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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): June 27, 2006
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 June 27, 2006, Eastman Kodak Company committed to shut down the
Synthetic Chemicals operation and associated support facilities that
produce chemicals used in the manufacture of photographic products in
Kirkby, England.
In conjunction with this action, the Company will incur charges totaling
approximately $37 million. Included in the restructuring related
charges of approximately $29 million are employee termination benefits
of approximately $7 million, building and plant equipment accelerated
depreciation and inventory write-offs of approximately $14 million, and
other exit costs of approximately $8 million. In addition, the Company
will record approximately $8 million in operational charges related to
executing this action. The severance, other exit costs, and the
operational charges require the outlay of cash, while the accelerated
depreciation and inventory write-offs represent non-cash charges. The
estimated restructuring related charges exclude the potential impacts
from any pension plan settlement or curtailment gains or losses that may
be incurred, as these amounts are not currently determinable. These
actions are expected to be complete by year end 2007.
This action is a part of the Company's restructuring program that was
originally announced on January 22, 2004 and subsequently expanded on
July 20, 2005. The Company expects that it will continue to consolidate
its worldwide operations in order to eliminate excess capacity.
A copy of the June 29, 2006 press release related to this action is
attached as Exhibit (99.1).
ITEM 9.1 Financial Statements and Exhibits
(c) Exhibit
(99.1) Eastman Kodak Company press release dated June 29, 2006
regarding closure of its synthetic chemicals operations in
Kirkby, England.
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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: June 29, 2006
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EASTMAN KODAK COMPANY
INDEX TO EXHIBITS
Exhibit No.
(99.1) Eastman Kodak Company press release dated June 29, 2006
regarding closure of its synthetic chemicals operations in
Kirkby, England.
Exhibit (99.1)
EASTMAN KODAK COMPANY
Media Contact:
Christopher K. Veronda
585-724-2622
christopher.veronda@kodak.com
KODAK TO CEASE SYNTHETIC CHEMICALS OPERATIONS AT KIRKBY
Action part of global consolidations and digital
transformation
KIRKBY, ENGLAND, June 29 - Kodak announced today that the
Synthetic Chemicals operation and associated support
facilities in Kirkby that produce chemicals used in the
manufacture of traditional photographic products would
shut down by year-end. About 85 employees will be
affected by this action.
A facility employing 10 people that produces nitrate,
which is also used in the manufacture of photographic
products, will remain in operation at the Kirkby site.
The announcement has no impact on other Kodak sites in
the UK.
This is part of Kodak's previously announced plan to
complete the restructuring of its traditional
photographic business by mid-2007, in line with the
digital transformation of the industry. Kodak is taking
actions to sharpen competitiveness and ensure that
traditional photographic products remain profitable in a
shrinking market, while simultaneously accelerating the
growth of the digital business.
Tony Field, manager of the Kirkby facility said:
"Kodak, like every other imaging company, is responding
to the realities of the transformation of the global
imaging sector. These actions are necessary in light of
declines in the traditional photography business. As a
result, we must continue to move to competitively
position our operations."
"This has been a difficult decision to make, and is no
reflection on the highly-valued work performed by our
employees who have always shown great skill and
dedication. Instead, the reality is that demand for our
traditional business is declining, as our digital
products grow evermore popular.
"All employees affected will be treated with respect and
those that leave the company will be entitled to
severance terms, plus assistance in their career
transition."
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