Kodak 2013 Annual Report Download - page 16

Table of Contents
We are subject to environmental laws and regulations and failure to comply with such laws and regulations or liabilities imposed as a
result of such laws and regulations could have an adverse effect on our business, results of operations and financial condition.
We are subject to environmental laws and regulations in the jurisdictions in which we conduct the Company’s business, including laws
regarding the discharge of pollutants, including greenhouse gases, into the air and water, the need for environmental permits for certain
operations, the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites, the content of the Company’s
products and the recycling and treatment and disposal of the Company’s products. If we do not comply with applicable laws and regulations in
connection with the use and management of hazardous substances, then we could be subject to liability and/or could be prohibited from
operating certain facilities, which could have a material adverse effect on our business, results of operations and financial condition. The cost of
complying with such laws, and costs associated with the cleanup of contaminated sites, could have a material adverse effect on our business,
results of operations and financial condition.
In addition, the Company, the New York State Department of Environmental Conservation and the New York State Urban Development
Corporation have entered into a settlement agreement of the Company’s historical environmental liabilities at Eastman Business Park through
the establishment of a $49 million environmental remediation trust. Should historical liabilities exceed $49 million, New York State is
responsible for payments of cost up to an additional $50 million. In the event the historical liabilities exceed $99 million, the Company will
become liable for 50% of the portion above $99 million, which could have a material adverse effect on our financial condition. The settlement
agreement is not yet effective and is subject to the satisfaction or waiver of certain conditions including Bankruptcy Court approval of a
covenant not to sue from the U.S. Environmental Protection Agency. Any uncertainties related to the Company’s environmental obligations
may impact our ability to further develop and transform Eastman Business Park.
Regulations related to “conflict minerals” will require the Company to incur additional expenses and could limit the supply and
increase the cost of certain metals used in manufacturing the Company’s products.
In August 2012, the SEC adopted rules requiring disclosure related to sourcing of specified minerals, known as “conflict minerals”, that are
necessary to the functionality or production of products manufactured or contracted to be manufactured by public companies. The rules,
effective in 2013, require a report to be filed by May 31, 2014, and if applicable, require companies to undertake due diligence, disclose
whether or not such minerals originated from the Democratic Republic of Congo or an adjoining country. As a result, the Company has
developed a framework and management system consistent with the guidance issued by the Organization for Economic Co-operation and
Development (OEDC), and is currently performing due diligence on our supply chain. The implementation of the rules could adversely affect
our sourcing, supply and pricing of materials used in the Company’s products. There may only be a limited number of suppliers offering
“conflict free” conflict minerals, and we cannot be certain that we will be able to obtain necessary “conflict free” conflict minerals from such
suppliers in sufficient quantities or at competitive prices. Because Kodak’s supply chain is complex, we may also not be able to sufficiently
verify the origins of the relevant minerals used in the Company’
s products through the due diligence procedures that we implement, which may
harm our reputation.
None.
Kodak’s worldwide headquarters is located in Rochester, New York.
Products in the DP&E Segment are manufactured in the United States in Rochester, New York; Dayton, Ohio; and Weatherford, Oklahoma.
Manufacturing facilities outside the United States are located in China, Japan and Canada.
Products in the GECF Segment are manufactured in the United States in Rochester, New York and Columbus, Georgia. Manufacturing
facilities outside the United States are located in Germany, China, Japan, United Kingdom and Canada.
Properties within a country may be shared by all segments operating within that country.
Regional distribution centers are located in various places within and outside of the United States. Kodak owns or leases administrative,
research and development, manufacturing, marketing, and processing facilities in various parts of the world. The leases are for various periods
and are generally renewable.
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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 2.
PROPERTIES