Kodak 2007 Annual Report Download - page 39

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Net cash used in continuing operations in investing activities for the year ended December 31, 2006 of $181 million included capital additions of $335 mil-
lion. The majority of the spending supported new products, manufacturing productivity and quality improvements, infrastructure improvements, equipment
placements with customers, and ongoing environmental and safety initiatives. Proceeds from sales of businesses and assets for the year provided cash
of $178 million. Net cash used in discontinued operations from investing activities was $44 million for the year ended December 31, 2006 for additions to
capital assets.
Net cash used in financing activities was $947 million, including the repayment of debt of $803 million, and dividend payments of $144 million.
On May 10, and October 17, 2006, the Board of Directors declared semi-annual cash dividends of $.25 per share payable to shareholders of record at the
close of business on June 1, and November 1, 2006. These dividends were paid on July 18, and December 14, 2006. Total dividends paid for the year
ended December 31, 2006 were $144 million.
2005
Cash Flow Activity
The Company’s primary sources and uses of cash for the year ended December 31, 2005 included earnings from continuing operations, adjusted for non-
cash items of income and expense, acquisitions, debt payments, restructuring payments, capital additions, working capital needs, dividend payments and
employee and retiree benefit plan payments/contributions.
Net cash provided by continuing operations from operating activities was $722 million for the year ended December 31, 2005. The Company’s earnings
from continuing operations, as adjusted for non-cash items of income and expense, provided $29 million of operating cash. Included in cash flow from
operating activities was approximately $345 million provided by non-recurring licensing arrangements during 2005.
The Company’s other primary sources of cash in operating activities include:
• Decrease in inventories, excluding the impacts of acquisitions, due to a combination of (1) planned inventory reductions driven by corporate
initiatives, (2) an increasingly seasonal demand for digital products in anticipation of the holiday season, and (3) a decline in demand for traditional
products; and
• Decrease in receivables, excluding the impacts of acquisitions, driven by lower customer rebate accruals, lower miscellaneous non-trade receiv-
ables and increased collection efforts.
The Company’s primary uses of cash in operating activities discussed above include:
• Cash expenditures of $508 million against restructuring reserves and pension and other postretirement liabilities, primarily for the payment of
severance benefits;
• Contributions (funded plans) or benefit payments (unfunded plans) totaling approximately $185 million relating to major U.S. and non-U.S. defined
benefit pension plans; and
• Benefit payments totaling approximately $240 million relating to U.S., United Kingdom and Canada postretirement benefit plans.
Net cash used in continuing operations in investing activities for the year ended December 31, 2005 of $1,264 million was utilized primarily for business
acquisitions of $984 million and capital additions of $432 million. Approximately $927 million and $11 million related to the acquisitions of Creo and KPG,
respectively. These uses of cash were partially offset by $130 million from the sale of businesses and assets. Net cash used in discontinued operations
from investing activities was $40 million for the year ended December 31, 2005 for additions to capital assets.
Net cash provided by financing activities of $533 million for the year ended December 31, 2005 resulted from the net increase in borrowing of $722 due to
the funding of the acquisition of Creo during the second quarter of 2005, partially offset by dividend payments of $144 million and repayments of debt.
On May 11, and October 18, 2005, the Board of Directors declared semi-annual cash dividends of $.25 per share payable to shareholders of record at the
close of business on June 1, and November 1, 2005. These dividends were paid on July 15, and December 14, 2005. Total dividends paid for the year
ended December 31, 2005 were $144 million.
Other
Refer to Note 11, “Commitments and Contingencies” in the Notes to Financial Statements for discussion regarding the Company’s undiscounted liabilities
for environmental remediation costs, asset retirement obligations, and other commitments and contingencies including legal matters.