Kodak 2008 Annual Report Download - page 75

73
The Company may redeem some or all of the Convertible Securities at any time on or after October 15, 2010 at a purchase price
equal to 100% of the principal amount of the Convertible Securities plus any accrued and unpaid interest. Upon a call for redemption
by the Company, a conversion trigger is met whereby the holder of each $1,000 Convertible Senior Note may convert such note to
shares of the Company's common stock.
The holders have the right to require the Company to purchase their Convertible Securities for cash at a purchase price equal to
100% of the principal amount of the Convertible Securities plus any accrued and unpaid interest on October 15, 2010, October 15,
2013, October 15, 2018, October 15, 2023 and October 15, 2028, or upon a fundamental change as described in the offering
memorandum filed under Rule 144A in conjunction with the private placement of the Convertible Securities. As noted above, the
Company believes it is probable that all, or nearly all, of the Convertible Securities will be redeemed by the security holders on
October 15, 2010. As a result, the full amount of the outstanding Convertible Securities is presented as maturing in 2010 in the debt
maturity table above. As of December 31, 2008, the Company has sufficient treasury stock to cover potential future conversions of
these Convertible Securities into 18,536,447 shares of common stock.
NOTE 9: OTHER LONG-TERM LIABILITIES
As of December 31,
(in millions) 2008 2007
Deferred royalty revenue from licensees $ 65 $ 350
Non-current tax-related liabilities 474 445
Environmental liabilities 115 125
Deferred compensation 68 102
Asset retirement obligations 67 64
Other 333 365
Total $ 1,122 $ 1,451
The reduction in Deferred royalty revenue from licensees was primarily due to an amendment of an intellectual property licensing
agreement with an existing licensee. Revenue related to this arrangement was previously being recognized over the term of the
original agreement. The amendment relieved the Company of its continuing obligations that were to be performed over the term of
the previous agreement. This amendment also resulted in the recognition of previously deferred royalty revenue offset by the
elimination of a long-term note receivable of approximately the same amount. See Note 6, “Other Long-Term Assets.” The terms of
the amendment resulted in immediate recognition of royalty revenue in addition to previously recognized revenue under the original
agreement. Revenue for the year ended December 31, 2008 related to the amended agreement was $112 million net of fees and
revenue deferred under the amended agreement, the proceeds for which will be received in 2009.
The Other component above consists of other miscellaneous long-term liabilities that, individually, were less than 5% of the total
liabilities component in the accompanying Consolidated Statement of Financial Position, and therefore, have been aggregated in
accordance with Regulation S-X.
NOTE 10: COMMITMENTS AND CONTINGENCIES
Environmental
Cash expenditures for pollution prevention and waste treatment for the Company's current facilities were as follows:
For the Year Ended December 31,
(in millions) 2008 2007
2006
Recurring costs for pollution
prevention and waste treatment $ 35 $ 49
$63
Capital expenditures for pollution
prevention and waste treatment 2 4
3
Site remediation costs 3 4
2
Total $ 40 $ 57
$68