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 two years ended December 31, 2019 were as follows (in millions):

	Severance Reserve⁽¹⁾			Exit Costs Reserve⁽¹⁾			Long-lived Asset Impairments and Inventory Write-downs ⁽¹⁾		Total
Balance as of December 31, 2017	$	6		$	4		$	—	$	10
Charges		17			—			—		17
Utilization/cash payments		(12	)		(2	)		—		(14	)
Other adjustments & reclasses⁽²⁾		(5	)		—			—		(5	)
Balance as of December 31, 2018		6			2			—		8
Charges		16			—			—		16
Utilization/cash payments		(8	)		(1	)		—		(9	)
Other adjustments & reclasses ⁽²⁾		(3	)		—			—		(3	)
Balance as of December 31, 2019	$	11		$	1		$	—	$	12

⁽¹⁾	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.

⁽²⁾	The $3 million and $5 million represent severance charges funded from pension plan assets, which were reclassified to Pension and other postretirement liabilities.

Restructuring actions taken in 2018 were initiated to reduce Kodak’s cost structure as part of its commitment to drive sustainable profitability and included cost rationalization in France, consolidation of R&D sites in Israel, EPS manufacturing cost reductions in Germany, and 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, 2018 Kodak recorded $17 million of charges which were reported as Restructuring costs and other in the accompanying Consolidated Statement of Operations.

The 2018 severance costs related to the elimination of approximately 285 positions, including approximately 115 administrative, 100 manufacturing/service, and 70 research and development positions. The geographic composition of these positions included approximately 130 in the U.S. and Canada, and 155 throughout the rest of the world.

Restructuring actions taken in 2019 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, 2019 Kodak recorded $16 million of charges which were reported as Restructuring costs and other in the accompanying Consolidated Statement of Operations.

The 2019 severance costs related to the elimination of approximately 220 positions, including approximately 150 administrative, 65 manufacturing/service, and 5 research and development positions. The geographic composition of these positions included approximately 90 in the U.S. and Canada, and 130 throughout the rest of the world.

As a result of these initiatives, the majority of the severance will be paid during periods through the end of the third quarter of 2020. The exit cost reserves primarily relate to a liability whose payment timing is uncertain.