Kodak 2006 Annual Report Download - page 129

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(8) Includes $278 million ($115 million included in cost of goods sold and $163 million included in restructuring costs and other) of restructuring charges, as well as
the reversal of tax benefits recognized earlier in the year resulting from the valuation allowance on deferred tax assets in the U.S. established in the third quarter,
which increased net loss by $363 million; $12 million of credits related to purchased R&D recorded in the second quarter, which reduced net loss by $2 million;
$21 million of asset impairment charges, which increased net loss by $12 million; and a gain of $28 million related to a sale of property in the UK, which reduced
net loss by $28 million. Also included is a valuation allowance of $778 million recorded against the Company’s net deferred tax assets in the U.S., portions of
which are reflected in the aforementioned restructuring amount.
(9) Includes $295 million ($136 million included in cost of goods sold and $159 million included in restructuring costs and other) of restructuring charges, which
increased net loss by $268 million; $4 million of asset impairment charges, which increased net loss by $4 million; and $21 million (included in SG&A) related
to charges for unfavorable legal settlements, which increased net loss by $21 million. Also included is a valuation allowance of $183 million recorded against the
Company’s net deferred tax assets in the U.S., portions of which are reflected in the aforementioned restructuring amount.
(10) Refer to Note 22, “Discontinued Operations” for a discussion regarding earnings (loss) from discontinued operations.
(11) 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 (loss) earnings
per share in the above table includes the effect of contingent convertible debt instruments, which had no material impact on the Company’s diluted earnings per
share.
(12) Refer to Note 1, “Significant Accounting Policies” for a discussion regarding a change in accounting principle relating to the adoption of FIN 47 during the fourth
quarter of 2005.
Changes in Estimates Recorded During the Fourth Quarter December 31, 2006
During the fourth quarter ended December 31, 2006, the Company recorded a charge of approximately $17 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 $.06 per share.
Changes in Estimates Recorded During the Fourth Quarter December 31, 2005
During the fourth quarter ended December 31, 2005, the Company recorded a charge of approximately $25 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 $.09 per share.