Kodak 2009 Annual Report Download - page 92

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NOTE 16: RESTRUCTURING AND RATIONALIZATION LIABILITIES
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.
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, 2009 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, 2006 $ 228 $ 35 $ - $ - $ 263
2007 charges - continuing operations (1) 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 (2) (289) (135) (282) (107) (813)
2007 other adj. & reclasses (3) 26 3 - - 29
Balance at December 31, 2007 129 35 - - 164
2008 charges - continuing operations (4) 122 14 16 6 158
2008 reversals - continuing operations (6) (3) - - (9)
2008 cash payments/utilization (5) (111) (22) (16) (6) (155)
2008 other adjustments & reclasses (6) (25) (3) - - (28)
Balance at December 31, 2008 109 21 - - 130
2009 charges - continuing operations (7) 193 27 16 22 258
2009 cash payments/utilization (8) (154) (23) (16) (22) (215)
2009 other adjustments & reclasses (9) (80) 2 - - (78)
Balance at December 31, 2009 (10) $ 68 $ 27 $ - $ - $ 95
(1) Severance reserve includes charges of $233 million, offset by net curtailment and settlement gains related to these actions of
$88 million.
(2) During the year ended December 31, 2007, the Company made cash payments of approximately $446 million related to
restructuring. Of this amount, $424 million was paid out of restructuring liabilities, while $22 million was paid out of Pension and
other postretirement liabilities.
(3) Includes $13 million of net credits for severance related pension plan curtailments, settlements, and special termination
benefits. Also includes $1 million of environmental remediation costs and $2 million of other severance related costs. The
remaining $13 million is related to foreign currency translation adjustments.
(4) Severance reserve activity includes charges of $139 million, offset by net curtailment gains related to these actions of $17
million.
(5) 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.
(6) 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.