Note 3 - Liabilities Subject To Compromise

6 Months Ended

Jun. 30, 2013

Liabilities Subject to Compromise Disclosures [Abstract]

Liabilities Subject to Compromise, Description

NOTE 3: LIABILITIES SUBJECT TO COMPROMISE

The following table reflects pre-petition liabilities that are subject to compromise:

(in millions)	As of June 30, 2013		As of December 31, 2012
Accounts payable	$	272	$	275
Debt		683		683
Pension and other postemployment obligations		189		568
Settlements		1,049		946
Environmental		103		44
Other liabilities subject to compromise		175		192
Liabilities subject to compromise	$	2,471	$	2,708

The Bankruptcy Filing constituted an event of default with respect to certain of the Company’s debt instruments.  Refer to Note 9, “Short-Term Borrowings and Long-Term Debt” for additional information.  Settlements relate to allowed claims under agreements reached with various creditors, including $650 million related to the settlement agreement reached with the Retiree Committee and $244 million related to the non-qualified pension benefit Stipulation agreement.  Refer to Note 14, “Retirement Plans and Other Postretirement Benefits” for additional information regarding the decrease in Pension and other postemployment obligations which is primarily related to the second quarter of 2013 remeasurement of the U.S. noncontributory defined benefit plan, the Kodak Retirement Income Plan.  Other liabilities subject to compromise include accrued liabilities for customer programs, deferred compensation, taxes, and contract and lease rejections.

The amount of Liabilities subject to compromise represents the Debtors’ estimate, where an estimate is determinable, of known or potential pre-petition claims to be addressed in connection with the bankruptcy proceedings.  Such liabilities are reported at the Debtors’ current estimate, where an estimate is determinable, of the allowed claim amount, even though they may settle for lesser amounts.  These claims remain subject to future adjustments, which may result from: negotiations; actions of the Bankruptcy Court; disputed claims; rejection of contracts and unexpired leases; the determination as to the value of any collateral securing claims; proofs of claims; or other events.  Refer to Note 2, "Bankruptcy Proceedings" for additional information.