Kodak 2010 Annual Report Download - page 78

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NOTE 16: RESTRUCTURING AND RATIONALIZATION LIABILITIES
The Company recognizes the need to continually rationalize its workforce and streamline its operations in the face of ongoing
business and economic changes. Charges for restructuring and ongoing rationalization initiatives are recorded in the period in which
the Company commits to a formalized restructuring or ongoing rationalization plan, 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, 2010 were as follows:
(in millions)
Severance
Reserve
Exit
Costs
Reserve
Long-lived
Asset
Impairments
and Inventory
Write-downs
Accelerated
Depreciation
Total
Balance at December 31, 2007
$ 129
$ 35
$ -
$ -
$ 164
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
109
21
-
-
130
2009 charges - continuing operations (4)
193
27
16
22
258
2009 cash payments/utilization (5)
(154)
(23)
(16)
(22)
(215)
2009 other adjustments & reclasses (6)
(80)
2
-
-
(78)
Balance at December 31, 2009
68
27
-
-
95
2010 charges - continuing operations (7)
49
14
9
6
78
2010 cash payments/utilization (8)
(67)
(21)
(9)
(6)
(103)
2010 other adjustments & reclasses (9)
(28)
-
-
-
(28)
Balance at December 31, 2010 (10)
$ 22
$ 20
$ -
$ -
$ 42
(1) Severance reserve activity 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) Severance reserve activity includes charges of $191 million, and net curtailment and settlement losses related to these actions
of $2 million.
(5) During the year ended December 31, 2009, the Company made cash payments of approximately $177 million related to
restructuring and rationalization, all of which was paid out of restructuring liabilities.
(6) Includes $84 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, partially offset by foreign currency translation adjustments.
(7) Severance reserve activity includes charges of $49 million.
(8) During the year ended December 31, 2010, the Company made cash payments of approximately $88 million related to
restructuring and rationalization, all of which was paid out of restructuring liabilities.