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Note 15 - Restructuring Liabilities
 9 Months Ended
Sep. 30, 2013
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
NOTE 15:  RESTRUCTURING LIABILITIES

Charges for restructuring activities 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 actions taken in the first nine months of 2013 were initiated to reduce Kodak’s cost structure as part of its commitment to drive sustainable profitability and included manufacturing capacity reductions in the U.S. and the U.K., the continued wind down of the consumer inkjet printer business, a workforce reduction in France, and various targeted reductions in service, sales, and other administrative functions.

Restructuring Reserve Activity

The activity in the accrued balances and the non-cash charges and credits incurred in relation to restructuring activities for the one month ended September 30, 2013 (Successor) and the two and eight months ended August 31, 2013 (Predecessor) and 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, 2012 (Predecessor):
  $ 38     $ 45     $ -     $ -     $ 83  
Q1 2013 charges - continuing operations
    9       1       2       1       13  
Q1 2013 charges – discontinued operations
    1       -       -       -       1  
Q1 utilization/cash payments
    (20 )     (18 )     (2 )     (1 )     (41 )
Q1 2013 other adjustments & reclasses  (1)
    -       (6 )     -       -       (6 )
Balance as of March 31, 2013 (Predecessor):
  $ 28     $ 22     $ -     $ -     $ 50  
                                         
Q2 2013 charges - continuing operations
  $ 28     $ 1     $ 1     $ 3     $ 33  
Q2 2013 charges - discontinued operations
    1       -       -       -       1  
Q2 2013 utilization/cash payments
    (18 )     (9 )     (1 )     (3 )     (31 )
Q2 2013 other adjustments & reclasses  (2)
    (5 )     -       -       -       (5 )
Balance as of June 30, 2013 (Predecessor):
  $ 34     $ 14     $ -     $ -     $ 48  
                                         
Two months charges - continuing operations
  $ 1     $ 1     $ 1     $ -     $ 3  
Two monthscharges - discontinued operations
    1       -       -       -       1  
Two months utilization/cash payments
    (10 )     (5 )     (1 )     -       (16 )
Two months other adjustments & reclasses  (3)
    2       (3 )     -       -       (1 )
Balance as of August 31, 2013 (Predecessor):
  $ 28     $ 7     $ -     $ -     $ 35  
                                         
One month charges - continuing operations
  $ 4     $ -     $ -     $ -     $ 4  
One month charges - discontinued operations
    -       -       -       -       -  
One month utilization/cash payments
    (5 )     (1 )     -       -       (6 )
One month other adjustments & reclasses  (4)
    -       1       -       -       1  
Balance as of September 30, 2013 (Successor):
  $ 27     $ 7     $ -     $ -     $ 34  

(1)  
The $(6) million includes $(5) million for amounts reclassified as Liabilities subject to compromise, and $(1) million of foreign currency translation adjustments.
 

(2)  
The $(5) million represents severance-related charges for pension plan curtailments, which are reflected in Pension and other postretirement liabilities in the Consolidated Statement of Financial Position.
 

(3)  
The $(1) million includes $1 million of severance-related charges for pension plan curtailments, which are reflected in Pension and other postretirement liabilities in the Consolidated Statement of Financial Position, $(3) million of reserve adjustments due to the application of fresh start accounting, which were recorded as Reorganization items, net in the Consolidated Statement of Operations, and $1 million of foreign currency translation adjustments.
 

(4)  
The $1 million represents foreign currency translation adjustments.

For the two months ended August 31, 2013 (Predecessor), the $4 million of charges include $1 million which was reported as Discontinued operations in the accompanying Consolidated Statement of Operations. Costs incurred of $4 million in September 2013 and costs incurred in the two months ended August 31, 2013 of $3 million were reported as Restructuring costs and other in the accompanying Consolidated Statement of Operations. 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.

The severance costs for the one month ended September 30, 2013 (Successor) and two months ended August 31, 2013 (Predecessor) related to the elimination of approximately 150 positions, including approximately 75 manufacturing/service positions and 75 administrative positions. The geographic composition of these positions includes approximately 50 in the United States and Canada, and 100 throughout the rest of the world.

The charges of $8 million recorded in the third quarter of 2013 included $2 million and $1 million applicable to the Graphics, Entertainment and Commercial Films Segment for the one month ended September 30, 2013 (Successor) and the two months ended August 31, 2013 (Predecessor), respectively, and $2 million each of the one month ended September 30, 2013 (Successor) and the two months ended August 31, 2013 (Predecessor), was applicable to manufacturing, research and development, and administrative functions, which are shared across all segments.  The remaining $1 million was applicable to discontinued operations.

For the eight months ended August 31, 2013 (Predecessor), the $52 million of charges include $4 million for accelerated depreciation and $2 million for inventory write-downs, which were reported in Cost of sales, and $3 million which were reported as Discontinued operations in the accompanying Consolidated Statement of Operations. The remaining costs incurred of $43 million were reported as Restructuring costs and other in the accompanying Consolidated Statement of Operations for the eight months ended August 31, 2013 (Predecessor).  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.

The severance costs for the one month ended September 30, 2013 (Successor) and eight months ended August 31, 2013 (Predecessor) related to the elimination of approximately 550 positions, including approximately 350 manufacturing/service positions, 175 administrative positions, and 25 research and development positions. The geographic composition of these positions includes approximately 300 in the United States and Canada, and 250 throughout the rest of the world.

The charges of $56 million for the one month ended September 30, 2013 (Successor) and eight months ended August 31, 2013 (Predecessor) included $0 and $5 million, respectively, applicable to the Digital Printing and Enterprise Segment, $2 million and $22 million applicable to the Graphics, Entertainment and Commercial Films Segment, and $2 million and $22 million that was applicable to manufacturing, research and development, and administrative functions, which are shared across all segments.  The remaining $3 million was applicable to discontinued operations.


As a result of these initiatives, the majority of the severance will be paid during periods through the first half of 2014. However, in some 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 2013 and beyond.