Kodak 2013 Annual Report Download - page 105

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Table of Contents
Net Operating Loss Rights Agreement
On August 1, 2011, Kodak entered into a Net Operating Loss (“NOL”) Rights Agreement (“NOL Rights Agreement”) designed to preserve
stockholder value and tax assets. The Company’s ability to use its tax attributes to offset tax on U.S. taxable income would be substantially
limited if there were an “ownership change” as defined under Section 382 of the U.S. Internal Revenue Code. In general, an ownership change
would occur if “5-percent shareholders,” as defined under Section 382, collectively increase their ownership in the Company by more than 50
percentage points over a rolling three-year period.
Upon emergence from bankruptcy Kodak’s NOL Rights Agreement was terminated under the effects of the implementation of the plan of
reorganization .
NOTE 18: RESTRUCTURING COSTS AND OTHER
Kodak recognizes the need to continually rationalize its workforce and streamline its operations in the face of ongoing business and economic
changes. Charges for restructuring initiatives are recorded in the period in which Kodak commits to a formalized restructuring plan, or executes
the specific actions contemplated by the plan and all criteria for liability recognition under the applicable accounting guidance have been met.
Restructuring Reserve Activity
The activity in the accrued balances and the non-cash charges and credits incurred in relation to restructuring programs during the three years
ended December 31, 2013 were as follows:
(in millions)
Severance Reserve
Exit Costs Reserve
Long
-
lived Asset
Impairments
and Inventory
Write-downs
Accelerated
Depreciation
Total
Balance as of December 31, 2010
(Predecessor):
$
22
$
20
$
—
$
—
$
42
2011 charges—continuing operations
(1)
92
15
3
10
120
2011 charges—
discontinued operations
(1)
13
—
—
—
13
2011 utilization/cash payments
(58
)
(13
)
(3
)
(10
)
(84
)
2011 other adjustments & reclasses (2)
(31
)
—
—
—
31
)
Balance as of December 31, 2011
(Predecessor):
$
38
$
22
$
—
$
—
$
60
2012 charges—continuing operations
(3)
$
158
$
35
$
26
$
13
$
232
2012 charges—
discontinued operations
(3)
29
2
8
—
39
2012 utilization/cash payments
(86
)
(13
)
(34
)
(13
)
(146
)
2012 other adjustments & reclasses (4)
(101
)
(1
)
—
—
(
102
)
Balance as of December 31, 2012
(Predecessor):
$
38
$
45
$
—
$
—
$
83
Eight months charges—continuing
operations
$
38
$
3
$
4
$
4
$
49
Eight months charges—discontinued
operations
3
—
—
—
3
Eight months utilization/cash payments
(48
)
(32
)
(4
)
(4
)
(88
)
Eight months other adjustments &
reclasses (5)
(3
)
(9
)
—
—
12
)
Balance as of August 31, 2013
(Predecessor):
$
28
$
7
$
—
$
—
$
35
Four months charges—continuing
operations
$
13
$
3
$
1
$
—
$
17
Four months charges—discontinued
operations
—
—
—
—
—
Four months utilization/cash payments
(15
)
(3
)
(1
)
—
19
)
Four months other adjustments &
reclasses (6)
—
1
—
—
1
Balance as of December 31, 2013