Note 17 - Restructuring Liabilities

9 Months Ended

Sep. 30, 2020

Restructuring And Related Activities [Abstract]

NOTE 17: 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 2020 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 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 nine months ended September 30, 2020 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, 2019	$	11		$	1		$	—	$	12
Q1 charges		6			1			—		7
Q1 utilization/cash payments		(7	)		—			—		(7	)
Q1 other adjustments and reclasses ⁽²⁾		(1	)		(1	)		—		(2	)
Balance as of March 31, 2020	$	9		$	1		$	—	$	10
Q2 charges	$	1		$	—		$	—	$	1
Q2 utilization/cash payments		(3	)		—			—		(3	)
Balance as of June 30, 2020	$	7		$	1		$	—	$	8
Q3 charges	$	1		$	—		$	—	$	1
Q3 utilization/cash payments		(3	)		—			—		(3	)
Balance as of September 30, 2020	$	5		$	1		$	—	$	6

⁽¹⁾	The severance and exit costs reserves require the outlay of cash, while long-lived asset impairments and inventory write-downs represent non-cash items.

⁽²⁾	Includes $(1) million of severance charges funded from pension plan assets, which were reclassified to Pension and other postretirement liabilities and $(1) million of currency translation impacts.

The $1 million and $9 million of charges for the three and nine months ended September 30, 2020, respectively, were reported as Restructuring costs and other in the Consolidated Statement of Operations.

The severance costs for the 3 months ended September 30, 2020 related to the elimination of approximately 40 positions including approximately 5 manufacturing/service positions and 35 administrative positions. The geographic composition of these positions includes approximately 35 in the U.S. and Canada and 5 throughout the rest of the world. The severance costs for the nine months ended September 30, 2020 related to the elimination of approximately 130 positions including approximately 25 manufacturing/service positions, and 105 administrative and sales positions. The geographic composition of these positions includes approximately 75 in the U.S. and Canada and 55 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 year.