Kodak has announced it has reached a settlement with the Internal Revenue Service regarding an audit of tax years 1993 through 1998. The agreement will boost fourth-quarter earnings by 80 to 90 cents a share. According to a U.S. Securities and Exchange Commission filing, a reversal of tax accruals will have a positive impact on fourth-quarter earnings of between $230 million and $260 million. The company will also receive a refund of income taxes and interest of about $15 to $25 million.
Kodak also said its third-quarter loss increased to $1.04 billion from $1.03 billion after failing to recognize charges "involving restructuring accruals associated with severance and special pension-related termination benefits."
