Kodak 2010 Annual Report Download - page 66

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The Amended Credit Agreement contains customary events of default, including without limitation, payment defaults (subject to
grace and cure periods in certain circumstances), breach of representations and warranties, breach of covenants (subject to grace
and cure periods in certain circumstances), bankruptcy events, ERISA events, cross defaults to certain other indebtedness, certain
judgment defaults and change of control. If an event of default occurs and is continuing, the Lenders may decline to provide
additional advances, impose a default rate of interest, declare all amounts outstanding under the Amended Credit Agreement
immediately due and payable, and require cash collateralization or similar arrangements for outstanding letters of credit.
The obligations of the Borrowers are secured by liens on substantially all of their non-real estate assets and by a pledge of 65% of
the stock of certain of the Company’s material non-U.S. subsidiaries, pursuant to Amended and Restated U.S. and Canadian
Security Agreements. In addition, the Company may mortgage certain U.S. real property for inclusion in the borrowing base for
advances under the Amended Credit Agreement. The security interests are limited to the extent necessary so that they do not trigger
the cross-collateralization requirements under the Company’s indenture with Bank of New York as trustee, dated as of January 1,
1988, as amended by various supplemental indentures.
As of December 31, 2010, the Company had no debt for borrowed money outstanding under the Amended Credit Agreement, but
had outstanding letters of credit under the Amended Credit Agreement of $122 million. In addition to these letters of credit, there
were bank guarantees and letters of credit of $18 million and surety bonds of $23 million outstanding under other banking
arrangements primarily to ensure payment of possible casualty and workers’ compensation claims, environmental liabilities, legal
contingencies, rental payments, and to support various customs and trade activities.
In addition to the Amended Credit Agreement, the Company has other committed and uncommitted lines of credit as of December
31, 2010 totaling $19 million and $131 million, respectively. These lines primarily support operational and borrowing needs of the
Company’s subsidiaries, which include term loans, overdraft coverage, revolving credit lines, letters of credit, bank guarantees and
vendor financing programs. Interest rates and other terms of borrowing under these lines of credit vary from country to country,
depending on local market conditions. As of December 31, 2010, usage under these lines was approximately $51 million all of which
were supporting non-debt related obligations.
NOTE 9: OTHER LONG-TERM LIABILITIES
As of December 31,
(in millions)
2010
2009
Non-current tax-related liabilities
$ 160
$ 477
Environmental liabilities
103
102
Asset retirement obligations
57
62
Deferred compensation
29
39
Other
276
325
Total
$ 625
$ 1,005
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)
2010
2009
2008
Recurring costs for pollution
prevention and waste treatment
$ 34
$ 37
$ 48
Capital expenditures for pollution
prevention and waste treatment
1
3
2
Site remediation costs
2
2
3
Total
$ 37
$ 42
$ 53