Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 01, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Eastman Kodak Co | |
Entity Central Index Key | 31,235 | |
Trading Symbol | KODK | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 42,671,808 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statement of Opera
Consolidated Statement of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Total revenues | $ 372 | $ 381 | $ 729 | $ 738 |
Total cost of revenues | 312 | 311 | 615 | 606 |
Gross profit | 60 | 70 | 114 | 132 |
Selling, general and administrative expenses | 63 | 66 | 126 | 131 |
Research and development costs | 14 | 18 | 29 | 38 |
Restructuring costs and other | 2 | 11 | 4 | 18 |
Other operating (income) expense, net | (2) | 2 | (2) | 12 |
Loss from continuing operations before interest expense, other charges (income), net and income taxes | (17) | (27) | (43) | (67) |
Interest expense | 9 | 8 | 17 | 16 |
Pension income excluding service cost component | (32) | (37) | (64) | (75) |
Other charges (income), net | 1 | (9) | 17 | (29) |
Earnings (loss) from continuing operations before income taxes | 5 | 11 | (13) | 21 |
Provision for income taxes | 1 | 4 | 8 | 7 |
Earnings (loss) from continuing operations | 4 | 7 | (21) | 14 |
Loss from discontinued operations, net of income taxes | (3) | (3) | ||
Net earnings (loss) | $ 4 | $ 4 | $ (21) | $ 11 |
Basic net (loss) earnings per share attributable to Eastman Kodak Company common shareholders: | ||||
Continuing operations | $ (0.02) | $ 0.05 | $ (0.73) | $ 0.09 |
Discontinued operations | (0.07) | (0.07) | ||
Basic net (loss) earnings per share attributable to Eastman Kodak Company common shareholders | (0.02) | (0.02) | (0.73) | 0.02 |
Diluted net (loss) earnings per share attributable to Eastman Kodak Company common shareholders: | ||||
Continuing operations | (0.02) | 0.05 | (0.73) | 0.09 |
Discontinued operations | (0.07) | (0.07) | ||
Diluted net (loss) earnings per share attributable to Eastman Kodak Company common shareholders | $ (0.02) | $ (0.02) | $ (0.73) | $ 0.02 |
Number of common shares used in basic and diluted net (loss) earnings per share | ||||
Basic | 42.7 | 42.5 | 42.6 | 42.5 |
Diluted | 42.7 | 42.7 | 42.6 | 42.7 |
Product [Member] | ||||
Total revenues | $ 300 | $ 307 | $ 585 | $ 590 |
Total cost of revenues | 262 | 257 | 514 | 498 |
Service [Member] | ||||
Total revenues | 72 | 74 | 144 | 148 |
Total cost of revenues | $ 50 | $ 54 | $ 101 | $ 108 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 4 | $ 4 | $ (21) | $ 11 |
Other comprehensive (loss) income, net of tax: | ||||
Currency translation adjustments | (20) | (7) | 14 | |
Pension and other postretirement benefit plan obligation activity, net of tax | (3) | (6) | ||
Other comprehensive (loss) income, net of tax | (20) | (3) | (7) | 8 |
COMPREHENSIVE (LOSS) INCOME, NET OF TAX | $ (16) | $ 1 | $ (28) | $ 19 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position (Unaudited) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 275 | $ 344 |
Trade receivables, net of allowances of $9 in each period | 242 | 282 |
Inventories, net | 301 | 276 |
Other current assets | 56 | 56 |
Total current assets | 874 | 958 |
Property, plant and equipment, net of accumulated depreciation of $418 and $394, respectively | 290 | 314 |
Goodwill | 32 | 32 |
Intangible assets, net | 79 | 86 |
Restricted cash | 11 | 17 |
Deferred income taxes | 175 | 188 |
Other long-term assets | 112 | 112 |
TOTAL ASSETS | 1,573 | 1,707 |
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | ||
Accounts payable, trade | 181 | 198 |
Short-term borrowings and current portion of long-term debt | 3 | 4 |
Other current liabilities | 208 | 217 |
Total current liabilities | 392 | 419 |
Long-term debt, net of current portion | 398 | 399 |
Pension and other postretirement liabilities | 405 | 466 |
Other long-term liabilities | 198 | 202 |
Total Liabilities | 1,393 | 1,486 |
Commitments and Contingencies (Note 7) | ||
Equity (Deficit) | ||
Common stock, $0.01 par value | ||
Additional paid in capital | 624 | 631 |
Treasury stock, at cost | (9) | (9) |
Accumulated deficit | (205) | (174) |
Accumulated other comprehensive loss | (398) | (391) |
Total shareholders’ equity | 12 | 57 |
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | 1,573 | 1,707 |
Convertible Series A Preferred Stock [Member] | ||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | ||
Redeemable, convertible Series A preferred stock, no par value, $100 per share liquidation preference | $ 168 | $ 164 |
Consolidated Statement of Fina5
Consolidated Statement of Financial Position (Unaudited) (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for trade receivables | $ 9 | $ 9 |
Property, plant and equipment, accumulated depreciation | $ 418 | $ 394 |
Common stock, par value | $ 0.01 | $ 0.01 |
Convertible Series A Preferred Stock [Member] | ||
Preferred stock, no par value | 0 | 0 |
Preferred stock, liquidation preference per share | $ 100 | $ 100 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Cash flows from operating activities: | |||||||
Net (loss) earnings | $ 4 | $ 4 | $ (21) | $ 11 | |||
Adjustments to reconcile to net cash used in operating activities: | |||||||
Depreciation and amortization | 39 | 41 | |||||
Pension income | (54) | (59) | |||||
Change in fair value of embedded conversion features derivative liability | [1] | (7) | (14) | 7 | (36) | ||
Prosper asset remeasurement | [2] | 12 | |||||
Non-cash restructuring costs and asset impairments | 10 | ||||||
Net gain on sales of assets/businesses | (1) | (2) | (2) | ||||
Stock based compensation | 3 | 5 | |||||
Provision for deferred income taxes | 5 | 1 | |||||
Decrease in trade receivables | 31 | 31 | |||||
Increase in inventories | (34) | (40) | |||||
Decrease in trade payables | (11) | (29) | |||||
Decrease in liabilities excluding borrowings and trade payables | (22) | (21) | |||||
Other items, net | 10 | 2 | |||||
Total adjustments | (28) | (85) | |||||
Net cash used in operating activities | (49) | (74) | |||||
Cash flows from investing activities: | |||||||
Additions to properties | (17) | (17) | |||||
Proceeds from sales of assets/businesses, net | 1 | 2 | |||||
Proceeds from sales of marketable securities | 1 | ||||||
Net cash used in investing activities | (16) | (14) | |||||
Cash flows from financing activities: | |||||||
Repayment of capital leases | (2) | (2) | |||||
Preferred stock dividend payments | (6) | (5) | |||||
Net cash used in financing activities | (8) | (7) | |||||
Effect of exchange rate changes on cash | (2) | 6 | |||||
Effect of exchange rate changes on restricted cash | (1) | ||||||
Net decrease in cash, cash equivalents and restricted cash | (76) | (89) | $ (109) | $ (122) | |||
Cash, cash equivalents and restricted cash, beginning of period | 369 | 478 | 478 | ||||
Cash, cash equivalents and restricted cash, end of period | $ 293 | $ 389 | $ 293 | $ 389 | $ 369 | $ 478 | |
[1] | Refer to Note 21, “Financial Instruments”. | ||||||
[2] | In the first quarter of 2017, Kodak reduced the carrying value of Prosper fixed assets ($8 million) and intangible assets ($4 million) to the amount that would have been recorded if the Prosper assets, which were previously presented as held for sale, had been continuously classified as held and used. |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1: BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS 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-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results of operations, financial position and cash flows of Eastman Kodak Company (“EKC” or the “Company”) and all companies directly or indirectly controlled, either through majority ownership or otherwise (collectively, “Kodak”). The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. These consolidated interim statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. GOING CONCERN The consolidated interim financial statements have been prepared on the going concern basis of accounting, which assumes Kodak will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has $395 million of outstanding indebtedness under the Senior Secured First Lien Term Credit Agreement (the “First Lien Term Credit Agreement”). The loans made under the First Lien Term Credit Agreement become due on the earlier to occur of (i) the maturity date of September 3, 2019 or (ii) the acceleration of such loans following the occurrence of an event of default (as defined in the First Lien Term Credit Agreement). The Company also has issued approximately $79 million and $96 million of letters of credit under the Amended and Restated Credit Agreement (the “Amended Credit Agreement”) as of June 30, 2018 and December 31, 2017, respectively. Should the Company not repay, refinance or extend the maturity of the loans under the existing First Lien Term Credit Agreement prior to June 5, 2019, the termination date will occur under the Amended Credit Agreement on such date unless the Amended Credit Agreement has been amended in the interim. Upon the occurrence of the termination date under the Amended Credit Agreement, the obligations thereunder will become due and the Company will need to provide alternate collateral in place of the letters of credit issued under the Amended Credit Agreement. As of June 30, 2018 and December 31, 2017, Kodak had approximately $275 million and $344 million, respectively, of cash and cash equivalents. $133 million and $172 million was held in the U.S. as of June 30, 2018 and December 31, 2017, respectively, and $77 million and $108 million was held in China as of June 30, 2018 and December 31, 2017, respectively. Outstanding inter-company loans to the U.S. as of June 30, 2018 and December 31, 2017 were $394 million and $358 million, respectively, which includes short-term intercompany loans from Kodak’s international finance center of $95 million and $59 million as of June 30, 2018 and December 31, 2017, respectively. Kodak had a net decrease in cash, cash equivalents, and restricted cash of $109 million, $122 million, and $158 million for the years ended December 31, 2017, 2016, and 2015, respectively, and a decrease in cash, cash equivalents, and restricted cash of $76 million for the six months ended June 30, 2018. U.S. GAAP requires an evaluation of whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. Initially, this evaluation does not consider the potential mitigating effect of management’s plans that have not been fully implemented. When substantial doubt exists, management evaluates the mitigating effect of its plans if it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued. As of the date of issuance of these financial statements, Kodak has debt coming due within thirteen months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms. Kodak has entered into a non-binding letter of intent with a counterparty which holds a significant principal amount of the loans under the First Lien Term Credit Agreement which would provide for a complete refinancing of the loans under the First Lien Term Credit Agreement with a maturity date of 18 months from closing. In addition, Kodak has retained an investment banker in connection with, and is actively pursuing, a sale of its Flexographic Packaging segment. All net proceeds from any sale of its Flexographic Packaging segment will first be used to pay down outstanding debt. However, the sale of the Flexographic Packaging segment and refinancing of the loans under the First Lien Term Credit Agreement is facing liquidity challenges due to negative cash flow. Based on forecasted cash flows, there are uncertainties regarding Kodak’s ability to meet commitments in the U.S. as they come due. Kodak’s plans to improve cash flow include reducing interest expense by decreasing the debt balance using proceeds from asset sales; further restructuring Kodak’s cost structure; and paring investment in new technology by eliminating, slowing, and partnering with investors in product development programs. Kodak also is exploring options regarding additional liquidity from other sources. Kodak makes no assurances regarding the likelihood, certainty or timing of consummating a sale of the Flexographic Packaging segment or refinancing of the Company’s debt or regarding the sufficiency of any such actions to meet Kodak’s debt obligations, including compliance with debt covenants, or other commitments in the U.S. as they come due. These conditions raise substantial doubt about Kodak’s ability to continue as a going concern . For more information regarding the First Lien Term Credit Agreement, the Amended Credit Agreement and debt covenants see Note 6, “Debt and Capital Leases”. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, Compensation—Retirements Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 requires entities to report the service cost component in the same line item(s) as other compensation costs arising from services rendered during the period and to report all other components of net benefit costs outside a subtotal of income from operations. In addition, the ASU allows only the service cost component to be eligible for capitalization when applicable. Kodak adopted ASU 2017-07 effective January 1, 2018, retrospectively for the presentation of the service cost and other cost components and prospectively for the application of the capitalization eligibility. The components of net benefit cost are shown in Note 14, “Retirement Plans and Other Postretirement Benefits”. The guidance impacted presentation in Kodak’s consolidated financial statements and the capitalization of costs to inventory. The presentation of the service cost component was consistent with the requirements of the new standard. The other components (which were presented within Cost of revenues, Selling and general administrative expenses and Research and development costs) are being presented separately on the face of the Consolidated Statement of Operations. The segment measure of profit and loss previously included only the service cost and amortization of prior service credits components of net periodic pension and postretirement benefit costs (refer to Note 20, “Segment Information”). Effective January 1, 2018, the segment measure of profit and loss only includes the service cost component of net periodic pension and postretirement benefit costs and prior periods have been reclassified to conform to this presentation. In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 defines in-substance nonfinancial assets, provides guidance with respect to accounting for partial sales of nonfinancial assets and conforms the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard (Topic 606 as described below). Kodak adopted ASU 2017-05 effective January 1, 2018 using the modified retrospective adoption approach. The application of this standard did not have a material impact on Kodak’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the ASU all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Kodak adopted ASU 2016-01 effective January 1, 2018. The adoption of this guidance did not have a material impact on Kodak’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition” and most industry-specific guidance. The core principle of ASU 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Kodak adopted the provisions of the new standard effective January 1, 2018 using the modified retrospective method which allows companies to record a one-time adjustment to opening retained earnings for the cumulative effect of the standard on open contracts at the time of adoption. Kodak derives revenue from various brand licensing arrangements, which may include upfront payments and/or sales-based royalties subject to minimum annual guaranteed amounts. Kodak recorded a cumulative effect adjustment of approximately $10 million as a decrease to the opening balance of retained earnings related to these arrangements. With the exception of brand license revenue, Kodak did not identify any changes in the timing of revenue recognition that resulted in a material transition adjustment. The cumulative effect of the changes made to the Consolidated Statement of Financial Position for January 1, 2018 for the adoption of ASU 2014-09 were as follows. The net reduction in opening retained earnings primarily reflected the impact related to brand licensing revenues. (in millions) Balance at December 31, 2017 Adjustments Due to ASU 2014-09 Balance at January 1, 2018 Liabilities Other current liabilities $ 217 $ 2 $ 219 Other long-term liabilities 202 8 210 Deficit Accumulated Deficit (174 ) (10 ) (184 ) The impact of the adoption on the Consolidated Statement of Operations and Consolidated Statement of Financial Position were as follows: Three Months Ended June 30, 2018 (in millions) As Reported Amounts without Adoption of ASU 2014-09 Effect of Change Higher (Lower) Revenues Sales $ 300 $ 299 $ 1 Services 72 72 — Total revenues 372 371 1 Net income $ 4 $ 3 $ 1 Six Months Ended June 30, 2018 (in millions) As Reported Amounts without Adoption of ASU 2014-09 Effect of Change Higher (Lower) Revenues Sales $ 585 $ 583 $ 2 Services 144 144 — Total revenues 729 727 2 Net loss $ (21 ) $ (23 ) $ 2 June 30, 2018 (in millions) As Reported Balances without Adoption of ASU 2014-09 Effect of Change Higher (Lower) Liabilities Other current liabilities $ 208 $ 206 $ 2 Other long-term liabilities 198 192 6 Deficit Accumulated Deficit (205 ) (197 ) (8 ) RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The ASU addresses certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act (the “2017 Tax Act”). The ASU provides an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the 2017 Tax Act (or portion thereof) is recorded and requires additional disclosures. The ASU is effective for fiscal years beginning after December 15, 2018 (January 1, 2019 for Kodak) and interim periods within those fiscal years. Early adoption is permitted and may be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the 2017 Tax Act is recognized. Kodak plans to adopt the new standard on the effective date. Kodak is currently evaluating the impact of this ASU. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. In addition, the ASU requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The new standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 (January 1, 2020 for Kodak). Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018 (January 1, 2019 for Kodak). Kodak is currently evaluating the impact of this ASU. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. The new leasing standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018 (January 1, 2019 for Kodak). Early adoption is permitted. Kodak plans to adopt the new standard on the effective date and is currently evaluating the impact of this ASU on its financial statements. Kodak is currently evaluating its existing lease portfolio, including accumulating all the necessary information required to properly account for the leases under the new standard. Additionally, a new lease accounting system is being implemented to support the accounting and disclosure requirements of the new standard. Kodak anticipates that the adoption of the amended lease guidance will materially affect its Consolidated Statement of Financial Position and may require certain changes to its systems and processes. |
Note 2 - Cash, Cash Equivalents
Note 2 - Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Jun. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash [Text Block] | NOTE 2: CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Statement of Financial Position that sums to the total of such amounts shown in the Statement of Cash Flows: June 30, December 31, (in millions) 2018 2017 Cash and cash equivalents $ 275 $ 344 Restricted cash included in Other current assets 7 8 Long-term restricted cash 11 17 Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows $ 293 $ 369 Restricted cash included in Other current assets on the Statement of Financial Position primarily represents amounts which support hedging activities. Long-term restricted cash includes $5 million and $6 million of security posted related to Brazilian legal contingencies as of June 30, 2018 and December 31, 2017, respectively. Long-term restricted cash also includes $0 million and $6 million as of June 30, 2018 and December 31, 2017, respectively, supporting compliance with the Excess Availability threshold under the Amended and Restated Credit Agreement (the “Amended Credit Agreement”). |
Note 3 - Inventories, Net
Note 3 - Inventories, Net | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 3: INVENTORIES, NET June 30, December 31, (in millions) 2018 2017 Finished goods $ 168 $ 159 Work in process 65 57 Raw materials 68 60 Total $ 301 $ 276 |
Note 4 - Other Current Liabilit
Note 4 - Other Current Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE 4: OTHER CURRENT LIABILITIES June 30, December 31, (in millions) 2018 2017 Employee related liabilities $ 46 $ 47 Deferred revenue 33 30 Deferred consideration on disposed businesses 24 10 Customer rebates 23 29 Workers compensation 10 10 Restructuring liabilities 4 10 Other 68 81 Total $ 208 $ 217 The customer rebate amounts will potentially be settled through customer deductions applied to outstanding trade receivables in lieu of cash payments. |
Note 5 - Other Long-term Liabil
Note 5 - Other Long-term Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block] | NOTE 5: OTHER LONG-TERM LIABILITIES June 30, December 31, (in millions) 2018 2017 Workers compensation $ 95 $ 96 Asset retirement obligations 47 43 Deferred taxes 14 16 Environmental liabilities 12 12 Embedded conversion features derivative liability (1) 3 — Deferred consideration on disposed businesses — 14 Other 27 21 Total $ 198 $ 202 (1) Refer to Note 21, “Financial Instruments” |
Note 6 - Debt And Capital Lease
Note 6 - Debt And Capital Leases | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Capital Leases Disclosures [Text Block] | NOTE 6: DEBT AND CAPITAL LEASES Debt and capital leases and related maturities and interest rates were as follows at June 30, 2018 and December 31, 2017 (in millions): June 30, December 31, (in millions) 2018 2017 Type Maturity Weighted-Average Effective Interest Rate Carrying Value Carrying Value Current portion: Capital leases Various Various $ 3 $ 3 Other debt Various Various — 1 3 4 Non-current portion: Term note 2019 7.34% 393 393 Capital leases Various Various 3 4 Other debt Various Various 2 2 398 399 $ 401 $ 403 On September 3, 2013, the Company entered into (i) the First Lien Term Credit Agreement with the lenders party thereto (the “First Lien Lenders”), JPMorgan Chase Bank, N.A. as administrative agent, and J.P. Morgan Securities LLC, Barclays Bank PLC, and Merrill Lynch, Pierce, Fenner & Smith Inc. as joint lead arrangers and joint bookrunners, and (ii) a Senior Secured Second Lien Term Credit Agreement (the “Second Lien Term Credit Agreement,” and together with the First Lien Term Credit Agreement, the “Term Credit Agreements”), with the lenders party thereto (the “Second Lien Lenders,” and together with the First Lien Lenders, the “Term Credit Lenders”), Barclays Bank PLC as administrative agent, and J.P. Morgan Securities LLC, Barclays Bank PLC and Merrill Lynch, Pierce, Fenner & Smith Inc. as joint lead arrangers and joint bookrunners. Additionally, the Company and its U.S. subsidiaries (the “Subsidiary Guarantors”) entered into an Asset Based Revolving Credit Agreement (the “ABL Credit Agreement” and together with the Term Credit Agreements, the “Credit Agreements”) with the lenders party thereto (the “ABL Lenders” and together with the First Lien Lenders and the Second Lien Lenders, the “Lenders”) and Bank of America N.A. as administrative agent and collateral agent, Barclays Bank PLC as syndication agent and Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays Bank PLC and J.P. Morgan Securities LLC as joint lead arrangers and joint bookrunners. Pursuant to the terms of the Credit Agreements, the Term Credit Lenders provided the Company with term loan facilities in an aggregate principal amount of $695 million, consisting of $420 million of first-lien term loans (the “First Lien Loans”) and $275 million of second-lien term loans (the “Second Lien Loans”). Net proceeds from the Term Credit Agreements were $664 million ($695 million aggregate principal less $15 million stated discount and $16 million in debt transaction costs). The loans made under the First Lien Term Credit Agreement become due on the earlier to occur of (i) the maturity date of September 3, 2019 or (ii) the acceleration of such loans following the occurrence of an event of default (as defined in the First Lien Term Credit Agreement). The Second Lien Term Credit Agreement was prepaid and terminated on November 15, 2016. The Credit Agreements limit, among other things, the Company’s and the Subsidiary Guarantors’ ability to (i) incur indebtedness, (ii) incur or create liens, (iii) dispose of assets, (iv) make restricted payments (including dividend payments, et al.) and (v) make investments. In addition to other customary affirmative covenants, the Credit Agreements provide for a periodic delivery by the Company of its various financial statements as set forth in the Credit Agreements. Events of default under the Credit Agreements include, among others, failure to pay any loan, interest or other amount due under the applicable credit agreement, breach of specific covenants and a change of control of the Company. Upon an event of default, the applicable lenders may declare the outstanding obligations under the applicable credit agreement to be immediately due and payable and exercise other rights and remedies provided for in such credit agreement. The First Lien Loans bear interest at the rate of LIBOR plus 6.25% per annum, with a LIBOR floor of 1% or Alternate Base Rate (as defined in the First Lien Term Credit Agreement) plus 5.25%. Each existing and future direct or indirect U.S. subsidiary of the Company (other than immaterial subsidiaries, unrestricted subsidiaries and certain other subsidiaries) have agreed to provide unconditional guarantees of the obligations of the Company under the Credit Agreements. Subject to certain exceptions, obligations under the First Lien Term Credit Agreement are secured by: (i) a first lien on all assets of the Company and the Subsidiary Guarantors, other than the ABL Collateral (as defined below), including a first lien on 100% of the stock of material domestic subsidiaries and 65% of the stock of material first-tier foreign subsidiaries (collectively the “Term Collateral”) and (ii) a second lien on the ABL Collateral. Obligations under the Asset Based Revolving Credit Agreement are secured by: (i) a first lien on cash, accounts receivable, inventory, machinery and equipment (the “ABL Collateral”) and (ii) a second lien on the Term Collateral. The Company may voluntarily prepay the First Lien Loan. As defined in the First Lien Term Credit Agreement, the Company is required to prepay loans with net proceeds from asset sales, recovery events or issuance of indebtedness, subject to, in the case of net proceeds received from asset sales or recovery events, reinvestment rights by the Company in assets used or usable by the business within certain time limits. During 2016 and 2017, Kodak prepaid $11 million of principal under the First Lien Term Credit Agreement. Under the terms of the First Lien Term Credit Agreement, the prepayments were applied first to the installment principal payments of $4 million due over the next twelve months, then ratably to the remaining scheduled payments. With the prepayments, Kodak does not owe any future scheduled principal payments until the maturity date of the loan. On an annual basis, the Company will prepay on June 30 of the following fiscal year loans in an amount equal to a percentage of Excess Cash Flow (“ECF”) as defined in the First Lien Term Credit Agreement, provided no such prepayment is required if such prepayment would cause U.S. liquidity (as defined in the First Lien Term Credit Agreement) to be less than $100 million or the Secured Leverage ratio is less than 2.25 to 1.00. For the year ended December 31, 2017 ECF was a negative amount. Under the First Lien Term Credit Agreement, the Company is required to maintain a Secured Leverage Ratio (as defined therein) not to exceed specified levels. The Secured Leverage Ratio under the First Lien Term Credit Agreement is tested at the end of each quarter based on the prior four quarters. The maximum Secured Leverage Ratio permitted under the First Lien Term Credit Agreement is 2.75:1. As of June 30, 2018 and December 31, 2017, Kodak was in compliance with all covenants under the First Lien Term Credit Agreement. Under the terms of the Credit Agreements, the Company may designate Restricted Subsidiaries as Unrestricted Subsidiaries provided the aggregate sales of all Unrestricted Subsidiaries are less than 7.5% of the consolidated sales of Kodak and the aggregate assets of all Unrestricted Subsidiaries are less than 7.5% of Kodak’s consolidated assets. Further, under the Amended Credit Agreement, on a pro forma basis at the time of designation and immediately after giving effect thereto, Excess Availability must be at least $30 million and the pro forma Fixed Charge Coverage Ratio must be no less than 1.0 to 1.0. Upon designation of Unrestricted Subsidiaries, the Company will be required to provide to the Lenders reconciling statements to eliminate all financial information pertaining to Unrestricted Subsidiaries which is included in its annual and quarterly financial statements. In March 2018, the Company designated five subsidiaries as Unrestricted Subsidiaries, Kodak PE Tech, LLC, Kodak LB Tech, LLC, Kodak Realty, Inc., Kodakit Singapore Pte. Limited and KP Services (Jersey) Ltd. This action allowed the Company to better position assets which may be monetized in the future and address costs related to underutilized properties. Collectively, these subsidiaries had sales of approximately $3 million and $5 million for the quarter and six months ended June 30, 2018, respectively, which represents 1% of Kodak’s consolidated sales for both the quarter and six months ended June 30, 2018. These subsidiaries had assets of $23 million as of June 30, 2018, which represents 1% of Kodak’s consolidated assets as of June 30, 2018. Each of the capitalized but undefined terms has the meaning ascribed to such term in the Credit Agreements. EBITDA of the Unrestricted Subsidiaries, as calculated under the Term Credit Agreement and the Amended Credit Agreement, is a loss and is excluded from the calculation of the Secured Leverage Ratio. Therefore, designating these Subsidiaries as Unrestricted had the impact of improving the Secured Leverage Ratio. Kodak intends to conduct its operations in a manner that will result in continued compliance with the Credit Agreements; however, compliance for future quarters may depend on Kodak undertaking one or more non-operational transactions, such as the repatriation of cash into the U.S., the management of operating cash outflows, the designation of additional subsidiaries as Unrestricted Subsidiaries, a monetization of assets, a debt refinancing, the raising of equity capital, or a similar transaction. If Kodak is unable to remain in compliance and does not make alternate arrangements with its term lenders, an event of default would occur under the Credit Agreements which, among other remedies, would entitle the lenders or their agents to declare the outstanding obligations under the Term Credit Agreement to be immediately due and payable. There is no assurance Kodak will be able to complete any non-operational transaction it may undertake to maintain compliance with covenants under the Credit Agreements or to refinance, or otherwise pay, the First Lien Loans on or before the maturity date of September 3, 2019 or the obligations under the ABL Credit Agreement on June 6, 2019 if the First Lien Loans are not refinanced or paid on or before their maturity date. See also the Going Concern subsection of Note 1, “Basis of Presentation and Recent Accounting Pronouncements”. Amended and Restated Credit Agreement On May 26, 2016, the Company and certain of its domestic subsidiaries (the “Subsidiary Guarantors”) entered into an Amended and Restated Credit Agreement (the “Amended Credit Agreement” or “ABL Credit Agreement”) with the lenders party thereto (the “Lenders”), Bank of America, N.A., as administrative and collateral agent, and Bank of America, N.A. and JPMorgan Chase Bank, N.A., as joint lead arrangers and joint bookrunners, which amended and restated the existing Asset Based Revolving Credit Agreement, dated as of September 3, 2013 (the “Prior Credit Agreement”). Each of the capitalized but undefined terms used in the context of describing the Amended Credit Agreement has the meaning ascribed to such term in the Amended Credit Agreement. The Amended Credit Agreement decreased the aggregate amount of commitments from $200 million to $150 million and extended the maturity date to the earlier of May 26, 2021 or the date that is 90 days prior to the earliest scheduled maturity date of any of the Company’s outstanding term loans or refinancings thereof, of which the earliest maturity date is currently September 3, 2019. The Amended Credit Agreement, among other things, lowered reserve requirements by eliminating the Availability Block and removed the ability to use Qualified Cash to support Excess Availability. Each existing direct or indirect U.S. subsidiary of the Company (other than Immaterial Subsidiaries, Unrestricted Subsidiaries and certain other subsidiaries) has reaffirmed its unconditional guarantee (and any such future subsidiaries must provide an unconditional guarantee) of the obligations of the Company under the Amended Credit Agreement. The Lenders will make available asset-based revolving loans (the “ABL Loans”) and letters of credit in an aggregate amount of up to $150 million, subject to the Borrowing Base. The Company has issued approximately $79 million and $96 million of letters of credit under the Amended Credit Agreement as of June 30, 2018 and December 31, 2017, respectively. The Company had approximately $29 million and $20 million of Excess Availability under the Amended Credit Agreement as of June 30, 2018 and December 31, 2017, respectively. Availability is subject to the borrowing base calculation, reserves and other limitations. The ABL Loans bear interest at the rate of LIBOR plus 2.25% - 2.75% per annum or Base Rate plus 1.25% - 1.75% per annum based on Excess Availability. Excess Availability is equal to the sum of (i) 85% of the amount of the Eligible Receivables less a Dilution Reserve, (ii) the lesser of 85% of Net Orderly Liquidation Value or 75% of the Eligible Inventory (iii) the lesser of 75% of Orderly Liquidation Value of Eligible Equipment or $13 million, as of June 30, 2018 (which $13 million decreases by $1 million per quarter) and (iv) Eligible Cash less (a) Rent and Charges Reserves, (b) Principal Outstanding and (c) Outstanding Letters of Credit. Under the Amended Credit Agreement, Kodak is required to maintain a minimum Fixed Charge Coverage Ratio of 1.00 to 1.00 when Excess Availability is less than 12.5% of lender commitments. As of June 30, 2018 and December 31, 2017, 12.5% of lender commitments were $18.75 million. If Excess Availability falls below 12.5% of lender commitments, Kodak may, in addition to the requirement to be in compliance with the minimum Fixed Charge Coverage Ratio, become subject to cash dominion control. Since Excess Availability was greater than 12.5% of lender commitments at June 30, 2018 and December 31, 2017, Kodak is not required to have a minimum Fixed Charges Coverage Ratio of 1.0 to 1.0. As of June 30, 2018 and December 31, 2017, Kodak was in compliance with all the covenants under the Amended Credit Agreement. |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 7: COMMITMENTS AND CONTINGENCIES As of June 30, 2018, the Company had outstanding letters of credit of $79 million issued under the Amended Credit Agreement, as well as bank guarantees and letters of credit of $3 million, surety bonds in the amount of $42 million, and restricted cash and deposits of $24 million, primarily to ensure the payment of possible casualty and workers’ compensation claims, environmental liabilities, legal contingencies and rental payments and to support various customs, tax and trade activities. The restricted cash and deposits are reflected in Restricted cash, Other current assets and Other long-term assets in the Consolidated Statement of Financial Position. Kodak’s Brazilian operations are involved in various litigation matters 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 is disputing these matters and intends 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, 2018, the unreserved portion of these contingencies, inclusive of any related interest and penalties, for which there was at least a reasonable possibility that a loss may be incurred, amounted to approximately $20 million. In connection with assessments in Brazil, local regulations may require Kodak to post security for a portion of the amounts in dispute. As of June 30, 2018, Kodak has posted security composed of $5 million of pledged cash reported within Restricted cash in the Consolidated Statement of Financial Position and liens on certain Brazilian assets with a net book value of approximately $61 million. Generally, any encumbrances on the Brazilian assets would be removed to the extent the matter is resolved in Kodak's favor. 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 believe that it is probable that the outcomes in any of these matters, individually or collectively, will have a material adverse effect on its financial position or results of operations. Litigation is inherently unpredictable, and judgments could be rendered or settlements entered that could adversely affect Kodak’s operating results or cash flows in a particular period. Kodak routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. |
Note 8 - Guarantees
Note 8 - Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Guarantees [Text Block] | NOTE 8: GUARANTEES EKC guarantees obligations to third parties for some of its consolidated subsidiaries. The maximum amount guaranteed is $6 million and the outstanding amount for those guarantees is $2 million. In connection with the settlement of certain of the Company’s historical environmental liabilities at Eastman Business Park, in the event the historical liabilities exceed $99 million, the Company will become liable for 50% of the portion above $99 million with no limitation to the maximum potential future payments. There is no liability recorded for this guarantee. Extended Warranty Arrangements Kodak offers its customers extended warranty arrangements that are generally one year, but may range from three months to six years after the original warranty period. The change in Kodak’s deferred revenue balance in relation to these extended warranty and maintenance arrangements from December 31, 2017 to June 30, 2018, which is reflected in Other current liabilities in the accompanying Consolidated Statement of Financial Position, was as follows: (in millions) Deferred revenue on extended warranties as of December 31, 2017 $ 23 New extended warranty and maintenance arrangements in 2018 56 Recognition of extended warranty and maintenance arrangement revenue in 2018 (56 ) Deferred revenue on extended warranties as of June 30, 2018 $ 23 |
Note 9 - Revenue
Note 9 - Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue [Text Block] | NOTE 9: REVENUE Revenue Recognition Kodak’s revenue transactions include sales of products (such as components and consumables for use in Kodak and other manufacturers’ equipment and film-based products); equipment; software; services; integrated solutions; and intellectual property and brand licensing. Revenue from services includes extended warranty, customer support and maintenance agreements, consulting, business process services, training and education. Revenues are recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration Kodak expects to be entitled to in exchange for those goods or services. For product sales (such as plates, film, inks and other consumables) revenue is recognized when control has transferred from Kodak to the buyer, which may be upon shipment or upon delivery to the customer site, based on contract terms or legal requirements in certain jurisdictions. Service revenue is recognized using the time-based method ratably over the contractual period as it best depicts when the customer receives the benefit from the service. Service revenue for time and materials-based agreements is recognized as services are performed. Equipment is generally dependent on, and interrelated with, the underlying operating system (firm ware) and cannot function without the operating system. In these cases, the hardware and software license are accounted for as a single performance obligation. Contracts with customers may include multiple performance obligations including equipment, and optional software licenses and service agreements. Service agreements may be prepaid or paid over-time and range from three months to six years. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on the prices charged to customers or using expected cost-plus margin. For non-complex equipment installations and software sales (Prepress, Packaging and Prosper Components and Unified Workflow Solutions businesses) revenue is recognized when control of each distinct performance obligation has transferred from Kodak to the buyer, which is generally met when the equipment or software is delivered and installed at the customer site as delivery and installation generally occur within the same period. For complex equipment installations or integrated software solutions (Prosper Presses, Electrophotographic Printing Solutions Printers, Unified Workflow Solutions) revenue is deferred until receipt of customer acceptance and control has transferred to the buyer. Software licenses are sold both in bundled equipment arrangements as discussed above or on a stand-alone basis (Unified Workflow Solutions business). Software licenses are generally perpetual and are usually sold with post-contract support services (“PCS”) which are considered distinct performance obligations as the customer’s use of the existing software is not dependent upon future upgrades. Kodak recognizes software revenue at the time that the customer obtains control over the software which generally occurs upon installation while revenue allocated to the PCS is recognized over the service period. In service arrangements such as consulting or business process services (Kodak Technology Solutions business) where final acceptance by the customer is required, revenue is deferred until all acceptance criteria have been met and Kodak has a legal right to payment. Kodak’s licensing revenue is comprised of software licenses as discussed above, licenses to use functional intellectual property (patents and technical know-how) and licenses to use symbolic intellectual property (brand names and trademarks) (Consumer and Film businesses). The timing and the amount of revenue recognized from the licensing of intellectual property depends upon a variety of factors, including the nature of the performance obligations (functional vs. symbolic licenses) specific terms of each agreement, and the payment terms. Aside from software licenses discussed above, Kodak’s functional licenses generally provide the right to use functional intellectual property; therefore, non-sales/usage-based revenue is recognized when the customer has the right to use the intellectual property while sales and usage-based royalties are recognized in the period the related sales and usage occurs. Revenue for symbolic licenses such as brand licenses are recognized over time. Deferred revenue is recorded when cash payments are received in advance of satisfying performance obligations such as deposits required in advance on equipment orders, prepaid service contracts or prepaid royalties on intellectual property arrangements. Interest expense is imputed for payments received greater than one year in advance of performance. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. Kodak applies the practical expedient with respect to implied financial components and only imputes interest for payment terms greater than one year. Sales and usage-based taxes are excluded from revenues. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. Kodak estimates these amounts based on the expected amount to be provided to customers. Kodak expenses sales commissions when incurred if the amortization period would be one year or less. These costs are recorded in Selling, general and administrative expenses. Kodak accrues the estimated cost of post-sale obligations, including basic product warranties, at the time of revenue recognition. Shipping and handling costs are accounted for as fulfillment costs and are included in cost of sales. Kodak does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less or for which revenue is recognized at the amount to which Kodak has the right to invoice for services performed. Performance obligations with an original expected length of greater than one year generally consist of deferred service contracts, operating leases and licensing arrangements. As of June 30, 2018, there was approximately $75 million of unrecognized revenue from unsatisfied performance obligations. Approximately 20% of the revenue from unsatisfied performance obligations is expected to be recognized in 2018, 30% in 2019, 25% in 2020 and 25% thereafter. Disaggregation of Revenue The following tables present revenue disaggregated by major product, portfolio summary and geography. Major product: Three Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Technology Solutions Eastman Business Park Total Plates, inks and other consumables $ 176 $ 7 $ 34 $ — $ 4 $ — $ — $ 221 Ongoing service arrangements (1) 33 20 2 12 1 — — 68 Total Annuities 209 27 36 12 5 — — 289 Equipment & Software 18 6 2 4 — — — 30 Film and chemicals — — — — 41 — — 41 Other (2) — — — 4 2 1 5 12 Total $ 227 $ 33 $ 38 $ 20 $ 48 $ 1 $ 5 $ 372 Six Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Technology Solutions Eastman Business Park Total Plates, inks and other consumables $ 343 $ 15 $ 66 $ — $ 9 $ — $ — $ 433 Ongoing service arrangements (1) 67 40 4 24 1 — — 136 Total Annuities 410 55 70 24 10 — — 569 Equipment & Software 33 9 5 8 — — — 55 Film and chemicals — — — — 81 — — 81 Other (2) — — — 8 5 2 9 24 Total $ 443 $ 64 $ 75 $ 40 $ 96 $ 2 $ 9 $ 729 (1) Service revenue in the Consolidated Statement of Operations includes the ongoing service revenue shown above as well as revenue from project-based document management and managed print services businesses, which is included in Other above. (2) Other includes revenue from professional services, non-recurring engineering services, project-based document management and managed print services businesses, tenant rent and related property management services and licensing. Product Portfolio Summary: Three Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Printing Eastman Business Park Total Growth engines (1) $ 39 $ 19 $ 30 $ 20 $ 2 $ 1 $ — $ 111 Strategic other businesses (2) 180 — 8 — 42 — 5 235 Planned declining businesses (3) 8 14 — — 4 — — 26 $ 227 $ 33 $ 38 $ 20 $ 48 $ 1 $ 5 $ 372 Six Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Printing Eastman Business Park Total Growth engines (1) $ 74 $ 37 $ 59 $ 40 $ 5 $ 2 $ — $ 217 Strategic other businesses (2) 350 — 16 — 82 — 9 457 Planned declining businesses (3) 19 27 — — 9 — — 55 $ 443 $ 64 $ 75 $ 40 $ 96 $ 2 $ 9 $ 729 (1) Growth engines consist of Sonora, PROSPER, FLEXCEL NX, Software and Solutions, AM3D and brand licensing. (2) Strategic Other Businesses include plates, Computer to Plate (“CTP”) and related service, and Nexpress and related toner business in the Print Systems segment, non-FLEXCEL NX in the Flexographic Packaging segment, Motion Picture and Industrial Film and Chemicals in the Consumer and Film segment, Eastman Business Park and intellectual property licensing. (3) Planned Declining Businesses are product lines where the decision has been made to stop new product development and manage an orderly expected decline in the installed product and annuity base. These product families consist of Consumer Inkjet in the Consumer and Film segment, Versamark in the Enterprise Inkjet Systems segment and Digimaster in the Print Systems segment. Geography: Three Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Technology Solutions Eastman Business Park Total United States $ 60 $ 11 $ 6 $ 7 $ 32 $ 1 $ 5 $ 122 Canada 3 — 1 1 1 — — 6 North America 63 11 7 8 33 1 5 128 Europe, Middle East and Africa 93 13 16 5 5 — — 132 Asia Pacific 57 8 8 6 10 — — 89 Latin America 14 1 7 1 — — — 23 Total Sales $ 227 $ 33 $ 38 $ 20 $ 48 $ 1 $ 5 $ 372 Six Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Technology Solutions Eastman Business Park Total United States $ 117 $ 22 $ 12 $ 14 $ 64 $ 2 $ 9 $ 240 Canada 6 — 2 2 2 — — 12 North America 123 22 14 16 66 2 9 252 Europe, Middle East and Africa 186 25 32 11 10 — — 264 Asia Pacific 106 15 15 11 20 — — 167 Latin America 28 2 14 2 — — — 46 Total Sales $ 443 $ 64 $ 75 $ 40 $ 96 $ 2 $ 9 $ 729 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 amounts recorded for contract assets at June 30, 2018 and December 31, 2017 were both $3 million and are reported in Other current assets and Trade receivables, respectively, in the Consolidated Statement of Financial Position. The contract liabilities primarily relate to prepaid service contracts, upfront payments for certain equipment purchases or prepaid royalties on intellectual property arrangements. The amounts recorded for contract liabilities at June 30, 2018 and December 31, 2017 were $47 million and $37 million, respectively, of which $41 million and $37 million, respectively, are reported in Other current liabilities and $6 million and $0 million, respectively, are reported in Other long-term liabilities in the Consolidated Statement of Financial Position. Revenue recognized for the three and six months ended June 30, 2018 that was included in the contract liability balance at the beginning of the year was $4 million and $29 million, respectively, and primarily represented revenue from prepaid service contracts and equipment revenue recognition. Contract liabilities as of June 30, 2018 include $24 million and $30 million of cash payments received during the three and six months ended June 30, 2018, respectively. |
Note 10 - Other Operating (Inco
Note 10 - Other Operating (Income) Expense, Net | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Other Operating Expense (Income) [Text Block] | NOTE 10: OTHER OPERATING (INCOME) EXPENSE, NET Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Expense (income): Gain on sale of assets $ (1 ) $ — $ (2 ) $ (2 ) Prosper asset remeasurement (1) — — — 12 Asset impairments — 2 — 2 Other (1 ) — — — Total $ (2 ) $ 2 $ (2 ) $ 12 (1) In the first quarter of 2017, Kodak reduced the carrying value of Prosper fixed assets ($8 million) and intangible assets ($4 million) to the amount that would have been recorded if the Prosper assets, which were previously presented as held for sale, had been continuously classified as held and used. |
Note 11 - Other Charges (Income
Note 11 - Other Charges (Income), Net | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | NOTE 11: OTHER CHARGES (INCOME), NET Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Change in fair value of embedded conversion features derivative liability (1) $ (7 ) $ (14 ) $ 7 $ (36 ) Loss on foreign exchange transactions 7 3 9 4 Other 1 2 1 3 Total $ 1 $ (9 ) $ 17 $ (29 ) (1) |
Note 12 - Income Taxes
Note 12 - Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 12: INCOME TAXES On December 22, 2017, President Trump signed into law tax legislation known as the 2017 Tax Act. The 2017 Tax Act changed many aspects of U.S. corporate income taxation and included a reduction of the corporate income tax rate from 35% to 21%, the implementation of a territorial tax system and the imposition of a tax on deemed repatriated earnings of foreign subsidiaries. Effective January 1, 2018, the 2017 Tax Act also includes a provision to tax global intangible low-taxed income (“GILTI”) of foreign subsidiaries, a base erosion anti-abuse tax (“BEAT”) measure that taxes certain payments between a U.S. corporation and its subsidiaries and a foreign derived intangible income (“FDII”) deduction which would reduce U.S. taxable income. Kodak provided the applicable provisional tax impacts in its consolidated financial statements for the six months ended June 30, 2018 which were fully offset by Kodak’s U.S. valuation allowance resulting in no net tax provision. Given the complexity of the GILTI provisions, Kodak is still evaluating the effects and has not yet determined its accounting policy. For the six months ended June 30, 2018, Kodak is still evaluating the GILTI provisions and the analysis of future taxable income that is subject to GILTI. Therefore, Kodak has included GILTI related to current year operations only in its estimated annual effective tax rate and has not provided additional GILTI on deferred items. The impact was fully offset by Kodak’s U.S. valuation allowance, resulting in no net tax provision. Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, (“SAB 118”) addresses the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Act. Kodak has recognized the provisional tax impacts to the extent needed and included these amounts in its consolidated financial statements for the six months ended June 30, 2018. The ultimate impact may materially differ from these provisional amounts as a result of additional analysis, changes in interpretations and assumptions Kodak has made, additional regulatory guidance that may be issued, actions Kodak may take as a result of the 2017 Tax Act and other factors. The accounting is expected to be complete when the 2017 U.S. corporate income tax return is filed in 2018. 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) 2018 2017 2018 2017 Earnings (loss) from continuing operations before income taxes $ 5 $ 11 $ (13 ) $ 21 Effective tax rate 20.0 % 36.4 % (61.5 )% 33.3 % Provision for income taxes 1 4 8 7 Provision (benefit) for income taxes at U.S. statutory tax rate 1 4 (3 ) 7 Difference between tax at effective vs. statutory rate $ — $ — $ 11 $ — For the three months ended June 30, 2018, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% is primarily attributable to: (1) the impact related to existing valuation allowances associated with changes in net deferred tax assets from current earnings and losses and (2) the results from operations in jurisdictions outside the U.S. For the six months ended June 30, 2018, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% is primarily attributable to: (1) the impact related to existing valuation allowances associated with changes in net deferred tax assets from current earnings and losses, (2) the results from operations in jurisdictions outside the U.S. and (3) a provision associated with foreign withholding taxes on undistributed earnings. For the three months ended June 30, 2017, the difference between Kodak’s effective tax rate and For the six months ended June 30, 2017, the difference between Kodak’s effective tax rate and the |
Note 13 - Restructuring Liabili
Note 13 - Restructuring Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 13: RESTRUCTURING LIABILITIES Charges for restructuring activities are recorded in the period in which Kodak commits to a formalized restructuring plan, or executes the specific actions contemplated by the plan, and all criteria for liability recognition under the applicable accounting guidance have been met. Restructuring actions taken in the first six months of 2018 were initiated to reduce Kodak’s cost structure as part of its commitment to drive sustainable profitability and included various targeted reductions in manufacturing, service, sales, research and development, and other administrative functions. Restructuring Reserve Activity The activity in the accrued balances and the non-cash charges and credits incurred in relation to restructuring activities for the six months ended June 30, 2018 were as follows: (in millions) Severance Reserve (1) Exit Costs Reserve (1) Long-lived Asset Impairments and Inventory Write-downs (1) Total Balance as of December 31, 2017 $ 6 $ 4 $ — $ 10 Q1 charges 2 — — 2 Q1 utilization/cash payments (4 ) — — (4 ) Balance as of March 31, 2018 $ 4 $ 4 $ — $ 8 Q2 charges $ 2 $ — $ — $ 2 Q2 utilization/cash payments (3 ) (2 ) — (5 ) Q2 other adjustments and reclasses (2) (1 ) — — (1 ) Balance as of June 30, 2018 $ 2 $ 2 $ — $ 4 (1) The severance and exit costs reserves require the outlay of cash, while long-lived asset impairments and inventory write-downs represent non-cash items. (2) For the three months ended June 30, 2018 the $2 million of charges were reported as Restructuring costs and other. The severance costs for the three months ended June 30, 2018 related to the elimination of approximately 40 positions including approximately 30 manufacturing/service positions, 5 research and development positions, and 5 administrative and sales positions. The geographic composition of these positions includes approximately 35 in the United States and Canada and 5 throughout the rest of the world. For the six months ended June 30, 2018 the $4 million of charges were reported as Restructuring costs and other. The severance costs for the six months ended June 30, 2018 related to the elimination of approximately 75 positions including approximately 40 manufacturing/service positions, 5 research and development positions, and 30 administrative and sales positions. The geographic composition of these positions includes approximately 35 in the United States and Canada and 40 throughout the rest of the world. As a result of these initiatives, the majority of the severance will be paid during periods through the end of 2018. |
Note 14 - Retirement Plans and
Note 14 - Retirement Plans and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 14: RETIREMENT PLANS AND OTHER POSTRETIREMENT BENEFITS 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, 2018 2017 2018 2017 (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 $ 3 $ 1 $ 3 $ 1 $ 6 $ 2 $ 6 $ 2 Interest cost 27 3 28 3 55 6 57 6 Expected return on plan assets (56 ) (6 ) (61 ) (6 ) (112 ) (13 ) (122 ) (13 ) Amortization of: Prior service credit (2 ) — (1 ) — (4 ) — (3 ) — Actuarial loss 2 1 — — 3 2 — 1 Net pension income before special termination benefits (26 ) (1 ) (31 ) (2 ) (52 ) (3 ) (62 ) (4 ) Special termination benefits 1 — 5 — 1 — 6 — Net pension income (25 ) (1 ) (26 ) (2 ) (51 ) (3 ) (56 ) (4 ) Other plans — — — 1 — — — 1 Total net pension income $ (25 ) $ (1 ) $ (26 ) $ (1 ) $ (51 ) $ (3 ) $ (56 ) $ (3 ) For the three and six months ended June 30, 2017 the special termination benefits charges were incurred as a result of Kodak’s restructuring actions and, therefore, have been included in Restructuring costs and other in the Consolidated Statement of Operations for those periods. |
Note 15 - Redeemable, Convertib
Note 15 - Redeemable, Convertible Series A Preferred Stock | 6 Months Ended |
Jun. 30, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable, Convertible Series A Preferred Stock [Text Block] | NOTE 15: REDEEMABLE, CONVERTIBLE SERIES A PREFERRED STOCK On November 15, 2016, the Company issued 2,000,000 shares of 5.50% Series A Convertible Preferred Stock, no par value per share (the “Series A Preferred Stock”), for an aggregate purchase price of $200 million, or $100 per share. The Company has classified the Series A Preferred Stock as temporary equity in the Consolidated Statement of Financial Position. Kodak allocated $43 million of the net proceeds received to a derivative liability based on the aggregate fair value of the embedded conversion features on the date of issuance which reduced the net carrying value of the Series A Preferred Stock (see Note 21, “Financial Instruments”). The carrying value of the Series A Preferred Stock at the time of issuance, $155 million ($200 million aggregate gross proceeds less $43 million allocated to the derivative liability and $2 million in transaction costs), 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, November 15, 2021. The holders of Series A Preferred Stock are entitled to cumulative dividends payable quarterly in cash at a rate of 5.50% per annum. All dividends owed on the Series A Preferred Stock have been declared and paid when due. As of June 30, 2018, the Series A Preferred Stock has not been converted and none of the antidilution provisions have been triggered. Any shares of Series A Preferred Stock not converted prior to the fifth anniversary of the initial issuance of the Series A Preferred Stock are required to be redeemed at $100 per share plus the amount of accrued and unpaid dividends. |
Note 16 - Earnings Per Share
Note 16 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Earnings Per Share [Text Block] | NOTE 16: EARNINGS PER SHARE 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 include any dilutive effect of potential common shares. In periods with a net loss from continuing operations 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 three and six months ended June 30, 2018 and 2017 follows (in millions): Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Earnings (loss) from continuing operations $ 4 $ 7 $ (21 ) $ 14 Less: Series A convertible preferred stock cash dividend (3 ) (3 ) (6 ) (6 ) Less: Series A convertible preferred stock deemed dividend (2 ) (2 ) (4 ) (4 ) (Loss) earnings from continuing operations available to common shareholders - basic and diluted $ (1 ) $ 2 $ (31 ) $ 4 Net earnings (loss) $ 4 $ 4 $ (21 ) $ 11 Less: Series A convertible preferred stock cash dividend (3 ) (3 ) (6 ) (6 ) Less: Series A convertible preferred stock deemed dividend (2 ) (2 ) (4 ) (4 ) Net (loss) earnings available to common shareholders - basic and diluted $ (1 ) $ (1 ) $ (31 ) $ 1 (in millions of shares) Weighted average shares - basic 42.7 42.5 42.6 42.5 Effect of dilutive securities Unvested restricted stock units 0.3 0.2 0.3 0.2 Weighted average shares - diluted 43.0 42.7 42.9 42.7 As a result of the net loss from continuing operations available to common shareholders for the three and six months ended June 30, 2018, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding for those periods. If Kodak reported earnings from continuing operations available to common shareholders for both the three and six months ended June 30, 2018, the calculation of diluted earnings per share would have included the assumed conversion of 0.3 million of unvested restricted stock units. The computation of diluted earnings per share for the three and six months ended June 30, 2018 and 2017 excluded the impact of (1) the assumed conversion of 2.0 million shares of Series A convertible preferred shares, (2) the assumed conversion of net share settled warrants to purchase 1.8 million shares of common stock at an exercise price of $14.93, (3) the assumed conversion of net share settled warrants to purchase 1.8 million shares of common stock at an exercise price of $16.12 and (4) the assumed conversion of outstanding employee stock options of 4.9 million and 4.8 million for the three and six months ended June 30, 2018, respectively, and 2.6 million for both the three and six months ended June 30, 2017, because the effects would have been anti-dilutive. |
Note 17 - Shareholders' Equity
Note 17 - Shareholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 17: SHAREHOLDERS’ EQUITY Kodak 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 par value, issuable in one or more series. As of June 30, 2018 and December 31, 2017, there were 42.7 million and 42.6 million shares of common stock outstanding, respectively, and 2.0 million shares of Series A preferred stock issued and outstanding. Treasury stock consisted of approximately 0.6 million shares at both June 30, 2018 and December 31, 2017. |
Note 18 - Other Comprehensive I
Note 18 - Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 18: OTHER COMPREHENSIVE INCOME The changes in Other comprehensive income (loss), by component, were as follows: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Currency translation adjustments $ (20 ) $ — $ (7 ) $ 14 Pension and other postretirement benefit plan changes Newly established net actuarial gain (loss) 1 (1 ) 1 (1 ) Tax benefit — — — — Newly established net actuarial gain (loss), net of tax 1 (1 ) 1 (1 ) Reclassification adjustments: Amortization of prior service credit (a) (2 ) (2 ) (4 ) (4 ) Amortization of actuarial (gains) losses (a) 1 — 2 (1 ) Recognition of losses due to settlement — — 1 — Total reclassification adjustments (1 ) (2 ) (1 ) (5 ) Tax provision — — — Reclassification adjustments, net of tax (1 ) (2 ) (1 ) (5 ) Pension and other postretirement benefit plan changes, net of tax — (3 ) — (6 ) Other comprehensive income $ (20 ) $ (3 ) $ (7 ) $ 8 (a) |
Note 19 - Accumulated Other Com
Note 19 - Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Accumulated Other Comprehensive Loss [Text Block] | NOTE 19: ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss is composed of the following: June 30, December 31, (in millions) 2018 2017 Currency translation adjustments $ (92 ) $ (85 ) Pension and other postretirement benefit plan changes (306 ) (306 ) Ending balance $ (398 ) $ (391 ) |
Note 20 - Segment Information
Note 20 - Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 20: SEGMENT INFORMATION Kodak has seven reportable segments: Print Systems, Enterprise Inkjet Systems, Flexographic Packaging, Software and Solutions, Consumer and Film, Advanced Materials and 3D Printing Technology and Eastman Business Park. A description of the reportable segments follows. Print Systems : The Print Systems segment is comprised of two lines of business: Prepress Solutions and Electrophotographic Printing Solutions. Enterprise Inkjet Systems : The Enterprise Inkjet Systems segment is comprised of two lines of business: the Prosper business and the Versamark business. Flexographic Packaging : The Flexographic Packaging segment is comprised of the Packaging line of business. Software and Solutions : The Software and Solutions segment is comprised of two lines of business: Unified Workflow Solutions and Kodak Technology Solutions. Consumer and Film : The Consumer and Film segment is comprised of three lines of business: Industrial Film and Chemicals, Motion Picture and Consumer Products (which includes Consumer Inkjet Solutions). Advanced Materials and 3D Printing Technology : The Advanced Materials and 3D Printing Technology segment includes the Kodak Research Laboratories and associated new business opportunities and intellectual property licensing not directly related to other business segments. Eastman Business Park : The Eastman Business Park segment includes the operations of the Eastman Business Park, a more than 1,200-acre technology center and industrial complex. Segment financial information is shown below: Segment Revenues Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Print Systems $ 227 $ 236 $ 443 $ 449 Enterprise Inkjet Systems 33 35 64 72 Flexographic Packaging 38 37 75 70 Software and Solutions 20 22 40 43 Consumer and Film 48 47 96 96 Advanced Materials and 3D Printing Technology 1 — 2 — Eastman Business Park 5 4 9 8 Consolidated total $ 372 $ 381 $ 729 $ 738 Segment Operational EBITDA and Consolidated Earnings (Loss) from Continuing Operations Before Income Taxes Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Print Systems $ 8 $ 15 $ 12 $ 27 Enterprise Inkjet Systems 1 1 1 1 Flexographic Packaging 9 8 16 14 Software and Solutions (1 ) (1 ) (1 ) (1 ) Consumer and Film (4 ) (5 ) (10 ) (9 ) Advanced Materials and 3D Printing Technology (5 ) (7 ) (9 ) (15 ) Eastman Business Park 1 1 1 1 Total of reportable segments 9 12 10 18 Depreciation and amortization (20 ) (22 ) (39 ) (41 ) Restructuring costs and other (2 ) (11 ) (4 ) (24 ) Stock based compensation (1 ) (3 ) (3 ) (5 ) Consulting and other costs (1) (3 ) — (6 ) (1 ) Idle costs (2) (1 ) (1 ) (2 ) (2 ) Manufacturing capacity expansion non-recurring costs (3) (1 ) — (1 ) — Other operating income (expense), net (4) 2 (2 ) 2 (12 ) Interest expense (4) (9 ) (8 ) (17 ) (16 ) Pension income excluding service cost component (4) 32 37 64 75 Other (charges) income, net (4) (1 ) 9 (17 ) 29 Consolidated earnings (loss) from continuing operations before income taxes $ 5 $ 11 $ (13 ) $ 21 (1) Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives. (2) 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. (3) Consists of noncapitalizable costs incurred as a result of the Flexographic Packaging segment’s expansion at the manufacturing facility in Weatherford, Oklahoma. (4) As reported in the Consolidated Statement of Operations. 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 continuing operations excluding the provision for income taxes; non-service cost components of pension and OPEB income; depreciation and amortization expense; restructuring costs; stock-based compensation expense; consulting and other costs; idle costs; manufacturing capacity expansion non-recurring costs; other operating income (expense), net (unless otherwise indicated); goodwill impairment losses; interest expense; 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 directly related to the other segments are reported within the Advanced Materials and 3D Printing Technology segment. Change in Segment Measure of Profitability During the first quarter of 2018 the segment measure was changed to exclude amortization of prior service costs and credits which, due to the adoption of ASU 2017-17, are no longer reported in the same line item as other compensation costs arising from services rendered during the period. Refer to the Recently Adopted Accounting Pronouncements section of Note 1, “Basis of Presentation and Recent Accounting Pronouncements.” During the second quarter of 2018 the segment measure was changed to exclude manufacturing capacity expansion non-recurring costs for the expansion at the Flexographic Packaging segment’s Weatherford, Oklahoma manufacturing facility. These costs in the prior periods were de minimis and therefore no prior period reclassification is necessary. |
Note 21 - Financial Instruments
Note 21 - Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 21: FINANCIAL INSTRUMENTS 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 adversely affect its results of operations and financial position. Kodak manages such exposures, in part, with derivative financial instruments. Foreign currency forward contracts are used to mitigate currency risk related to foreign currency denominated assets and liabilities. Kodak’s exposure to changes in interest rates results from its investing and borrowing activities used to meet its liquidity needs. Kodak does not utilize financial instruments for trading or other speculative purposes. Kodak’s foreign currency forward contracts are not designated as hedges and are marked to market through net (loss) earnings at the same time that the exposed assets and liabilities are remeasured through net (loss) earnings (both in Other charges (income), net in the Consolidated Statement of Operations). The notional amount of such contracts open at June 30, 2018 and December 31, 2017 was approximately $657 million and $534 million, respectively. The majority of the contracts of this type held by Kodak as of June 30, 2018 and December 31, 2017 are denominated in Swiss francs and euros. 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) 2018 2017 2018 2017 Net gain (loss) from derivatives not designated as hedging instruments $ 6 $ (4 ) $ 6 $ — Kodak had no derivatives designated as hedging instruments for the three and six months ended June 30, 2018 and 2017. In the event of a default under the Company’s Senior Secured First Lien Term Credit Agreement, the Amended Credit Agreement, 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 obligation, to require immediate settlement of some or all open derivative contracts at their then-current fair value, but with liability positions netted against asset positions with the same counterparty. As discussed in Note 15, “Redeemable, Convertible, Series A Preferred Stock”, the Company concluded that the Series A Preferred Stock is considered more akin to a debt-type instrument and that the economic characteristics and risks of the embedded conversion features, except where the conversion price was increased to the liquidation preference, were not considered clearly and closely related to the Series A Preferred Stock. The embedded conversion features not considered clearly and closely related are the conversion at the option of the holder (“Optional Conversion”); the ability of Kodak to automatically convert the stock after the second anniversary of issuance (“Mandatory Conversion”) and the conversion in the event of a fundamental change or reorganization (“Fundamental Change or Reorganization Conversion”). Accordingly, these embedded conversion features were bifurcated from the Series A Preferred Stock and separately accounted for on a combined basis as a single derivative asset or liability. The derivative is in a liability position at June 30, 2018 and in an asset position at December 31, 2017, and is reported in Other long-term liabilities and Other long-term assets, respectively, in the Consolidated Statement of Financial Position. The derivative is being accounted for at fair value with changes in fair value being reported in Other charges (income), net in the Consolidated Statement of Operations. Fair Value Fair values of Kodak’s foreign currency forward contracts are determined using observable inputs (Level 2 fair value measurements) and are based on the present value of expected future cash flows (an income approach valuation technique) considering the risks involved and using discount rates appropriate for the duration of the contracts. The gross fair value of foreign currency forward contracts in an asset position are reported in Receivables, net and the gross fair value of foreign currency forward contracts in a liability position are reported in Other current liabilities in the Consolidated Statement of Financial Position. The gross fair value of forward contracts in an asset position as of both June 30, 2018 and December 31, 2017 was $7 million. The gross fair value of forward contracts in a liability position as of June 30, 2018 and December 31, 2017 was not material. Transfers between levels of the fair value hierarchy are recognized based on the actual date of the event or change in circumstances that caused the transfer. There were no transfers between levels of the fair value hierarchy during the three and six months ended June 30, 2018. The fair value of the embedded conversion features derivative is calculated using unobservable inputs (Level 3 fair measurements). The value of the Optional Conversion and Mandatory Conversion is calculated using a binomial lattice model. The following table presents the key inputs in the determination of the fair value of the Optional Conversion and Mandatory Conversion at June 30, 2018 and December 31, 2017: Valuation Date June 30, December 31, 2018 2017 Total value of embedded derivative liability (asset) ($ millions) $ 3 $ (4 ) Kodak's closing stock price 3.80 3.10 Expected stock price volatility 87.32 % 58.22 % Risk free rate 2.65 % 2.08 % Yield on the preferred stock 19.85 % 22.31 % The Fundamental Change and Reorganization Conversion value at issuance was calculated as the difference between the total value of the Series A Preferred Stock and the sum of the net present value of the cash flows if the Series A Preferred Stock is redeemed on its fifth anniversary and the values of the other embedded derivatives. The Fundamental Change and Reorganization Conversion value reduces the value of the embedded conversion features derivative liability. Unless events occur which would alter the likelihood of a fundamental change or reorganization event, the value of the Fundamental Change and Reorganization Conversion reflects the value as of the issuance date, amortized for the passage of time. The Fundamental Change and Reorganization Conversion value exceeded the value of the Optional Conversion and Mandatory Conversion values at December 31, 2017 resulting in the derivative being reported as an asset. The fair values of long-term debt (Level 2 fair value measurements) are determined by reference to quoted market prices of similar instruments, if available, or by pricing models based on the value of related cash flows discounted at current market interest rates. The fair values of long-term borrowings were $376 million and $348 million at June 30, 2018 and December 31, 2017, respectively. The carrying values of cash and cash equivalents, restricted cash and short-term borrowings and current portion of long-term debt approximate their fair values. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results of operations, financial position and cash flows of Eastman Kodak Company (“EKC” or the “Company”) and all companies directly or indirectly controlled, either through majority ownership or otherwise (collectively, “Kodak”). The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. These consolidated interim statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. |
Going Concern, Policy [Policy Text Block] | GOING CONCERN The consolidated interim financial statements have been prepared on the going concern basis of accounting, which assumes Kodak will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has $395 million of outstanding indebtedness under the Senior Secured First Lien Term Credit Agreement (the “First Lien Term Credit Agreement”). The loans made under the First Lien Term Credit Agreement become due on the earlier to occur of (i) the maturity date of September 3, 2019 or (ii) the acceleration of such loans following the occurrence of an event of default (as defined in the First Lien Term Credit Agreement). The Company also has issued approximately $79 million and $96 million of letters of credit under the Amended and Restated Credit Agreement (the “Amended Credit Agreement”) as of June 30, 2018 and December 31, 2017, respectively. Should the Company not repay, refinance or extend the maturity of the loans under the existing First Lien Term Credit Agreement prior to June 5, 2019, the termination date will occur under the Amended Credit Agreement on such date unless the Amended Credit Agreement has been amended in the interim. Upon the occurrence of the termination date under the Amended Credit Agreement, the obligations thereunder will become due and the Company will need to provide alternate collateral in place of the letters of credit issued under the Amended Credit Agreement. As of June 30, 2018 and December 31, 2017, Kodak had approximately $275 million and $344 million, respectively, of cash and cash equivalents. $133 million and $172 million was held in the U.S. as of June 30, 2018 and December 31, 2017, respectively, and $77 million and $108 million was held in China as of June 30, 2018 and December 31, 2017, respectively. Outstanding inter-company loans to the U.S. as of June 30, 2018 and December 31, 2017 were $394 million and $358 million, respectively, which includes short-term intercompany loans from Kodak’s international finance center of $95 million and $59 million as of June 30, 2018 and December 31, 2017, respectively. Kodak had a net decrease in cash, cash equivalents, and restricted cash of $109 million, $122 million, and $158 million for the years ended December 31, 2017, 2016, and 2015, respectively, and a decrease in cash, cash equivalents, and restricted cash of $76 million for the six months ended June 30, 2018. U.S. GAAP requires an evaluation of whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. Initially, this evaluation does not consider the potential mitigating effect of management’s plans that have not been fully implemented. When substantial doubt exists, management evaluates the mitigating effect of its plans if it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued. As of the date of issuance of these financial statements, Kodak has debt coming due within thirteen months and does not have committed financing or available liquidity to meet such debt obligations if they were to become due in accordance with their current terms. Kodak has entered into a non-binding letter of intent with a counterparty which holds a significant principal amount of the loans under the First Lien Term Credit Agreement which would provide for a complete refinancing of the loans under the First Lien Term Credit Agreement with a maturity date of 18 months from closing. In addition, Kodak has retained an investment banker in connection with, and is actively pursuing, a sale of its Flexographic Packaging segment. All net proceeds from any sale of its Flexographic Packaging segment will first be used to pay down outstanding debt. However, the sale of the Flexographic Packaging segment and refinancing of the loans under the First Lien Term Credit Agreement is facing liquidity challenges due to negative cash flow. Based on forecasted cash flows, there are uncertainties regarding Kodak’s ability to meet commitments in the U.S. as they come due. Kodak’s plans to improve cash flow include reducing interest expense by decreasing the debt balance using proceeds from asset sales; further restructuring Kodak’s cost structure; and paring investment in new technology by eliminating, slowing, and partnering with investors in product development programs. Kodak also is exploring options regarding additional liquidity from other sources. Kodak makes no assurances regarding the likelihood, certainty or timing of consummating a sale of the Flexographic Packaging segment or refinancing of the Company’s debt or regarding the sufficiency of any such actions to meet Kodak’s debt obligations, including compliance with debt covenants, or other commitments in the U.S. as they come due. These conditions raise substantial doubt about Kodak’s ability to continue as a going concern . For more information regarding the First Lien Term Credit Agreement, the Amended Credit Agreement and debt covenants see Note 6, “Debt and Capital Leases”. |
New Accounting Pronouncements, Policy [Policy Text Block] | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, Compensation—Retirements Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 requires entities to report the service cost component in the same line item(s) as other compensation costs arising from services rendered during the period and to report all other components of net benefit costs outside a subtotal of income from operations. In addition, the ASU allows only the service cost component to be eligible for capitalization when applicable. Kodak adopted ASU 2017-07 effective January 1, 2018, retrospectively for the presentation of the service cost and other cost components and prospectively for the application of the capitalization eligibility. The components of net benefit cost are shown in Note 14, “Retirement Plans and Other Postretirement Benefits”. The guidance impacted presentation in Kodak’s consolidated financial statements and the capitalization of costs to inventory. The presentation of the service cost component was consistent with the requirements of the new standard. The other components (which were presented within Cost of revenues, Selling and general administrative expenses and Research and development costs) are being presented separately on the face of the Consolidated Statement of Operations. The segment measure of profit and loss previously included only the service cost and amortization of prior service credits components of net periodic pension and postretirement benefit costs (refer to Note 20, “Segment Information”). Effective January 1, 2018, the segment measure of profit and loss only includes the service cost component of net periodic pension and postretirement benefit costs and prior periods have been reclassified to conform to this presentation. In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 defines in-substance nonfinancial assets, provides guidance with respect to accounting for partial sales of nonfinancial assets and conforms the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard (Topic 606 as described below). Kodak adopted ASU 2017-05 effective January 1, 2018 using the modified retrospective adoption approach. The application of this standard did not have a material impact on Kodak’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the ASU all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Kodak adopted ASU 2016-01 effective January 1, 2018. The adoption of this guidance did not have a material impact on Kodak’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition” and most industry-specific guidance. The core principle of ASU 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Kodak adopted the provisions of the new standard effective January 1, 2018 using the modified retrospective method which allows companies to record a one-time adjustment to opening retained earnings for the cumulative effect of the standard on open contracts at the time of adoption. Kodak derives revenue from various brand licensing arrangements, which may include upfront payments and/or sales-based royalties subject to minimum annual guaranteed amounts. Kodak recorded a cumulative effect adjustment of approximately $10 million as a decrease to the opening balance of retained earnings related to these arrangements. With the exception of brand license revenue, Kodak did not identify any changes in the timing of revenue recognition that resulted in a material transition adjustment. The cumulative effect of the changes made to the Consolidated Statement of Financial Position for January 1, 2018 for the adoption of ASU 2014-09 were as follows. The net reduction in opening retained earnings primarily reflected the impact related to brand licensing revenues. (in millions) Balance at December 31, 2017 Adjustments Due to ASU 2014-09 Balance at January 1, 2018 Liabilities Other current liabilities $ 217 $ 2 $ 219 Other long-term liabilities 202 8 210 Deficit Accumulated Deficit (174 ) (10 ) (184 ) The impact of the adoption on the Consolidated Statement of Operations and Consolidated Statement of Financial Position were as follows: Three Months Ended June 30, 2018 (in millions) As Reported Amounts without Adoption of ASU 2014-09 Effect of Change Higher (Lower) Revenues Sales $ 300 $ 299 $ 1 Services 72 72 — Total revenues 372 371 1 Net income $ 4 $ 3 $ 1 Six Months Ended June 30, 2018 (in millions) As Reported Amounts without Adoption of ASU 2014-09 Effect of Change Higher (Lower) Revenues Sales $ 585 $ 583 $ 2 Services 144 144 — Total revenues 729 727 2 Net loss $ (21 ) $ (23 ) $ 2 June 30, 2018 (in millions) As Reported Balances without Adoption of ASU 2014-09 Effect of Change Higher (Lower) Liabilities Other current liabilities $ 208 $ 206 $ 2 Other long-term liabilities 198 192 6 Deficit Accumulated Deficit (205 ) (197 ) (8 ) RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The ASU addresses certain stranded income tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act (the “2017 Tax Act”). The ASU provides an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the 2017 Tax Act (or portion thereof) is recorded and requires additional disclosures. The ASU is effective for fiscal years beginning after December 15, 2018 (January 1, 2019 for Kodak) and interim periods within those fiscal years. Early adoption is permitted and may be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the 2017 Tax Act is recognized. Kodak plans to adopt the new standard on the effective date. Kodak is currently evaluating the impact of this ASU. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. In addition, the ASU requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The new standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 (January 1, 2020 for Kodak). Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018 (January 1, 2019 for Kodak). Kodak is currently evaluating the impact of this ASU. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. The new leasing standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018 (January 1, 2019 for Kodak). Early adoption is permitted. Kodak plans to adopt the new standard on the effective date and is currently evaluating the impact of this ASU on its financial statements. Kodak is currently evaluating its existing lease portfolio, including accumulating all the necessary information required to properly account for the leases under the new standard. Additionally, a new lease accounting system is being implemented to support the accounting and disclosure requirements of the new standard. Kodak anticipates that the adoption of the amended lease guidance will materially affect its Consolidated Statement of Financial Position and may require certain changes to its systems and processes. |
Note 1 - Basis of Presentatio29
Note 1 - Basis of Presentation and Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
ASU 2014-09 [Member] | |
Summary of Impact of Adoption of Accounting Standards on Consolidated Financial Statements [Table Text Block] | The cumulative effect of the changes made to the Consolidated Statement of Financial Position for January 1, 2018 for the adoption of ASU 2014-09 were as follows. The net reduction in opening retained earnings primarily reflected the impact related to brand licensing revenues. (in millions) Balance at December 31, 2017 Adjustments Due to ASU 2014-09 Balance at January 1, 2018 Liabilities Other current liabilities $ 217 $ 2 $ 219 Other long-term liabilities 202 8 210 Deficit Accumulated Deficit (174 ) (10 ) (184 ) The impact of the adoption on the Consolidated Statement of Operations and Consolidated Statement of Financial Position were as follows: Three Months Ended June 30, 2018 (in millions) As Reported Amounts without Adoption of ASU 2014-09 Effect of Change Higher (Lower) Revenues Sales $ 300 $ 299 $ 1 Services 72 72 — Total revenues 372 371 1 Net income $ 4 $ 3 $ 1 Six Months Ended June 30, 2018 (in millions) As Reported Amounts without Adoption of ASU 2014-09 Effect of Change Higher (Lower) Revenues Sales $ 585 $ 583 $ 2 Services 144 144 — Total revenues 729 727 2 Net loss $ (21 ) $ (23 ) $ 2 June 30, 2018 (in millions) As Reported Balances without Adoption of ASU 2014-09 Effect of Change Higher (Lower) Liabilities Other current liabilities $ 208 $ 206 $ 2 Other long-term liabilities 198 192 6 Deficit Accumulated Deficit (205 ) (197 ) (8 ) |
Note 2 - Cash, Cash Equivalen30
Note 2 - Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash [Text Block] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Statement of Financial Position that sums to the total of such amounts shown in the Statement of Cash Flows: June 30, December 31, (in millions) 2018 2017 Cash and cash equivalents $ 275 $ 344 Restricted cash included in Other current assets 7 8 Long-term restricted cash 11 17 Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows $ 293 $ 369 |
Note 3 - Inventories, Net (Tabl
Note 3 - Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Table [Text Block] | |
Schedule of Inventory, Current [Table Text Block] | June 30, December 31, (in millions) 2018 2017 Finished goods $ 168 $ 159 Work in process 65 57 Raw materials 68 60 Total $ 301 $ 276 |
Note 4 - Other Current Liabil32
Note 4 - Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Other Current Liabilities [Table Text Block] | June 30, December 31, (in millions) 2018 2017 Employee related liabilities $ 46 $ 47 Deferred revenue 33 30 Deferred consideration on disposed businesses 24 10 Customer rebates 23 29 Workers compensation 10 10 Restructuring liabilities 4 10 Other 68 81 Total $ 208 $ 217 |
Note 5 - Other Long-term Liab33
Note 5 - Other Long-term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Other Long-term Liabilities [Table Text Block] | June 30, December 31, (in millions) 2018 2017 Workers compensation $ 95 $ 96 Asset retirement obligations 47 43 Deferred taxes 14 16 Environmental liabilities 12 12 Embedded conversion features derivative liability (1) 3 — Deferred consideration on disposed businesses — 14 Other 27 21 Total $ 198 $ 202 (1) Refer to Note 21, “Financial Instruments” |
Note 6 - Debt And Capital Lea34
Note 6 - Debt And Capital Leases (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt And Capital Lease Obligations [Table Text Block] | Debt and capital leases and related maturities and interest rates were as follows at June 30, 2018 and December 31, 2017 (in millions): June 30, December 31, (in millions) 2018 2017 Type Maturity Weighted-Average Effective Interest Rate Carrying Value Carrying Value Current portion: Capital leases Various Various $ 3 $ 3 Other debt Various Various — 1 3 4 Non-current portion: Term note 2019 7.34% 393 393 Capital leases Various Various 3 4 Other debt Various Various 2 2 398 399 $ 401 $ 403 |
Note 8 - Guarantees (Tables)
Note 8 - Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Table [Text Block] | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | (in millions) Deferred revenue on extended warranties as of December 31, 2017 $ 23 New extended warranty and maintenance arrangements in 2018 56 Recognition of extended warranty and maintenance arrangement revenue in 2018 (56 ) Deferred revenue on extended warranties as of June 30, 2018 $ 23 |
Note 9 - Revenue (Tables)
Note 9 - Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue by Major Product, Product Portfolio Summary and Geography [Table Text Block] | The following tables present revenue disaggregated by major product, portfolio summary and geography. Major product: Three Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Technology Solutions Eastman Business Park Total Plates, inks and other consumables $ 176 $ 7 $ 34 $ — $ 4 $ — $ — $ 221 Ongoing service arrangements (1) 33 20 2 12 1 — — 68 Total Annuities 209 27 36 12 5 — — 289 Equipment & Software 18 6 2 4 — — — 30 Film and chemicals — — — — 41 — — 41 Other (2) — — — 4 2 1 5 12 Total $ 227 $ 33 $ 38 $ 20 $ 48 $ 1 $ 5 $ 372 Six Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Technology Solutions Eastman Business Park Total Plates, inks and other consumables $ 343 $ 15 $ 66 $ — $ 9 $ — $ — $ 433 Ongoing service arrangements (1) 67 40 4 24 1 — — 136 Total Annuities 410 55 70 24 10 — — 569 Equipment & Software 33 9 5 8 — — — 55 Film and chemicals — — — — 81 — — 81 Other (2) — — — 8 5 2 9 24 Total $ 443 $ 64 $ 75 $ 40 $ 96 $ 2 $ 9 $ 729 (1) Service revenue in the Consolidated Statement of Operations includes the ongoing service revenue shown above as well as revenue from project-based document management and managed print services businesses, which is included in Other above. (2) Other includes revenue from professional services, non-recurring engineering services, project-based document management and managed print services businesses, tenant rent and related property management services and licensing. Product Portfolio Summary: Three Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Printing Eastman Business Park Total Growth engines (1) $ 39 $ 19 $ 30 $ 20 $ 2 $ 1 $ — $ 111 Strategic other businesses (2) 180 — 8 — 42 — 5 235 Planned declining businesses (3) 8 14 — — 4 — — 26 $ 227 $ 33 $ 38 $ 20 $ 48 $ 1 $ 5 $ 372 Six Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Printing Eastman Business Park Total Growth engines (1) $ 74 $ 37 $ 59 $ 40 $ 5 $ 2 $ — $ 217 Strategic other businesses (2) 350 — 16 — 82 — 9 457 Planned declining businesses (3) 19 27 — — 9 — — 55 $ 443 $ 64 $ 75 $ 40 $ 96 $ 2 $ 9 $ 729 (1) Growth engines consist of Sonora, PROSPER, FLEXCEL NX, Software and Solutions, AM3D and brand licensing. (2) Strategic Other Businesses include plates, Computer to Plate (“CTP”) and related service, and Nexpress and related toner business in the Print Systems segment, non-FLEXCEL NX in the Flexographic Packaging segment, Motion Picture and Industrial Film and Chemicals in the Consumer and Film segment, Eastman Business Park and intellectual property licensing. (3) Planned Declining Businesses are product lines where the decision has been made to stop new product development and manage an orderly expected decline in the installed product and annuity base. These product families consist of Consumer Inkjet in the Consumer and Film segment, Versamark in the Enterprise Inkjet Systems segment and Digimaster in the Print Systems segment. Geography: Three Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Technology Solutions Eastman Business Park Total United States $ 60 $ 11 $ 6 $ 7 $ 32 $ 1 $ 5 $ 122 Canada 3 — 1 1 1 — — 6 North America 63 11 7 8 33 1 5 128 Europe, Middle East and Africa 93 13 16 5 5 — — 132 Asia Pacific 57 8 8 6 10 — — 89 Latin America 14 1 7 1 — — — 23 Total Sales $ 227 $ 33 $ 38 $ 20 $ 48 $ 1 $ 5 $ 372 Six Months Ended June 30, 2018 Print Systems Enterprise Inkjet Solutions Flexographic Packaging Printing Software & Solutions Consumer & Film Advanced Materials and 3D Technology Solutions Eastman Business Park Total United States $ 117 $ 22 $ 12 $ 14 $ 64 $ 2 $ 9 $ 240 Canada 6 — 2 2 2 — — 12 North America 123 22 14 16 66 2 9 252 Europe, Middle East and Africa 186 25 32 11 10 — — 264 Asia Pacific 106 15 15 11 20 — — 167 Latin America 28 2 14 2 — — — 46 Total Sales $ 443 $ 64 $ 75 $ 40 $ 96 $ 2 $ 9 $ 729 |
Note 10 - Other Operating (In37
Note 10 - Other Operating (Income) Expense, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Table [Text Block] | |
Schedule of Other Operating Expense (Income), by Component [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Expense (income): Gain on sale of assets $ (1 ) $ — $ (2 ) $ (2 ) Prosper asset remeasurement (1) — — — 12 Asset impairments — 2 — 2 Other (1 ) — — — Total $ (2 ) $ 2 $ (2 ) $ 12 (1) In the first quarter of 2017, Kodak reduced the carrying value of Prosper fixed assets ($8 million) and intangible assets ($4 million) to the amount that would have been recorded if the Prosper assets, which were previously presented as held for sale, had been continuously classified as held and used. |
Note 11 - Other Charges (Inco38
Note 11 - Other Charges (Income), Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Table [Text Block] | |
Schedule of Other Nonoperating Income, by Component [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Change in fair value of embedded conversion features derivative liability (1) $ (7 ) $ (14 ) $ 7 $ (36 ) Loss on foreign exchange transactions 7 3 9 4 Other 1 2 1 3 Total $ 1 $ (9 ) $ 17 $ (29 ) (1) |
Note 12 - Income Taxes (Tables)
Note 12 - Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 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) 2018 2017 2018 2017 Earnings (loss) from continuing operations before income taxes $ 5 $ 11 $ (13 ) $ 21 Effective tax rate 20.0 % 36.4 % (61.5 )% 33.3 % Provision for income taxes 1 4 8 7 Provision (benefit) for income taxes at U.S. statutory tax rate 1 4 (3 ) 7 Difference between tax at effective vs. statutory rate $ — $ — $ 11 $ — |
Note 13 - Restructuring Liabi40
Note 13 - Restructuring Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The activity in the accrued balances and the non-cash charges and credits incurred in relation to restructuring activities for the six months ended June 30, 2018 were as follows: (in millions) Severance Reserve (1) Exit Costs Reserve (1) Long-lived Asset Impairments and Inventory Write-downs (1) Total Balance as of December 31, 2017 $ 6 $ 4 $ — $ 10 Q1 charges 2 — — 2 Q1 utilization/cash payments (4 ) — — (4 ) Balance as of March 31, 2018 $ 4 $ 4 $ — $ 8 Q2 charges $ 2 $ — $ — $ 2 Q2 utilization/cash payments (3 ) (2 ) — (5 ) Q2 other adjustments and reclasses (2) (1 ) — — (1 ) Balance as of June 30, 2018 $ 2 $ 2 $ — $ 4 (1) The severance and exit costs reserves require the outlay of cash, while long-lived asset impairments and inventory write-downs represent non-cash items. (2) |
Note 14 - Retirement Plans an41
Note 14 - Retirement Plans and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Table [Text Block] | |
Schedule of Changes in Projected Benefit Obligations Fair Value of Plan Assets and Funded Status of Plan [Table Text Block] | 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, 2018 2017 2018 2017 (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 $ 3 $ 1 $ 3 $ 1 $ 6 $ 2 $ 6 $ 2 Interest cost 27 3 28 3 55 6 57 6 Expected return on plan assets (56 ) (6 ) (61 ) (6 ) (112 ) (13 ) (122 ) (13 ) Amortization of: Prior service credit (2 ) — (1 ) — (4 ) — (3 ) — Actuarial loss 2 1 — — 3 2 — 1 Net pension income before special termination benefits (26 ) (1 ) (31 ) (2 ) (52 ) (3 ) (62 ) (4 ) Special termination benefits 1 — 5 — 1 — 6 — Net pension income (25 ) (1 ) (26 ) (2 ) (51 ) (3 ) (56 ) (4 ) Other plans — — — 1 — — — 1 Total net pension income $ (25 ) $ (1 ) $ (26 ) $ (1 ) $ (51 ) $ (3 ) $ (56 ) $ (3 ) |
Note 16 - Earnings Per Share (T
Note 16 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Basic and Diluted Earnings Per Share [Table Text Block] | A reconciliation of the amounts used to calculate basic and diluted earnings per share for three and six months ended June 30, 2018 and 2017 follows (in millions): Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Earnings (loss) from continuing operations $ 4 $ 7 $ (21 ) $ 14 Less: Series A convertible preferred stock cash dividend (3 ) (3 ) (6 ) (6 ) Less: Series A convertible preferred stock deemed dividend (2 ) (2 ) (4 ) (4 ) (Loss) earnings from continuing operations available to common shareholders - basic and diluted $ (1 ) $ 2 $ (31 ) $ 4 Net earnings (loss) $ 4 $ 4 $ (21 ) $ 11 Less: Series A convertible preferred stock cash dividend (3 ) (3 ) (6 ) (6 ) Less: Series A convertible preferred stock deemed dividend (2 ) (2 ) (4 ) (4 ) Net (loss) earnings available to common shareholders - basic and diluted $ (1 ) $ (1 ) $ (31 ) $ 1 (in millions of shares) Weighted average shares - basic 42.7 42.5 42.6 42.5 Effect of dilutive securities Unvested restricted stock units 0.3 0.2 0.3 0.2 Weighted average shares - diluted 43.0 42.7 42.9 42.7 |
Note 18 - Other Comprehensive43
Note 18 - Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Table [Text Block] | |
Comprehensive Income (Loss) [Table Text Block] | The changes in Other comprehensive income (loss), by component, were as follows: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Currency translation adjustments $ (20 ) $ — $ (7 ) $ 14 Pension and other postretirement benefit plan changes Newly established net actuarial gain (loss) 1 (1 ) 1 (1 ) Tax benefit — — — — Newly established net actuarial gain (loss), net of tax 1 (1 ) 1 (1 ) Reclassification adjustments: Amortization of prior service credit (a) (2 ) (2 ) (4 ) (4 ) Amortization of actuarial (gains) losses (a) 1 — 2 (1 ) Recognition of losses due to settlement — — 1 — Total reclassification adjustments (1 ) (2 ) (1 ) (5 ) Tax provision — — — Reclassification adjustments, net of tax (1 ) (2 ) (1 ) (5 ) Pension and other postretirement benefit plan changes, net of tax — (3 ) — (6 ) Other comprehensive income $ (20 ) $ (3 ) $ (7 ) $ 8 (a) |
Note 19 - Accumulated Other C44
Note 19 - Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Table [Text Block] | |
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | Accumulated other comprehensive loss is composed of the following: June 30, December 31, (in millions) 2018 2017 Currency translation adjustments $ (92 ) $ (85 ) Pension and other postretirement benefit plan changes (306 ) (306 ) Ending balance $ (398 ) $ (391 ) |
Note 20 - Segment Information (
Note 20 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Table [Text Block] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Print Systems $ 227 $ 236 $ 443 $ 449 Enterprise Inkjet Systems 33 35 64 72 Flexographic Packaging 38 37 75 70 Software and Solutions 20 22 40 43 Consumer and Film 48 47 96 96 Advanced Materials and 3D Printing Technology 1 — 2 — Eastman Business Park 5 4 9 8 Consolidated total $ 372 $ 381 $ 729 $ 738 Three Months Ended Six Months Ended June 30, June 30, (in millions) 2018 2017 2018 2017 Print Systems $ 8 $ 15 $ 12 $ 27 Enterprise Inkjet Systems 1 1 1 1 Flexographic Packaging 9 8 16 14 Software and Solutions (1 ) (1 ) (1 ) (1 ) Consumer and Film (4 ) (5 ) (10 ) (9 ) Advanced Materials and 3D Printing Technology (5 ) (7 ) (9 ) (15 ) Eastman Business Park 1 1 1 1 Total of reportable segments 9 12 10 18 Depreciation and amortization (20 ) (22 ) (39 ) (41 ) Restructuring costs and other (2 ) (11 ) (4 ) (24 ) Stock based compensation (1 ) (3 ) (3 ) (5 ) Consulting and other costs (1) (3 ) — (6 ) (1 ) Idle costs (2) (1 ) (1 ) (2 ) (2 ) Manufacturing capacity expansion non-recurring costs (3) (1 ) — (1 ) — Other operating income (expense), net (4) 2 (2 ) 2 (12 ) Interest expense (4) (9 ) (8 ) (17 ) (16 ) Pension income excluding service cost component (4) 32 37 64 75 Other (charges) income, net (4) (1 ) 9 (17 ) 29 Consolidated earnings (loss) from continuing operations before income taxes $ 5 $ 11 $ (13 ) $ 21 (1) Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives. (2) 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. (3) Consists of noncapitalizable costs incurred as a result of the Flexographic Packaging segment’s expansion at the manufacturing facility in Weatherford, Oklahoma. (4) As reported in the Consolidated Statement of Operations. |
Note 21 - Financial Instrumen46
Note 21 - Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Table [Text Block] | |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | 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) 2018 2017 2018 2017 Net gain (loss) from derivatives not designated as hedging instruments $ 6 $ (4 ) $ 6 $ — |
Derivative Liability (Asset) Key Inputs in Determination of Fair Value of Optional and Mandatory Conversion [Table Text Block] | The following table presents the key inputs in the determination of the fair value of the Optional Conversion and Mandatory Conversion at June 30, 2018 and December 31, 2017: Valuation Date June 30, December 31, 2018 2017 Total value of embedded derivative liability (asset) ($ millions) $ 3 $ (4 ) Kodak's closing stock price 3.80 3.10 Expected stock price volatility 87.32 % 58.22 % Risk free rate 2.65 % 2.08 % Yield on the preferred stock 19.85 % 22.31 % |
Note 1 - Basis of Presentatio47
Note 1 - Basis of Presentation and Recent Accounting Pronouncements (Details Textual) - USD ($) $ in Millions | Sep. 03, 2013 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 |
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||||||
Cash And Cash Equivalents | $ 275 | $ 344 | |||||
Outstanding inter-company loans | 394 | 358 | |||||
Short-Term Intercompany Loans | 95 | 59 | |||||
Net decrease in cash and cash equivalents and restricted cash | 76 | $ 89 | 109 | $ 122 | $ 158 | ||
Decrease to the opening balance of retained earnings | 205 | 174 | |||||
ASU 2014-09 [Member] | |||||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||||||
Decrease to the opening balance of retained earnings | $ 184 | ||||||
ASU 2014-09 [Member] | Effect of Change Higher (Lower) [Member] | |||||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||||||
Decrease to the opening balance of retained earnings | 8 | $ 10 | |||||
Amended Credit Agreement [Member] | |||||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||||||
Letter of credit | $ 79 | 96 | |||||
Termination date | Jun. 5, 2019 | ||||||
United States [Member] | |||||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||||||
Cash And Cash Equivalents | $ 133 | 172 | |||||
China [Member] | |||||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||||||
Cash And Cash Equivalents | 77 | $ 108 | |||||
First Lien Term Loan [Member] | |||||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||||||
Debt Instrument Face Amount | $ 420 | $ 395 | |||||
Debt Instrument, Maturity Date | Sep. 3, 2019 | Sep. 3, 2019 |
Note 1 - Cumulative Effect of C
Note 1 - Cumulative Effect of Changes made to Consolidated Statement of Financial Position on Adoption of Accounting Standards (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Liabilities | |||
Other current liabilities | $ 208 | $ 217 | |
Other long-term liabilities | 198 | 202 | |
Equity (Deficit) | |||
Accumulated deficit | (205) | (174) | |
Balances without Adoption of ASU 2014-09 [Member] | |||
Liabilities | |||
Other current liabilities | 217 | ||
Other long-term liabilities | 202 | ||
Equity (Deficit) | |||
Accumulated deficit | $ (174) | ||
ASU 2014-09 [Member] | |||
Liabilities | |||
Other current liabilities | $ 219 | ||
Other long-term liabilities | 210 | ||
Equity (Deficit) | |||
Accumulated deficit | (184) | ||
ASU 2014-09 [Member] | Balances without Adoption of ASU 2014-09 [Member] | |||
Liabilities | |||
Other current liabilities | 206 | ||
Other long-term liabilities | 192 | ||
Equity (Deficit) | |||
Accumulated deficit | (197) | ||
ASU 2014-09 [Member] | Effect of Change Higher (Lower) [Member] | |||
Liabilities | |||
Other current liabilities | 2 | 2 | |
Other long-term liabilities | 6 | 8 | |
Equity (Deficit) | |||
Accumulated deficit | $ (8) | $ (10) |
Note 1 - Summary of Impact of A
Note 1 - Summary of Impact of Adoption on Consolidated Statement of Operations and Consolidated Statement of Financial Position (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenues | ||||||
Total revenues | $ 372 | $ 381 | $ 729 | $ 738 | ||
Net income (loss) | 4 | 4 | (21) | 11 | ||
Liabilities | ||||||
Other current liabilities | 208 | 208 | $ 217 | |||
Other long-term liabilities | 198 | 198 | 202 | |||
Equity (Deficit) | ||||||
Accumulated deficit | (205) | (205) | (174) | |||
Balances without Adoption of ASU 2014-09 [Member] | ||||||
Liabilities | ||||||
Other current liabilities | 217 | |||||
Other long-term liabilities | 202 | |||||
Equity (Deficit) | ||||||
Accumulated deficit | $ (174) | |||||
Product [Member] | ||||||
Revenues | ||||||
Total revenues | 300 | 307 | 585 | 590 | ||
Service [Member] | ||||||
Revenues | ||||||
Total revenues | 72 | $ 74 | 144 | $ 148 | ||
ASU 2014-09 [Member] | ||||||
Liabilities | ||||||
Other current liabilities | $ 219 | |||||
Other long-term liabilities | 210 | |||||
Equity (Deficit) | ||||||
Accumulated deficit | (184) | |||||
ASU 2014-09 [Member] | Balances without Adoption of ASU 2014-09 [Member] | ||||||
Revenues | ||||||
Total revenues | 371 | 727 | ||||
Net income (loss) | 3 | (23) | ||||
Liabilities | ||||||
Other current liabilities | 206 | 206 | ||||
Other long-term liabilities | 192 | 192 | ||||
Equity (Deficit) | ||||||
Accumulated deficit | (197) | (197) | ||||
ASU 2014-09 [Member] | Effect of Change Higher (Lower) [Member] | ||||||
Revenues | ||||||
Total revenues | 1 | 2 | ||||
Net income (loss) | 1 | 2 | ||||
Liabilities | ||||||
Other current liabilities | 2 | 2 | 2 | |||
Other long-term liabilities | 6 | 6 | 8 | |||
Equity (Deficit) | ||||||
Accumulated deficit | (8) | (8) | $ (10) | |||
ASU 2014-09 [Member] | Product [Member] | Balances without Adoption of ASU 2014-09 [Member] | ||||||
Revenues | ||||||
Total revenues | 299 | 583 | ||||
ASU 2014-09 [Member] | Product [Member] | Effect of Change Higher (Lower) [Member] | ||||||
Revenues | ||||||
Total revenues | 1 | 2 | ||||
ASU 2014-09 [Member] | Service [Member] | Balances without Adoption of ASU 2014-09 [Member] | ||||||
Revenues | ||||||
Total revenues | $ 72 | $ 144 |
Note 2 - Schedule of Reconcilia
Note 2 - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | $ 275 | $ 344 |
Long-term restricted cash | 11 | 17 |
Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows | 293 | 369 |
Other Current Assets [Member] | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Restricted cash included in Other current assets | $ 7 | $ 8 |
Note 2 - Cash, Cash Equivalen51
Note 2 - Cash, Cash Equivalents and Restricted Cash (Details Textual) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
BRAZIL | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Long-term restricted cash | $ 5 | $ 6 |
Amended Credit Agreement [Member] | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Long-term restricted cash | $ 0 | $ 6 |
Note 3 - Inventories (Details)
Note 3 - Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 168 | $ 159 |
Work in process | 65 | 57 |
Raw materials | 68 | 60 |
Total | $ 301 | $ 276 |
Note 4 - Other Current Liabil53
Note 4 - Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Other Current Liabilities [Abstract] | ||
Employee related liabilities | $ 46 | $ 47 |
Deferred revenue | 33 | 30 |
Deferred consideration on disposed businesses | 24 | 10 |
Customer rebates | 23 | 29 |
Workers compensation | 10 | 10 |
Restructuring liabilities | 4 | 10 |
Other | 68 | 81 |
Total | $ 208 | $ 217 |
Note 5 - Summary of Other Long-
Note 5 - Summary of Other Long-term Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Summary Of Other Long Term Liabilities [Abstract] | ||
Workers compensation | $ 95 | $ 96 |
Asset retirement obligations | 47 | 43 |
Deferred taxes | 14 | 16 |
Environmental liabilities | 12 | 12 |
Embedded conversion features derivative liability | 3 | |
Deferred consideration on disposed businesses | 14 | |
Other | 27 | 21 |
Total | $ 198 | $ 202 |
Note 6 - Debt and Capital Lea55
Note 6 - Debt and Capital Leases and Related Maturities and Interest Rates (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
June 30, 2018 | $ 401 | $ 403 |
Current Portion, Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
June 30, 2018 | 3 | 4 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
June 30, 2018 | 398 | 399 |
Capital Leases [Member] | Current Portion, Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
June 30, 2018 | 3 | 3 |
Capital Leases [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
June 30, 2018 | 3 | 4 |
Other Debt [Member] | Current Portion, Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
June 30, 2018 | 1 | |
Other Debt [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
June 30, 2018 | $ 2 | 2 |
Term Note [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Maturity Year | 2,019 | |
Longterm Debt Weighted Average Interest Rate | 7.34% | |
June 30, 2018 | $ 393 | $ 393 |
Note 6 - Debt And Capital Lea56
Note 6 - Debt And Capital Leases (Details Textual) | Sep. 03, 2013USD ($) | Mar. 31, 2018Subsidiary | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) |
Debt And Capital Leases [Line Items] | ||||||||||
Percentage of Stock of Material Domestic Subsidiaries Securing Credit Agreement | 100.00% | |||||||||
Percentage of Stock of Material First Tier Foreign Subsidiaries Securing Credit Agreement | 65.00% | |||||||||
Term Credit Agreements, U.S. Liquidity, Threshold Below which No Prepayment is Required | $ 100,000,000 | |||||||||
Term Credit Agreements, Prepayments Required in Next Fiscal Year | $ 0 | |||||||||
Term Credit Agreements, First Lien Term Credit Agreement, Maximum Secured Leverage Ratio | 2.75 | 2.75 | 2.75 | 2.75 | 2.75 | 2.75 | ||||
Number of subsidiaries designated as unrestricted subsidiaries | Subsidiary | 5 | |||||||||
Total Sales | $ 372,000,000 | $ 381,000,000 | $ 729,000,000 | $ 738,000,000 | ||||||
Aggregate assets of designated subsidiaries | $ 1,573,000,000 | $ 1,573,000,000 | $ 1,573,000,000 | $ 1,707,000,000 | $ 1,707,000,000 | $ 1,573,000,000 | ||||
Percentage of aggregate sales of unrestricted subsidiaries to consolidated sales of entity | 1.00% | 1.00% | ||||||||
Percentage of aggregate assets of unrestricted subsidiaries to consolidated assets of entity | 1.00% | 1.00% | 1.00% | 1.00% | ||||||
Excess Availability Percentage of Lender Commitments Threshold Triggering Cash Dominion Control | 12.50% | 12.50% | 12.50% | 12.50% | 12.50% | 12.50% | ||||
Unrestricted Subsidiaries [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Total Sales | $ 3,000,000 | $ 5,000,000 | ||||||||
Aggregate assets of designated subsidiaries | 23,000,000 | 23,000,000 | $ 23,000,000 | $ 23,000,000 | ||||||
Amended Credit Agreement [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Excess Availability Amount | 29,000,000 | 29,000,000 | 29,000,000 | $ 20,000,000 | $ 20,000,000 | 29,000,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | $ 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | ||||
Termination date | Jun. 5, 2019 | |||||||||
Long-term Line of Credit | 79,000,000 | $ 79,000,000 | 79,000,000 | $ 96,000,000 | $ 96,000,000 | 79,000,000 | ||||
Fixed Charged Coverage Ratio Required | 0.0100 | 0.0100 | ||||||||
Lender Commitments, Threshold Trigger, Excess Availability Amount | $ 18,750,000 | $ 18,750,000 | $ 18,750,000 | $ 18,750,000 | $ 18,750,000 | $ 18,750,000 | ||||
Amended Credit Agreement [Member] | Period one [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Termination date | May 26, 2021 | |||||||||
Amended Credit Agreement [Member] | Period two [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Number of days prior to the earliest scheduled maturity date | 90 days | |||||||||
Earliest maturity date | Sep. 3, 2019 | |||||||||
Prior Credit Agreement [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | |||||||||
Amended Credit Facility [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Excess Availability, Calculation, Percentage of Eligible Receivables Less a Dilution Reserve | 85.00% | 85.00% | 85.00% | 85.00% | ||||||
Excess Availability, Calculation, Percentage of Net Orderly Liquidation Value | 85.00% | 85.00% | 85.00% | 85.00% | ||||||
Excess Availability, Calculation, Percentage of Eligible Inventory | 75.00% | 75.00% | 75.00% | 75.00% | ||||||
Excess Availability, Net Orderly Liquidation Equipment Amount | $ 13,000,000 | $ 13,000,000 | $ 13,000,000 | $ 13,000,000 | ||||||
Excess Availability, Calculation, Percentage of Eligible Equipment | 75.00% | 75.00% | 75.00% | 75.00% | ||||||
Decrease in excess availability net orderly liquidation equipment amount | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||||
Maximum [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Secured leverage ratio | 2.25% | |||||||||
Maximum [Member] | Amended Credit Agreement [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Percentage of aggregate consolidated sales to qualify Restricted Subsidiaries to be designated as Unrestricted Subsidiaries | 7.50% | |||||||||
Percentage of aggregate consolidated assets to qualify Restricted Subsidiaries to be designated as Unrestricted Subsidiaries | 7.50% | |||||||||
Maximum [Member] | Amended Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||||||
Maximum [Member] | Amended Credit Facility [Member] | Base Rate [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||
Minimum [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Excess Availability Percentage of Lender Commitments Threshold Triggering Cash Dominion Control | 12.50% | 12.50% | 12.50% | 12.50% | 12.50% | 12.50% | ||||
Minimum [Member] | Amended Credit Agreement [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Proforma fixed charge coverage ratio | 1.00% | |||||||||
Minimum [Member] | Amended Credit Agreement [Member] | Pro Forma [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Excess Availability Amount | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | ||||||
Minimum [Member] | Amended Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||
Minimum [Member] | Amended Credit Facility [Member] | Base Rate [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||
First Lien Term Loan [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.25% | |||||||||
LIBOR Floor Percentage | 1.00% | 1.00% | 1.00% | 1.00% | ||||||
Alternate Base Rate | 5.25% | 5.25% | 5.25% | 5.25% | ||||||
Prepayment of principal amount | $ 11,000,000 | |||||||||
First installment principal payments | 4,000,000 | |||||||||
Term Credit Agreement [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Debt Instrument Face Amount | 695,000,000 | |||||||||
Proceeds from Issuance of Other Long-term Debt | 664,000,000 | |||||||||
Debt Instrument Unamortized Discount | 15,000,000 | |||||||||
Debt Issuance Cost | 16,000,000 | |||||||||
First Lien Term Loan [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Debt Instrument Face Amount | $ 420,000,000 | $ 395,000,000 | $ 395,000,000 | $ 395,000,000 | $ 395,000,000 | |||||
Debt Instrument, Maturity Date, Description | The loans made under the First Lien Term Credit Agreement become due on the earlier to occur of | |||||||||
Debt Instrument, Maturity Date | Sep. 3, 2019 | Sep. 3, 2019 | ||||||||
Second Lien Note Holders [Member] | ||||||||||
Debt And Capital Leases [Line Items] | ||||||||||
Debt Instrument Face Amount | $ 275,000,000 | |||||||||
Debt Instrument, Termination Date | Nov. 15, 2016 |
Note 7 - Commitments and Cont57
Note 7 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
BRAZIL | ||
Commitments And Contingencies [Line Items] | ||
Restricted Cash | $ 5 | $ 6 |
Federal and State Value added Taxes Litigations and Civil Litigation and Disputes with Former Employees [Member] | BRAZIL | ||
Commitments And Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 20 | |
Threat of Expropriation of Assets [Member] | BRAZIL | ||
Commitments And Contingencies [Line Items] | ||
Assets, Noncurrent | 61 | |
Amended Credit Agreement [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 79 | |
Restricted Cash | 0 | $ 6 |
Bank Guarantees and Letters of Credit [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 3 | |
Surety Bond [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 42 | |
Restricted Cash and Deposits [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 24 |
Note 8 - Guarantees (Details Te
Note 8 - Guarantees (Details Textual) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Warranty Arrangements Period [Member] | |
Guarantee Obligations [Line Items] | |
Extended Warranty Period | 1 year |
Maximum [Member] | |
Guarantee Obligations [Line Items] | |
Environmental Settlement Historical Liabilities Trigger Amount | $ 99,000,000 |
Percentage of Liability Above 99 Million | 50.00% |
Extended Warranty Period | 6 years |
Minimum [Member] | |
Guarantee Obligations [Line Items] | |
Extended Warranty Period | 3 months |
Amended Eastman Business Park Settlement Agreement [Member] | |
Guarantee Obligations [Line Items] | |
Accrual for Environmental Loss Contingencies | $ 0 |
Financial Guarantee [Member] | Guarantor Subsidiaries [Member] | |
Guarantee Obligations [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 6,000,000 |
Guarantor Obligations, Current Carrying Value | $ 2,000,000 |
Note 8 - Guarantees (Details)
Note 8 - Guarantees (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Movement In Deferred Revenue Roll Forward | |
Deferred revenue on extended warranties | $ 23 |
New extended warranty and maintenance arrangements in 2018 | 56 |
Recognition of extended warranty and maintenance arrangement revenue in 2018 | (56) |
Deferred revenue on extended warranties | $ 23 |
Note 9 - Revenue (Details Textu
Note 9 - Revenue (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||
Transaction price related to unsatisfied performance obligations expected period | 1 year | 1 year | |
Unrecognized revenue from unsatisfied performance obligations | $ 75 | $ 75 | |
Unsatisfied performance obligations, expected to be recognized in 2018 | 20.00% | ||
Unsatisfied performance obligations, expected to be recognized in 2019 | 30.00% | ||
Unsatisfied performance obligations, expected to be recognized in 2020 | 25.00% | ||
Unsatisfied performance obligations, expected to be recognized in thereafter | 25.00% | ||
Contract liabilities | 47 | $ 47 | $ 37 |
Revenue recognized, contract liabilities | 4 | 29 | |
Contract with customer, cash payments received for liabilities that have been deferred | 24 | 30 | |
Other Current Assets And Trade Receivables [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract assets | 3 | 3 | 3 |
Other Current Liabilities [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract liabilities, current | 41 | 41 | 37 |
Other Long-Term Liabilities [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract liabilities, non-current | $ 6 | $ 6 | $ 0 |
Minimum [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue payment terms | 30 days | ||
Interest for payment terms | 1 year | ||
Maximum [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue payment terms | 60 days |
Note 9 - Disaggregated Revenue
Note 9 - Disaggregated Revenue - Major Product (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | $ 372 | $ 381 | $ 729 | $ 738 | |
Plates, Inks And Other Consumables [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 221 | 433 | |||
Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 68 | 136 | ||
Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 289 | 569 | |||
Equipment And Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 30 | 55 | |||
Film And Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 41 | 81 | |||
Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [2] | 12 | 24 | ||
Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 227 | 443 | |||
Print Systems [Member] | Plates, Inks And Other Consumables [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 176 | 343 | |||
Print Systems [Member] | Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 33 | 67 | ||
Print Systems [Member] | Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 209 | 410 | |||
Print Systems [Member] | Equipment And Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 18 | 33 | |||
Enterprise Inkjet Solutions [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 33 | 64 | |||
Enterprise Inkjet Solutions [Member] | Plates, Inks And Other Consumables [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 7 | 15 | |||
Enterprise Inkjet Solutions [Member] | Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 20 | 40 | ||
Enterprise Inkjet Solutions [Member] | Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 27 | 55 | |||
Enterprise Inkjet Solutions [Member] | Equipment And Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 6 | 9 | |||
Flexographic Packaging Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 38 | 75 | |||
Flexographic Packaging Printing [Member] | Plates, Inks And Other Consumables [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 34 | 66 | |||
Flexographic Packaging Printing [Member] | Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 2 | 4 | ||
Flexographic Packaging Printing [Member] | Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 36 | 70 | |||
Flexographic Packaging Printing [Member] | Equipment And Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 2 | 5 | |||
Software and Solutions [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 20 | 40 | |||
Software and Solutions [Member] | Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 12 | 24 | ||
Software and Solutions [Member] | Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 12 | 24 | |||
Software and Solutions [Member] | Equipment And Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 4 | 8 | |||
Software and Solutions [Member] | Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [2] | 4 | 8 | ||
Consumer and Film [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 48 | 96 | |||
Consumer and Film [Member] | Plates, Inks And Other Consumables [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 4 | 9 | |||
Consumer and Film [Member] | Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 1 | 1 | ||
Consumer and Film [Member] | Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 5 | 10 | |||
Consumer and Film [Member] | Film And Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 41 | 81 | |||
Consumer and Film [Member] | Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [2] | 2 | 5 | ||
Advanced Materials and 3D Printing Technology Solutions [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 1 | 2 | |||
Advanced Materials and 3D Printing Technology Solutions [Member] | Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [2] | 1 | 2 | ||
Eastman Business Park [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 5 | 9 | |||
Eastman Business Park [Member] | Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [2] | $ 5 | $ 9 | ||
[1] | Service revenue in the Consolidated Statement of Operations includes the ongoing service revenue shown above as well as revenue from project-based document management and managed print services businesses, which is included in Other above. | ||||
[2] | Other includes revenue from professional services, non-recurring engineering services, project-based document management and managed print services businesses, tenant rent and related property management services and licensing. |
Note 9 - Disaggregated Revenu62
Note 9 - Disaggregated Revenue - Product Portfolio Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | $ 372 | $ 381 | $ 729 | $ 738 | |
Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 227 | 443 | |||
Enterprise Inkjet Solutions [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 33 | 64 | |||
Flexographic Packaging Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 38 | 75 | |||
Software and Solutions [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 20 | 40 | |||
Consumer and Film [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 48 | 96 | |||
Advanced Materials and 3D Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 1 | 2 | |||
Eastman Business Park [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | 5 | 9 | |||
Growth Engines [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 111 | 217 | ||
Growth Engines [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 39 | 74 | ||
Growth Engines [Member] | Enterprise Inkjet Solutions [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 19 | 37 | ||
Growth Engines [Member] | Flexographic Packaging Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 30 | 59 | ||
Growth Engines [Member] | Software and Solutions [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 20 | 40 | ||
Growth Engines [Member] | Consumer and Film [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 2 | 5 | ||
Growth Engines [Member] | Advanced Materials and 3D Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [1] | 1 | 2 | ||
Strategic Other Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [2] | 235 | 457 | ||
Strategic Other Businesses [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [2] | 180 | 350 | ||
Strategic Other Businesses [Member] | Flexographic Packaging Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [2] | 8 | 16 | ||
Strategic Other Businesses [Member] | Consumer and Film [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [2] | 42 | 82 | ||
Strategic Other Businesses [Member] | Eastman Business Park [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [2] | 5 | 9 | ||
Planned Declining Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [3] | 26 | 55 | ||
Planned Declining Businesses [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [3] | 8 | 19 | ||
Planned Declining Businesses [Member] | Enterprise Inkjet Solutions [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [3] | 14 | 27 | ||
Planned Declining Businesses [Member] | Consumer and Film [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total Sales | [3] | $ 4 | $ 9 | ||
[1] | Growth engines consist of Sonora, PROSPER, FLEXCEL NX, Software and Solutions, AM3D and brand licensing. | ||||
[2] | Strategic Other Businesses include plates, Computer to Plate (“CTP”) and related service, and Nexpress and related toner business in the Print Systems segment, non-FLEXCEL NX in the Flexographic Packaging segment, Motion Picture and Industrial Film and Chemicals in the Consumer and Film segment, Eastman Business Park and intellectual property licensing. | ||||
[3] | Planned Declining Businesses are product lines where the decision has been made to stop new product development and manage an orderly expected decline in the installed product and annuity base. These product families consist of Consumer Inkjet in the Consumer and Film segment, Versamark in the Enterprise Inkjet Systems segment and Digimaster in the Print Systems segment. |
Note 9 - Disaggregated Revenu63
Note 9 - Disaggregated Revenue - Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | $ 372 | $ 381 | $ 729 | $ 738 |
Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 227 | 443 | ||
Enterprise Inkjet Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 33 | 64 | ||
Flexographic Packaging Printing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 38 | 75 | ||
Software and Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 20 | 40 | ||
Consumer and Film [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 48 | 96 | ||
Advanced Materials and 3D Printing Technology Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 1 | 2 | ||
Eastman Business Park [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 5 | 9 | ||
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 122 | 240 | ||
United States [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 60 | 117 | ||
United States [Member] | Enterprise Inkjet Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 11 | 22 | ||
United States [Member] | Flexographic Packaging Printing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 6 | 12 | ||
United States [Member] | Software and Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 7 | 14 | ||
United States [Member] | Consumer and Film [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 32 | 64 | ||
United States [Member] | Advanced Materials and 3D Printing Technology Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 1 | 2 | ||
United States [Member] | Eastman Business Park [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 5 | 9 | ||
Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 6 | 12 | ||
Canada [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 3 | 6 | ||
Canada [Member] | Flexographic Packaging Printing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 1 | 2 | ||
Canada [Member] | Software and Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 1 | 2 | ||
Canada [Member] | Consumer and Film [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 1 | 2 | ||
North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 128 | 252 | ||
North America [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 63 | 123 | ||
North America [Member] | Enterprise Inkjet Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 11 | 22 | ||
North America [Member] | Flexographic Packaging Printing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 7 | 14 | ||
North America [Member] | Software and Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 8 | 16 | ||
North America [Member] | Consumer and Film [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 33 | 66 | ||
North America [Member] | Advanced Materials and 3D Printing Technology Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 1 | 2 | ||
North America [Member] | Eastman Business Park [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 5 | 9 | ||
Europe, Middle East and Africa [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 132 | 264 | ||
Europe, Middle East and Africa [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 93 | 186 | ||
Europe, Middle East and Africa [Member] | Enterprise Inkjet Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 13 | 25 | ||
Europe, Middle East and Africa [Member] | Flexographic Packaging Printing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 16 | 32 | ||
Europe, Middle East and Africa [Member] | Software and Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 5 | 11 | ||
Europe, Middle East and Africa [Member] | Consumer and Film [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 5 | 10 | ||
Asia Pacific [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 89 | 167 | ||
Asia Pacific [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 57 | 106 | ||
Asia Pacific [Member] | Enterprise Inkjet Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 8 | 15 | ||
Asia Pacific [Member] | Flexographic Packaging Printing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 8 | 15 | ||
Asia Pacific [Member] | Software and Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 6 | 11 | ||
Asia Pacific [Member] | Consumer and Film [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 10 | 20 | ||
Latin America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 23 | 46 | ||
Latin America [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 14 | 28 | ||
Latin America [Member] | Enterprise Inkjet Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 1 | 2 | ||
Latin America [Member] | Flexographic Packaging Printing [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | 7 | 14 | ||
Latin America [Member] | Software and Solutions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Sales | $ 1 | $ 2 |
Note 10 - Summary of Other Oper
Note 10 - Summary of Other Operating (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Expense (income): | |||||
Gain on sale of assets | $ (1) | $ (2) | $ (2) | ||
Prosper asset remeasurement | [1] | 12 | |||
Asset impairments | $ 2 | 2 | |||
Other | (1) | ||||
Total | $ (2) | $ 2 | $ (2) | $ 12 | |
[1] | In the first quarter of 2017, Kodak reduced the carrying value of Prosper fixed assets ($8 million) and intangible assets ($4 million) to the amount that would have been recorded if the Prosper assets, which were previously presented as held for sale, had been continuously classified as held and used. |
Note 10 - Summary of Other Op65
Note 10 - Summary of Other Operating (Income) Expense, Net (Details) (Parentheticals) - KODAK PROSPER Enterprise Inkjet [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fixed Assets [Member] | |
Other Operating Income Expense Net [Line Items] | |
Reduced carrying value of assets | $ 8 |
Intangible Assets [Member] | |
Other Operating Income Expense Net [Line Items] | |
Reduced carrying value of assets | $ 4 |
Note 11 - Other Charges (Inco66
Note 11 - Other Charges (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Other Income And Expenses [Abstract] | |||||
Change in fair value of embedded conversion features derivative liability | [1] | $ (7) | $ (14) | $ 7 | $ (36) |
Loss on foreign exchange transactions | 7 | 3 | 9 | 4 | |
Other | 1 | 2 | 1 | 3 | |
Total | $ 1 | $ (9) | $ 17 | $ (29) | |
[1] | Refer to Note 21, “Financial Instruments”. |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
U.S. corporate income tax rate | 21.00% | 35.00% | 21.00% | 35.00% | 35.00% |
Note 12 - Income Tax Provision
Note 12 - Income Tax Provision (Benefit) Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Earnings (loss) from continuing operations before income taxes | $ 5 | $ 11 | $ (13) | $ 21 |
Effective tax rate | 20.00% | 36.40% | (61.50%) | 33.30% |
Provision for income taxes | $ 1 | $ 4 | $ 8 | $ 7 |
Provision (benefit) for income taxes at U.S. statutory tax rate | $ 1 | $ 4 | (3) | $ 7 |
Difference between tax at effective vs. statutory rate | $ 11 |
Note 13 - Restructuring Liabi69
Note 13 - Restructuring Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | ||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning Balance | $ 8 | $ 10 | $ 10 | |
Charges | 2 | 2 | ||
Utilization/cash payments | (5) | (4) | ||
Other adjustments and reclasses | [1] | (1) | ||
Ending Balance | 4 | 8 | 4 | |
Severance Reserve [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning Balance | [2] | 4 | 6 | 6 |
Charges | [2] | 2 | 2 | |
Utilization/cash payments | [2] | (3) | (4) | |
Other adjustments and reclasses | [1],[2] | (1) | ||
Ending Balance | [2] | 2 | 4 | 2 |
Exit Costs Reserve [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning Balance | [2] | 4 | 4 | 4 |
Utilization/cash payments | [2] | (2) | ||
Ending Balance | [2] | $ 2 | $ 4 | $ 2 |
[1] | Represents severance charges funded from pension plan assets, which were reclassified to Pension and other postretirement liabilities. | |||
[2] | The severance and exit costs reserves require the outlay of cash, while long-lived asset impairments and inventory write-downs represent non-cash items. |
Note 13 - Restructuring Liabi70
Note 13 - Restructuring Liabilities (Details Textual) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018USD ($)Position | Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($)Position | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | $ | $ 2 | $ 2 | |
Restructuring and Related Cost, Number of Positions Eliminated | 40 | 75 | |
United States and Canada [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 35 | 35 | |
Rest Of The World [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 5 | 40 | |
Manufacturing Service Positions [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 30 | 40 | |
Administrative and Sales Positions [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 5 | 30 | |
Research and Development Positions [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 5 | 5 | |
Restructuring costs and other [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | $ | $ 2 | $ 4 |
Note 14 - Pension Income (Expen
Note 14 - Pension Income (Expense) From Continuing and Discontinued Operations For All Defined Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Income Expense From Continuing Operations For All Defined Benefit Plans [Line Items] | ||||
Total net pension income | $ (54) | $ (59) | ||
U.S. [Member] | ||||
Pension Income Expense From Continuing Operations For All Defined Benefit Plans [Line Items] | ||||
Service cost | $ 3 | $ 3 | 6 | 6 |
Interest cost | 27 | 28 | 55 | 57 |
Expected return on plan assets | (56) | (61) | (112) | (122) |
Prior service credit | (2) | (1) | (4) | (3) |
Actuarial loss | 2 | 3 | ||
Net pension income before special termination benefits | (26) | (31) | (52) | (62) |
Special termination benefits | 1 | 5 | 1 | 6 |
Net pension income | (25) | (26) | (51) | (56) |
Total net pension income | (25) | (26) | (51) | (56) |
Non-US [Member] | ||||
Pension Income Expense From Continuing Operations For All Defined Benefit Plans [Line Items] | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 3 | 3 | 6 | 6 |
Expected return on plan assets | (6) | (6) | (13) | (13) |
Actuarial loss | 1 | 2 | 1 | |
Net pension income before special termination benefits | (1) | (2) | (3) | (4) |
Net pension income | (1) | (2) | (3) | (4) |
Other plans | 1 | 1 | ||
Total net pension income | $ (1) | $ (1) | $ (3) | $ (3) |
Note 15 - Redeemable, Convert72
Note 15 - Redeemable, Convertible Series A Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Nov. 15, 2016 | Jun. 30, 2018 |
Series A Redeemable Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Preferred stock, number of shares issued | 2,000,000 | |
Percentage of cash dividend payable on preferred stock | 5.50% | |
Preferred stock, no par value | $ 0 | |
Gross proceeds from issuance of shares | $ 200 | |
Preferred stock, liquidation preference per share | $ 100 | |
Series A Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Percentage of cash dividend payable on preferred stock | 5.50% | |
Net proceeds received to derivative liability | $ 43 | |
Carrying value of Series A preferred stock at issuance | 155 | |
Gross proceeds from preferred stock | 200 | |
Fair value of derivative liability | 43 | |
Transaction costs | $ 2 | |
Preferred stock, redemption date | Nov. 15, 2021 | |
Preferred stock, redemption price per share | $ 100 | |
Preferred stock conversion description | As of June 30, 2018, the Series A Preferred Stock has not been converted and none of the antidilution provisions have been triggered. Any shares of Series A Preferred Stock not converted prior to the fifth anniversary of the initial issuance of the Series A Preferred Stock are required to be redeemed at $100 per share plus the amount of accrued and unpaid dividends. |
Note 16 - Summary of Reconcilia
Note 16 - Summary of Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share Basic [Line Items] | ||||
Earnings (loss) from continuing operations | $ 4 | $ 7 | $ (21) | $ 14 |
Less: Series A convertible preferred stock cash dividend | (3) | (3) | (6) | (6) |
Less: Series A convertible preferred stock deemed dividend | (2) | (2) | (4) | (4) |
(Loss) earnings from continuing operations available to common shareholders - basic and diluted | (1) | 2 | (31) | 4 |
NET INCOME (LOSS) | 4 | 4 | (21) | 11 |
Series A convertible preferred stock cash dividend | (3) | (3) | (6) | (6) |
Series A convertible preferred stock deemed dividend | (2) | (2) | (4) | (4) |
Net (loss) earnings available to common shareholders - basic and diluted | $ (1) | $ (1) | $ (31) | $ 1 |
Basic | 42.7 | 42.5 | 42.6 | 42.5 |
Effect of dilutive securities | ||||
Weighted average shares - diluted | 43 | 42.7 | 42.9 | 42.7 |
Restricted Stock Units [Member] | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities | 0.3 | 0.2 | 0.3 | 0.2 |
Note 16 - Earnings Per Share (D
Note 16 - Earnings Per Share (Details Textual) - $ / shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Convertible Series A Preferred Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2 | 2 | 2 | 2 |
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.3 | 0.3 | ||
Warrant with Exercise Price of $14.93 [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.8 | 1.8 | 1.8 | 1.8 |
Share Price | $ 14.93 | $ 14.93 | $ 14.93 | $ 14.93 |
Warrant with Exercise Price of $16.12 [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.8 | 1.8 | 1.8 | 1.8 |
Share Price | $ 16.12 | $ 16.12 | $ 16.12 | $ 16.12 |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4.9 | 2.6 | 4.8 | 2.6 |
Note 17 - Shareholders' Equity
Note 17 - Shareholders' Equity (Details Textual) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Shareholders Equity [Line Items] | ||
Stock Authorized | 560,000,000 | |
Common Stock, Shares Authorized | 500,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 60,000,000 | |
Preferred Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares, Outstanding | 42,700,000 | 42,600,000 |
Treasury Stock, Shares | 600,000 | 600,000 |
Series A Preferred Stock [Member] | ||
Shareholders Equity [Line Items] | ||
Preferred Stock, Shares Outstanding | 2,000,000 | 2,000,000 |
Preferred Stock, Shares Issued | 2,000,000 | 2,000,000 |
Note 18 - Changes in Other Comp
Note 18 - Changes in Other Comprehensive Income (Loss), by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |||||
Currency translation adjustments | $ (20) | $ (7) | $ 14 | ||
Newly established net actuarial gain (loss) | 1 | $ (1) | 1 | (1) | |
Newly established net actuarial gain (loss), net of tax | 1 | (1) | 1 | (1) | |
Amortization of prior service credit | [1] | (2) | (2) | (4) | (4) |
Amortization of actuarial (gains) losses | [1] | 1 | 2 | (1) | |
Recognition of losses due to settlement | 1 | ||||
Total reclassification adjustments | (1) | (2) | (1) | (5) | |
Reclassification adjustments, net of tax | (1) | (2) | (1) | (5) | |
Pension and other postretirement benefit plan changes, net of tax | (3) | (6) | |||
Other comprehensive (loss) income, net of tax | $ (20) | $ (3) | $ (7) | $ 8 | |
[1] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 14, "Retirement Plans and Other Postretirement Benefits". |
Note 19 - Components of Accumul
Note 19 - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Currency translation adjustments | $ (92) | $ (85) |
Pension and other postretirement benefit plan changes | (306) | (306) |
Ending balance | $ (398) | $ (391) |
Note 20 - Segment Information78
Note 20 - Segment Information (Details Textual) | 6 Months Ended |
Jun. 30, 2018aSegment | |
Segment Reporting Information [Line Items] | |
Number of Reportable Segments | Segment | 7 |
Eastman Business Park [Member] | Minimum [Member] | |
Segment Reporting Information [Line Items] | |
Area of Real Estate Property | a | 1,200 |
Note 20 - Revenues and Earnings
Note 20 - Revenues and Earnings (Loss) from Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 372 | $ 381 | $ 729 | $ 738 | |
Depreciation and amortization | (39) | (41) | |||
Restructuring costs and other | (2) | (11) | (4) | (18) | |
Other operating income (expense), net (4) | 2 | (2) | 2 | (12) | |
Interest expense | (9) | (8) | (17) | (16) | |
Pension income excluding service cost component | 32 | 37 | 64 | 75 | |
Other (charges) income, net | (1) | 9 | (17) | 29 | |
Earnings (loss) from continuing operations before income taxes | 5 | 11 | (13) | 21 | |
Continuing Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 372 | 381 | 729 | 738 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | 9 | 12 | 10 | 18 | |
Depreciation and amortization | (20) | (22) | (39) | (41) | |
Restructuring costs and other | (2) | (11) | (4) | (24) | |
Stock based compensation | (1) | (3) | (3) | (5) | |
Consulting and other costs | [1] | (3) | (6) | (1) | |
Idle costs | [2] | (1) | (1) | (2) | (2) |
Manufacturing capacity expansion non-recurring costs | [3] | (1) | (1) | ||
Other operating income (expense), net (4) | [4] | 2 | (2) | 2 | (12) |
Interest expense | [4] | (9) | (8) | (17) | (16) |
Pension income excluding service cost component | [4] | 32 | 37 | 64 | 75 |
Other (charges) income, net | [4] | (1) | 9 | (17) | 29 |
Earnings (loss) from continuing operations before income taxes | 5 | 11 | (13) | 21 | |
Continuing Operations [Member] | Print Systems [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 227 | 236 | 443 | 449 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | 8 | 15 | 12 | 27 | |
Continuing Operations [Member] | Flexographic Packaging [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 38 | 37 | 75 | 70 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | 9 | 8 | 16 | 14 | |
Continuing Operations [Member] | Software and Solutions [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 20 | 22 | 40 | 43 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | (1) | (1) | (1) | (1) | |
Continuing Operations [Member] | Enterprise Inkjet Systems [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 33 | 35 | 64 | 72 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | 1 | 1 | 1 | 1 | |
Continuing Operations [Member] | Consumer and Film [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 48 | 47 | 96 | 96 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | (4) | (5) | (10) | (9) | |
Continuing Operations [Member] | Advanced Materials and 3D Printing Technology [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1 | 2 | |||
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | (5) | (7) | (9) | (15) | |
Continuing Operations [Member] | Eastman Business Park [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5 | 4 | 9 | 8 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | $ 1 | $ 1 | $ 1 | $ 1 | |
[1] | (1)Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives. | ||||
[2] | (2)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. | ||||
[3] | (3)Consists of noncapitalizable costs incurred as a result of the Flexographic Packaging segment’s expansion at the manufacturing facility in Weatherford, Oklahoma. | ||||
[4] | (4)As reported in the Consolidated Statement of Operations. |
Note 21 - Financial Instrumen80
Note 21 - Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Inputs, Level 2 [Member] | |||||
Long-term Debt, Fair Value | $ 376 | $ 376 | $ 348 | ||
Forward Contracts [Member] | |||||
Gross fair value of foreign currency | 7 | 7 | 7 | ||
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | |||||
Derivative Asset, Notional Amount | 657 | 657 | $ 534 | ||
Designated as Hedging Instrument [Member] | |||||
Derivatives Hedging Instruments | $ 0 | $ 0 | $ 0 | $ 0 |
Note 21 - Derivatives Not Desig
Note 21 - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | |
Financial Instruments Owned At Fair Value [Abstract] | |||
Net gain (loss) from derivatives not designated as hedging instruments | $ 6 | $ (4) | $ 6 |
Note 21 - Derivative Liability
Note 21 - Derivative Liability (Asset) Key Inputs in Determination of Fair Value of Optional and Mandatory Conversion (Details) - Fair Value, Inputs, Level 3 [Member] $ / shares in Units, $ in Millions | Jun. 30, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total value of embedded derivative liability (asset) | $ | $ 3 | $ (4) |
Kodak's closing stock price | $ / shares | $ 3.80 | $ 3.10 |
Expected stock price volatility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Alternate measurement input percentage | 87.32 | 58.22 |
Risk Free Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Alternate measurement input percentage | 2.65 | 2.08 |
Yield on the Preferred Stock [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Alternate measurement input percentage | 19.85 | 22.31 |