Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 01, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000031235 | |
Entity Registrant Name | EASTMAN KODAK CO | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-00087 | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 16-0417150 | |
Entity Address, Address Line One | 343 STATE STREET | |
Entity Address, City or Town | ROCHESTER | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14650 | |
City Area Code | 800 | |
Local Phone Number | 356-3259 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | KODK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 79,473,557 |
Consolidated Statement of Opera
Consolidated Statement of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenues | |||||
Total revenues | $ 295 | [1] | $ 321 | $ 573 | $ 611 |
Cost of revenues | |||||
Total cost of revenues | 232 | 270 | 460 | 527 | |
Gross profit | (63) | (51) | (113) | (84) | |
Selling, general and administrative expenses | 40 | 41 | 74 | 84 | |
Research and development costs | 9 | 9 | 18 | 18 | |
Restructuring costs and other | 5 | 0 | 6 | 0 | |
Other operating income | (1) | 0 | 0 | 0 | |
Earnings (loss) from operations before interest expense, pension income excluding service cost component, other charges (income), net and income taxes | 10 | 1 | 15 | (18) | |
Interest expense | 11 | 10 | 22 | 19 | |
Pension income excluding service cost component | (41) | (27) | (81) | (57) | |
Other charges (income), net | 3 | (1) | (4) | 2 | |
Earnings from operations before income taxes | 37 | 19 | 78 | 18 | |
Provision (benefit) for income taxes | 2 | (1) | 10 | 1 | |
NET EARNINGS | $ 35 | $ 20 | $ 68 | $ 17 | |
Basic net earnings per share attributable to Eastman Kodak Company common shareholders (in dollars per share) | $ 0.35 | $ 0.20 | $ 0.68 | $ 0.13 | |
Diluted net earnings per share attributable to Eastman Kodak Company common shareholders (in dollars per share) | $ 0.32 | $ 0.19 | $ 0.63 | $ 0.12 | |
Basic (in shares) | 79.4 | 78.9 | 79.3 | 78.8 | |
Diluted (in shares) | 93 | 90.2 | 92.7 | 80.4 | |
Product [Member] | |||||
Revenues | |||||
Total revenues | $ 242 | $ 266 | $ 468 | $ 500 | |
Cost of revenues | |||||
Total cost of revenues | 195 | 234 | 388 | 454 | |
Service [Member] | |||||
Revenues | |||||
Total revenues | 53 | 55 | 105 | 111 | |
Cost of revenues | |||||
Total cost of revenues | $ 37 | $ 36 | $ 72 | $ 73 | |
[1]Sales are reported in the geographic area in which they originate. |
Onsolidated Statement of Compre
Onsolidated Statement of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net earnings | $ 35 | $ 20 | $ 68 | $ 17 |
Other comprehensive (loss) income, net of tax: | ||||
Currency translation adjustments | (11) | (10) | (12) | (5) |
Pension and other postretirement benefit plan obligation activity, net of tax | (123) | 110 | (129) | 110 |
Other comprehensive (loss) income, net of tax | (134) | 100 | (141) | 105 |
COMPREHENSIVE (LOSS) INCOME, NET OF TAX | $ (99) | $ 120 | $ (73) | $ 122 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position (Unaudited) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 223 | $ 217 |
Trade receivables, net of allowances of $8 and $7, respectively | 161 | 177 |
Inventories, net | 252 | 237 |
Other current assets | 36 | 48 |
Current assets held for sale | 0 | 2 |
Total current assets | 672 | 681 |
Property, plant and equipment, net of accumulated depreciation of $463 and $450, respectively | 155 | 154 |
Goodwill | 12 | 12 |
Intangible assets, net | 26 | 28 |
Operating lease right-of-use assets | 36 | 39 |
Restricted cash | 62 | 62 |
Pension and other postretirement assets | 1,179 | 1,233 |
Other long-term assets | 79 | 76 |
TOTAL ASSETS | 2,221 | 2,285 |
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | ||
Accounts payable, trade | 129 | 134 |
Short-term borrowings and current portion of long-term debt | 1 | 1 |
Current portion of operating leases | 14 | 15 |
Other current liabilities | 148 | 143 |
Total current liabilities | 292 | 293 |
Long-term debt, net of current portion | 324 | 316 |
Pension and other postretirement liabilities | 231 | 230 |
Operating leases, net of current portion | 28 | 31 |
Other long-term liabilities | 172 | 171 |
Total liabilities | 1,047 | 1,041 |
Commitments and Contingencies (Note 7) | ||
Redeemable, convertible preferred stock, no par value, $100 per share liquidation preference | 207 | 203 |
Equity | ||
Common stock, $0.01 par value | 0 | 0 |
Additional paid in capital | 1,159 | 1,160 |
Treasury stock, at cost | (11) | (11) |
Accumulated deficit | (502) | (570) |
Accumulated other comprehensive income | 321 | 462 |
Total shareholders’ equity | 967 | 1,041 |
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | 2,221 | 2,285 |
Series A Preferred Stock [Member] | ||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | ||
Redeemable, convertible preferred stock, no par value, $100 per share liquidation preference | $ 207 | $ 203 |
Consolidated Statement of Fin_2
Consolidated Statement of Financial Position (Unaudited) (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Allowance for trade receivables | $ 8 | $ 7 |
Property, plant, equipment, accumulated depreciation | $ 463 | $ 450 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Series A Preferred Stock [Member] | ||
Preferred stock, no par value (in dollars per share) | 0 | 0 |
Preferred stock, liquidation preference per share (in dollars per share) | $ 100 | $ 100 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Cash flows from operating activities: | |||
Net earnings | $ 68 | $ 17 | |
Adjustments to reconcile to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 16 | 14 | |
Pension income | (72) | (49) | |
Change in fair value of the Preferred Stock and Convertible Notes embedded derivatives | [1] | 2 | (1) |
Non-cash changes in workers' compensation and employee benefit reserves | 0 | (8) | |
Stock based compensation | 5 | 3 | |
Gain on sale of assets | (1) | 0 | |
Increase (decrease) in deferred taxes | 1 | (2) | |
Decrease (increase) in trade receivables | 17 | (26) | |
Decrease in miscellaneous receivables | 7 | 2 | |
Increase in inventories | (11) | (54) | |
(Decrease) increase in trade payables | (7) | 17 | |
Decrease in liabilities excluding borrowings and trade payables | (9) | (17) | |
Other items, net | 5 | 1 | |
Total adjustments | (47) | (120) | |
Net cash provided by (used in) operating activities | 21 | (103) | |
Cash flows from investing activities: | |||
Additions to properties | (11) | (9) | |
Net cash used in investing activities | (11) | (9) | |
Cash flows from financing activities: | |||
Net proceeds from Term Loan Credit Agreement | 0 | 49 | |
Preferred stock cash dividend payments | (2) | (2) | |
Net cash (used in) provided by financing activities | (2) | 47 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2) | (5) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 6 | (70) | |
Cash, cash equivalents and restricted cash, beginning of period | 286 | 423 | |
Cash, cash equivalents and restricted cash, end of period | [2] | $ 292 | $ 353 |
[1]Refer to Note 19, "Financial Instruments".[2]Refer to Note 2, “Cash, Cash Equivalents and Restricted Cash” for the components of cash, cash equivalents and restricted cash. |
Consolidated Statement of Equit
Consolidated Statement of Equity (Deficit) (Unaudited) - USD ($) $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock, Common [Member] | Preferred Stock [Member] | Total |
Balance at Dec. 31, 2021 | $ 0 | $ 1,166 | $ (596) | $ 221 | $ (10) | $ 196 | $ 781 |
Net earnings | 0 | 0 | (3) | 0 | 0 | 0 | (3) |
Currency translation adjustments | 0 | 0 | 0 | 5 | 0 | 0 | 5 |
Preferred stock cash dividends | 0 | (1) | 0 | 0 | 0 | 0 | (1) |
Preferred stock in-kind dividends | 0 | (1) | 0 | 0 | 0 | 1 | (1) |
Preferred stock deemed dividends | 0 | (1) | 0 | 0 | 0 | 1 | (1) |
Stock-based compensation | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
Balance at Mar. 31, 2022 | 0 | 1,165 | (599) | 226 | (10) | 198 | 782 |
Balance at Dec. 31, 2021 | 0 | 1,166 | (596) | 221 | (10) | 196 | 781 |
Net earnings | 17 | ||||||
Balance at Jun. 30, 2022 | 0 | 1,164 | (579) | 326 | (10) | 199 | 901 |
Balance at Mar. 31, 2022 | 0 | 1,165 | (599) | 226 | (10) | 198 | 782 |
Net earnings | 0 | 0 | 20 | 0 | 0 | 0 | 20 |
Currency translation adjustments | 0 | 0 | 0 | (10) | 0 | 0 | (10) |
Pension and other postretirement liability adjustments | 0 | 0 | 0 | 110 | 0 | 0 | 110 |
Preferred stock cash dividends | 0 | (1) | 0 | 0 | 0 | 0 | (1) |
Preferred stock in-kind dividends | 0 | (1) | 0 | 0 | 0 | 1 | (1) |
Stock-based compensation | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
Balance at Jun. 30, 2022 | 0 | 1,164 | (579) | 326 | (10) | 199 | 901 |
Balance at Dec. 31, 2022 | 0 | 1,160 | (570) | 462 | (11) | 203 | 1,041 |
Net earnings | 0 | 0 | 33 | 0 | 0 | 0 | 33 |
Currency translation adjustments | 0 | 0 | 0 | (1) | 0 | 0 | (1) |
Pension and other postretirement liability adjustments | (6) | (6) | |||||
Preferred stock cash dividends | 0 | (1) | 0 | 0 | 0 | 0 | (1) |
Preferred stock in-kind dividends | 0 | (1) | 0 | 0 | 0 | 1 | (1) |
Preferred stock deemed dividends | 0 | (1) | 0 | 0 | 0 | 1 | (1) |
Stock-based compensation | 0 | 4 | 0 | 0 | 0 | 0 | 4 |
Balance at Mar. 31, 2023 | 0 | 1,161 | (537) | 455 | (11) | 205 | 1,068 |
Balance at Dec. 31, 2022 | 0 | 1,160 | (570) | 462 | (11) | 203 | 1,041 |
Net earnings | 68 | ||||||
Balance at Jun. 30, 2023 | 0 | 1,159 | (502) | 321 | (11) | 207 | 967 |
Balance at Mar. 31, 2023 | 0 | 1,161 | (537) | 455 | (11) | 205 | 1,068 |
Net earnings | 0 | 0 | 35 | 0 | 0 | 0 | 35 |
Currency translation adjustments | 0 | 0 | 0 | (11) | 0 | 0 | (11) |
Pension and other postretirement liability adjustments | 0 | 0 | 0 | (123) | 0 | 0 | (123) |
Preferred stock cash dividends | 0 | (1) | 0 | 0 | 0 | 0 | (1) |
Preferred stock in-kind dividends | 0 | (2) | 0 | 0 | 0 | 2 | (2) |
Stock-based compensation | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
Balance at Jun. 30, 2023 | $ 0 | $ 1,159 | $ (502) | $ 321 | $ (11) | $ 207 | $ 967 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1: BASIS OF PRESENTATION The consolidated interim financial statements are unaudited, and certain information and footnote disclosures related thereto normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted in accordance with the instructions to Form 10 10 01 X. not 10 December 31, 2022 2022 10 Reclassification Certain amounts from previous periods have been reclassified to conform to the current period classification due to Kodak's new organization structure as of February 2023. 17, 9, RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In June 2016, 2016‐13, 326 2016‐13 2018‐19, 2019‐04, 2019‐05, 2019‐10, 2019‐11, 2020‐02, 2020‐03 2022‐02 December 15, 2022 ( January 1, 2023 January 1, 2023 not Allowance for Credit Losses Kodak records allowance for credit losses for the current expected credit losses inherent in the asset over its expected life. The allowance for credit losses is maintained based on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. Kodak records a specific reserve for individual accounts when Kodak becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS There are no |
Note 2 - Cash, Cash Equivalents
Note 2 - Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | NOTE 2: The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Financial Position that sums to the total of such amounts shown in the Consolidated Statement of Cash Flows: June 30, December 31, (in millions) 2023 2022 Cash and cash equivalents $ 223 $ 217 Restricted cash reported in Other current assets 7 7 Restricted cash 62 62 Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows $ 292 $ 286 Restricted cash reported in Other current assets on the Consolidated Statement of Financial Position primarily represented amounts that support hedging activities. Restricted cash included $43 million and $44 million as of June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 |
Note 3 - Inventories, Net
Note 3 - Inventories, Net | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 3: June 30, December 31, (in millions) 2023 2022 Finished goods $ 108 $ 98 Work in process 73 64 Raw materials 71 75 Total $ 252 $ 237 |
Note 4 - Debt and Credit Facili
Note 4 - Debt and Credit Facilities | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 4: Term Loan Credit Agreement On February 26, 2021, February 26, 2023 ( June 15, 2022. February 26, 2026, On June 30, 2023, Subject to the terms and conditions of the Term Loan Amendment, the Refinancing Term Loan Lenders provided the Company with a commitment to provide term loans in an aggregate principal amount of $450 million (the “Refinancing Term Loans”). On July 21, 2023, 2023 5.0% May 28, 2026 ( The Term Loan Amendment also amended and restated the Existing Term Loan Credit Agreement to, among other things, (i) extend the maturity date to the earlier of August 15, 2028 91 February 26, 2021, The Refinancing Term Loans bear interest at a rate of 7.5% per annum payable in cash and 5.0% per annum payable “in-kind” or in cash at the Company’s option, for an aggregate interest rate of 12.5% per annum. Obligations under the Amended and Restated Term Loan Credit Agreement are secured by a first not second The Amended and Restated Term Loan Credit Agreement continues to limit, among other things, the ability of the Company and its Restricted Subsidiaries (as defined in the Amended and Restated Term Loan Credit Agreement) to (i) incur indebtedness, (ii) incur or create liens, (iii) dispose of assets, (iv) make restricted payments and (v) make investments. The Amended and Restated Term Loan Credit Agreement does contain customary affirmative covenants, including delivery of certain of the Company’s financial statements, and customary event of default provisions, including a cross-default provision that would give rise to an event of default if there is a default under or acceleration of “Material Indebtedness” other than inter-company indebtedness. Material Indebtedness includes obligations having a principal amount of at least $20 million (increasing to $25 million if the Refinancing Term Loans are paid down to $200 not On an annual basis, the Company will prepay, within 10 10 no Board Rights Agreement On June 30, 2023, February 26, 2021 ( one $200 April 1, 2021 May 19, 2021. Convertible Notes On February 26, 2021, May 28, 2026. July 21, 2023, The Convertible Notes bore interest at a rate of 5.0% per annum, which was payable in cash on the maturity (or repayment) date and in additional shares of Common Stock on any conversion date. The payment of interest only at the maturity date had the same effect as delivering additional debt instruments to the Holders of the Convertible Notes and therefore was considered payable-in-kind ("PIK"). PIK was being added to the carrying value of the debt through the term. Interest expense was being recorded using the effective interest method. Conversion Features The Buyers had the right to e lec $0.01 If the closing price of the Common Stock equaled or exceeded $14.50 (subject to adjustment in the same manner as the conversion price) for 45 trading days within any period of 60 consecutive trading days, the Company had the right to cause the mandatory conversion of the Convertible Notes into shares of Common Stock. In the event of certain fundamental transactions, the Buyers had the right, within a period of 30 days following the occurrence of such transaction, to elect to either require prepayment of the Convertible Notes at par plus accrued and unpaid interest or convert all or a portion of the Convertible Notes into shares of Common Stock at the conversion rate then in effect plus any additional shares based on the price per share of Common Stock in connection with the fundamental transaction, or to receive the shares of a successor entity, if any. Embedded Derivatives The Company allocated $12 million of the net proceeds received from the issuance of the Convertible Notes to a derivative liability based on the aggregate fair value of the embedded features on the date of issuance which reduced the net carrying value of the Convertible Notes. The derivative was being accounted for at fair value with subsequent changes in the fair value being reported as part of Other charges (income), net in the Consolidated Statement of Operations. The fair value of the Convertible Notes embedded derivative at June 30, 2023 December 31, 2022 19, The carrying value of the Convertible Notes at June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 3 Amended and Restated ABL Credit Agreement On March 14, 2023, No. 5 “2023 February 26, 2024 June 12, 2024, 2023 91 February 26, 2024, 2023 2023 If Minimum Liquidity fell below the daily or quarterly required minimum an Event of Default would have occurred, in which case the Agent had the right to declare the obligation of each Lender to make Revolving Loans and of the Issuing Banks to issue Letters of Credit to be terminated, and declare the Revolving Loans, all interest thereon and all other amounts payable under the 2023 On July 21, 2023, 2023 The revolving loans bore interest at the rate of 3.50%‐4.00% 37.5‐50 50% 50%, 3.50%‐4.00% 2023 first second 2023 2023 Quarterly Minimum Liquidity was $143 million and $150 million at March 31, 2023 December 31, 2022, $50 June 30, 2023 not 2023 July 21, 2023. The Company was required to maintain Excess Availability above the greater of 12.5% of lender commitments ($11.25 million at both May 31, 2023 December 31, 2022) May 31, 2023 December 31, 2022, June 30, 2023 not 2023 July 21, 2023. If Excess Availability fell below the greater of 12.5% of lender commitments or $11.25 million, a Fixed Charge Coverage Ratio Trigger Event would have occurred. During any Fixed Charge Coverage Ratio Trigger Event, the Company was required to maintain a Fixed Charge Coverage Ratio of greater than or equal to 1.0 to 1.0. May 31, 2023 December 31, 2022, not 1.0. 1.0 1.0, 2023 As noted above, since Excess Availability was the greater of 12.5% of lender commitments or $11.25 million, Kodak was not 1.0. March 31, 2023 2023 1.0 1.0. June 30, 2023 not 2023 July 21, 2023. Letter of Credit Facility Agreement February 26, 2021, 2023 On March 14, 2023, “2023 February 26, 2024 June 12, 2024, 2023 91 2023 2023 As with the 2023 2023 2023 2023 1.0. The quarterly Minimum Liquidity, Excess Availability and Fixed Charge Coverage Ratio as of June 30, 2023 not June 2023 2023 first second third The Company issued approximately $58 million and $41 million letters of credit under the 2023 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 On June 30, 2023, “June 2023 2023 June 2023 June 2023 July 21, 2023. Under the terms and conditions of the June 2023 August 30, 2023, July 21, 2023, The June 2023 2023 x fifth 90 may 90 2023 The Company’s obligations under the Amended and Restated L/C Facility Agreement are guaranteed by the Subsidiary Guarantors and are secured by (i) a first second The L/C Facility Agreement contains certain affirmative and negative covenants similar to the affirmative and negative covenants contained in the Amended and Restated Term Loan Credit Agreement. The L/C Facility Agreement does not The Company will pay an unused line fee of 37.5‐ 50 50% 50% not not |
Note 5 - Redeemable, Convertibl
Note 5 - Redeemable, Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Temporary Equity Disclosure [Text Block] | NOTE 5: Redeemable convertible preferred stock was as follows: June 30, December 31, (in millions) 2023 2022 Series B preferred stock $ 96 $ 95 Series C preferred stock 111 108 Total $ 207 $ 203 Series B Preferred Stock On February 26, 2021 one million C2W one one not May 28, 2026 ( Dividend and Other Rights The Series B Preferred Stock ranks senior to the Common Stock and pari passu with the Series C Preferred Stock with respect to dividend rights and rights on liquidation, winding-up and dissolution. The Series B Preferred Stock has a liquidation preference of $100 six one Conversion Features Each share of Series B Preferred Stock is convertible, at the option of each holder at any time, into shares of Common Stock at the initial conversion rate of 9.5238 shares of Common Stock for each share of Series B Preferred Stock (equivalent to an initial conversion price of $10.50 per share of Common Stock). The initial conversion rate and the corresponding conversion price are subject to certain customary anti-dilution adjustments. If a holder elects to convert any shares of Series B Preferred Stock during a specified period in connection with a fundamental change (as defined in the Series B Certificate of Designations), such holder can elect to have the conversion rate adjusted and can elect to receive a cash payment in lieu of shares for a portion of the shares. Such holder will also be entitled to a payment in respect of accumulated dividends. In addition, the Company will have the right to require holders to convert any shares of Series B Preferred Stock in connection with certain reorganization events in which case the conversion rate will be adjusted, subject to certain limitations. The Company will have the right to cause the mandatory conversion of the Series B Preferred Stock into shares of Common Stock at any time after the initial issuance of the Series B Preferred Stock if the closing price of the Common Stock has equaled or exceeded $14.50 (subject to adjustment in the same manner as the conversion price) for 45 trading days within a period of 60 consecutive trading days. Embedded Conversion Features The Company allocated $1 million to a derivative liability based on the aggregate fair value of the embedded conversion feature of the Series B Preferred Stock on the date of issuance which reduced the original carrying value of the Series B Preferred Stock. The derivative is being accounted for at fair value with subsequent changes in the fair value being reported as part of Other charges (income), net in the Consolidated Statement of Operations. The fair value of the Series B Preferred Stock embedded derivative as of both June 30, 2023 December 31, 2022 19, The carrying value of the Series B Preferred Stock is being accreted to the mandatory redemption amount using the effective interest method to Additional paid in capital in the Consolidated Statement of Financial Position as a deemed dividend from the date of issuance through the mandatory redemption date, May 28, 2026. Series C Preferred Stock Purchase Agreement On February 26, 2021, no not two Dividend and Other Rights The Series C Preferred Stock has a liquidation preference of $100 Holders of Series C Preferred Stock are entitled to vote together with the holders of the Common Stock as a single class, in each case, on an as‐converted basis, except where a separate class vote is required by law. Holders of Series C Preferred Stock have certain limited special approval rights, including with respect to the issuance of pari passu or senior equity securities of the Company. The Investor has the right to nominate one third not May 19, 2021. Conversion Features Each share of Series C Preferred Stock is convertible, at the option of each holder at any time, into shares of Common Stock at the initial conversion price of $10 per share of Common Stock. The initial conversion price and the corresponding conversion rate are subject to certain customary anti-dilution adjustments and to proportional increase in the event the liquidation preference of the Series C Preferred Stock is automatically increased as described above. If a holder elects to convert any shares of Series C Preferred Stock during a specified period in connection with a fundamental change (as defined in the Series C Certificate of Designations), such holder can elect to have the conversion rate adjusted and can elect to receive a cash payment in lieu of shares for a portion of the shares of Common Stock. Such holder will also be entitled to a payment in respect of accumulated dividends and a payment based on the present value of all required remaining dividend payments through May 28, 2026, The Company will have the right to cause the mandatory conversion of the Series C Preferred Stock into shares of Common Stock (i) at any time after February 26, 2023 February 26, 2024 Embedded Conversion Features The Company allocated $2 million of the net proceeds received to a derivative liability based on the aggregate fair value of the embedded conversion feature of the Series C Preferred Stock on the dates of issuance which reduced the original carrying value of the Series C Preferred Stock. The derivative is being accounted for at fair value with subsequent changes in the fair value being reported as part of Other charges (income), net in the Consolidated Statement of Operations. The fair value of the Series C Preferred Stock derivative as of both June 30, 2023 December 31, 2022 19, The carrying value of the Series C Preferred Stock is being accreted to the mandatory redemption amount using the effective interest method to Additional paid in capital in the Consolidated Statement of Financial Position as a deemed dividend from the date of issuance through the mandatory redemption date. |
Note 6 - Leases
Note 6 - Leases | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Leases as Lessee and Lessor Disclosure[Text Block] | NOTE 6: Income recognized on operating lease arrangements for the three six June 30, 2023 2022 three six June 30, 2023 2022 Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Lease income - operating leases: Lease income $ 2 $ 3 $ 4 $ 5 Variable lease income 2 1 3 2 Total lease income $ 4 $ 4 $ 7 $ 7 |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 7: As of June 30, 2023 2023 2023 2023 Kodak’s Brazilian operations are involved in various litigation matters in Brazil and have received or been the subject of numerous governmental assessments related to indirect and other taxes in various stages of litigation, as well as civil litigation and disputes associated with former employees and contract labor. The tax matters, which comprise the majority of the litigation matters, are primarily related to federal and state value-added taxes. Kodak’s Brazilian operations are disputing these matters and intend to vigorously defend its position. Kodak routinely assesses all these matters as to the probability of ultimately incurring a liability in its Brazilian operations and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. As of June 30, 2023 may In connection with assessments in Brazil, local regulations may June 30, 2023 The Company has received five July 28, 2020 ( On May 19, 2021 one August 23, 2021, October 22, 2021. March 17, 2022, On September 2, 2021 one one October 4, 2021 10 January 18, 2022, February 16, 2022, April 15, 2022. September 30, 2022. November 14, 2022, December 27, 2022 December 23, 2022, Additional shareholder derivative lawsuits may no not 8‐K September 16, 2020. first not 10 not no second may The DFC Announcement has also prompted investigations by several congressional committees, the SEC and the New York Attorney General’s office. The Company has cooperated in those investigations. As previously reported, the Attorney General of the State of New York (the “NYAG”) has threatened to file a lawsuit against the Company and its Chief Executive Officer alleging violations of New York State’s Martin Act (the “Threatened Claim”). In connection with the Threatened Claim and pursuant to a special process under New York law, in 2021 2022, not In addition, Kodak is involved in various lawsuits, claims, investigations, remediations and proceedings, including, from time to time, commercial, customs, employment, environmental, tort and health and safety matters, which are being handled and defended in the ordinary course of business. Kodak is also subject, from time to time, to various assertions, claims, proceedings and requests for indemnification concerning intellectual property, including patent infringement suits involving technologies that are incorporated in a broad spectrum of Kodak’s products. These matters are in various stages of investigation and litigation and are being vigorously defended. Based on information currently available, Kodak does not |
Note 8 - Guarantees
Note 8 - Guarantees | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Guarantees [Text Block] | NOTE 8: In connection with the settlement of certain of the Company’s historical environmental liabilities at Eastman Business Park, a more than 1,200-acre technology center and industrial complex in Rochester, New York, in the event the historical liabilities exceed $99 million, the Company will become liable for 50% of the portion above $99 no no Extended Warranty Arrangements Kodak offers its customers extended warranty arrangements that are generally one may three six December 31, 2022 June 30, 2023, (in millions) Deferred revenue on extended warranties as of December 31, 2022 $ 19 New extended warranty and maintenance arrangements deferred 44 Recognition of extended warranty and maintenance arrangement revenue (45 ) Deferred revenue on extended warranties as of June 30, 2023 $ 18 |
Note 9 - Revenue
Note 9 - Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 9: Disaggregation of Revenue The following tables present revenue disaggregated by major product and geography: Major Product: Three Months Ended June 30, 2023 Advanced Materials and (in millions) Print Chemicals Brand All Other Total Core products (1) Plates, inks and other consumables $ 148 $ 6 $ — $ — $ 154 Ongoing service arrangements 47 — — — 47 Total annuities 195 6 — — 201 Equipment & software 20 — — — 20 Film and chemicals — 61 — — 61 Total Core 215 67 — — 282 Growth products (2) — 5 — — 5 Other (3) — — 4 4 8 Total $ 215 $ 72 $ 4 $ 4 $ 295 Six Months Ended June 30, 2023 Advanced Materials and (in millions) Print Chemicals Brand All Other Total Core products (1) Plates, inks and other consumables $ 292 $ 12 $ — $ — $ 304 Ongoing service arrangements 97 — — — 97 Total annuities 389 12 — — 401 Equipment & software 35 — — — 35 Film and chemicals — 113 — — 113 Total Core 424 125 — — 549 Growth products (2) — 8 — — 8 Other (3) — — 8 8 16 Total $ 424 $ 133 $ 8 $ 8 $ 573 Three Months Ended June 30, 2022 Advanced Materials and (in millions) Print Chemicals Brand All Other Total Core products (1) Plates, inks and other consumables $ 182 $ 6 $ — $ — $ 188 Ongoing service arrangements 52 — — — 52 Total annuities 234 6 — — 240 Equipment & software 18 — — — 18 Film and chemicals — 51 — — 51 Total Core 252 57 — — 309 Growth products (2) — 4 — — 4 Other (3) — — 4 4 8 Total $ 252 $ 61 $ 4 $ 4 $ 321 Six Months Ended June 30, 2022 Advanced Materials and (in millions) Print Chemicals Brand All Other Total Core products (1) Plates, inks and other consumables $ 343 $ 13 $ — $ — $ 356 Ongoing service arrangements 105 — — — 105 Total annuities 448 13 — — 461 Equipment & software 32 — — — 32 Film and chemicals — 95 — — 95 Total Core 480 108 — — 588 Growth products (2) 7 7 Other (3) — — 8 8 16 Total $ 480 $ 115 $ 8 $ 8 $ 611 ( 1 Core includes the Print segment and the Motion Picture and Industrial Film and Chemicals businesses within the Advanced Materials and Chemicals segment, excluding coating and product commercialization services (“Coating Services”). ( 2 Growth consists of Coating Services and Advanced Materials and Functional Printing within the Advanced Materials and Chemicals segment. ( 3 Other consists of Intellectual Property Licensing ("IP Licensing"), Brand Licensing and Eastman Business Park. Geography ( 1 Three Months Ended June 30, 2023 Advanced Materials and (in millions) Print Chemicals Brand All Other Total United States $ 66 $ 59 $ 4 $ 4 $ 133 Canada 5 — — — 5 North America 71 59 4 4 138 Europe, Middle East and Africa 92 5 — — 97 Asia Pacific 46 8 — — 54 Latin America 6 — — — 6 Total $ 215 $ 72 $ 4 $ 4 $ 295 Six Months Ended June 30, 2023 Advanced Materials and (in millions) Print Chemicals Brand All Other Total United States $ 132 $ 107 $ 8 $ 8 $ 255 Canada 8 1 — — 9 North America 140 108 8 8 264 Europe, Middle East and Africa 181 10 — — 191 Asia Pacific 91 15 — — 106 Latin America 12 — — — 12 Total $ 424 $ 133 $ 8 $ 8 $ 573 Three Months Ended June 30, 2022 Advanced Materials and (in millions) Print Chemicals Brand All Other Total United States $ 73 $ 46 $ 4 $ 4 $ 127 Canada 5 1 — — 6 North America 78 47 4 4 133 Europe, Middle East and Africa 117 5 — — 122 Asia Pacific 49 9 — — 58 Latin America 8 — — — 8 Total $ 252 $ 61 $ 4 $ 4 $ 321 Six Months Ended June 30, 2022 Advanced Materials and (in millions) Print Chemicals Brand All Other Total United States $ 135 $ 86 $ 8 $ 8 $ 237 Canada 10 1 — — 11 North America 145 87 8 8 248 Europe, Middle East and Africa 220 9 — — 229 Asia Pacific 98 19 — — 117 Latin America 17 — — — 17 Total $ 480 $ 115 $ 8 $ 8 $ 611 ( 1 Sales are reported in the geographic area in which they originate. Contract Balances The timing of revenue recognition, billings and cash collections results in billed trade receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) in the Consolidated Statement of Financial Position. The contract assets are transferred to trade receivables when the rights to consideration become unconditional. The amount recorded for contract assets at both June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Revenue recognized for the three six June 30, 2023 2022 2023 2022 June 30, 2023 three six June 30, 2023 June 30, 2022 three six June 30, 2022 Kodak does not one one June 30, 2023 2023, 2024, 2025 thereafter |
Note 10 - Other Charges (Income
Note 10 - Other Charges (Income) | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Other Nonoperating Income and Expense [Text Block] | NOTE 10: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Change in fair value of embedded conversion features derivative liability (1) $ 1 $ (4 ) 2 (1 ) Loss on foreign exchange transactions 3 2 3 2 Other (2) (1 ) 1 (9 ) 1 Total $ 3 $ (1 ) $ (4 ) $ 2 ( 1 Refer to Note 19, ( 2 Includes interest income associated with a refund received in the first 2023 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 11: Kodak’s income tax provision (benefit) and effective tax rate were as follows: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Earnings from operations before income taxes $ 37 $ 19 $ 78 $ 18 Effective tax rate 5.4 % (5.3 )% 12.8 % 5.6 % Provision (benefit) for income taxes 2 (1 ) 10 1 Provision for income taxes at U.S. statutory tax rate 8 4 16 4 Difference between tax at effective vs. statutory rate $ (6 ) $ (5 ) $ (6 ) $ (3 ) For the three six June 30, 2023, 1 2 3 4 During the quarter ended June 30, 2023, 2013 2017. For the three June 30, 2022, 1 2 3 For the six June 30, 2022, 1 2 3 4 During the quarter ended March 31, 2022, 2015 2018. |
Note 12 - Retirement Plans and
Note 12 - Retirement Plans and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | NOTE 12: Components of the net periodic benefit cost for all major U.S. and non-U.S. defined benefit plans are as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in millions) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Major defined benefit plans: Service cost $ 4 $ — $ 3 $ 1 $ 7 $ 1 $ 6 $ 2 Interest cost 29 5 17 2 58 10 32 4 Expected return on plan assets (64 ) (5 ) (44 ) (3 ) (128 ) (10 ) (88 ) (7 ) Amortization of: Prior service cost (credit) 1 — (1 ) — 3 — (3 ) — Actuarial (gain) loss (7 ) 1 — 2 (14 ) 1 — 5 Total net pension (income) expense $ (37 ) $ 1 $ (25 ) $ 2 $ (74 ) $ 2 $ (53 ) $ 4 The Kodak Retirement Income Plan (“KRIP”) was remeasured on May 31, 2023 As a result of the remeasurement and plan amendment, KRIP’s projected benefit obligation increased $38 million, including $9 million from a decrease in the discount rate used for the remeasurement, and $29 million due to the impact of the plan amendment. The discount rate assumption used in the May 31, 2023 December 31, 2022 May 31, 2023 KRIP was remeasured on May 31, 2022 9% January 1, 2022. May 31, 2022 December 31, 2021 May 31, 2022 |
Note 13 - Earnings Per Share
Note 13 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 13: Basic earnings per share computations are based on the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share computations include any dilutive effect of potential common shares. In periods with a net loss available to common shareholders, diluted earnings per share are calculated using weighted-average basic shares for that period, as utilizing diluted shares would be anti-dilutive to loss per share. A reconciliation of the amounts used to calculate basic and diluted earnings per share for the three six June 30, 2023 2022 Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Net earnings $ 35 $ 20 $ 68 $ 17 Less: Series B Preferred stock cash dividends (1 ) (1 ) (2 ) (2 ) Less: Series C Preferred stock in-kind dividends (2 ) (1 ) (3 ) (2 ) Less: Preferred stock deemed dividends — — (1 ) (1 ) Less: Earnings attributable to Series C Preferred shareholders (4 ) (2 ) (8 ) (2 ) Net earnings available to common shareholders - basic $ 28 $ 16 $ 54 $ 10 Effect of dilutive securities: Add back: Series B preferred stock cash and deemed dividends $ 1 $ 1 $ 2 $ — Add back: Convertible Notes interest expense 1 — 2 — Net earnings available to common shareholders - diluted $ 30 $ 17 $ 58 $ 10 Three Months Ended Six Months Ended June 30, June 30, (in millions of shares) 2023 2022 2023 2022 Weighted average shares — basic 79.4 78.9 79.3 78.8 Effect of dilutive securities Employee stock options 0.7 1.2 0.6 1.1 Unvested restricted stock units 0.9 0.6 0.8 0.5 Series B Preferred Stock 9.5 9.5 9.5 — Convertible Notes 2.5 — 2.5 — Weighted average shares — diluted 93.0 90.2 92.7 80.4 The computation of diluted earnings per share for the three six June 30, 2023 1 2 3 six June 30, 2023 The computation of diluted earnings per share for the three six June 30, 2022 1 2 3 In addition, the computation of diluted earnings per share for the six June 30, 2022 |
Note 14 - Stock-based Compensat
Note 14 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | NOTE 14: On February 16, 2023, 2016 2020 No seven ten February 16, 2023 Option Award Modifications Immediately Before Immediately After Range of fair values 0.000 -2.1414 1.322 -2.2424 Range of risk-free interest rates 3.82% - 4.99% 3.82% - 4.99% Range of remaining contractual terms (in years) 0.37 - 4.25 3.37 - 7.25 Range of weighted volatilities 66.96% - 103.39% 66.96% - 103.39% Expected dividend yield 0.00% 0.00% As a result of the modification, Kodak recognized $3 million of incremental compensation expense in the first 2023, not |
Note 15 - Shareholders' Equity
Note 15 - Shareholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | NOTE 15: EQUITY The Company has 560 million shares of authorized stock, consisting of: (i) 500 million shares of common stock, par value $0.01 per share and (ii) 60 million shares of preferred stock, no one Common Stock As of June 30, 2023 December 31, 2022 Preferred Stock Preferred stock issued and outstanding as of June 30, 2023 December 31, 2022 1.1 Treasury Stock Treasury stock consisted of approximately 0.9 million shares as of both June 30, 2023 December 31, 2022 |
Note 16 - Other Comprehensive (
Note 16 - Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 16: The changes in Other comprehensive (loss) income by component, were as follows: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Currency translation adjustments Currency translation adjustments $ (11 ) $ (10 ) $ (12 ) $ (5 ) Pension and other postretirement benefit plan changes Newly established net (loss) gain (117 ) 109 (117 ) 109 Tax provision — — — — Newly established net (loss) gain, net of tax (117 ) 109 (117 ) 109 Reclassification adjustments: Amortization of prior service cost (credit) (1) 2 (1 ) 3 (3 ) Amortization of actuarial (gains) losses (1) (8 ) 2 (15 ) 4 Total reclassification adjustments (6 ) 1 (12 ) 1 Tax provision — — — — Reclassification adjustments, net of tax (6 ) 1 (12 ) 1 Pension and other postretirement benefit plan changes, net of tax (123 ) 110 (129 ) 110 Other comprehensive (loss) income $ (134 ) $ 100 $ (141 ) $ 105 ( 1 Reclassified to Total Net Periodic Benefit Cost - refer to Note 12, |
Note 17 - Segment Information
Note 17 - Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 17: Change in Segments February 2023 No Kodak has three reportable segments: Print, Advanced Materials and Chemicals and Brand. A description of Kodak’s reportable segments follows. Print Advanced Materials and Chemicals: four Brand All Other Segment financial information is shown below: Segment Revenues Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Print $ 215 $ 252 $ 424 $ 480 Advanced Materials and Chemicals 72 61 133 115 Brand 4 4 8 8 All Other 4 4 8 8 Consolidated total $ 295 $ 321 $ 573 $ 611 Segment Operational EBITDA and Consolidated Earnings from Operations Before Income Taxes Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Print $ 8 $ 6 $ 14 $ (1 ) Advanced Materials and Chemicals 11 1 11 (2 ) Brand 3 4 6 7 Total of reportable segments 22 11 31 4 All other 1 1 1 1 Depreciation and amortization (8 ) (7 ) (16 ) (14 ) Restructuring costs and other (5 ) — (6 ) — Stock based compensation (1 ) (1 ) (5 ) (3 ) Consulting and other costs (1) 1 (3 ) 11 (5 ) Idle costs (2) (1 ) — (1 ) (1 ) Other operating income (3) 1 — — — Interest expense (3) (11 ) (10 ) (22 ) (19 ) Pension income excluding service cost component (3) 41 27 81 57 Other (charges) income, net (3) (3 ) 1 4 (2 ) Consolidated earnings from operations before income taxes $ 37 $ 19 $ 78 $ 18 ( 1 Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives, investigations and litigation. Consulting and other costs includes $1 million and $11 million of income in the three six June 30, 2023, first six 2023, December 31, 2022. ( 2 Consists of third not ( 3 As reported in the Consolidated Statement of Operations. Kodak decreased employee benefit reserves by approximately $1 million in the three June 30, 2023, six June 30, 2023 Kodak decreased workers’ compensation reserves by approximately $4 million and $8 million in the three six June 30, 2022, three June 30, 2022 six June 30, 2022 Segment Measure of Profit and Loss Kodak’s segment measure of profit and loss is an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”). As demonstrated in the above table, Operational EBITDA represents the earnings (loss) from operations excluding the provision for income taxes; non-service cost components of pension and other postemployment benefits (“OPEB”) income; depreciation and amortization expense; restructuring costs and other; stock-based compensation expense; consulting and other costs; idle costs; interest expense, other operating income, net and other (charges) income, net. Kodak’s segments are measured using Operational EBITDA both before and after allocation of corporate selling, general and administrative expenses ("SG&A"). The segment earnings measure reported is after allocation of corporate SG&A as this most closely aligns with U.S. GAAP. Research and Development activities not |
Note 18 - Business Combination
Note 18 - Business Combination | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 18: On May 26, 2023 The acquisition was immaterial to Kodak's financial position as of June 30, 2023 three June 30, 2023. |
Note 19 - Financial Instruments
Note 19 - Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 19: Kodak, as a result of its global operating and financing activities, is exposed to changes in foreign currency exchange rates and interest rates, which may not Kodak’s foreign currency forward contracts are not June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 The net effect of foreign currency forward contracts in the results of operations is shown in the following table: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Net loss from derivatives not designated as hedging instruments $ 11 $ 7 $ 12 $ 10 Kodak had no derivatives designated as hedging instruments for the three six June 30, 2023 2022 In the event of a default under any of the Company’s credit agreements, or a default under any derivative contract or similar obligation of Kodak, subject to certain minimum thresholds, the derivative counterparties would have the right, although not The Company concluded that the Convertible Notes were considered more akin to a debt-type instrument and that the economic characteristics and risks of certain of the embedded conversion features were not not June 30, 2023 December 31, 2022 The Company concluded that the Series B Preferred Stock and the Series C Preferred Stock are each considered more akin to a debt-type instrument and that the economic characteristics and risks of the conversion in the event of a Fundamental Change is not June 30, 2023 December 31, 2022 The net effect of the Preferred Stock and Convertible Notes embedded derivatives on the results of operations is shown in the following table: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Net loss (gain) from Preferred Stock and Convertible Notes embedded derivatives $ 1 $ (4 ) $ 2 $ (1 ) Fair Value Fair values of Kodak’s foreign currency forward contracts are determined using observable inputs (Level 2 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Transfers between levels of the fair value hierarchy are recognized based on the actual date of the event or change in circumstances that caused the transfer. There were no three six June 30, 2023 The fair values of the embedded conversion features derivatives were calculated using unobservable inputs (Level 3 The following tables present the key inputs in the determination of fair value for the embedded conversion features: Convertible Notes: Valuation Date June 30, December 31, 2023 2022 Total value of embedded derivative liability ($ millions) $ 4 $ 2 Kodak's closing stock price $ 4.62 $ 3.05 Expected stock price volatility 60.00 % 50.00 % Risk free rate 4.52 % 4.17 % Implied credit spread on the Convertible Notes 24.23 % 26.19 % Series B Preferred Stock: Valuation Date June 30, December 31, 2023 2022 Total value of embedded derivative liability ($ millions) $ 1 $ 1 Kodak's closing stock price $ 4.62 $ 3.05 Expected stock price volatility 60.00 % 50.00 % Risk free rate 4.52 % 4.17 % Implied credit spread on the preferred stock 25.23 % 27.19 % Series C Preferred Stock: Valuation Date June 30, December 31, 2023 2022 Total value of embedded derivative liability ($ millions) $ 1 $ 1 Kodak's closing stock price $ 4.62 $ 3.05 Expected stock price volatility 60.00 % 50.00 % Risk free rate 4.52 % 4.17 % Implied credit spread on the preferred stock 27.23 % 29.19 % The Fundamental Change values at issuance were calculated as the difference between the total value of the Convertible Notes, Series B or Series C Preferred Stock, as applicable, and the sum of the net present value of the cash flows if the Convertible Notes are repaid at their maturity date or Series B and Series C Preferred Stock are redeemed on their redemption date and the values of the other embedded derivatives. The Fundamental Change values reduce the value of the embedded conversion features derivative liability. Other than events that alter the likelihood of a fundamental change or reorganization event, the value of the Fundamental Change reflects the value as of the issuance date, amortized for the passage of time. The fair values of long-term debt (Level 2 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 |
Note 2 - Cash, Cash Equivalen_2
Note 2 - Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Cash and Cash Equivalents [Table Text Block] | June 30, December 31, (in millions) 2023 2022 Cash and cash equivalents $ 223 $ 217 Restricted cash reported in Other current assets 7 7 Restricted cash 62 62 Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows $ 292 $ 286 |
Note 3 - Inventories, Net (Tabl
Note 3 - Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, December 31, (in millions) 2023 2022 Finished goods $ 108 $ 98 Work in process 73 64 Raw materials 71 75 Total $ 252 $ 237 |
Note 5 - Redeemable, Converti_2
Note 5 - Redeemable, Convertible Preferred Stock (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Temporary Equity [Table Text Block] | June 30, December 31, (in millions) 2023 2022 Series B preferred stock $ 96 $ 95 Series C preferred stock 111 108 Total $ 207 $ 203 |
Note 6 - Leases (Tables)
Note 6 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Lease Income [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Lease income - operating leases: Lease income $ 2 $ 3 $ 4 $ 5 Variable lease income 2 1 3 2 Total lease income $ 4 $ 4 $ 7 $ 7 |
Note 8 - Guarantees (Tables)
Note 8 - Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | (in millions) Deferred revenue on extended warranties as of December 31, 2022 $ 19 New extended warranty and maintenance arrangements deferred 44 Recognition of extended warranty and maintenance arrangement revenue (45 ) Deferred revenue on extended warranties as of June 30, 2023 $ 18 |
Note 9 - Revenue (Tables)
Note 9 - Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended June 30, 2023 Advanced Materials and (in millions) Print Chemicals Brand All Other Total Core products (1) Plates, inks and other consumables $ 148 $ 6 $ — $ — $ 154 Ongoing service arrangements 47 — — — 47 Total annuities 195 6 — — 201 Equipment & software 20 — — — 20 Film and chemicals — 61 — — 61 Total Core 215 67 — — 282 Growth products (2) — 5 — — 5 Other (3) — — 4 4 8 Total $ 215 $ 72 $ 4 $ 4 $ 295 Six Months Ended June 30, 2023 Advanced Materials and (in millions) Print Chemicals Brand All Other Total Core products (1) Plates, inks and other consumables $ 292 $ 12 $ — $ — $ 304 Ongoing service arrangements 97 — — — 97 Total annuities 389 12 — — 401 Equipment & software 35 — — — 35 Film and chemicals — 113 — — 113 Total Core 424 125 — — 549 Growth products (2) — 8 — — 8 Other (3) — — 8 8 16 Total $ 424 $ 133 $ 8 $ 8 $ 573 Three Months Ended June 30, 2022 Advanced Materials and (in millions) Print Chemicals Brand All Other Total Core products (1) Plates, inks and other consumables $ 182 $ 6 $ — $ — $ 188 Ongoing service arrangements 52 — — — 52 Total annuities 234 6 — — 240 Equipment & software 18 — — — 18 Film and chemicals — 51 — — 51 Total Core 252 57 — — 309 Growth products (2) — 4 — — 4 Other (3) — — 4 4 8 Total $ 252 $ 61 $ 4 $ 4 $ 321 Six Months Ended June 30, 2022 Advanced Materials and (in millions) Print Chemicals Brand All Other Total Core products (1) Plates, inks and other consumables $ 343 $ 13 $ — $ — $ 356 Ongoing service arrangements 105 — — — 105 Total annuities 448 13 — — 461 Equipment & software 32 — — — 32 Film and chemicals — 95 — — 95 Total Core 480 108 — — 588 Growth products (2) 7 7 Other (3) — — 8 8 16 Total $ 480 $ 115 $ 8 $ 8 $ 611 Three Months Ended June 30, 2023 Advanced Materials and (in millions) Print Chemicals Brand All Other Total United States $ 66 $ 59 $ 4 $ 4 $ 133 Canada 5 — — — 5 North America 71 59 4 4 138 Europe, Middle East and Africa 92 5 — — 97 Asia Pacific 46 8 — — 54 Latin America 6 — — — 6 Total $ 215 $ 72 $ 4 $ 4 $ 295 Six Months Ended June 30, 2023 Advanced Materials and (in millions) Print Chemicals Brand All Other Total United States $ 132 $ 107 $ 8 $ 8 $ 255 Canada 8 1 — — 9 North America 140 108 8 8 264 Europe, Middle East and Africa 181 10 — — 191 Asia Pacific 91 15 — — 106 Latin America 12 — — — 12 Total $ 424 $ 133 $ 8 $ 8 $ 573 Three Months Ended June 30, 2022 Advanced Materials and (in millions) Print Chemicals Brand All Other Total United States $ 73 $ 46 $ 4 $ 4 $ 127 Canada 5 1 — — 6 North America 78 47 4 4 133 Europe, Middle East and Africa 117 5 — — 122 Asia Pacific 49 9 — — 58 Latin America 8 — — — 8 Total $ 252 $ 61 $ 4 $ 4 $ 321 Six Months Ended June 30, 2022 Advanced Materials and (in millions) Print Chemicals Brand All Other Total United States $ 135 $ 86 $ 8 $ 8 $ 237 Canada 10 1 — — 11 North America 145 87 8 8 248 Europe, Middle East and Africa 220 9 — — 229 Asia Pacific 98 19 — — 117 Latin America 17 — — — 17 Total $ 480 $ 115 $ 8 $ 8 $ 611 |
Note 10 - Other Charges (Inco_2
Note 10 - Other Charges (Income) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Other Nonoperating Income, by Component [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Change in fair value of embedded conversion features derivative liability (1) $ 1 $ (4 ) 2 (1 ) Loss on foreign exchange transactions 3 2 3 2 Other (2) (1 ) 1 (9 ) 1 Total $ 3 $ (1 ) $ (4 ) $ 2 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Earnings from operations before income taxes $ 37 $ 19 $ 78 $ 18 Effective tax rate 5.4 % (5.3 )% 12.8 % 5.6 % Provision (benefit) for income taxes 2 (1 ) 10 1 Provision for income taxes at U.S. statutory tax rate 8 4 16 4 Difference between tax at effective vs. statutory rate $ (6 ) $ (5 ) $ (6 ) $ (3 ) |
Note 12 - Retirement Plans an_2
Note 12 - Retirement Plans and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in millions) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Major defined benefit plans: Service cost $ 4 $ — $ 3 $ 1 $ 7 $ 1 $ 6 $ 2 Interest cost 29 5 17 2 58 10 32 4 Expected return on plan assets (64 ) (5 ) (44 ) (3 ) (128 ) (10 ) (88 ) (7 ) Amortization of: Prior service cost (credit) 1 — (1 ) — 3 — (3 ) — Actuarial (gain) loss (7 ) 1 — 2 (14 ) 1 — 5 Total net pension (income) expense $ (37 ) $ 1 $ (25 ) $ 2 $ (74 ) $ 2 $ (53 ) $ 4 |
Note 13 - Earnings Per Share (T
Note 13 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Net earnings $ 35 $ 20 $ 68 $ 17 Less: Series B Preferred stock cash dividends (1 ) (1 ) (2 ) (2 ) Less: Series C Preferred stock in-kind dividends (2 ) (1 ) (3 ) (2 ) Less: Preferred stock deemed dividends — — (1 ) (1 ) Less: Earnings attributable to Series C Preferred shareholders (4 ) (2 ) (8 ) (2 ) Net earnings available to common shareholders - basic $ 28 $ 16 $ 54 $ 10 Effect of dilutive securities: Add back: Series B preferred stock cash and deemed dividends $ 1 $ 1 $ 2 $ — Add back: Convertible Notes interest expense 1 — 2 — Net earnings available to common shareholders - diluted $ 30 $ 17 $ 58 $ 10 Three Months Ended Six Months Ended June 30, June 30, (in millions of shares) 2023 2022 2023 2022 Weighted average shares — basic 79.4 78.9 79.3 78.8 Effect of dilutive securities Employee stock options 0.7 1.2 0.6 1.1 Unvested restricted stock units 0.9 0.6 0.8 0.5 Series B Preferred Stock 9.5 9.5 9.5 — Convertible Notes 2.5 — 2.5 — Weighted average shares — diluted 93.0 90.2 92.7 80.4 |
Note 14 - Stock-based Compens_2
Note 14 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | February 16, 2023 Option Award Modifications Immediately Before Immediately After Range of fair values 0.000 -2.1414 1.322 -2.2424 Range of risk-free interest rates 3.82% - 4.99% 3.82% - 4.99% Range of remaining contractual terms (in years) 0.37 - 4.25 3.37 - 7.25 Range of weighted volatilities 66.96% - 103.39% 66.96% - 103.39% Expected dividend yield 0.00% 0.00% |
Note 16 - Other Comprehensive_2
Note 16 - Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Currency translation adjustments Currency translation adjustments $ (11 ) $ (10 ) $ (12 ) $ (5 ) Pension and other postretirement benefit plan changes Newly established net (loss) gain (117 ) 109 (117 ) 109 Tax provision — — — — Newly established net (loss) gain, net of tax (117 ) 109 (117 ) 109 Reclassification adjustments: Amortization of prior service cost (credit) (1) 2 (1 ) 3 (3 ) Amortization of actuarial (gains) losses (1) (8 ) 2 (15 ) 4 Total reclassification adjustments (6 ) 1 (12 ) 1 Tax provision — — — — Reclassification adjustments, net of tax (6 ) 1 (12 ) 1 Pension and other postretirement benefit plan changes, net of tax (123 ) 110 (129 ) 110 Other comprehensive (loss) income $ (134 ) $ 100 $ (141 ) $ 105 |
Note 17 - Segment Information (
Note 17 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Print $ 215 $ 252 $ 424 $ 480 Advanced Materials and Chemicals 72 61 133 115 Brand 4 4 8 8 All Other 4 4 8 8 Consolidated total $ 295 $ 321 $ 573 $ 611 Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Print $ 8 $ 6 $ 14 $ (1 ) Advanced Materials and Chemicals 11 1 11 (2 ) Brand 3 4 6 7 Total of reportable segments 22 11 31 4 All other 1 1 1 1 Depreciation and amortization (8 ) (7 ) (16 ) (14 ) Restructuring costs and other (5 ) — (6 ) — Stock based compensation (1 ) (1 ) (5 ) (3 ) Consulting and other costs (1) 1 (3 ) 11 (5 ) Idle costs (2) (1 ) — (1 ) (1 ) Other operating income (3) 1 — — — Interest expense (3) (11 ) (10 ) (22 ) (19 ) Pension income excluding service cost component (3) 41 27 81 57 Other (charges) income, net (3) (3 ) 1 4 (2 ) Consolidated earnings from operations before income taxes $ 37 $ 19 $ 78 $ 18 |
Note 19 - Financial Instrumen_2
Note 19 - Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Net loss from derivatives not designated as hedging instruments $ 11 $ 7 $ 12 $ 10 |
Embedded Derivative, Gain (Loss) on Embedded Derivative [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2023 2022 2023 2022 Net loss (gain) from Preferred Stock and Convertible Notes embedded derivatives $ 1 $ (4 ) $ 2 $ (1 ) |
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | Valuation Date June 30, December 31, 2023 2022 Total value of embedded derivative liability ($ millions) $ 4 $ 2 Kodak's closing stock price $ 4.62 $ 3.05 Expected stock price volatility 60.00 % 50.00 % Risk free rate 4.52 % 4.17 % Implied credit spread on the Convertible Notes 24.23 % 26.19 % Valuation Date June 30, December 31, 2023 2022 Total value of embedded derivative liability ($ millions) $ 1 $ 1 Kodak's closing stock price $ 4.62 $ 3.05 Expected stock price volatility 60.00 % 50.00 % Risk free rate 4.52 % 4.17 % Implied credit spread on the preferred stock 25.23 % 27.19 % Valuation Date June 30, December 31, 2023 2022 Total value of embedded derivative liability ($ millions) $ 1 $ 1 Kodak's closing stock price $ 4.62 $ 3.05 Expected stock price volatility 60.00 % 50.00 % Risk free rate 4.52 % 4.17 % Implied credit spread on the preferred stock 27.23 % 29.19 % |
Note 2 - Cash, Cash Equivalen_3
Note 2 - Cash, Cash Equivalents and Restricted Cash (Details Textual) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
CHINA | Lucky Hua Guang Graphics Co Ltd [Member] | ||
Restricted Cash and Investments, Noncurrent | $ 5 | $ 5 |
BRAZIL | ||
Restricted Cash and Investments, Noncurrent | 6 | 6 |
UNITED KINGDOM | ||
Restricted Cash and Investments, Noncurrent | 5 | 5 |
Cash Collateralized Letter Of Credit Facility [Member] | ||
Restricted Cash and Investments, Noncurrent | $ 43 | $ 44 |
Note 2 - Cash, Cash Equivalen_4
Note 2 - Cash, Cash Equivalents and Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | [1] | Dec. 31, 2021 | |
Cash and cash equivalents | $ 223 | $ 217 | ||||
Restricted cash reported in Other current assets | 7 | 7 | ||||
Restricted cash | 62 | 62 | ||||
Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows | $ 292 | [1] | $ 286 | $ 353 | $ 423 | |
[1]Refer to Note 2, “Cash, Cash Equivalents and Restricted Cash” for the components of cash, cash equivalents and restricted cash. |
Note 3 - Inventories, Net - Sch
Note 3 - Inventories, Net - Schedule of Current Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Finished goods | $ 108 | $ 98 |
Work in process | 73 | 64 |
Raw materials | 71 | 75 |
Total | $ 252 | $ 237 |
Note 4 - Debt and Credit Faci_2
Note 4 - Debt and Credit Facilities (Details Textual) | 6 Months Ended | 12 Months Ended | ||||||||||
Jul. 21, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 14, 2023 USD ($) | Feb. 26, 2021 USD ($) $ / shares | Jun. 30, 2023 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / shares | Feb. 26, 2024 USD ($) | Sep. 01, 2023 USD ($) | Aug. 30, 2023 USD ($) | Jul. 01, 2023 USD ($) | May 31, 2023 USD ($) | |
Proceeds from Issuance of Debt | $ 0 | $ 49,000,000 | ||||||||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Percentage Of Stock Of Material Domestic Subsidiaries Securing Credit Agreement | 100% | |||||||||||
Percentage Of Stock Of Material First Tier Foreign Subsidiaries Securing Credit Agreement | 65% | |||||||||||
A B L Credit Agreement [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 90,000,000 | |||||||||||
Amended A B L Credit Agreement [Member] | ||||||||||||
Excess Availability Percentage Of Lender Commitments Threshold Triggering Cash Dominion Control | 12.50% | |||||||||||
Lender Commitments Threshold Trigger Excess Availability Amount | $ 11,250,000 | |||||||||||
Excess Availability Below Which Fixed Charge Coverage Ratios Triggered | 12.50% | |||||||||||
Fixed Charged Coverage Ratio Required | 1 | |||||||||||
Letters of Credit Outstanding, Amount | $ 58,000,000 | $ 58,000,000 | ||||||||||
L C Facility Agreement [Member] | ||||||||||||
Line of Credit Facility, Daily Minimum Liquidity | $ 50,000,000 | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |||||||||||
Line of Credit Facility, Aggregate Cash Collateral Percentage | 104% | |||||||||||
Letters of Credit Outstanding, Amount | $ 41,000,000 | 43,000,000 | ||||||||||
Letter Of Credit Cash Collateral | 43,000,000 | 44,000,000 | ||||||||||
Letter of Credit, Commitment Amount | $ 50,000,000 | |||||||||||
Line of Credit Facility, Percentage of Letter of Credit Fee | 3.75% | |||||||||||
L C Facility Agreement [Member] | Subsequent Event [Member] | ||||||||||||
Letter Of Credit Cash Collateral | $ 59,000,000 | |||||||||||
Amended A B L Credit Agreement [Member] | ||||||||||||
Line of Credit Facility, Daily Minimum Liquidity | 50,000,000 | |||||||||||
Line of Credit Facility, Quarterly Minimum Liquidity | $ 80,000,000 | |||||||||||
Minimum Liquidity Current Balance | $ 143,000,000 | $ 150,000,000 | ||||||||||
Excess Availability Percentage Of Lender Commitments Threshold Triggering Cash Dominion Control | 12.50% | 12.50% | ||||||||||
Lender Commitments Threshold Trigger Excess Availability Amount | $ 11,250,000 | $ 11,250,000 | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 21,000,000 | $ 17,000,000 | ||||||||||
Excess Availability Below Which Fixed Charge Coverage Ratios Triggered | 12.50% | |||||||||||
Letters of Credit Outstanding, Amount | $ 58,000,000 | |||||||||||
Letter of Credit [Member] | A B L Credit Agreement [Member] | ||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |||||||||||
A B L Credit Agreement [Member] | ||||||||||||
Lender Commitments Threshold Trigger Excess Availability Amount | $ 11,250,000 | |||||||||||
Excess Availability Below Which Fixed Charge Coverage Ratios Triggered | 12.50% | |||||||||||
Proforma Fixed Charge Coverage Ratio | 1 | |||||||||||
Consolidated EBITDA Exceeding Fixed Charges, Amount | $ 9,000,000 | |||||||||||
Letter Of Credit Facility Agreement [Member] | ||||||||||||
Line of Credit Facility, Aggregate Cash Collateral Percentage | 103% | |||||||||||
Minimum Liquidity Requirement | $ 80,000,000 | |||||||||||
Two Thousand Twenty One Notes Embedded Derivative [Member] | ||||||||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 12,000,000 | 4,000,000 | $ 2,000,000 | |||||||||
Two Thousand Twenty One Convertible Debt [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 25,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | |||||||||||
Debt Instrument, Convertible, Conversion Ratio | 100 | |||||||||||
Debt Conversion, Original Debt, Amount | $ 1,000 | |||||||||||
Initial Conversion Price Per Share of Common Stock (in dollars per share) | $ / shares | $ 10 | |||||||||||
Debt Instrument, Convertible, Stock Price Trigger (in dollars per share) | $ / shares | $ 14.50 | |||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 60 | |||||||||||
Holder Fundamental Transaction Election Period (Day) | 30 days | |||||||||||
Convertible Notes Payable, Noncurrent | 19,000,000 | 18,000,000 | ||||||||||
Debt Instrument, Unamortized Discount | 8,000,000 | 9,000,000 | ||||||||||
Convertible Debt, Fair Value Disclosures | $ 20,000,000 | $ 16,000,000 | ||||||||||
Forecast [Member] | L C Facility Agreement [Member] | ||||||||||||
Letter of Credit, Commitment Amount | $ 50,000,000 | $ 100,000,000 | ||||||||||
Forecast [Member] | Amended A B L Credit Agreement [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 81,000,000 | |||||||||||
Forecast [Member] | Two Thousand Twenty One Convertible Debt [Member] | ||||||||||||
Repayments of Debt | 25,000,000 | |||||||||||
Minimum [Member] | Amended A B L Credit Agreement [Member] | ||||||||||||
Fixed Charged Coverage Ratio Required | 1 | 1 | ||||||||||
Minimum [Member] | Revolving Credit Facility [Member] | Amended A B L Credit Agreement [Member] | ||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||||||||||
Minimum [Member] | Revolving Credit Facility [Member] | Amended A B L Credit Agreement [Member] | Secured Overnight Financing Rate (SOFR) [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||||||||
Minimum [Member] | Revolving Credit Facility [Member] | L C Facility Agreement [Member] | ||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||||||||||
Minimum [Member] | Two Thousand Twenty One Convertible Debt [Member] | ||||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 45 | |||||||||||
Maximum [Member] | Revolving Credit Facility [Member] | L C Facility Agreement [Member] | ||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||||||||
Term Loan Credit Agreement [Member] | ||||||||||||
Long-Term Debt, Total | $ 225,000,000 | |||||||||||
Long Term Debt, Maximum Additional Proceeds | $ 50,000,000 | |||||||||||
Refinancing Term Loans [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 450,000,000 | |||||||||||
Debt Instrument, Interest Rate, Annum Payable | 7.50% | |||||||||||
Debt Instrument, Interest Rate, Payable In-kind | 5% | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.50% | |||||||||||
Refinancing Term Loans [Member] | UNITED STATES | ||||||||||||
Maximum Amount Liquidity Required | $ 60,000,000 | |||||||||||
Refinancing Term Loans [Member] | UNITED STATES | Forecast [Member] | ||||||||||||
Maximum Amount Liquidity Required | $ 85,000,000 | |||||||||||
Refinancing Term Loans [Member] | Minimum [Member] | ||||||||||||
Debt Instrument, Material Indebtness | 20,000,000 | |||||||||||
Refinancing Term Loans [Member] | Maximum [Member] | ||||||||||||
Debt Instrument, Material Indebtness | $ 25,000,000 | |||||||||||
Refinancing Term Loans [Member] | Used to Refinance Obligations [Member] | ||||||||||||
Proceeds from Issuance of Debt | 435,000,000 | |||||||||||
Refinancing Term Loans [Member] | General Corporate Purposes and Working Capital Needs [Member] | ||||||||||||
Proceeds from Issuance of Debt | $ 29,000,000 |
Note 5 - Redeemable, Converti_3
Note 5 - Redeemable, Convertible Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Feb. 26, 2024 | Feb. 26, 2023 | Feb. 26, 2021 | Jun. 30, 2023 | Dec. 31, 2022 | Feb. 25, 2021 |
Preferred Stock, No Par Value (in dollars per share) | $ 0 | |||||
Series B Preferred Stock [Member] | ||||||
Preferred Stock, Dividend Rate, Percentage | 4% | |||||
Preferred Stock, No Par Value (in dollars per share) | $ 0 | |||||
Preferred Stock Issued, Fair Value | $ 95 | |||||
Temporary Equity, Liquidation Preference Per Share (in dollars per share) | $ 100 | |||||
Preferred Stock, Convertible, Conversion Price (in dollars per share) | $ 14.50 | |||||
Preferred Stock, Convertible, Threshold Trading Days | 45 | |||||
Preferred Stock, Convertible, Threshold Consecutive Trading Days | 60 | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 1 | $ 1 | $ 1 | |||
Series B Preferred Stock [Member] | Repurchase And Exchange Agreement [Member] | ||||||
Stock Issued During Period, Shares, New Issues (in shares) | 1,000,000 | |||||
Preferred Stock, Dividend Rate, Percentage | 4% | |||||
Series B Preferred Stock [Member] | Purchase Agreement [Member] | ||||||
Convertible Preferred Stock, Shares Issued upon Conversion (in shares) | 9.5238 | |||||
Preferred Stock, Convertible, Conversion Price (in dollars per share) | $ 10.50 | |||||
Series C Preferred Stock [Member] | ||||||
Preferred Stock, Convertible, Threshold Trading Days | 45 | 45 | ||||
Preferred Stock, Convertible, Threshold Consecutive Trading Days | 60 | 60 | ||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 2 | |||||
Series C Preferred Stock [Member] | Other Noncurrent Liabilities [Member] | ||||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 1 | $ 1 | ||||
Series C Preferred Stock [Member] | After February Twenty Six Two Thousand Twenty Three [Member] | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 200% | |||||
Series C Preferred Stock [Member] | After February Twenty Six Two Thousand Twenty Four [Member] | Forecast [Member] | ||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 150% | |||||
Series C Preferred Stock [Member] | Purchase Agreement [Member] | ||||||
Stock Issued During Period, Shares, New Issues (in shares) | 1,000,000 | |||||
Preferred Stock, Dividend Rate, Percentage | 5% | |||||
Preferred Stock, Convertible, Conversion Price (in dollars per share) | $ 10 | |||||
Shares Issued, Price Per Share (in dollars per share) | $ 100 | |||||
Gross Proceeds From Issuance Of Preferred Stock And Preference Stock | $ 100 | |||||
Gross Proceeds Owed on Issuance of PreferredStock | $ 100 | |||||
Series C Preferred Stock [Member] | Dividend And Other Rights [Member] | ||||||
Preferred Stock, Dividend Rate, Percentage | 5% |
Note 5 - Redeemable, Converti_4
Note 5 - Redeemable, Convertible Preferred Stock - Schedule of Redeemable, Convertible Preferred Stock (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Redeemable, convertible preferred stock | $ 207 | $ 203 |
Series B Preferred Stock [Member] | ||
Redeemable, convertible preferred stock | 96 | 95 |
Series C Preferred Stock [Member] | ||
Redeemable, convertible preferred stock | $ 111 | $ 108 |
Note 6 - Leases (Details Textua
Note 6 - Leases (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Sales-type Lease, Lease Income | $ 1 | $ 1 | $ 1 | $ 1 |
Note 6 - Leases - Summary of In
Note 6 - Leases - Summary of Income Recognized on Lease Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Lease income - operating leases: | |||||
Lease income | $ 2 | $ 3 | $ 4 | $ 5 | |
Variable lease income | [1] | 2 | 1 | 3 | 2 |
Total lease income | $ 4 | $ 4 | $ 7 | $ 7 | |
[1]Variable lease income primarily represents operating costs under real estate leases and incremental variable income based on usage under equipment leases. |
Note 7 - Commitments and Cont_2
Note 7 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Restricted Cash, Total | $ 69 | |
BRAZIL | ||
Restricted Cash and Investments, Noncurrent | 6 | $ 6 |
Federal And State Value Added Taxes Litigations And Civil Litigation And Disputes With Former Employees [Member] | BRAZIL | ||
Loss Contingency, Accrual, Reserve Maintained | 2 | |
Aggregate Claims | 125 | |
Loss Contingency, Estimate of Possible Loss | 6 | |
Threat of Expropriation of Assets [Member] | BRAZIL | ||
Restricted Cash and Investments, Noncurrent | 6 | |
Assets, Noncurrent | 45 | |
Bank Guarantees And Letters Of Credit [Member] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 1 | |
Surety Bond [Member] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 28 | |
L C Facility Agreement [Member] | ||
Letters of Credit Outstanding, Amount | 41 | $ 43 |
U S International Development Finance Corporation [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 765 | |
Amended A B L Credit Agreement [Member] | ||
Letters of Credit Outstanding, Amount | $ 58 |
Note 8 - Guarantees (Details Te
Note 8 - Guarantees (Details Textual) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) a | |
Warranty Arrangement Period [Member] | |
Extended Warranty Period (Year) | 1 year |
Minimum [Member] | |
Environmental Settlement, Historical Liabilities Trigger Amount | $ | $ 99 |
Extended Warranty Period (Year) | 3 months |
Maximum [Member] | |
Percentage of Liability Above 99 Million | 50% |
Extended Warranty Period (Year) | 6 years |
Eastman Business Park Rochester N Y [Member] | Minimum [Member] | |
Area of Real Estate Property (Acre) | a | 1,200 |
Note 8 - Guarantees - Deferred
Note 8 - Guarantees - Deferred Revenue by Arrangement (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Deferred revenue on extended warranties | $ 51 |
Deferred revenue on extended warranties | 52 |
Extended Warranty Arrangements [Member] | |
Deferred revenue on extended warranties | 19 |
New extended warranty and maintenance arrangements deferred | 44 |
Recognition of extended warranty and maintenance arrangement revenue | (45) |
Deferred revenue on extended warranties | $ 18 |
Note 9 - Revenue 1 (Details Tex
Note 9 - Revenue 1 (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Contract with Customer, Liability | $ 52 | $ 52 | $ 51 | |||
Contract with Customer, Liability, Revenue Recognized | 8 | $ 12 | 28 | $ 29 | ||
Contract with Customer, Cash Payments Received for Liabilities That Have Been Deferred | (22) | $ (22) | (27) | $ (33) | ||
Revenue, Remaining Performance Obligation, Amount | 45 | 45 | ||||
Other Current Assets [Member] | ||||||
Contract with Customer, Asset, after Allowance for Credit Loss, Current | $ 1 | 1 | ||||
Other Current Liabilities [Member] | ||||||
Contract with Customer, Liability | 42 | 42 | 40 | |||
Other Noncurrent Liabilities [Member] | ||||||
Contract with Customer, Liability | $ 10 | $ 10 | $ 11 |
Note 9 - Revenue 2 (Details Tex
Note 9 - Revenue 2 (Details Textual) | Jun. 30, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Percentage | 25% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Percentage | 25% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Percentage | 15% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Percentage | 35% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Note 9 - Revenues - Disaggregat
Note 9 - Revenues - Disaggregated Revenue by Major Product, Product Portfolio Summary, and Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenue | $ 295 | [1] | $ 321 | $ 573 | $ 611 |
Core [Member] | |||||
Revenue | 282 | 309 | 549 | 588 | |
Plates Inks And Other Consumables [Member] | Core [Member] | |||||
Revenue | 154 | [2] | 188 | 304 | 356 |
Ongoing Service Arrangements [Member] | Core [Member] | |||||
Revenue | 47 | 52 | 97 | 105 | |
Annuities [Member] | Core [Member] | |||||
Revenue | 201 | 240 | 401 | 461 | |
Equipment and Software [Member] | Core [Member] | |||||
Revenue | 20 | 18 | 35 | 32 | |
Film and Chemicals [Member] | Core [Member] | |||||
Revenue | 61 | 51 | 113 | 95 | |
Growth Products [Member] | |||||
Revenue | 5 | [3] | 4 | 8 | 7 |
Other [Member] | |||||
Revenue | 8 | [4] | 8 | 16 | 16 |
UNITED STATES | |||||
Revenue | 133 | 127 | 255 | 237 | |
CANADA | |||||
Revenue | 5 | 6 | 9 | 11 | |
North America [Member] | |||||
Revenue | 138 | [1] | 133 | 264 | 248 |
EMEA [Member] | |||||
Revenue | 97 | [1] | 122 | 191 | 229 |
Asia Pacific [Member] | |||||
Revenue | 54 | [1] | 58 | 106 | 117 |
Latin America [Member] | |||||
Revenue | 6 | [1] | 8 | 12 | 17 |
Print [Member] | |||||
Revenue | 215 | [1] | 252 | 424 | 480 |
Print [Member] | Core [Member] | |||||
Revenue | 215 | 252 | 424 | 480 | |
Print [Member] | Plates Inks And Other Consumables [Member] | Core [Member] | |||||
Revenue | 148 | [2] | 182 | 292 | 343 |
Print [Member] | Ongoing Service Arrangements [Member] | Core [Member] | |||||
Revenue | 47 | 52 | 97 | 105 | |
Print [Member] | Annuities [Member] | Core [Member] | |||||
Revenue | 195 | 234 | 389 | 448 | |
Print [Member] | Equipment and Software [Member] | Core [Member] | |||||
Revenue | 20 | 18 | 35 | 32 | |
Print [Member] | Film and Chemicals [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Print [Member] | Growth Products [Member] | |||||
Revenue | 0 | [3] | 0 | 0 | |
Print [Member] | Other [Member] | |||||
Revenue | 0 | [4] | 0 | 0 | 0 |
Print [Member] | UNITED STATES | |||||
Revenue | 66 | 73 | 132 | 135 | |
Print [Member] | CANADA | |||||
Revenue | 5 | 5 | 8 | 10 | |
Print [Member] | North America [Member] | |||||
Revenue | 71 | 78 | 140 | 145 | |
Print [Member] | EMEA [Member] | |||||
Revenue | 92 | [1] | 117 | 181 | 220 |
Print [Member] | Asia Pacific [Member] | |||||
Revenue | 46 | [1] | 49 | 91 | 98 |
Print [Member] | Latin America [Member] | |||||
Revenue | 6 | [1] | 8 | 12 | 17 |
Advanced Materials And Chemicals [Member] | |||||
Revenue | 72 | [1] | 61 | 133 | 115 |
Advanced Materials And Chemicals [Member] | Core [Member] | |||||
Revenue | 67 | 57 | 125 | 108 | |
Advanced Materials And Chemicals [Member] | Plates Inks And Other Consumables [Member] | Core [Member] | |||||
Revenue | 6 | [2] | 6 | 12 | 13 |
Advanced Materials And Chemicals [Member] | Ongoing Service Arrangements [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Advanced Materials And Chemicals [Member] | Annuities [Member] | Core [Member] | |||||
Revenue | 6 | 6 | 12 | 13 | |
Advanced Materials And Chemicals [Member] | Equipment and Software [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Advanced Materials And Chemicals [Member] | Film and Chemicals [Member] | Core [Member] | |||||
Revenue | 61 | 51 | 113 | 95 | |
Advanced Materials And Chemicals [Member] | Growth Products [Member] | |||||
Revenue | 5 | [3] | 4 | 8 | 7 |
Advanced Materials And Chemicals [Member] | Other [Member] | |||||
Revenue | 0 | [4] | 0 | 0 | 0 |
Advanced Materials And Chemicals [Member] | UNITED STATES | |||||
Revenue | 59 | 46 | 107 | 86 | |
Advanced Materials And Chemicals [Member] | CANADA | |||||
Revenue | 0 | 1 | 1 | 1 | |
Advanced Materials And Chemicals [Member] | North America [Member] | |||||
Revenue | 59 | 47 | 108 | 87 | |
Advanced Materials And Chemicals [Member] | EMEA [Member] | |||||
Revenue | 5 | [1] | 5 | 10 | 9 |
Advanced Materials And Chemicals [Member] | Asia Pacific [Member] | |||||
Revenue | 8 | [1] | 9 | 15 | 19 |
Advanced Materials And Chemicals [Member] | Latin America [Member] | |||||
Revenue | 0 | [1] | 0 | 0 | 0 |
Brand [Member] | |||||
Revenue | 4 | [1] | 4 | 8 | 8 |
Brand [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Brand [Member] | Plates Inks And Other Consumables [Member] | Core [Member] | |||||
Revenue | 0 | [2] | 0 | 0 | 0 |
Brand [Member] | Ongoing Service Arrangements [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Brand [Member] | Annuities [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Brand [Member] | Equipment and Software [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Brand [Member] | Film and Chemicals [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Brand [Member] | Growth Products [Member] | |||||
Revenue | 0 | [3] | 0 | 0 | |
Brand [Member] | Other [Member] | |||||
Revenue | 4 | [4] | 4 | 8 | 8 |
Brand [Member] | UNITED STATES | |||||
Revenue | 4 | 4 | 8 | 8 | |
Brand [Member] | CANADA | |||||
Revenue | 0 | 0 | 0 | 0 | |
Brand [Member] | North America [Member] | |||||
Revenue | 4 | [1] | 4 | 8 | 8 |
Brand [Member] | EMEA [Member] | |||||
Revenue | 0 | [1] | 0 | 0 | 0 |
Brand [Member] | Asia Pacific [Member] | |||||
Revenue | 0 | [1] | 0 | 0 | 0 |
Brand [Member] | Latin America [Member] | |||||
Revenue | 0 | [1] | 0 | 0 | 0 |
All Other [Member] | |||||
Revenue | 4 | [1] | 4 | 8 | 8 |
All Other [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
All Other [Member] | Plates Inks And Other Consumables [Member] | Core [Member] | |||||
Revenue | 0 | [2] | 0 | 0 | 0 |
All Other [Member] | Ongoing Service Arrangements [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
All Other [Member] | Annuities [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
All Other [Member] | Equipment and Software [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
All Other [Member] | Film and Chemicals [Member] | Core [Member] | |||||
Revenue | 0 | 0 | 0 | 0 | |
All Other [Member] | Growth Products [Member] | |||||
Revenue | 0 | [3] | 0 | 0 | |
All Other [Member] | Other [Member] | |||||
Revenue | 4 | [4] | 4 | 8 | 8 |
All Other [Member] | UNITED STATES | |||||
Revenue | 4 | 4 | 8 | 8 | |
All Other [Member] | CANADA | |||||
Revenue | 0 | 0 | 0 | 0 | |
All Other [Member] | North America [Member] | |||||
Revenue | 4 | [1] | 4 | 8 | 8 |
All Other [Member] | EMEA [Member] | |||||
Revenue | 0 | [1] | 0 | 0 | 0 |
All Other [Member] | Asia Pacific [Member] | |||||
Revenue | 0 | [1] | 0 | 0 | 0 |
All Other [Member] | Latin America [Member] | |||||
Revenue | $ 0 | [1] | $ 0 | $ 0 | $ 0 |
[1]Sales are reported in the geographic area in which they originate.[2]Core includes the Print business, Motion Picture, Industrial Film and Chemicals, and excludes coating and product commercialization services (“Coating Services”) and analytical services within the Advanced Materials and Chemicals segment.[3]Growth consists of Coating Services and Advanced Materials and Functional Printing within the Advanced Materials and Chemicals segment.[4]Other consists of Intellectual Property Licensing ("IP Licensing"), Brand Licensing and Eastman Business Park. |
Note 10 - Other Charges (Inco_3
Note 10 - Other Charges (Income) - Schedule of Other (Income) Charges - Schedule of Other Charges, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Change in fair value of the Preferred Stock and Convertible Notes embedded derivatives | [1] | $ 1 | $ (4) | $ 2 | $ (1) |
Loss on foreign exchange transactions | 3 | 2 | 3 | 2 | |
Other (2) | [2] | (1) | 1 | (9) | 1 |
Total | $ 3 | $ (1) | $ (4) | $ 2 | |
[1]Refer to Note 19, "Financial Instruments".[2]Includes interest income associated with a refund received in the first quarter of 2023 from a governmental authority in a location outside the U.S that was previously held in order to guarantee potential tax disputes in that jurisdiction. |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% | 21% | |
Income Tax Examination, Year under Examination | 2013 2014 2015 2016 2017 | ||||
Foreign Tax Authority [Member] | |||||
Income Tax Examination, Year under Examination | 2015 2016 2017 2018 | ||||
Income Tax Examination, Penalties and Interest Expense | $ 1 | $ 2 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (3) | ||||
Deferred Tax Asset, Net, Increase (Decrease) | $ (3) |
Note 11 - Income Taxes - Schedu
Note 11 - Income Taxes - Schedule of Income Tax Provision and Effective Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings from operations before income taxes | $ 37 | $ 19 | $ 78 | $ 18 |
Effective tax rate | 5.40% | (5.30%) | 12.80% | 5.60% |
Provision (benefit) for income taxes | $ 2 | $ (1) | $ 10 | $ 1 |
Provision for income taxes at U.S. statutory tax rate | 8 | 4 | 16 | 4 |
Difference between tax at effective vs. statutory rate | $ (6) | $ (5) | $ (6) | $ (3) |
Note 12 - Retirement Plans an_3
Note 12 - Retirement Plans and Other Postretirement Benefits (Details Textual) - Kodak Retirement Income Plan [Member] $ in Millions | 3 Months Ended | 12 Months Ended | |||
May 31, 2023 USD ($) | Dec. 31, 2022 | Mar. 31, 2022 USD ($) | Dec. 31, 2021 | Jan. 01, 2022 | |
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease), Remeasurement | $ 38 | $ (345) | |||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease), Change in Discount Rate | (9) | 376 | |||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease), Plan Amendment | 29 | 28 | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease), Remeasurement | $ (80) | $ (236) | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Change Due to Subsequent Interim Measurement, Weighted-Average Expected Long-Term Rate of Return on Plan Assets | 7.50% | 5.20% | |||
Defined Benefit Plan, Funded Status, Increase (Decrease), Remeasurement | $ (118) | $ 109 | |||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease), Other Assumptions | $ 3 | ||||
Minimum [Member] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 9% | 12% | |||
Maximum [Member] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 10% | 13% | |||
Measurement Input, Discount Rate [Member] | |||||
Defined Benefit Plan, Measurement Input | 5.08 | 5.13 | 4.16 | 2.54 |
Note 12 - Retirement Plans an_4
Note 12 - Retirement Plans and Other Postretirement Benefits - Components of the Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension income | $ (72,000) | $ (49,000) | ||
Pension Plan [Member] | UNITED STATES | ||||
Service cost | $ 4 | $ 3 | 7 | 6 |
Interest cost | 29 | 17 | 58 | 32 |
Expected return on plan assets | (64) | (44) | (128) | (88) |
Prior service cost (credit) | 1 | (1) | 3 | (3) |
Actuarial (gain) loss | (7) | 0 | (14) | 0 |
Pension income | (37) | (25) | (74) | (53) |
Pension Plan [Member] | Foreign Plan [Member] | ||||
Service cost | 0 | 1 | 1 | 2 |
Interest cost | 5 | 2 | 10 | 4 |
Expected return on plan assets | (5) | (3) | (10) | (7) |
Prior service cost (credit) | 0 | 0 | 0 | 0 |
Actuarial (gain) loss | 1 | 2 | 1 | 5 |
Pension income | $ 1 | $ 2 | $ 2 | $ 4 |
Note 13 - Earnings Per Share (D
Note 13 - Earnings Per Share (Details Textual) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Two Thousand Twenty One Convertible Notes [Member] | ||||
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount, Value | $ 25 | $ 25 | ||
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 4.1 | 3.6 | 4.1 | 3.6 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0.7 | 0.2 | ||
Series C Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1.1 | 1.1 | 1.1 | 1.1 |
Series B Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1 |
Note 13 - Earnings Per Share -
Note 13 - Earnings Per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net earnings | $ 35 | $ 33 | $ 20 | $ (3) | $ 68 | $ 17 |
Less: Series B Preferred stock cash dividends | (1) | (1) | (2) | (2) | ||
Less: Series C Preferred stock in-kind dividends | (2) | (1) | (3) | (2) | ||
Less: Preferred stock deemed dividends | 0 | 0 | (1) | (1) | ||
Net earnings available to common shareholders - basic | 28 | 16 | 54 | 10 | ||
Add back: Series B preferred stock cash and deemed dividends | 1 | 1 | 2 | 0 | ||
Add back: Convertible Notes interest expense | 1 | 0 | 2 | 0 | ||
Net earnings available to common shareholders - diluted | $ 30 | $ 17 | $ 58 | $ 10 | ||
Basic (in shares) | 79.4 | 78.9 | 79.3 | 78.8 | ||
Series B Preferred Stock (in shares) | 9.5 | 9.5 | 9.5 | 0 | ||
Convertible Notes (in shares) | 2.5 | 0 | 2.5 | 0 | ||
Weighted average shares — diluted (in shares) | 93 | 90.2 | 92.7 | 80.4 | ||
Series C Preferred Stock [Member] | ||||||
Less: Earnings attributable to Series C Preferred shareholders | $ (4) | $ (2) | $ (8) | $ (2) | ||
Share-Based Payment Arrangement, Option [Member] | ||||||
Dilutive Effect of Share-Based Payment Arrangements (in shares) | 0.7 | 1.2 | 0.6 | 1.1 | ||
Restricted Stock Units (RSUs) [Member] | ||||||
Dilutive Effect of Share-Based Payment Arrangements (in shares) | 0.9 | 0.6 | 0.8 | 0.5 |
Note 14 - Stock-based Compens_3
Note 14 - Stock-based Compensation (Details Textual) - Non-qualified Stock Options [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 16, 2023 | Feb. 15, 2023 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) | 10 years | 7 years | |
Share-Based Payment Arrangement, Plan Modification, Incremental Cost | $ 3 | ||
Maximum [Member] | |||
Share-Based Payment Arrangement, Plan Modification, Incremental Cost Not yet Recognized, Amount | $ 1 |
Note 14 - Stock-based Compens_4
Note 14 - Stock-based Compensation - Schedule Of Share Based Payment Award Stock Options Valuation Assumptions (Details) - $ / shares | Feb. 16, 2023 | Feb. 15, 2023 |
Range of risk-free interest rates, minimum | 3.82% | 3.82% |
Range of risk-free interest rates, maximum | 4.99% | 4.99% |
Range of weighted volatilities, minimum | 66.96% | 66.96% |
Range of weighted volatilities, maximum | 103.39% | 103.39% |
Expected dividend yield | 0% | 0% |
Minimum [Member] | ||
Range of fair values (in dollars per share) | $ 1.32 | $ 0 |
Range of remaining contractual terms (in years) (Year) | 3 years 4 months 13 days | 4 months 13 days |
Maximum [Member] | ||
Range of fair values (in dollars per share) | $ 2.24 | $ 2.14 |
Range of remaining contractual terms (in years) (Year) | 7 years 3 months | 4 years 3 months |
Note 15 - Shareholders' Equity
Note 15 - Shareholders' Equity (Details Textual) - $ / shares shares in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Feb. 26, 2021 |
Stock Authorized (in shares) | 560 | ||
Common Stock, Shares Authorized (in shares) | 500 | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized (in shares) | 60 | ||
Preferred Stock, No Par Value (in dollars per share) | $ 0 | ||
Common Stock, Shares, Outstanding (in shares) | 79.4 | 79.1 | |
Treasury Stock, Common, Shares (in shares) | 0.9 | 0.9 | |
Series B Preferred Stock [Member] | |||
Preferred Stock, No Par Value (in dollars per share) | $ 0 | ||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 1 | 1 | |
Series C Preferred Stock [Member] | |||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 1.1 | 1.1 |
Note 16 - Other Comprehensive_3
Note 16 - Other Comprehensive (Loss) Income - Changes in Other Comprehensive Income (Loss), by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Currency translation adjustments | $ (11) | $ (10) | $ (12) | $ (5) | |
Newly established net (loss) gain | (117) | 109 | (117) | 109 | |
Tax provision | 0 | 0 | 0 | 0 | |
Newly established net (loss) gain, net of tax | (117) | 109 | (117) | 109 | |
Amortization of prior service cost (credit) (1) | [1] | 2 | (1) | 3 | (3) |
Amortization of actuarial (gains) losses (1) | [1] | (8) | 2 | (15) | 4 |
Total reclassification adjustments | (6) | 1 | (12) | 1 | |
Tax provision | 0 | 0 | 0 | 0 | |
Reclassification adjustments, net of tax | (6) | 1 | (12) | 1 | |
Pension and other postretirement benefit plan changes, net of tax | (123) | 110 | (129) | 110 | |
Other comprehensive (loss) income | $ (134) | $ 100 | $ (141) | $ 105 | |
[1]Reclassified to Total Net Periodic Benefit Cost - refer to Note 12, "Retirement Plans and Other Postretirement Benefits". |
Note 17 - Segment Information_2
Note 17 - Segment Information (Details Textual) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2023 | Jun. 30, 2023 USD ($) a | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) a | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Number of Reportable Segments | 3 | |||||
Insurance Reimbursement | $ 1 | $ 11 | ||||
Proceeds from Insurance Reimbursement | 16 | |||||
Increase (Decrease) in Employee Related Liabilities | (1) | $ (4) | $ (8) | |||
Increase (Decrease) in Other Employee-Related Liabilities | $ (1) | |||||
Gross Profit [Member] | ||||||
Increase (Decrease) in Employee Related Liabilities | 2 | 5 | ||||
Selling, General and Administrative Expenses [Member] | ||||||
Increase (Decrease) in Employee Related Liabilities | $ 2 | $ 3 | ||||
Other Current Assets [Member] | ||||||
Insurance Reimbursement Proceeds | $ 5 | |||||
Eastman Business Park Rochester N Y [Member] | Minimum [Member] | ||||||
Area of Real Estate Property (Acre) | a | 1,200 | 1,200 | ||||
Print Segment [Member] | ||||||
Number of Reportable Segments | 1 | |||||
Print [Member] | ||||||
Number of Business Lines | 5 | |||||
Advanced Materials And Chemicals [Member] | ||||||
Number of Business Lines | 4 |
Note 17 - Segment Information -
Note 17 - Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Total revenues | $ 295 | [1] | $ 321 | $ 573 | $ 611 | |
Depreciation and amortization | (16) | (14) | ||||
Restructuring costs and other | (5) | 0 | (6) | 0 | ||
Interest expense (3) | (11) | (10) | (22) | (19) | ||
Pension income excluding service cost component (3) | 41 | 27 | 81 | 57 | ||
Other (charges) income, net (3) | (3) | 1 | 4 | (2) | ||
Continuing Operations [Member] | ||||||
Earnings (Losses) Before Interest, Taxes, Depreciation and Amortization | 22 | 11 | 31 | 4 | ||
Depreciation and amortization | (8) | (7) | (16) | (14) | ||
Restructuring costs and other | (5) | 0 | (6) | 0 | ||
Stock based compensation | (1) | (1) | (5) | (3) | ||
Consulting and other costs (1) | [2] | 1 | (3) | 11 | (5) | |
Idle costs (2) | [3] | (1) | 0 | (1) | (1) | |
Other operating income (3) | [4] | 1 | 0 | 0 | 0 | |
Interest expense (3) | [4] | (11) | (10) | (22) | (19) | |
Pension income excluding service cost component (3) | [4] | 41 | 27 | 81 | 57 | |
Other (charges) income, net (3) | [4] | (3) | 1 | 4 | (2) | |
Consolidated earnings from operations before income taxes | 37 | 19 | 78 | 18 | ||
Print [Member] | ||||||
Total revenues | 215 | [1] | 252 | 424 | 480 | |
Print [Member] | Continuing Operations [Member] | Operating Segments [Member] | ||||||
Earnings (Losses) Before Interest, Taxes, Depreciation and Amortization | 8 | 6 | 14 | (1) | ||
Advanced Materials And Chemicals [Member] | ||||||
Total revenues | 72 | [1] | 61 | 133 | 115 | |
Advanced Materials And Chemicals [Member] | Continuing Operations [Member] | Operating Segments [Member] | ||||||
Earnings (Losses) Before Interest, Taxes, Depreciation and Amortization | 11 | 1 | 11 | (2) | ||
Brand [Member] | ||||||
Total revenues | 4 | [1] | 4 | 8 | 8 | |
Brand [Member] | Continuing Operations [Member] | Operating Segments [Member] | ||||||
Earnings (Losses) Before Interest, Taxes, Depreciation and Amortization | 3 | 4 | 6 | 7 | ||
All Other [Member] | ||||||
Total revenues | 4 | [1] | 4 | 8 | 8 | |
All Other [Member] | Continuing Operations [Member] | ||||||
Earnings (Losses) Before Interest, Taxes, Depreciation and Amortization | $ 1 | $ 1 | $ 1 | $ 1 | ||
[1]Sales are reported in the geographic area in which they originate.[2]Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives, investigations and litigation. Consulting and other costs includes $1 million and $11 million of income in the three and six months ended June 30, 2023, respectively, representing insurance reimbursement of legal costs previously paid by the Company associated with investigations and litigation matters. Kodak received $16 million of insurance reimbursement proceeds in the first six months of 2023, of which $5 million was recorded in Other current assets in the Consolidated Statement of Financial Position as of December 31, 2022.[3]Consists of third-party costs such as security, maintenance and utilities required to maintain land and buildings in certain locations not used in any Kodak operations and the costs, net of any rental income received, of underutilized portions of certain properties.[4]As reported in the Consolidated Statement of Operations. |
Note 18 - Business Combination
Note 18 - Business Combination (Details Textual) | May 26, 2023 |
Graphic Systems Services, Inc. [Member] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100% |
Note 19 - Financial Instrumen_3
Note 19 - Financial Instruments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Derivatives Hedging Instruments | $ 0 | $ 0 | $ 0 | $ 0 | |
Fair Value, Inputs, Level 2 [Member] | |||||
Long-Term Debt, Fair Value | 290,000 | 290,000 | $ 271,000 | ||
Forward Contracts [Member] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | 1,000 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 6,000 | 6,000 | 1,000 | ||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative Asset, Notional Amount | $ 286,000 | $ 286,000 | $ 308,000 |
Note 19 - Financial Instrumen_4
Note 19 - Financial Instruments - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net loss from derivatives not designated as hedging instruments | $ 11 | $ 7 | $ 12 | $ 10 |
Note 19 - Financial Instrumen_5
Note 19 - Financial Instruments - Gain (Loss) on Embedded Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Change in fair value of the Preferred Stock and Convertible Notes embedded derivatives | [1] | $ 1 | $ (4) | $ 2 | $ (1) |
[1]Refer to Note 19, "Financial Instruments". |
Note 19 - Financial Instrumen_6
Note 19 - Financial Instruments - Derivative Liability Key Inputs in Determination of Fair Value for Embedded Conversion Features (Details) $ / shares in Units, $ in Millions | Jun. 30, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Feb. 26, 2021 USD ($) |
Series B Preferred Stock [Member] | |||
Total value of embedded derivative liability ($ millions) | $ 1 | $ 1 | $ 1 |
Series C Preferred Stock [Member] | |||
Total value of embedded derivative liability ($ millions) | $ 2 | ||
Fair Value, Inputs, Level 3 [Member] | Series B Preferred Stock [Member] | |||
Total value of embedded derivative liability ($ millions) | $ 1 | $ 1 | |
Kodak's closing stock price (in dollars per share) | $ / shares | $ 4.62 | $ 3.05 | |
Alternative Investment, Measurement Input | 0.2523 | 0.2719 | |
Fair Value, Inputs, Level 3 [Member] | Series B Preferred Stock [Member] | Measurement Input, Price Volatility [Member] | |||
Alternative Investment, Measurement Input | 0.6000 | 0.5000 | |
Fair Value, Inputs, Level 3 [Member] | Series B Preferred Stock [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||
Alternative Investment, Measurement Input | 0.0452 | 0.0417 | |
Fair Value, Inputs, Level 3 [Member] | Series C Preferred Stock [Member] | |||
Total value of embedded derivative liability ($ millions) | $ 1 | $ 1 | |
Kodak's closing stock price (in dollars per share) | $ / shares | $ 4.62 | $ 3.05 | |
Alternative Investment, Measurement Input | 0.2723 | 0.2919 | |
Fair Value, Inputs, Level 3 [Member] | Series C Preferred Stock [Member] | Measurement Input, Price Volatility [Member] | |||
Alternative Investment, Measurement Input | 0.6000 | 0.5000 | |
Fair Value, Inputs, Level 3 [Member] | Series C Preferred Stock [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||
Alternative Investment, Measurement Input | 0.0452 | 0.0417 | |
Fair Value, Inputs, Level 3 [Member] | Two Thousand Twenty One Convertible Notes [Member] | |||
Total value of embedded derivative liability ($ millions) | $ 4 | $ 2 | |
Kodak's closing stock price (in dollars per share) | $ / shares | $ 4.62 | $ 3.05 | |
Fair Value, Inputs, Level 3 [Member] | Two Thousand Twenty One Convertible Notes [Member] | Measurement Input, Price Volatility [Member] | |||
Alternative Investment, Measurement Input | 0.6000 | 0.5000 | |
Fair Value, Inputs, Level 3 [Member] | Two Thousand Twenty One Convertible Notes [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||
Alternative Investment, Measurement Input | 0.0452 | 0.0417 | |
Fair Value, Inputs, Level 3 [Member] | Two Thousand Twenty One Convertible Notes [Member] | Measurement Input, Credit Spread [Member] | |||
Alternative Investment, Measurement Input | 0.2423 | 0.2619 |