Kodak 2009 Annual Report Download - page 53

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During the fourth quarter of 2007, EKC issued a guarantee to Kodak Limited (the “Subsidiary”) and the Trustees (the “Trustees”) of
the Kodak Pension Plan of the United Kingdom (the “Plan”). Under this arrangement, EKC guarantees to the Subsidiary and the
Trustees the ability of the Subsidiary, only to the extent it becomes necessary to do so, to (1) make contributions to the Plan to
ensure sufficient assets exist to make plan benefit payments, and (2) make contributions to the Plan such that it will achieve full
funded status by the funding valuation for the period ending December 31, 2015. The guarantee expires upon the conclusion of the
funding valuation for the period ending December 31, 2015 whereby the Plan achieves full funded status or earlier, in the event that
the Plan achieves full funded status for two consecutive funding valuation cycles which are typically performed at least every three
years. The limit of potential future payments is dependent on the funding status of the Plan as it fluctuates over the term of the
guarantee. The Plan’s local funding valuation was completed in March 2009. EKC and the Subsidiary are in discussions with the
Trustees regarding the amount of future annual contributions and the date by which the Plan will achieve full funded status. These
negotiations may require changes to the existing guarantee described above. The funding status of the Plan (calculated in
accordance with U.S. GAAP) is included in Pension and other postretirement liabilities presented in the Consolidated Statement of
Financial Position.
The Company issues indemnifications in certain instances when it sells businesses and real estate, and in the ordinary course of
business with its customers, suppliers, service providers and business partners. Further, the Company indemnifies its directors and
officers who are, or were, serving at the Company's request in such capacities. Historically, costs incurred to settle claims related to
these indemnifications have not been material to the Company’s financial position, results of operations or cash flows. Additionally,
the fair value of the indemnifications that the Company issued during the year ended December 31, 2009 was not material to the
Company’s financial position, results of operations or cash flows.
2008
Cash Flow Activity
For the Year Ended
(in millions) December 31,
2008 2007 Change
Cash flows from operating activities:
Net cash (used in) provided by continuing operations $ (128) $ 365 $ (493)
Net cash provided by (used in) discontinued operations 296 (37) 333
Net cash provided by operating activities 168 328 (160)
Cash flows from investing activities:
Net cash used in continuing operations (188) (41) (147)
Net cash provided by discontinued operations - 2,449 (2,449)
Net cash (used in) provided by investing activities (188) 2,408 (2,596)
Cash flows from financing activities:
Net cash used in continuing operations (746) (1,338) 592
Net cash provided by discontinued operations - 44 (44)
Net cash used in financing activities (746) (1,294) 548
Effect of exchange rate changes on cash (36) 36 (72)
Net (decrease) increase in cash and cash equivalents $ (802) $ 1,478 $ (2,280)