Kodak Adopts Plan to Preserve Valuable Net Operating Losses
Eastman Kodak Company's Board of Directors has adopted a Net Operating Loss (NOL) Shareholder Rights Agreement designed to preserve its substantial tax assets.
As of Dec. 31, 2010, Kodak had tax attributes, including net operating losses and tax credit carry-forwards, of approximately $2.9 billion pre-tax. Unless otherwise restricted, Kodak can utilize these tax attributes in certain circumstances to offset future U.S. taxable income, including in connection with gains that may be generated from the process the company announced on July 20, 2011, of exploring strategic alternatives with respect to its digital imaging patent portfolios. The company noted that the NOL Shareholder Rights Agreement serves the interests of all stockholders as it is designed to protect the use of its substantial deferred tax assets to offset future tax liabilities, and to maximize the company's ability to explore strategic alternatives related to its digital imaging patent portfolios.