Kodak 2007 Annual Report Download - page 76

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The following table summarizes the activity with respect to the charges recorded in connection with the focused cost reduction actions that the Company
committed to under the 2004-2007 Restructuring Program and the remaining balances in the related reserves at December 31, 2007:
(dollars in millions)
Number of
Employees
Severance
Reserve
Exit Costs
Reserve Total
Long-lived
Asset
Impairments
and Inventory
Write-downs
Accelerated
Depreciation
2004 charges — continuing operations 8,975 $ 405 $ 95 $ 500 $ 156 $ 152
2004 charges — discontinued operations 650 13 4 17 1 —
2004 reversals — continuing operations — (6) (1) (7) — —
2004 utilization (5,175) (169) (47) (216) (157) (152)
2004 other adj. & reclasses — 24 (15) 9 — —
Balance at 12/31/04 4,450 267 36 303 — —
2005 charges — continuing operations 7,850 472 82 554 160 391
2005 charges — discontinued operations 275 25 2 27 1 —
2005 reversals — continuing operations — (3) (6) (9) — —
2005 utilization (10,225) (377) (95) (472) (161) (391)
2005 other adj. & reclasses — (113) 4 (109) — —
Balance at 12/31/05 2,350 271 23 294 — —
2006 charges — continuing operations 5,150 266 66 332 97 273
2006 charges — discontinued operations 475 52 3 55 3 12
2006 reversals — continuing operations — (3) (1) (4) — —
2006 utilization (5,700) (416) (67) (483) (100) (285)
2006 other adj. & reclasses — 58 — 58 — —
Balance at 12/31/06 2,275 228 24 252 — —
2007 charges — continuing operations 4,225 145 129 274 282 107
2007 charges — discontinued operations 50 20 4 24 — —
2007 reversals — continuing operations — (1) — (1) — —
2007 utilization (4,950) (289) (129) (418) (282) (107)
2007 other adj. & reclasses — 26 2 28 — —
Balance at 12/31/07 1,600 $ 129 $ 30 $ 159 $ — $ —
As a result of the initiatives implemented under the 2004-2007 Restructuring Program, severance payments will be paid during periods through 2008
since, in many instances, the employees whose positions were eliminated can elect or are required to receive their payments over an extended period of
time. Most exit costs were paid during 2007. However, certain costs, such as long-term lease payments, will be paid over periods after 2007.
The charges of $687 million recorded in 2007, excluding reversals, included $55 million applicable to FPG, $65 million applicable to CDG, $58 million ap-
plicable to GCG, and $485 million that was applicable to manufacturing, research and development, and administrative functions, which are shared across
all segments. The remaining $24 million is applicable to discontinued operations.
Pre-2004 Restructuring Programs
At December 31, 2007, the Company had remaining exit costs reserves of $5 million, relating to restructuring plans committed to or executed prior to
2004. Most of these remaining exit costs reserves represent long-term lease payments, which will continue to be paid over periods throughout and after
2008.