Kodak 2015 Annual Report Download - page 37

NOTE 15: 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.
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,
2015 were as follows:
(in millions)
Severance
Reserve
(5)
Exit Costs
Reserve
(5)
Long-lived Asset
Impairments and
Inventory Write-
downs (5)
Accelerated
Depreciation
(5) Total
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 (1) (3) (9) — — (12)
Balance as of August 31, 2013 (Predecessor): $ 28 $ 7 $ — $ — $ 35
Four months charges $ 13 $ 3 $ 1 $ — $ 17
Four months utilization/cash payments (15) (3) (1) — (19)
Four months other adjustments & reclasses (2) — 1 — — 1
Balance as of December 31, 2013 (Successor): 26 8 — — 34
2014 charges 54 2 3 2 61
2014 utilization/cash payments (47) (5) (3) (2) (57)
2014 other adjustments & reclasses (3) (11) — — — (11)
Balance as of December 31, 2014 (Successor): 22 5 — — 27
2015 charges 33 4 1 8 46
2015 utilization/cash payments (36) (5) (1) (8) (50)
2015 other adjustments & reclasses (4) (12) — — — (12)
Balance as of December 31, 2015 (Successor): $ 7 $ 4 $ — $ — $ 11
(1) The $(12) million includes $(5) million for amounts reclassified as Liabilities subject to compromise, $(4) million of severance-related charges for pension
plan curtailments, which were reclassified to Pension and other postretirement liabilities and $(3) million of reserve adjustments due to the application of
fresh start accounting, which were recorded in Reorganization items.
(2) The $1 million represents foreign currency translation adjustments.
(3) The $(11) million includes $(8) million of severance related charges for pension plan special termination benefits, which were reclassified to Pension and
other postretirement liabilities and $(3) million of foreign currency translation adjustments.
(4) The $(12) million includes $(9) million of severance related charges for pension plan special termination benefits, which were reclassified to Pension and
other postretirement liabilities and $(3) million of foreign currency translation adjustments.
(5) The severance and exit costs reserves require the outlay of cash, while long-lived asset impairments, accelerated depreciation and inventory write-downs
represent non-cash items.
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.
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