Kodak Completes Accounting Review, Files Form 10-K
Press release from the issuing company
ROCHESTER, N.Y.--April 6, 2005--Eastman Kodak Company today filed its 2004 Annual Report on Form 10-K with the U.S. Securities and Exchange Commission, following the completion of an accounting review announced on January 26.
The company's independent registered public accounting firm has issued an unqualified opinion on the consolidated financial statements included in the company's Form 10-K.
As a result of the review, the company announced that its 2004 earnings, on the basis of Generally Accepted Accounting Principles (GAAP), were $556 million, or $1.94 per share, versus the preliminary figures of $649 million, or $2.16 per share, reported on January 26. For 2003, the company's restated GAAP earnings were $253 million, or $0.88 per share, versus $265 million, or $0.92 per share, reported previously.
The company also adjusted its previously reported preliminary 2004 operational earnings of $789 million, or $2.62 per share, to operational earnings of $690 million, or $2.30 per share. For 2003, the previously reported operational earnings of $623 million, or $2.15 per share, were adjusted to $631 million, or $2.18 per share.
The adjustments involve the company's accounting for income taxes, pensions and other post-retirement benefits, and other miscellaneous items. The adjustments had no material impact on revenue, cash flow or the funding of pension and post-retirement benefits.
The difference between 2004 operational earnings of $2.30 per share and the $2.62 per share reported on January 26 reflects the following items: 22 cents per share relates to the income-tax accounting issues, including the previously disclosed restructuring-related errors, as well as the recording of valuation allowances on deferred tax assets and the resolution of other tax-related items; 5 cents per share relates to pension and other post-retirement accounting issues; and 5 cents per share relates to miscellaneous items. The reconciliation of the operational earnings to the GAAP figures can be found in the attachment to this press release.
"We are pleased to conclude this review," said Robert H. Brust, Kodak's Chief Financial Officer. "This situation stemmed from inadvertent accounting errors, in part associated with the complex restructurings necessitated by our digital transformation. We are addressing the situation with significant improvements in those areas where internal control issues exist. It is worth noting, as we have said from the start, that these issues had no material affect on Kodak's 2004 revenue, cash flow or financial strength."
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