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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): August 24, 2005
Eastman Kodak Company
(Exact name of registrant as specified in its charter)
New Jersey 1-87 16-0417150
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
343 State Street,
Rochester, New York 14650
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code (585) 724-4000
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Securities
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.05 Costs Associated with Exit or Disposal Activities
On August 24, 2005, Eastman Kodak Company committed to actions to
consolidate its worldwide manufacturing operations as part of its
continuous program to address aggressively the accelerating decline
in demand for consumer film and photographic paper. These actions
are a part of the Company's restructuring program that was originally
announced on January 22, 2004, and subsequently expanded on July 20,
2005.
Manufacturing of color photographic paper for North America will be
consolidated at plants in Windsor, Colorado, and Harrow, England,
resulting in the closure of an operation in Rochester, N.Y. The
Company will incur restructuring-related charges of approximately
$95 million. Included in these charges are employee termination
benefits of approximately $33 million and accelerated depreciation
on equipment and inventory write-offs of approximately $62 million.
In addition, the Company will record approximately $3 million in
operating charges related to executing this action. This action
will be completed by the end of 2005.
An operation in Rochester that recycles polyester waste and part of
an operation that processes polyester raw material in the manufacturing
of Estar polyester film base will be closed by the end of 2005. Kodak
will purchase finished raw material and will contract to have polyester
waste recycled by firms with resource recovery expertise. As a result
of this action, the Company will incur restructuring-related charges of
approximately $25 million. Included in these charges are accelerated
depreciation on equipment and inventory write-offs of approximately
$21 million, employee severance of approximately $3 million, and other
exit costs of approximately $1 million.
Manufacturing capacity for consumer film products in Xiamen, China, will
be reduced. As a result of this action, the Company will incur
restructuring-related charges of approximately $30 million. Included in
these charges is accelerated depreciation on equipment of approximately
$29 million and other exit costs of approximately $1 million. This
action will be completed by July 31, 2006.
The severance, other exit costs, and the operating charges require the
outlay of cash, while the accelerated depreciation and inventory
write-offs represent non-cash charges.
A copy of the August 25, 2005 press release related to these actions is
attached as Exhibit (99.1).
ITEM 9.01 Financial Statements and Exhibits
(c) Exhibit
(99.1) Eastman Kodak Company press release dated August 25, 2005
regarding actions initiated to consolidate the Company's
worldwide manufacturing operations.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
EASTMAN KODAK COMPANY
By: /s/ Richard G. Brown, Jr.
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Richard G. Brown, Jr.
Controller
Date: August 25, 2005
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EASTMAN KODAK COMPANY
INDEX TO EXHIBITS
Exhibit No.
(99.1) Eastman Kodak Company press release dated August 25, 2005
regarding actions initiated to consolidate the Company's
worldwide manufacturing operations.