Kodak 2014 Annual Report Download - page 69

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NOTE 9: COMMITMENTS AND CONTINGENCIES
Environmental
Kodak’s undiscounted accrued liabilities for future environmental investigation, remediation and monitoring costs are composed of the following items:
These amounts are reported in Other long-term liabilities and Current liabilities held for sale in the accompanying Consolidated Statement of Financial Position.
Cash expenditures for pollution prevention and waste treatment for Kodak's current facilities were as follows:
Environmental expenditures that relate to an existing condition caused by past operations and that do not provide future benefits are expensed as incurred. Costs that are
capital in nature and that provide future benefits are capitalized. Liabilities are recorded when environmental assessments are made or the requirement for remedial
efforts is probable, and the costs can be reasonably estimated. The timing of accruing for these remediation liabilities is generally no later than the completion of
feasibility studies. Kodak has an ongoing monitoring and identification process to assess how the activities, with respect to the known exposures, are progressing against
the accrued cost estimates.
Cash expenditures for the aforementioned investigation, remediation and monitoring activities are expected to be incurred over the next thirty years for most of the
sites. For these known environmental liabilities, the accrual reflects Kodak’s best estimate of the amount it will incur under the agreed-upon or proposed work
plans. Kodak’s cost estimates were determined using the ASTM Standard E 2137-06, "Standard Guide for Estimating Monetary Costs and Liabilities for Environmental
Matters," and have not been reduced by possible recoveries from third parties. The overall method includes the use of a probabilistic model which forecasts a range of
cost estimates for the remediation required at individual sites. The projects are closely monitored and the models are reviewed as significant events occur or at least once
per year. Kodak’s estimate includes investigations, equipment and operating costs for remediation and long-term monitoring of the sites.
(in millions)
As of
December 31,
2014
As of
December 31,
2013
Eastman Business Park site, Rochester, NY
$
-
$
49
Other current operating sites
7
8
Sites associated with former operations
10
13
Sites associated with the non-imaging health businesses sold in 1994
11
12
Total
$
28
$
82
Successor
Predecessor
(in millions)
For the Year
Ended
December 31,
2014
For the Four
Months Ended
December 31,
2013
For the Eight
Months Ended
August 31,
2013
For the Year
Ended
December 31,
2012
Recurring costs for pollution
prevention and waste treatment
$
13
$
5
$
16
$
28
Capital expenditures for pollution
prevention and waste treatment
2
2
-
1
Site remediation costs
-
-
-
1
Total
$
15
$
7
$
16
$
30
66