Kodak 2011 Annual Report Download - page 51

Contractual Obligations *
The impact that contractual obligations are expected to have on the Company's cash flow in future periods is as follows:
As of December 31, 2011
(in millions)
Total
2012
2013
2014
2015
2016
2017
+
Long
-
term debt (1)
$
1,618
$
52
$
402
$
-
$
-
$
-
$
1,164
Interest payments on
debt (1)
684
123
120
105
105
105
126
Operating lease
obligations
241
68
51
33
25
21
43
Purchase obligations (2)
310
109
69
47
41
18
26
Total (3) (4) (5) (6)
$
2,853
$
352
$
642
$
185
$
171
$
144
$
1,359
* Pre-petition obligations are being administered by the Bankruptcy Court. A portion of the contractual obligations relate to non-U.S.
entities and, therefore, are not subject to the bankruptcy proceedings.
(1) Long-term debt represents the maturity values of the Company’s long-term debt obligations as of December 31, 2011 (pre-petition
debt). Interest payments on debt represent payments related to pre-petition debt. See Note 9, “Short-Term Borrowings and Long-Term
Debt
”
,
in the Notes to Financial Statements.
(2) Purchase obligations include agreements related to raw materials, supplies, production and administrative services, as well as marketing
and advertising, that are enforceable and legally binding on the Company and that specify all significant terms, including: fixed or
minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the
transaction. Purchase obligations exclude agreements that are cancelable without penalty. The terms of these agreements cover the next
one to eleven years.
(3) Due to uncertainty regarding the completion of tax audits and possible outcomes, the remaining estimate of the timing of payments
related to uncertain tax positions and interest cannot be made. See Note 16, “Income Taxes,” in the Notes to Financial Statements for
additional information regarding the Company
’
s uncertain tax positions.
(4) Kodak Limited, a wholly owned subsidiary of the Company, has agreed with the Trustees of the Kodak Pension Plan of the United
Kingdom (the “Plan” or “KPP”) to make certain contributions to the Plan. Under the terms of this agreement, Kodak Limited is obligated
to pay a minimum amount of $50 million to the KPP in each of the years 2012 through 2014, and a minimum amount of $90 million to
the KPP in each of the years 2015 through 2022. The payment amounts for the years 2015 through 2022 could be lower, and the payment
amounts for 2012 through 2022 could be higher by up to $5 million per year, based on the exchange rate between the U.S. dollar and
British pound. The minimum amounts do not include certain potential contributions which could be required if Kodak Limited received a
cash tax benefit as a result of the minimum contributed amount. These amounts of future contributions have not been included in the
table above, as in total they are dependent on the funded status of the KPP as it fluctuates over the term of the agreement. A funding
valuation and funding plan is required to be submitted to and approved by the United Kingdom Pension Regulator every three years. The
2010 valuation is currently ongoing.
(5) In addition to the pension contributions related to the KPP noted in (4) above, funding requirements for the Company's other major
defined benefit retirement plans and other postretirement benefit plans have not been determined, therefore, they have not been
included. In 2011, the Company made contributions to its major defined benefit retirement plans and benefit payments for its other
postretirement benefit plans including the KPP of $103 million ($25 million relating to its U.S. defined benefit plans) and $115 million
($110 million relating to its U.S. other postretirement benefits plan), respectively. The Company expects to contribute approximately $97
million ($15 million relating to its U.S. defined benefit plans) and $119 million ($118 million relating to its U.S. other postretirement
benefits plan), respectively, to its defined benefit plans and other postretirement benefit plans in 2012, including KPP contributions noted
in (4) above.
(6) Because their future cash outflows are uncertain, the other long-term liabilities presented in Note 10, “Other Long-Term Liabilities,” in
the Notes to Financial Statements are excluded from this table.
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