Kodak 2014 Annual Report Download - page 85

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2012 Activity
The $271 million of charges for the year 2012 includes $13 million of charges for accelerated depreciation and $4 million for inventory write-downs, which
were reported in Cost of revenues in the accompanying Consolidated Statement of Operations, and $39 million which was reported as Earnings (loss) from
discontinued operations. The remaining costs incurred of $215 million, including $158 million of severance costs, $35 million of exit costs, and $22 million of
long-lived asset impairments, were reported as Restructuring costs and other in the accompanying Consolidated Statement of Operations.
The 2012 severance costs related to the elimination of approximately 3,225 positions, including approximately 1,775 manufacturing/service, 1,050
administrative and 400 research and development positions. The geographic composition of these positions includes approximately 1,925 in the United States
and Canada, and 1,300 throughout the rest of the world.
As a result of these initiatives, severance payments were paid during periods through 2014 since, in many instances, the employees whose positions were
eliminated can elect or are required to receive their payments over an extended period of time. In addition, certain exit costs, such as long-term lease payments,
will continue beyond 2014.
2013 Activity
The $17 million of charges for the four months ended December 31, 2013 were reported as Restructuring costs and other in the accompanying Consolidated Statement of
Operations. The $52 million of charges for the eight months ended August 31, 2013 includes $4 million for accelerated depreciation and $2 million for inventory write-
downs which were reported in Cost of revenues, $43 million reported as Restructuring costs and other and $3 million which were reported as Earnings (loss) from
discontinued operations in the accompanying Consolidated Statement of Operations.
The 2013 severance costs related to the elimination of approximately 825 positions, including approximately 500 manufacturing/service, 300 administrative
and 25 research and development positions. The geographic composition of these positions included approximately 375 in the U.S. and Canada, and 450
throughout the rest of the world.
As a result of these initiatives, severance payments were paid during periods through 2014 since, in many instances, the employees whose positions were
eliminated can elect or are required to receive their payments over an extended period of time. In addition, certain exit costs, such as long-term lease payments,
will continue beyond 2014.
2014 Activity
Restructuring actions taken in 2014 included steps toward exiting a plate manufacturing facility in the U.K., as described in further detail below. In addition, actions were
initiated to reduce Kodak’s cost structure as part of its commitment to drive sustainable profitability and included a workforce reduction in France, manufacturing capacity
reductions in the U.S., a research and development site consolidation in the U.S., and various targeted reductions in service, sales, research and development and other
administrative functions.
As a result of these actions, for the year ended December 31, 2014 Kodak recorded $61 million of charges, including $2 million for accelerated depreciation which was
reported in Cost of sales and $59 million which was reported as Restructuring costs and other in the accompanying Consolidated Statement of Operations.
The 2014 severance costs related to the elimination of approximately 775 positions, including approximately 325 manufacturing/service, 350 administrative
and 100 research and development positions. The geographic composition of these positions included approximately 425 in the U.S. and Canada, and 350
throughout the rest of the world.
As a result of these initiatives, severance payments will be paid during periods through 2015 since, in many instances, the employees whose positions were
eliminated can elect or are required to receive their payments over an extended period of time. In addition, certain exit costs, such as long-term lease payments,
will be paid over periods throughout 2015 and beyond.
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