Kodak 2005 Annual Report Download - page 57

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The following table reconciles EBITDA, as included in the computation of the consolidated debt to EBITDA ratio under the Secured Credit Agreement
covenants, to the most directly comparable GAAP measure of loss from continuing operations before interest, other income (charges), net and
income taxes:
(dollar amounts in millions) 2005
Net loss $ (1,362)
Plus:
Interest expense 211
Provision for income taxes 689
Depreciation and amortization 1,402
Non-cash restructuring charges and asset write-downs/impairments 379
Loss from cumulative effect of accounting change, net of income taxes (extraordinary loss) 57
Non-cash purchase accounting adjustments 24
Non-cash stock compensation expense 26
Non-cash equity in earnings from unconsolidated affi liates (12)
Total additions to calculate EBITDA 2,776
Less:
Earnings from discontinued operations, net of income taxes (extraordinary income) (150)
Investment income (25)
Total subtractions to calculate EBITDA (175)
EBITDA, as included in the debt to EBITDA ratio as presented $ 1,239
(Following is a reconciliation to the most directly comparable GAAP measure)
EBITDA, as included in the debt to EBITDA ratio as presented $ 1,239
Depreciation and amortization (1,402)
Non-cash restructuring charges and asset write-downs/impairments (379)
Other adjustments, net (57)
Loss from continuing operations before interest, other income (charges), net and income taxes $ (599)
The following table reconciles interest expense, as adjusted, as included in the computation of the EBITDA to interest expense ratio under the Secured
Credit Agreement covenants, to the most directly comparable GAAP measure of interest expense:
(dollar amounts in millions) 2005
Interest expense, as included in the EBITDA to interest expense ratio $ 199
Adjustments to interest expense for purposes of the covenant calculation 12
Interest expense $ 211
Adjustments to interest expense relate to items that are not debt for borrowed money.
In addition, subject to various conditions and exceptions in the Secured Credit Agreement, in the event the Company sells assets for net proceeds
totaling $75 million or more in any year, except for proceeds used within 12 months for reinvestments in the business of up to $300 million, proceeds
from sales of assets used in the Company’s non-digital products and services businesses to prepay or repay debt or pay cash restructuring charges
within 12 months from the date of sale of the assets, or proceeds from the sale of inventory in the ordinary course of business, the amount in excess
of $75 million must be applied to prepay loans under the Secured Credit Agreement.