Kodak 2011 Annual Report Download - page 40

The restructuring actions implemented in the year 2011 are expected to generate future annual cash savings of $114 million. These savings are expected
to reduce future Cost of sales, SG&A and R&D expenses by $51 million, $55 million, and $8 million, respectively. The Company began realizing these
savings in the first quarter of 2011, and expects the majority of the savings to be realized by the second half of 2012 as most of the actions and severance
payouts are completed.
2010
During the year ended December 31, 2010, the Company engaged in various initiatives to rationalize its workforce and streamline its operations in the
face of ongoing business and economic changes. The Company incurred restructuring and rationalization charges related to these initiatives of $78
million. The charges of $78 million recorded in 2010 included $6 million of charges for accelerated depreciation and $2 million for inventory write-
downs, which were reported in Cost of sales in the accompanying Consolidated Statement of Operations for the year ended December 31, 2010. The
remaining $70 million, including $49 million of severance costs, $14 million of exit costs, and $7 million of long-lived asset impairments, were reported
in Restructuring costs, rationalization and other in the accompanying Consolidated Statement of Operations for the year ended December 31, 2010.
2009
For the year ended December 31, 2009, the Company incurred restructuring and rationalization charges, net of reversals, of $258 million. The $258
million of restructuring and rationalization charges, net of reversals, included $22 million of costs related to accelerated depreciation, and $10 million
of charges for inventory write-downs, which were reported in Cost of sales in the accompanying Consolidated Statement of Operations. The
remaining costs incurred, net of reversals, of $226 million were reported as Restructuring costs, rationalization and other in the accompanying
Consolidated Statement of Operations for the year ended December 31, 2009.
CONSUMER DIGITAL IMAGING GROUP
(dollars in millions)
For the Year Ended
December 31,
2011
% of Sales
% Change
2010
% of Sales
% Change
2009
% of Sales
Total net sales
$
1,739
-
36
%
$
2,731
4
%
$
2,626
Cost of sales
1,526
-
12
%
1,732
-
12
%
1,973
Gross profit
213
12
%
-
79
%
999
37
%
53
%
653
25
%
Selling, general and
administrative expenses
428
25
%
-
21
%
545
20
%
10
%
497
19
%
Research and development
costs
134
8
%
-
24
%
176
6
%
6
%
166
6
%
(Loss) earnings from
continuing operations
before interest expense, other
income (charges), net and
income taxes
$
(349
) -
20
%
-
226
%
$
278
10
%
-
2880
%
$
(10
)
0
%
For the Year Ended
December 31, Change vs. 2010
2011 Amount
Change vs.
2010
Volume
Price/Mix
Foreign
Exchange
Manufacturing
and Other
Costs
Total net sales
$
1,739
-
36
%
-
6
%
-
31
%
1
%
n/a
Gross profit margin
12
%
-
25pp
n/a
-
29pp
1pp
3pp
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