7
Q4,2003utilization (2,025) (48) (28) (76) (109) (7)
Q4,2003otheradj.
&reclasses — 5 — 5 — —
Balanceat12/31/03 1,725 180 12 192 — —
Q1,2004charges 2,000 44 7 51 6 14
Q1,2004utilization (2,075) (76) (5) (81) (6) (14)
Q1,2004otheradj.
&reclasses — 18 — 18 — —
Balanceat3/31/04 1,650 166 14 180 — —
Q2,2004charges — — — — — 6
Q2,2004reversal — (2) (2) (4) — —
Q2,2004utilization (1,375) (62) (2) (64) — (6)
Balanceat6/30/04 275 102 10 112 — —
Q3,2004charges — — — — — 3
Q3,2004reversal — (2) — (2) — —
Q3,2004utilization (225) (42) (2) (44) — (3)
Balanceat9/30/04 50 58 8 66 — —
Q4,2004charges — 1 — 1 — 1
Q4,2004reversal — — (1) (1) — —
Q4,2004utilization (25) (28) (5) (33) — (1)
Q4,2004otheradj.
&reclasses — (1) — (1) — —
Balanceat12/31/04 25 $ 30 $ 2 $ 32 $ — $ —
Theseverancechargesof$45millionandtheexitcostsof$7mil-
lionwerereportedinrestructuringcostsandotherintheaccompanying
ConsolidatedStatementofEarningsfortheyearendedDecember31,
2004.Includedinthe$45millionchargetakenforseverancecostswasa
netcurtailmentgainof$17million.Thenetcurtailmentgainisdisclosedin
Note17,“RetirementPlans”andNote18,“OtherPostretirementBenefits.”
During2004,theCompanymade$208millionofseverancepayments
and$14millionofexitcostspaymentsrelatedtotheThirdQuarter,2003
RestructuringProgram.Inaddition,theCompanyreversed$4millionof
severancereservesand$3millionofexitcostsreservesduring2004.The
severancereservereversalswererecorded,asseverancepaymentswere
lessthanoriginallyestimated.The$2millionexitcostsreservereversal
recordedduringthesecondquarterof2004resultedfromtheCompany
settlingaleaseobligationforanamountthatwaslessthanoriginally
estimated.Theadditional$1millionofexitcostsreservesreversedinthe
fourthquarterof2004resultedfromtheCompanysettlingcertainexit
costobligationsforanamountthatwaslessthanoriginallyestimated.The
severanceandexitcostsreservereversalswereincludedinrestructuring
costsandotherintheaccompanyingConsolidatedStatementofEarnings
fortheyearendedDecember31,2004.Theremainingseverancepayments
relatingtoinitiativesalreadyimplementedundertheThirdQuarter,2003
RestructuringProgramwillbepaidduring2005since,inmanyinstances,
theemployeeswhosepositionswereeliminatedcanelectorarerequired
toreceivetheirseverancepaymentsoveranextendedperiodoftime.Most
exitcostswerepaidduring2004.However,certaincosts,suchaslong-
termleasepayments,willbepaidoverperiodsafter2004.
AsaresultofinitiativesimplementedundertheThirdQuarter,2003
RestructuringProgram,theCompanyrecorded$24millionofaccelerated
depreciationonlong-livedassetsincostofgoodssoldintheaccompany-
ingConsolidatedStatementofEarningsfortheyearendedDecember31,
2004.Theaccelerateddepreciationrelatestolong-livedassetsaccounted
forundertheheldandusedmodelofSFASNo.144.Theyear-to-date
amountof$24millionrelatesto$17millionofmanufacturingfacilitiesand
ThefollowingtablesummarizestheactivitywithrespecttothechargesrecordedinconnectionwiththefocusedcostreductionactionsthattheCom-
panyhascommittedtoundertheThirdQuarter,2003RestructuringProgramandtheremainingbalancesintherelatedreservesatDecember31,2004: