jan292009exitactivities.htm
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): January 26, 2009
Eastman
Kodak Company
(Exact
name of registrant as specified in its charter)
|
New
Jersey
|
1-87
|
16-0417150
|
|
|
|
(State
or Other Jurisdiction of Incorporation)
|
(Commission
File Number)
|
(IRS
Employer 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
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))
|
Item
2.05 Costs Associated with Exit or Disposal Activities.
On
December 17, 2008, Eastman Kodak Company (the Company) committed to a plan to
implement a targeted cost reduction program (the 2009 Program) to more
appropriately size the organization as a result of the current economic
environment. The program involves rationalizing selling,
administrative, research and development, supply chain and other business
resources in certain areas and consolidating certain facilities. On
January 26, 2009, the Company began providing notice to employees whose
employment would be terminated as part of this program.
In
connection with the 2009 Program, the Company expects to incur total
restructuring charges in the range of $250 million to $300 million, including
$225 million to $265 million of cash related charges for termination benefits
and other exit costs, and $25 million to $35 million of non-cash related
accelerated depreciation and asset write-offs. The 2009 Program will
require expenditures from corporate cash in the range of $125 million to $175
million, as most of the termination benefits for U.S. employees will be provided
in the form of special retirement benefits (Special Termination Program (STP)
benefits) payable from the Company’s over-funded U.S. pension
plan. Including cash expenditures related to rationalization actions
in 2008 and prior, the total cash required in 2009 for restructuring actions
will total $225 million to $275 million. The majority of the actions
contemplated by the 2009 Program will be completed in the first half of 2009,
with all actions under the program expected to be completed by the end of
2009. The 2009 Program is expected to result in employment reductions
in the range of 2,000 to 3,000 positions when complete and yield annualized
savings of $200 million to $250 million in 2009 and beyond.
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/ Diane E. Wilfong
--------------------------------
Diane E. Wilfong
Chief Accounting Officer and
Controller
Date: January
29, 2009