Kodak 2008 Annual Report Download - page 86

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NOTE 16: RESTRUCTURING AND RATIONALIZATION LIABILITIES
Restructuring and Ongoing Rationalization Reserve Activity
The activity in the accrued balances and the non-cash charges and credits incurred in relation to restructuring programs and ongoing
rationalization activities during the three years ended December 31, 2008 were as follows:
Long-lived
Asset
Exit Impairments
Severance Costs and Inventory Accelerated
(in millions) Reserve Reserve Write-downs Depreciation Total
Balance at December 31, 2005 $ 273 $ 36 $ - $ - $ 309
2006 charges - continuing operations 266 66 97 273 702
2006 charges - discontinued operations 52 3 3 12 70
2006 reversals - continuing operations (3) (1) - - (4)
2006 cash payments/utilization (418) (70) (100) (285) (873)
2006 other adj. & reclasses 58 1 - - 59
Balance at December 31, 2006 228 35 - - 263
2007 charges - continuing operations 145 129 282 107 663
2007 charges - discontinued operations 20 4 - - 24
2007 reversals - continuing operations (1) - - - (1)
2007 reversals - discontinued operations - (1) - - (1)
2007 cash payments/utilization (289) (135) (282) (107) (813)
2007 other adj. & reclasses 26 3 - - 29
Balance at December 31, 2007 129 35 - - 164
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2008 charges - continuing operations (1) 122 14 16 6 158
2008 reversals - continuing operations (6) (3) - - (9)
2008 cash payments/utilization (2) (111) (22) (16) (6) (155)
2008 other adjustments & reclasses (3) (25)(3)- -(28)
Balance at December 31, 2008 (4) $ 109 $21$- $- $ 130
(1) Severance reserve includes charges of $139 million, offset by net curtailment gains related to these actions of $17 million.
(2) During the year ended December 31, 2008, the Company made cash payments of approximately $143 million related to
restructuring and rationalization. Of this amount, $133 million was paid out of restructuring liabilities, while $10 million was paid
out of Pension and other postretirement liabilities.
(3) Includes $23 million of severance related charges for pension plan curtailments, settlements, and special termination benefits,
which are reflected in Pension and other postretirement liabilities and Other long-term assets in the Consolidated Statement of
Financial Position. The remaining amounts are primarily related to foreign currency translation adjustment.
(4) The Company expects to utilize the majority of the December 31, 2008 accrual balance in 2009.
The actual charges for restructuring and ongoing rationalization initiatives are recorded in the period in which the Company commits
to formalized restructuring or ongoing rationalization plans, or executes the specific actions contemplated by the plans and all criteria
for liability recognition under the applicable accounting guidance have been met.