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 incurred in relation to restructuring programs during the three years ended December 31, 2024 were as follows:


							Inventory
	Severance			Exit Costs			Write-
(in millions)	Reserve (1)			Reserve (1)			downs (1)			Total
Balance as of December 31, 2021	$	4		$	1		$	—		$	5
Charges		6			4			3			13
Utilization/cash payments		(6	)		—			(3	)		(9	)
Other adjustments & reclasses (2)		(2	)		—			—			(2	)
Balance as of December 31, 2022		2			5			—			7
Charges		8			(1	)		3			10
Utilization/cash payments		(6	)		(3	)		(3	)		(12	)
Balance as of December 31, 2023		4			1			—			5
Charges		7			1			—			8
Utilization/cash payments		(7	)		—			—			(7	)
Other adjustments & reclasses (2)		(1	)		—			—			(1	)
Balance as of December 31, 2024	$	3		$	2		$	—		$	5

(1)

The severance and exit costs reserves require the outlay of cash. Inventory write-downs are non-cash items.

(2)

The $2 million in 2022 and $1 million in 2024 represented severance charges funded from pension plan assets, which were reclassified to Pension and other postretirement liabilities.

Restructuring actions taken in 2022 were initiated to reduce Kodak’s cost structure as part of its commitment to drive sustainable profitability and included various targeted reductions in manufacturing, service, sales, research and development and other administrative functions.

As a result of these actions, for the year ended December 31, 2022, Kodak recorded $13 million of charges of which $10 million were reported as Restructuring costs and other and $3 million were reported as Cost of revenues in the accompanying Consolidated Statement of Operations.

The 2022 severance costs related to the elimination of approximately 115 positions, including approximately 50 administrative, 40 manufacturing/service and 25 research and development positions. The geographic composition of these positions included approximately 65 in the U.S. and Canada and 50 throughout the rest of the world. The 2022 exit costs related to the cessation of manufacturing of the EPS equipment products and represent contractual obligations associated with open purchase orders as of December 31, 2022.

Restructuring actions taken in 2023 were initiated to reduce Kodak’s cost structure as part of its commitment to drive sustainable profitability and included actions to complete the process of ceasing manufacturing of the EPS equipment products as well as various targeted reductions in manufacturing, service, sales and administrative functions.

As a result of these actions, for the year ended December 31, 2023, Kodak recorded $10 million of charges of which $7 million were reported as Restructuring costs and other and $3 million were reported as Cost of revenues in the accompanying Consolidated Statement of Operations.

The 2023 severance costs related to the elimination of approximately 130 positions, including approximately 50 administrative and 80 manufacturing/service positions. The geographic composition of these positions included approximately 20 in the U.S. and Canada and 110 throughout the rest of the world.

Restructuring actions taken in 2024 were initiated to reduce Kodak’s cost structure as part of its commitment to drive sustainable profitability and included various targeted reductions in manufacturing, service, sales, administrative, and research and development functions.

As a result of these actions, for the year ended December 31, 2024, Kodak recorded $8 million of charges which were reported as Restructuring costs and other in the accompanying Consolidated Statement of Operations.

The 2024 severance costs related to the elimination of approximately 135 positions, including approximately 55 administrative, 75 manufacturing/service and 5 research and development positions. The geographic composition of these positions included approximately 70 in the U.S. and Canada and 65 throughout the rest of the world.

As a result of these initiatives, the majority of the severance liabilities as of December 31, 2024 will be paid during periods through the end of 2025. The $2 million exit cost reserve relates to a liability for which timing of the payment is uncertain.