Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | Eastman Kodak Co | |
Entity Central Index Key | 0000031235 | |
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 | 43,223,181 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 1-87 | |
Entity Tax Identification Number | 16-0417150 | |
Entity Address, Address Line One | 343 STATE STREET | |
Entity Address, City or Town | ROCHESTER | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14650 | |
City Area Code | 585 | |
Local Phone Number | 724-4000 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | NJ | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Statement of Opera
Consolidated Statement of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total revenues | $ 315 | $ 329 | $ 913 | $ 979 |
Total cost of revenues | 262 | 279 | 778 | 846 |
Gross profit | 53 | 50 | 135 | 133 |
Selling, general and administrative expenses | 48 | 53 | 161 | 170 |
Research and development costs | 11 | 12 | 33 | 37 |
Restructuring costs and other | 3 | 9 | 7 | 13 |
Other operating expense (income), net | 10 | (10) | 10 | (12) |
Loss from continuing operations before interest expense, pension income excluding service cost component, other charges (income), net and income taxes | (19) | (14) | (76) | (75) |
Interest expense | 4 | 2 | 12 | 6 |
Pension income excluding service cost component | (26) | (35) | (79) | (99) |
Other charges (income), net | 6 | (4) | 7 | 13 |
(Loss) earnings from continuing operations before income taxes | (3) | 23 | (16) | 5 |
Provision for income taxes | 7 | 3 | 12 | 7 |
(Loss) earnings from continuing operations | (10) | 20 | (28) | (2) |
Income (loss) from discontinued operations, net of income taxes | 5 | (1) | 206 | |
Net (loss) income | $ (5) | $ 19 | $ 178 | $ (2) |
Basic and diluted (loss) income per share attributable to Eastman Kodak Company common shareholders: | ||||
Continuing operations | $ (0.35) | $ 0.35 | $ (1) | $ (0.40) |
Discontinued operations | 0.12 | (0.02) | 4.79 | |
Total | $ (0.23) | $ 0.33 | $ 3.79 | $ (0.40) |
Number of common shares used in basic and diluted net loss per share | ||||
Basic | 43 | 42.7 | 43 | 42.7 |
Diluted | 43 | 43 | 43 | 42.7 |
Product [Member] | ||||
Total revenues | $ 249 | $ 259 | $ 713 | $ 768 |
Total cost of revenues | 216 | 232 | 639 | 700 |
Service [Member] | ||||
Total revenues | 66 | 70 | 200 | 211 |
Total cost of revenues | $ 46 | $ 47 | $ 139 | $ 146 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ (5) | $ 19 | $ 178 | $ (2) |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustments | (2) | (12) | 2 | (19) |
Pension and other postretirement benefit plan obligation activity, net of tax | (1) | 3 | (2) | 3 |
Other comprehensive income (loss), net of tax | (3) | (9) | (16) | |
COMPREHENSIVE INCOME (LOSS), NET OF TAX | $ (8) | $ 10 | $ 178 | $ (18) |
Consolidated Statement of Finan
Consolidated Statement of Financial Position (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 225 | $ 233 |
Trade receivables, net of allowances of $8 and $9, respectively | 195 | 232 |
Inventories, net | 242 | 231 |
Other current assets | 57 | 47 |
Current assets held for sale | 2 | 167 |
Total current assets | 721 | 910 |
Property, plant and equipment, net of accumulated depreciation of $419 and $395, respectively | 186 | 216 |
Goodwill | 12 | 12 |
Intangible assets, net | 53 | 58 |
Operating lease right-of-use assets | 49 | |
Restricted cash | 36 | 11 |
Deferred income taxes | 147 | 160 |
Other long-term assets | 205 | 143 |
TOTAL ASSETS | 1,409 | 1,510 |
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY (DEFICIT) | ||
Accounts payable, trade | 140 | 130 |
Short-term borrowings and current portion of long-term debt | 2 | 396 |
Current portion of operating leases | 26 | |
Other current liabilities | 203 | 209 |
Current liabilities held for sale | 43 | |
Total current liabilities | 371 | 778 |
Long-term debt, net of current portion | 106 | 5 |
Pension and other postretirement liabilities | 352 | 379 |
Operating leases, net of current portion | 34 | |
Other long-term liabilities | 195 | 178 |
Total liabilities | 1,058 | 1,340 |
Commitments and Contingencies (Note 10) | ||
Equity (Deficit) | ||
Common stock, $0.01 par value | ||
Additional paid in capital | 608 | 617 |
Treasury stock, at cost | (9) | (9) |
Accumulated deficit | (17) | (200) |
Accumulated other comprehensive loss | (411) | (411) |
Total shareholders’ equity (deficit) | 171 | (3) |
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY (DEFICIT) | 1,409 | 1,510 |
Convertible Series A Preferred Stock [Member] | ||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY (DEFICIT) | ||
Redeemable, convertible Series A preferred stock, no par value, $100 per share liquidation preference | $ 180 | $ 173 |
Consolidated Statement of Fin_2
Consolidated Statement of Financial Position (Unaudited) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Allowance for trade receivables | $ 8 | $ 9 |
Property, plant and equipment, accumulated depreciation | $ 419 | $ 395 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Cash flows from operating activities: | |||
Net earnings (loss) | $ 178 | $ (2) | |
Adjustments to reconcile to net cash used in operating activities: | |||
Depreciation and amortization | 43 | 58 | |
Pension income | (72) | (81) | |
Change in fair value of embedded derivatives in the Series A Preferred Stock and Convertible Notes | [1] | 3 | 2 |
Net gain on sales of assets/businesses | (202) | (7) | |
Stock based compensation | 6 | 5 | |
Non-cash changes in workers' compensation and legal reserves | 2 | (10) | |
Provision for deferred income taxes | 6 | 6 | |
Decrease in trade receivables | 30 | 28 | |
Increase in inventories | (18) | (42) | |
Increase (decrease) in trade payables | 13 | (25) | |
Decrease in liabilities excluding borrowings and trade payables | (5) | (20) | |
Other items, net | 12 | 9 | |
Total adjustments | (182) | (77) | |
Net cash used in operating activities | (4) | (79) | |
Cash flows from investing activities: | |||
Additions to properties | (11) | (24) | |
Net proceeds from sales of businesses/assets | 326 | 8 | |
Net cash provided by (used in) investing activities | 315 | (16) | |
Cash flows from financing activities: | |||
Repayment of Term Credit Agreement | (395) | ||
Proceeds from Convertible Notes | 98 | ||
Proceeds from borrowings | 14 | ||
Repayment of finance leases | (2) | (2) | |
Preferred stock dividend payments | (8) | ||
Payment of contingent consideration related to the sale of a business | (10) | ||
Net cash used in financing activities | (295) | (10) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4) | (8) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 12 | (113) | |
Cash, cash equivalents, restricted cash and cash in assets held for sale, beginning of period | 267 | 369 | |
Cash, cash equivalents, restricted cash and cash in assets held for sale, end of period | $ 279 | $ 256 | |
[1] | Refer to Note 23, “Financial Instruments”. |
Consolidated Statement of Equit
Consolidated Statement of Equity (Deficit) (Unaudited) - USD ($) $ in Millions | Total | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Series A Redeemable Convertible Preferred Stock [Member] |
Equity (deficit) at Dec. 31, 2017 | $ 57 | $ 631 | $ (174) | $ (391) | $ (9) | |
Equity (deficit) at Dec. 31, 2017 | $ 164 | |||||
Net earnings (loss) | (25) | (25) | ||||
Currency translation adjustments | 13 | 13 | ||||
Series A preferred stock cash dividends | (3) | (3) | ||||
Series A preferred stock deemed dividends | (2) | (2) | ||||
Redeemable series A preferred stock deemed dividends | 2 | |||||
Stock-based compensation | 2 | 2 | ||||
Equity (deficit) at Mar. 31, 2018 | 32 | 628 | (209) | (378) | (9) | |
Equity (deficit) at Mar. 31, 2018 | 166 | |||||
Equity (deficit) at Dec. 31, 2017 | 57 | 631 | (174) | (391) | (9) | |
Equity (deficit) at Dec. 31, 2017 | 164 | |||||
Net earnings (loss) | (2) | |||||
Series A preferred stock cash dividends | (8) | |||||
Series A preferred stock deemed dividends | (7) | |||||
Equity (deficit) at Sep. 30, 2018 | 19 | 621 | (186) | (407) | (9) | |
Equity (deficit) at Sep. 30, 2018 | 171 | |||||
Prior period adjustment due to adoption | ASU 2014-09 [Member] | (10) | (10) | ||||
Equity (deficit) at Mar. 31, 2018 | 32 | 628 | (209) | (378) | (9) | |
Equity (deficit) at Mar. 31, 2018 | 166 | |||||
Net earnings (loss) | 4 | 4 | ||||
Currency translation adjustments | (20) | (20) | ||||
Series A preferred stock cash dividends | (3) | (3) | ||||
Series A preferred stock deemed dividends | (2) | (2) | ||||
Redeemable series A preferred stock deemed dividends | 2 | |||||
Stock-based compensation | 1 | 1 | ||||
Equity (deficit) at Jun. 30, 2018 | 12 | 624 | (205) | (398) | (9) | |
Equity (deficit) at Jun. 30, 2018 | 168 | |||||
Net earnings (loss) | 19 | 19 | ||||
Currency translation adjustments | (12) | (12) | ||||
Pension and other postretirement liability adjustments | 3 | 3 | ||||
Series A preferred stock cash dividends | (2) | (2) | ||||
Series A preferred stock deemed dividends | (3) | (3) | ||||
Redeemable series A preferred stock deemed dividends | 3 | |||||
Stock-based compensation | 2 | 2 | ||||
Equity (deficit) at Sep. 30, 2018 | 19 | 621 | (186) | (407) | (9) | |
Equity (deficit) at Sep. 30, 2018 | 171 | |||||
Equity (deficit) at Dec. 31, 2018 | (3) | 617 | (200) | (411) | (9) | |
Equity (deficit) at Dec. 31, 2018 | 173 | |||||
Net earnings (loss) | (18) | (18) | ||||
Currency translation adjustments | 3 | 3 | ||||
Pension and other postretirement liability adjustments | (1) | (1) | ||||
Series A preferred stock cash dividends | (3) | (3) | ||||
Series A preferred stock deemed dividends | (2) | (2) | ||||
Redeemable series A preferred stock deemed dividends | 2 | |||||
Stock-based compensation | 3 | 3 | ||||
Equity (deficit) at Mar. 31, 2019 | (16) | 615 | (213) | (409) | (9) | |
Equity (deficit) at Mar. 31, 2019 | 175 | |||||
Equity (deficit) at Dec. 31, 2018 | (3) | 617 | (200) | (411) | (9) | |
Equity (deficit) at Dec. 31, 2018 | 173 | |||||
Net earnings (loss) | 178 | |||||
Series A preferred stock cash dividends | (8) | |||||
Series A preferred stock deemed dividends | (7) | |||||
Equity (deficit) at Sep. 30, 2019 | 171 | 608 | (17) | (411) | (9) | |
Equity (deficit) at Sep. 30, 2019 | 180 | |||||
Prior period adjustment due to adoption | ASU 2016-02 [Member] | 5 | 5 | ||||
Equity (deficit) at Mar. 31, 2019 | (16) | 615 | (213) | (409) | (9) | |
Equity (deficit) at Mar. 31, 2019 | 175 | |||||
Net earnings (loss) | 201 | 201 | ||||
Currency translation adjustments | 1 | 1 | ||||
Series A preferred stock cash dividends | (3) | (3) | ||||
Series A preferred stock deemed dividends | (2) | (2) | ||||
Redeemable series A preferred stock deemed dividends | 2 | |||||
Stock-based compensation | 2 | 2 | ||||
Equity (deficit) at Jun. 30, 2019 | 183 | 612 | (12) | (408) | (9) | |
Equity (deficit) at Jun. 30, 2019 | 177 | |||||
Net earnings (loss) | (5) | (5) | ||||
Currency translation adjustments | (2) | (2) | ||||
Pension and other postretirement liability adjustments | (1) | (1) | ||||
Series A preferred stock cash dividends | (2) | (2) | ||||
Series A preferred stock deemed dividends | (3) | (3) | 3 | |||
Stock-based compensation | 1 | 1 | ||||
Equity (deficit) at Sep. 30, 2019 | $ 171 | $ 608 | $ (17) | $ (411) | $ (9) | |
Equity (deficit) at Sep. 30, 2019 | $ 180 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Recent Accounting Policies | 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, 2018 (the “2018 Form 10-K”). 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. As of September 30, 2019 and December 31, 2018, Kodak had approximately $225 million and $233 million, respectively, of cash and cash equivalents. $84 million and $117 million was held in the U.S. as of September 30, 2019 and December 31, 2018, respectively, and $141 million and $116 million were held outside the U.S. Cash balances held outside the U.S. are generally required to support local country operations and may have high tax costs or other limitations that delay the ability to repatriate, and therefore may not be readily available for transfer to other jurisdictions. Outstanding inter-company loans to the U.S. as of September 30, 2019 and December 31, 2018 were $403 million and $390 million, respectively, which includes short-term intercompany loans from Kodak’s international finance center of $105 million and $92 million as of September 30, 2019 and December 31, 2018, respectively. In China, where approximately $71 million and $59 million of cash and cash equivalents was held as of September 30, 2019 and December 31, 2018, respectively, there are limitations related to net asset balances that may impact the ability to make cash available to other jurisdictions in the world. Kodak had a net increase in cash, cash equivalents, restricted cash and cash in assets held for sale of $12 million for the nine months ended September 30, 2019 and a net decrease of $102 million the year ended December 31, 2018. Kodak used cash of $4 million and $79 million in operating activities for the nine months ended September 30, 2019 and 2018, respectively. The current year’s cash used in operating activities includes the receipt of brand and functional intellectual property licensing proceeds allocated from the overall consideration received as part of the divestiture of the Packaging segment ($10 million) and the establishment of a strategic relationship with Lucky HuaGuang Graphics Co. Ltd ($13 million). Cash used in operating activities also includes the receipt of a $15 million prepayment for transition services and products and services to be provided by Kodak associated with the Packaging segment divestiture, $8 million of which has not yet been utilized. 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 or prior to the conditions or events that create the going concern risk. Kodak is facing liquidity challenges due to operating losses and negative cash flow from operations. Kodak has eliminated current debt service requirements by paying down the Senior Secured First Lien Term Credit Agreement (the “Term Credit Agreement”) using proceeds from the sale of Kodak’s Flexographic Packaging business (“FPD”) and refinancing the remaining balance through the issuance of convertible debt which does not require any debt service until conversion or maturity on November 1, 2021. However, Kodak has significant cash requirements to fund ongoing operations, restructuring programs, pension and other postretirement obligations, and other obligations. Kodak’s plans to return to positive cash flow include growing revenues profitably, reducing operating expenses, simplifying the organizational structure, generating cash from selling and leasing underutilized assets and paring investment in new technology by eliminating or delaying product development programs. The current cash balance outside of China, recent trend of negative operating cash flow and lack of certainty regarding the return to positive cash flow . RECLASSIFICATIONS Certain amounts for prior periods have been reclassified to conform to the current period classification due to Kodak’s new organization structure as of January 2019 and due to assets held for sale reporting requirements. In addition to the changes in segment reporting under the new organization structure there is a change in the segment measure of profitability. The segment measure of profitability was changed to exclude the costs, net of any rental income received, of underutilized portions of certain properties. Additionally, the allocation of costs from Eastman Business Park (“EBP”) to the Brand, Film and Imaging segment and Advanced Materials and 3D Printing Technology segment as tenants of EBP and to each of the segments as users of shared corporate space at the global headquarters changed. Refer to Note 21, “Segment Information” for additional information. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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. Kodak adopted the new standard on January 1, 2019. The adoption of this ASU did not have an impact on the Consolidated Financial Statements as a result of Kodak’s U.S. valuation allowance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Topic 842 (as amended by ASU’s 2018-01, 10, 11 and 20 and ASU 2019-01) 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 standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases and operating leases. 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). The original guidance required application on a modified retrospective basis to the earliest period presented. ASU 2018-11, Targeted improvements to ASC 842, includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842 as the date of initial application of transition. Kodak adopted the new standard on the effective date applying the new transition method allowed under ASU 2018-11. The impact of adoption on the Consolidated Statement of Financial Position is presented below: ($ million) Balance at December 31, 2018 Adjustments Due to ASU 2016-02 Balance at January 1, 2019 Operating lease right-of-use assets $ — $ 52 $ 52 Operating lease liabilities — 61 61 Deferred rent payable (1) 9 (9 ) — Deferred gain on previous sale leaseback transaction (1) 6 (6 ) — Net fixed assets from previous sale leaseback transaction 1 (1 ) — Accumulated deficit 200 (5 ) 195 (1) Deferred amounts were previously reported in Other current liabilities ($1 million) and Other long-term liabilities ($14 million) in the Consolidated Statements of Financial Position. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This guidance amended Topic 808 and Topic 606 to clarify that transactions in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a distinct good or service (i.e., unit of account). The amendments preclude an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. 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. The amendments should be applied retrospectively to the date of initial application of Topic 606. In September 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which amends the disclosure requirements in ASC 715-20 by adding, clarifying, or removing certain disclosures. ASU 2018-14 requires all entities to disclose (1) the weighted average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The ASU also clarifies certain disclosure requirements for entities with two or more defined benefit pension plans when aggregate disclosures are presented. The ASU removes other disclosures from the existing guidance, such as the requirement to disclose the effects of a one-percentage-point change in the assumed health care cost trend rates. The ASU is effective retrospectively for fiscal years ending after December 15, 2020 (the year ended December 31, 2020 for Kodak). Early adoption is permitted. The standard addresses disclosures only and will not have an impact on Kodak’s consolidated financial statements. In September 2018 the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which amends the disclosure requirements in ASC 820 by adding, changing, or removing certain disclosures. The ASU applies to disclosures about recurring or nonrecurring fair value measurements. The additional and/or modified disclosures relate primarily to Level 3 fair value measurements while removing certain disclosures related to transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU is effective retrospectively, for fiscal years beginning after December 15, 2019 (January 1, 2020 for Kodak) and interim periods within those fiscal years. Entities are permitted to early adopt any removed or modified disclosures but can delay adoption of the new disclosures until their effective date. Kodak retrospectively early adopted the provisions of the ASU that removed or modified disclosures in the fourth quarter of 2018 and expects to prospectively adopt the provisions related to new disclosures January 1, 2020. The standard addresses disclosures only and will not have an impact on Kodak’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which addresses how a customer should account for the costs of implementing a cloud computing service arrangement (also referred to as a “hosting arrangement”). Under ASU 2018-15, entities should account for costs associated with implementing a cloud computing arrangement that is considered a service contract in the same way as implementation costs associated with a software license; implementation costs incurred in the application development stage, such as costs for the cloud computing arrangement’s integration with on-premise software, coding, and configuration or customization, should be capitalized and amortized over the term of the cloud computing arrangement, including periods covered by certain renewal options. The ASU is effective in fiscal years beginning after December 15, 2019 (January 1, 2020 for Kodak) including interim periods within those fiscal years. Early adoption is permitted. The ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. 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 (as amended by ASU 2018-19 and ASU’s 2019-04 and 05) 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. In October, the FASB directed its staff to draft an ASU to defer the effective date of the standard for smaller reporting companies until fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, (January 1, 2023 for Kodak) (effective date for all SEC filers, including smaller reporting companies, was originally December 15, 2019). Early adoption is permitted. is currently evaluating the impact of this ASU. |
Note 2 - Cash, Cash Equivalents
Note 2 - Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Sep. 30, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | 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: September 30, December 31, (in millions) 2019 2018 Cash and cash equivalents $ 225 $ 233 Restricted cash included in Other current assets 18 8 Long-term restricted cash 36 11 Cash included in assets held for sale — 15 Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows $ 279 $ 267 Restricted cash included in Other current assets on the Statement of Financial Position primarily includes collateral for a guaranty provided to MIR Bidco, SA (the “Purchaser”) and collateral in support of hedging activities. On April 16, 2019 the Purchaser of FPD paid Kodak $15 million in the U.S. as a prepayment for transition services and products and services to be provided by Kodak to the Purchaser. Kodak provided a $15 million guaranty, supported by cash collateral in China, to the Purchaser. The Purchaser has the option to satisfy its payment obligations to Kodak through a reduction of the prepayment balance or in cash. When the Purchaser satisfies its payment obligations to Kodak by utilizing its prepayment balance, Kodak can follow a guaranty amendment process to reduce the amount of its guaranty and cash collateral supporting the prepayment balance. As of September 30, 2019, the remaining prepayment balance is $8 million and the cash collateral supporting Kodak’s guaranty is $10 million. Long-term restricted cash includes $14 million and $3 million as of September 30, 2019 and December 31, 2018, respectively, supporting compliance with the Excess Availability threshold under the ABL Credit Agreement, as defined in Note 7, “Debt and Leases”. In addition, Kodak established an escrow of $14 million in China to secure various ongoing obligations under the agreements for the strategic relationship with Lucky HuaGuang Graphics Co. Ltd. Refer to Note 23 “Assets Held For Sale”. Long-term restricted cash also includes $4 million and $5 million of security posted related to Brazilian legal contingencies as of September 30, 2019 and December 31, 2018, respectively. |
Note 3 - Inventories, Net
Note 3 - Inventories, Net | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | NOTE 3: INVENTORIES, NET September 30, December 31, (in millions) 2019 2018 Finished goods $ 124 $ 119 Work in process 58 54 Raw materials 60 58 Total $ 242 $ 231 |
Note 4 - Other Long-term Assets
Note 4 - Other Long-term Assets | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Other Long-term Assets | NOTE 4: OTHER LONG-TERM ASSETS September 30, December 31, (in millions) 2019 2018 Pension assets $ 147 $ 82 Estimated workers' compensation recoveries 17 17 Long-term receivables, net of reserve of $4 and $4, respectively 11 13 Other 30 31 Total $ 205 $ 143 |
Note 5 - Other Current Liabilit
Note 5 - Other Current Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Current [Abstract] | |
Other Current Liabilities | NOTE 5: OTHER CURRENT LIABILITIES September 30, December 31, (in millions) 2019 2018 Employee related liabilities $ 44 $ 41 Deferred revenue 32 34 Customer rebates 21 26 Deferred consideration on disposed businesses 14 24 Transition services agreement prepayment 8 — Series A Preferred Stock dividends payable 14 6 Workers compensation 9 9 Restructuring liabilities 7 8 Other 54 61 Total $ 203 $ 209 The customer rebate amounts will potentially be settled through customer deductions applied to outstanding trade receivables in lieu of cash payments. |
Note 6 - Other Long-term Liabil
Note 6 - Other Long-term Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Noncurrent [Abstract] | |
Other Long-term Liabilities | NOTE 6: OTHER LONG-TERM LIABILITIES September 30, December 31, (in millions) 2019 2018 Workers compensation $ 84 $ 83 Asset retirement obligations 46 48 Deferred brand licensing revenue 18 6 Convertible debt embedded derivative liability 18 — Deferred taxes 12 14 Environmental liabilities 10 10 Other (1) 7 17 Total $ 195 $ 178 (1) Other decreased $14 million due to the adoption of ASU 2016-02. Also see the Recently Adopted Accounting Pronouncements subsection of Note 1, “Basis of Presentation and Recent Accounting Pronouncements”. |
Note 7 - Debt And Finance Lease
Note 7 - Debt And Finance Leases | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Finance Leases | NOTE 7: DEBT AND FINANCE LEASES Debt and finance leases and related maturities and interest rates were as follows at September 30, 2019 and December 31, 2018: (in millions) Type Maturity Weighted-Average Effective Interest Rate September 30, 2019 December 31, 2018 Current portion: Term note 2019 $ — $ 394 RED-Rochester, LLC 2033 11.46% 1 — Finance leases Various Various 1 2 2 396 Non-current portion: Convertible debt 2021 11.72% 88 — RED-Rochester, LLC 2033 11.46% 13 — Finance leases Various Various 3 3 Other debt Various Various 2 2 106 5 $ 108 $ 401 Annual maturities of debt and finance leases outstanding as of September 30, 2019 were as follows (in millions): Carrying Value Maturity Value Q4 2019 $ 2 $ 2 2020 1 1 2021 88 113 2022 2 2 2023 1 1 2024 and thereafter 14 14 Total $ 108 $ 133 On April 12, 2019, the Company repaid approximately $312 million of the loans made under the Term Credit Agreement using proceeds from the sale of FPD and on May 24, 2019 repaid the remaining outstanding balance of approximately $83 million with the proceeds from the issuance of Convertible Notes described below. Convertible Notes On May 20, 2019, the Company and Longleaf Partners Small Cap Fund, C2W Partners Master Fund Limited and Deseret Mutual Pension Trust, which are investment funds managed by Southeastern Asset Management, Inc. (the “Notes Purchasers”), entered into a Notes Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company agreed to issue and sell to the Notes Purchasers, and the Notes Purchasers agreed to purchase from the Company, $100 million aggregate principal amount of the Company’s 5.00% Secured Convertible Notes due 2021 (the “Convertible Notes”). The transaction closed on May 24, 2019. The proceeds were used to repay the remaining first lien term loans outstanding ($83 million) under the Term Credit Agreement, which was terminated with the repayment. The remaining proceeds were used for general corporate purposes. The Notes Purchasers also hold all outstanding shares of the Company’s 5.50% Series A Convertible Preferred Stock (the “Series A Preferred Stock”), which vote with the shares of common stock on an as-converted basis, and are holders of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), as described below. The Convertible Notes bear interest at a rate of 5.00% per annum, which will be payable in cash on their maturity date and, at the option of the Company, in either cash or additional shares of Common Stock on any conversion date. The payment of interest only at the maturity date has the same effect as delivering additional debt instruments to the Holders of the Convertible Notes and therefore is considered Paid-In-Kind interest (“PIK”). Therefore, PIK will be added to the carrying value of the debt through the term and interest expense will be recorded using the effective interest method. The maturity date of the Convertible Notes is initially November 1, 2021. The Company has the option to extend the maturity of the Convertible Notes by up to three years in the event that the Series A Preferred Stock is refinanced with debt or equity or the mandatory redemption date of the Series A Preferred Stock is extended. If the Convertible Notes maturity date is extended, the new maturity date must be no later than 30 days before the maturity date of any new debt or the extended mandatory redemption date of the Series A Preferred Stock. The Convertible Notes are guaranteed by all of the subsidiaries of the Company that currently guarantee the ABL Credit Agreement (the “Subsidiary Guarantors”), and are secured by a second priority lien on certain receivables, inventory and other assets of the Company and the Subsidiary Guarantors in which the lenders under the ABL Credit Agreement have a first priority security interest. Conversion Features Holders of the Convertible Notes have the right to elect at any time to convert their Convertible Notes into shares of Common Stock at a conversion rate equal to 314.9785 shares of Common Stock per each $1,000 principal amount of Convertible Notes (based on a conversion price equal to $3.17482 per share of Common Stock (the “Conversion Price”), which represents a 10% premium to the volume weighted average price of the shares of Common Stock for the five day trading period ended on April 9, 2019 (the “Conversion Rate”)). The Conversion Rate and Conversion Price are subject to certain customary antidilution adjustments. If the closing price of the Common Stock equals or exceeds 150% of the then-effective Conversion Price for 45 trading days within any period of 60 consecutive trading days, with the last trading day of such 60 day period ending on the trading day immediately preceding the business day on which the Company issues a press release announcing the mandatory conversion, the Company may elect to convert all outstanding Convertible Notes into shares of Common Stock at the Conversion Rate then in effect. In the event of certain fundamental transactions, the Notes Purchasers will have the right, within a period of 30 days following the occurrence of such transaction (“Holder Fundamental Transaction Election Period”), to elect to either convert all or a portion of the Convertible Notes into shares of Common Stock at the Conversion Rate then in effect, or to receive the shares of a successor entity, if any, or the Company, and any additional consideration receivable as a result of such fundamental transaction. In addition, the Company will have the option, for a period of 30 days after the expiration of the Holder Fundamental Transaction Election Period, to repay all of the remaining outstanding Convertible Notes at par, plus accrued and unpaid interest. Embedded Derivatives The Convertible Notes are considered more akin to a debt-type instrument and the economic characteristics and risks of the embedded conversion features and term extension at the Company’s option were not considered clearly and closely related to the Convertible Notes. Accordingly, these embedded features were bifurcated from the Convertible Notes and separately accounted for on a combined basis at fair value as a single derivative liability. The carrying value of the Convertible Convertible Notes Registration Rights Agreement At the closing of the issuance and sale of the Convertible Notes, the Company entered into a registration rights agreement which provides the Notes Purchasers with customary registration rights in respect of the shares of the Common Stock issuable upon conversion of the Convertible Notes. Notes Purchasers’ Beneficial Ownership of Common Stock Prior to the issuance of the Convertible Notes, the Notes Purchasers beneficially owned 4,960,000 shares of the Company’s Common Stock, representing 11.51% of the shares of Common Stock outstanding as of September 30, 2019, and 2,000,000 shares of Series A Preferred Stock, which vote with the Common Stock on an as-converted basis representing 26.68% of the shares of Common Stock outstanding as of September 30, 2019. The Common Stock and Series A Preferred Stock held by the Notes Purchasers represented 30.15% of the voting power of the outstanding capital stock of the Company as of September 30, 2019 giving effect to the conversion of the Series A Preferred Stock. On an as-converted basis, the Convertible Notes would represent 31,497,850 shares of Common Stock, or 42.24% of the shares of Common Stock outstanding as of September 30, 2019 after giving effect to the issuance and conversion. Assuming the issuance of the Convertible Notes and based on the number of shares of Common Stock outstanding as of September 30, 2019, the Notes Purchasers would beneficially own 48.89% of the shares of Common Stock outstanding and their shares of Series A Preferred Stock will vote with the shares of Common Stock on an as-converted basis, representing an aggregate of 55.71% of the voting power of the outstanding capital stock of the Company. Amended and Restated Credit Agreement On May 26, 2016, the Company and the Subsidiary Guarantors entered into an Amended and Restated Credit Agreement (the “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 Original ABL Credit Agreement. Each of the capitalized but undefined terms used in the context of describing the ABL Credit Agreement has the meaning ascribed to such term in the ABL 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 $80 million and $85 million of letters of credit under the ABL Credit Agreement as of September 30, 2019 and December 31, 2018, respectively. 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. The ABL Credit Agreement matures on May 26, 2021. Each existing direct or indirect U.S. subsidiary of the Company (other than Immaterial Subsidiaries, Unrestricted Subsidiaries and certain other subsidiaries) has provided an unconditional guarantee (and any such future subsidiaries must provide an unconditional guarantee) of the obligations of the Company under the ABL Credit Agreement. The Company had approximately $20 million and $19 million of Excess Availability under the ABL Credit Agreement as of September 30, 2019 and December 31, 2018, respectively. 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 $8 million, as of September 30, 2019 (which $8 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 ABL 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 September 30, 2019 and December 31, 2018, 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 September 30, 2019 and December 31, 2018, Kodak is not required to have a minimum Fixed Charges Coverage Ratio of 1.0 to 1.0. As of September 30, 2019, and December 31, 2018, Kodak had funded $14 million and $3 million respectively, to the Eligible Cash account, held with the ABL Credit Agreement Administrative Agent, which is classified as Restricted Cash in the Consolidated Statement of Financial Position. Under the terms of the ABL Credit Agreement, 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, 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 is 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 $2 million and $9 million for the quarter and nine months ended September 30, 2019, respectively, which represents 1% of Kodak’s consolidated sales in both periods. These subsidiaries had sales of approximately $3 million and $8 million for the quarter and nine months ended September 30, 2018, respectively, which represents 1% of Kodak’s consolidated sales for both periods. These subsidiaries had assets of $20 million and $21 million as of September 30, 2019 and December 31, 2018, respectively, which represents 1% of Kodak’s consolidated assets as of both periods. Debt Reporting and Other Requirements Reporting requirements under the ABL Credit Agreement require the Company to provide annual audited financial statements accompanied by an opinion of an independent public accountant without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit or other material qualification or exception, except for any such qualification or exception with respect to any indebtedness maturing within 364 days after the date of such financial statements, and that the opinion be reasonably acceptable to the agent. On March 31, 2019 the Company obtained a waiver from the agent and lenders under the ABL Credit Agreement with respect to any event of default under the reporting covenant that may be deemed to have occurred in relation to the going concern explanatory paragraph in the 2018 Form 10-K audit report. The Notes and ABL Credit Agreement 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 (ABL Credit Agreement only). In addition to other customary affirmative covenants, the Notes and ABL Credit Agreement provide for a periodic delivery by the Company of its various financial statements as set forth in the Notes and ABL Credit Agreement. Events of default under the Notes and/or ABL Credit Agreement include, among others, failure to pay any principal, interest or other amount due under the applicable agreement, failure to deliver conversion shares (Convertible Notes only), breach of specific covenants and a change of control of the Company (ABL Credit Agreement only). Upon an event of default, the applicable lenders may declare the outstanding obligations under the applicable agreement to be immediately due and payable and exercise other rights and remedies provided for in such agreement. RED-Rochester, LLC In January 2019 Kodak entered into a series of agreements with RED-Rochester, LLC (“RED”), which provides utilities to the Eastman Business Park. Kodak received a payment of $14 million from RED. Kodak is required to pay a minimum annual payment to RED of approximately $2 million regardless of utility usage. Kodak is accounting for the $14 million payment from RED as debt. The minimum payments required under the agreement from Kodak to RED will be reported as a reduction of the debt and interest expense using the effective interest method. The debt payments to RED continue until August 2033. |
Note 8 - Redeemable, Convertibl
Note 8 - Redeemable, Convertible Series A Preferred Stock | 9 Months Ended |
Sep. 30, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable, Convertible Series A Preferred Stock | NOTE 8: 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 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 23, “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. Until the third quarter of 2018 all dividends owed on the Series A Preferred Stock were declared and paid when due. No quarterly dividend was declared in the third or fourth quarters of 2018 or the first and second quarters of 2019. The Company declared a quarterly cash dividend in the third quarter of 2019 which was paid in October 2019. The Purchasers have the right to nominate members to the Company’s board of directors proportional to their ownership on an as converted basis, which initially allowed the Purchasers to nominate two members to the board. If dividends on any Series A Preferred Stock are in arrears for six or more consecutive or non-consecutive dividend periods, the holders of Series A Preferred Stock, voting with holders of all other preferred stock of the Company whose voting rights are then exercisable, will be entitled to vote for the election of two additional directors in the next annual meeting and all subsequent meetings until all accumulated dividends on such Series A Preferred Stock and other voting preferred stock have been paid or set aside. The nomination right of the Purchasers will be reduced by two nominees at any time the holders of Series A Preferred Stock have the right to elect, or participate in the election of, two additional directors. Two of the directors on the Company’s current board of directors were nominated by the Purchasers. As of September 30, 2019, the Series A Preferred Stock has not been converted and none of the anti-dilution 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 9 - Leases
Note 9 - Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 9: LEASES Kodak as lessee Kodak determines if an arrangement is a lease at inception. Kodak’s operating lease agreements are primarily for real estate space and vehicles and are included within operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated Statement of Financial Position. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the measurement of ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. Many of the leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments if reasonably assured to be exercised. Kodak does not separate lease and non-lease components of contracts for real estate leases. When available, the rate implicit in the lease is used to discount lease payments to present value; however, many leases do not provide a readily determinable implicit rate. Therefore, Kodak applies its incremental borrowing rate to discount the lease payments at lease commencement. The table below presents the lease-related assets and liabilities on the balance sheet: Classification in the September 30, (in millions) Consolidated Statement of Financial Position 2019 Assets Operating lease assets Operating lease right-of-use assets $ 49 Finance lease assets Property, plant and equipment, net 5 Total lease assets $ 54 Liabilities Current Operating Current portion of operating leases $ 26 Finance Short-term borrowings and current portion of long-term debt 1 Noncurrent Operating Operating leases, net of current portion 34 Finance Long-term debt, net of current portion 3 Total lease liabilities $ 64 Weighted-average remaining lease term Operating 6 years Finance (1) 319 years Weighted-average discount rate Operating (2) 16.50 % Finance 6.75 % (1) One finance lease has a remaining term of 968 years. The weighted-average lease term excluding the lease with a remaining term of 968 years is 4 years. (2) Upon adoption of ASC 842, Kodak’s incremental borrowing rate used for existing operating leases was established at January 1, 2019. Lease Costs The table below presents certain information related to the lease costs for finance and operating leases. Lease costs are presented gross of sublease income. See “Kodak as Lessor” section below for income from subleases. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2019 Finance lease cost Amortization of leased assets $ 1 $ 3 Interest on lease liabilities — — Operating lease cost 6 19 Variable lease cost 2 5 Total lease cost $ 9 $ 27 Other Information The table below presents supplemental cash flow information related to leases. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 6 $ 19 Operating cash flow for finance leases — — Financing cash flow for finance leases 1 2 $ 7 $ 21 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for the next five years and thereafter to the finance lease liabilities and operating lease liabilities recorded on the balance sheet. (in millions) Operating Leases Finance Leases Q4 2019 $ 6 $ — 2020 27 1 2021 11 1 2022 8 1 2023 7 — Thereafter 34 110 Total minimum lease payments 93 113 Less: amount of lease payments representing interest 33 (110 ) Present value of future minimum lease payments 60 3 Less: current obligations under leases (26 ) — Long-term lease obligations $ 34 $ 3 Future minimum contractual lease payments for operating leases having initial or remaining noncancelable lease terms in excess of one year as of December 31, 2018 were as follows: (in millions) At December 31, 2018 2019 $ 20 2020 21 2021 13 2022 3 2023 3 Thereafter 7 $ 67 Kodak as Lessor Kodak places its own equipment at customer sites under sales-type and operating lease arrangements. Arrangements classified as sales-type leases with revenue recognition at inception generally transfer title to the equipment by the end of the lease term or have a lease term that is for a major part of the remaining economic life of the equipment; and collectability is considered probable. If the arrangement meets the criteria for a sales-type lease but collectability is not considered probable, Kodak will not derecognize the asset and will record all payments received as a liability until the earlier of collectability becoming probable or the lease is terminated. Contracts with customers may include multiple performance obligations including equipment, optional software licenses and service agreements. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Kodak has no direct financing leases. The Eastman Business Park segment’s core operations are to lease real estate. Kodak also leases underutilized portions of other real estate properties to third parties under both operating lease and sublease agreements. Payments received under operating lease agreements as part of the Eastman Business Park segment are reported in Revenues in the Consolidated Statement of Operations. Payments received under lease agreements for underutilized space are reported as cost reductions in Cost of revenues, SG&A expenses, R&D costs and Other charges, net. The lease arrangements are for various periods and are generally renewable. Renewal options and/or termination options are factored into the determination of lease payments if considered probable. Kodak does not separate lease and non-lease components of contracts for real estate leases. The lease and non-lease components of real estate leases are accounted for as lease costs per ASU 2016-02, Leases (Topic 842). Kodak’s net investment in sales-type leases as of September 30, 2019 and December 31, 2018 were $4 million and $3 million, respectively. The current portion of the net investment in sales-type leases is included in Trade receivables in the Consolidated Statement of Financial Position. The portion of the net investment in sales-type leases due after one year is included in Other long-term assets. The table below reconciles the undiscounted cash flows to be received for the next five years and thereafter to the net investment in sales-type leases recorded on the balance sheet: (in millions) Q4 2019 $ 1 2020 2 2021 1 2022 and thereafter 1 Total minimum lease payments 5 Less: unearned interest (1 ) Less: allowance for doubtful accounts — Net investment in sales-type leases $ 4 Undiscounted cash flows to be received for the next five years and thereafter for operating leases and subleases are: (in millions) Q4 2019 $ 4 2020 9 2021 7 2022 6 2023 4 Thereafter 17 Total minimum lease payments $ 47 Equipment subject to operating leases and the related accumulated depreciation were as follows: September 30, December 31, (in millions) 2019 2018 Equipment subject to operating leases $ 33 $ 34 Accumulated depreciation (22 ) (19 ) Equipment subject to operating leases, net $ 11 $ 15 Equipment subject to operating leases, net is included in Property, plant and equipment, net in the Consolidated Statement of Financial Position. Income recognized on operating lease arrangements for the quarter and nine months ended September 30, 2019 is presented below (income recognized for sales-type lease arrangements is $0 million): Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2019 Lease income - operating leases: Lease income $ 3 $ 7 Sublease income 1 5 Variable lease income 1 3 Total lease income $ 5 $ 15 |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10: COMMITMENTS AND CONTINGENCIES As of September 30, 2019, the Company had outstanding letters of credit of $80 million issued under the ABL Credit Agreement, as well as bank guarantees and letters of credit of $13 million, surety bonds in the amount of $40 million, and restricted cash and deposits of $54 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’s Brazilian operations are disputing these matters and intend to vigorously defend its position. Kodak routinely assesses all these matters as to the probability of ultimately incurring a liability in its Brazilian operations and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. As of September 30, 2019, 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 $8 million. In connection with assessments in Brazil, local regulations may require Kodak’s Brazilian operations to post security for a portion of the amounts in dispute. As of September 30, 2019, Kodak’s Brazilian operations have posted security composed of $4 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 $55 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 condition 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 11 - Guarantees
Note 11 - Guarantees | 9 Months Ended |
Sep. 30, 2019 | |
Guarantees [Abstract] | |
Guarantees | NOTE 11: GUARANTEES 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, 2018 to September 30, 2019, 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, 2018 $ 22 New extended warranty and maintenance arrangements in 2019 73 Recognition of extended warranty and maintenance arrangement revenue in 2019 (75 ) Deferred revenue on extended warranties as of September 30, 2019 $ 20 |
Note 12 - Revenue
Note 12 - Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | NOTE 12: REVENUE Disaggregation of Revenue The following tables present revenue disaggregated by major product, portfolio summary and geography. Three Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Plates, inks and other consumables $ 149 $ 8 $ — $ 3 $ — $ — $ 160 Ongoing service arrangements (1) 33 18 11 1 — — 63 Total Annuities 182 26 11 4 — — 223 Equipment & Software 18 3 3 — — — 24 Film and chemicals — — — 45 — — 45 Other (2) 13 — — 7 1 2 23 Total $ 213 $ 29 $ 14 $ 56 $ 1 $ 2 $ 315 Nine Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Plates, inks and other consumables $ 457 $ 25 $ — $ 9 $ — $ — $ 491 Ongoing service arrangements (1) 97 55 33 3 — — 188 Total Annuities 554 80 33 12 — — 679 Equipment & Software 45 10 9 — — — 64 Film and chemicals — — — 125 — — 125 Other (2) 13 — — 22 3 7 45 Total $ 612 $ 90 $ 42 $ 159 $ 3 $ 7 $ 913 Three Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Plates, inks and other consumables $ 166 $ 8 $ — $ 4 $ — $ — $ 178 Ongoing service arrangements (1) 33 20 12 1 — — 66 Total Annuities 199 28 12 5 — — 244 Equipment & Software 18 11 3 — — — 32 Film and chemicals — — — 41 — — 41 Other (2) — — — 8 1 3 12 Total $ 217 $ 39 $ 15 $ 54 $ 1 $ 3 $ 329 Nine Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Plates, inks and other consumables $ 509 $ 24 $ — $ 13 $ — $ — $ 546 Ongoing service arrangements (1) 100 59 36 2 — — 197 Total Annuities 609 83 36 15 — — 743 Equipment & Software 51 20 11 — — — 82 Film and chemicals — — — 122 — — 122 Other (2) — — — 22 3 7 32 Total $ 660 $ 103 $ 47 $ 159 $ 3 $ 7 $ 979 (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, print and managed media services, tenant rent and related property management services and licensing. Product Portfolio Summary: Three Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Growth engines (1) $ 44 $ 18 $ 14 $ 7 $ 1 $ — $ 84 Strategic other businesses (2) 162 — — 46 — 2 210 Planned declining businesses (3) 7 11 — 3 — — 21 $ 213 $ 29 $ 14 $ 56 $ 1 $ 2 $ 315 Nine Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Growth engines (1) $ 128 $ 57 $ 42 $ 22 $ 3 $ — $ 252 Strategic other businesses (2) 461 — — 128 — 7 596 Planned declining businesses (3) 23 33 — 9 — — 65 $ 612 $ 90 $ 42 $ 159 $ 3 $ 7 $ 913 Three Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Growth engines (1) $ 39 $ 27 $ 15 $ 8 $ 1 $ — $ 90 Strategic other businesses (2) 170 — — 42 — 3 215 Planned declining businesses (3) 8 12 — 4 — — 24 $ 217 $ 39 $ 15 $ 54 $ 1 $ 3 $ 329 Nine Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Growth engines (1) $ 113 $ 63 $ 47 $ 22 $ 3 $ — $ 248 Strategic other businesses (2) 520 — — 124 — 7 651 Planned declining businesses (3) 27 40 — 13 — — 80 $ 660 $ 103 $ 47 $ 159 $ 3 $ 7 $ 979 (1) Growth engines consist of Sonora, PROSPER, Kodak Software, brand licensing and AM3D, excluding intellectual property (IP) licensing. (2) Strategic Other Businesses include plates, Computer to Plate (“CTP”) equipment and related service, and Nexpress and related toner business in the Print Systems segment, Motion Picture and Industrial Film and Chemicals in the Brand, Film and Imaging segment, Eastman Business Park and IP 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 Brand, Film and Imaging segment, Versamark in the Enterprise Inkjet Systems segment and Digimaster in the Print Systems segment. Geography: Three Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total United States $ 65 $ 12 $ 6 $ 36 $ 1 $ 2 $ 122 Canada 4 — 1 1 — — 6 North America 69 12 7 37 1 2 128 Europe, Middle East and Africa 79 9 4 6 — — 98 Asia Pacific 53 7 3 13 — — 76 Latin America 12 1 — — — — 13 Total Sales $ 213 $ 29 $ 14 $ 56 $ 1 $ 2 $ 315 Nine Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total United States $ 175 $ 38 $ 19 $ 101 $ 3 $ 7 $ 343 Canada 11 1 2 2 — — 16 North America 186 39 21 103 3 7 359 Europe, Middle East and Africa 238 30 14 16 — — 298 Asia Pacific 153 19 6 39 — — 217 Latin America 35 2 1 1 — — 39 Total Sales $ 612 $ 90 $ 42 $ 159 $ 3 $ 7 $ 913 Three Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total United States $ 57 $ 13 $ 6 $ 33 $ 1 $ 3 $ 113 Canada 3 1 1 — — — 5 North America 60 14 7 33 1 3 118 Europe, Middle East and Africa 87 18 6 5 — — 116 Asia Pacific 56 7 1 15 — — 79 Latin America 14 — 1 1 — — 16 Total Sales $ 217 $ 39 $ 15 $ 54 $ 1 $ 3 $ 329 Nine Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total United States $ 174 $ 35 $ 20 $ 98 $ 3 $ 7 $ 337 Canada 9 1 3 2 — — 15 North America 183 36 23 100 3 7 352 Europe, Middle East and Africa 273 43 17 15 — — 348 Asia Pacific 162 22 5 42 — — 231 Latin America 42 2 2 2 — — 48 Total Sales $ 660 $ 103 $ 47 $ 159 $ 3 $ 7 $ 979 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 September 30, 2019 and December 31, 2018 were $2 million and $3 million, respectively, and are reported in Other current assets 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 September 30, 2019 and December 31, 2018 were $61 million and $48 million, respectively, of which $42 million are reported in Other current liabilities in both periods and $19 million and $6 million, respectively, are reported in Other long-term liabilities in the Consolidated Statement of Financial Position. Revenue recognized for the quarter and nine months ended September 30, 2019 and 2018 that was included in the contract liability balance at the beginning of the year was $4 million and $34 million in 2019, respectively, and $1 million and $29 million in 2018, respectively, and primarily represented revenue from prepaid service contracts and equipment revenue recognition. Contract liabilities as of September 30, 2019 included $26 million and $43 million of cash payments received during the quarter and nine months ended September 30, 2019, respectively. Contract liabilities as of September 30, 2018 included $23 million and $31 million of cash payments received during the quarter and nine months ended September 30, 2018, respectively. Unsatisfied Performance Obligations 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 September 30, 2019, there was approximately $70 million of unrecognized revenue from unsatisfied performance obligations. Approximately 10% of the revenue from unsatisfied performance obligations is expected to be recognized in the rest of 2019, 30% in 2020, 20% in 2021, 10% in both 2022 and 2023 and 20% thereafter. |
Note 13 - Other Operating Expen
Note 13 - Other Operating Expense (Income), Net | 9 Months Ended |
Sep. 30, 2019 | |
Other Operating Expense Income Net [Abstract] | |
Other Operating Expense (Income), Net | NOTE 13: OTHER OPERATING EXPENSE (INCOME), NET Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Expense (income): Transition services agreement income $ (2 ) $ — $ (4 ) $ — Loss (gain) on sale of assets (1) 12 (5 ) 13 (7 ) Legal reserve changes — (4 ) — (4 ) Other — (1 ) 1 (1 ) Total $ 10 $ (10 ) $ 10 $ (12 ) (1) In the third quarter of 2019, Kodak sold its shares of the Kodak (China) Graphic Communication Co., Ltd and recognized a loss of $12 million. Refer to Note 23: “Assets Held for Sale”. |
Note 14 - Other Charges (Income
Note 14 - Other Charges (Income), Net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Other Charges (Income), Net | NOTE 14: OTHER CHARGES (INCOME), NET Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Change in fair value of embedded conversion features derivative liability (1) $ 4 $ (5 ) $ 3 $ 2 Loss on foreign exchange transactions 3 2 4 11 Other (1 ) (1 ) — — Total $ 6 $ (4 ) $ 7 $ 13 (1) |
Note 15 - Income Taxes
Note 15 - Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15: INCOME TAXES Tax Asset Protection Plan and Amendment to the Certificate of Incorporation On September 12, 2019, the Company adopted a Tax Asset Protection Plan (the “Plan”) and filed a certificate of amendment to its Second Amended and Restated Certificate of Incorporation (the “Protective Amendment”). The purpose of the Plan and the Protective Amendment is to help protect the Company’s ability to utilize net operating loss and foreign tax credit carryforwards (the “Tax Benefits”) to minimize U.S. federal taxes during future periods. The Company’s use of the Tax Benefits in the future may be significantly limited if it experiences an “ownership change” for U.S. federal income tax purposes as defined under Section 382 of the U.S. Internal Revenue Code. In general, an ownership change will occur when the percentage of the Company’s ownership (by value) of one or more “5-percent shareholders” has increased in the aggregate by more than 50 percent over the lowest percentage owned by such shareholders at any time during the prior three years (calculated on a rolling basis). In the Company’s case, because the Company’s outstanding convertible preferred stock and convertible notes are aggregated together with the Company’s common stock in determining if there is a 5-percent shareholder for tax purposes, the Plan and the Protective Amendment discourage or restrict, as applicable, the ownership of 10% or more of the Company’s common stock, rather than the 5% usually contained in such plans. The Plan is designed to reduce the likelihood that the Company will experience an ownership change by (i) discouraging any person or group from acquiring 10% or more of the Company’s common stock and (ii) discouraging any existing 10% holder of the common stock from acquiring more than 1,000,000 additional shares of Company common stock. The Protective Amendment will generally restrict the transfer of the Company’s common stock if the effect will be to increase the beneficial ownership of any person to 10% or more of the outstanding common stock or cause the beneficial ownership of a 10% holder of common stock to increase by more than 1,000,000 shares on common stock. There is no guarantee, however, that the Plan and the Protective Amendment will prevent the Company from experiencing an ownership change. Kodak’s income tax provision and effective tax rate were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 (Loss) earnings from continuing operations before income taxes $ (3 ) $ 23 $ (16 ) $ 5 Effective tax rate (233.3 )% 13.0 % (75.0 )% 140.0 % Provision for income taxes 7 3 12 7 (Benefit) provision for income taxes at U.S. statutory tax rate (1 ) 5 (3 ) 1 Difference between tax at effective vs. statutory rate $ 8 $ (2 ) $ 15 $ 6 For the three months ended September 30, 2019, 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., (3) a provision associated with the establishment of a deferred tax asset valuation allowance outside the U.S. For the nine months ended September 30, 2019, 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., (3) a provision associated with the establishment of a deferred tax asset valuation allowance outside the U.S changes in audit reserves For the three months ended September 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., (3) a benefit associated with foreign withholding taxes on undistributed earnings and (4) changes in audit reserves, including a settlement with a taxing authority in a location outside the U.S. For the nine months ended September 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) changes in audit reserves, including a settlement with a taxing authority in a location outside the U.S. |
Note 16 - Restructuring Liabili
Note 16 - Restructuring Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Liabilities | NOTE 16: 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 nine months of 2019 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 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 nine months ended September 30, 2019 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, 2018 $ 6 $ 2 $ — $ 8 Q1 charges 2 — — 2 Q1 utilization/cash payments (2 ) — — (2 ) Q1 other adjustments and reclasses (2) (1 ) — — (1 ) Balance as of March 31, 2019 $ 5 $ 2 $ — $ 7 Q2 charges - continuing operations $ 2 $ — $ — $ 2 Q2 charges - discontinued operations 1 — — 1 Q2 utilization/cash payments (2 ) — — (2 ) Q2 other adjustments and reclasses (2) (1 ) — — (1 ) Balance as of June 30, 2019 $ 5 $ 2 $ — $ 7 Q3 charges $ 3 $ — $ — $ 3 Q3 utilization/cash payments (2 ) (1 ) — (3 ) Balance as of September 30, 2019 $ 6 $ 1 $ — $ 7 (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) The $3 million of charges for the three months ended September 30, 2019 The severance costs for the three months ended September 30, 2019 related to the elimination of approximately 25 positions including approximately 10 manufacturing/service positions, For the nine months ended September 30, 2019, $7 million of charges was reported as Restructuring costs and other and $1 million was reported in Income from discontinued operations. The severance costs for the nine months ended September 30, 2019 related to the elimination of approximately 100 positions, including approximately 30 manufacturing/service positions and 70 administrative and sales positions. The geographic composition of these positions includes approximately 50 in the United States and Canada and 50 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 the first quarter of 2020. |
Note 17 - Retirement Plans and
Note 17 - Retirement Plans and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans and Other Postretirement Benefits | NOTE 17: 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 Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (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 $ — $ 4 $ 1 $ 8 $ 2 $ 10 $ 3 Interest cost 30 3 27 3 91 9 82 9 Expected return on plan assets (53 ) (6 ) (55 ) (7 ) (160 ) (17 ) (167 ) (20 ) Amortization of: Prior service credit (2 ) — (2 ) — (5 ) — (6 ) — Actuarial loss — 2 1 1 — 4 4 3 Net pension income before special termination benefits (22 ) (1 ) (25 ) (2 ) (66 ) (2 ) (77 ) (5 ) Special termination benefits — — 3 — 2 — 4 — Curtailment gain — — — — (2 ) — — — Net pension income from major plans (22 ) (1 ) (22 ) (2 ) (66 ) (2 ) (73 ) (5 ) Other plans — — — (3 ) — (4 ) — (3 ) Total net pension income $ (22 ) $ (1 ) $ (22 ) $ (5 ) $ (66 ) $ (6 ) $ (73 ) $ (8 ) For the three and nine months ended September 30, 2019 the special termination benefits charges were incurred as a result of Kodak’s restructuring actions and have been included in Restructuring costs and other in the Consolidated Statement of Operations for those periods. The $2 million curtailment gain for the nine months ended September 30, 2019 was incurred as a result of the sale of FPD and is included in Income from discontinued operations in the Consolidated Statement of Operations. In addition, the amounts shown for Other plans include $5 million of settlement gains for the nine months ended September 30, 2019 due to the transfer of non-major, non-U.S. pension liabilities as a result of the sale of FPD. These amounts are also included in Income from discontinued operations in the Consolidated Statement of Operations. |
Note 18 - Earnings Per Share
Note 18 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 18: 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 quarter and nine months ended September 30, 2019 and 2018 follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 (Loss) income from continuing operations $ (10 ) $ 20 $ (28 ) $ (2 ) Less: Series A convertible preferred stock cash dividend (2 ) (2 ) (8 ) (8 ) Less: Series A convertible preferred stock deemed dividend (3 ) (3 ) (7 ) (7 ) (Loss) income from continuing operations available to common shareholders - basic and diluted $ (15 ) $ 15 $ (43 ) $ (17 ) Net (loss) income $ (5 ) $ 19 $ 178 $ (2 ) Less: Series A convertible preferred stock cash dividend (2 ) (2 ) (8 ) (8 ) Less: Series A convertible preferred stock deemed dividend (3 ) (3 ) (7 ) (7 ) Net (loss) income available to common shareholders - basic and diluted $ (10 ) $ 14 $ 163 $ (17 ) (in millions of shares) Weighted average shares - basic 43.0 42.7 43.0 42.7 Effect of dilutive securities Unvested restricted stock units — 0.3 — — Weighted average shares - diluted EPS calculation 43.0 43.0 43.0 42.7 As a result of the net loss from continuing operations available to common shareholders for the quarter and nine months ended September 30, 2019 and the nine months ended September 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 the quarter and nine months ended September 30, 2019 and the nine months ended September 30, 2018, the calculation of diluted earnings per share would have included the assumed conversion of 0.6 million unvested restricted stock units for both periods in 2019 and 0.2 million of unvested restricted stock units for the nine months ended September 30, 2018. The computation of diluted earnings per share for the quarter and nine months ended September 30, 2019 and 2018 excluded the impact of (1) the assumed conversion of 2.0 million shares of Series A convertible preferred shares and (2) the assumed conversion of outstanding employee stock options of 8.9 million and 9.0 million in the quarter and nine months ending September 30, 2019, respectively, |
Note 19 - Shareholders' Equity
Note 19 - Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 19: 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 September 30, 2019 and December 31, 2018, there were 43.1 million and 42.8 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 0.7 million shares and 0.6 million shares as of September 30, 2019 and December 31, 2018, respectively. |
Note 20 - Other Comprehensive I
Note 20 - Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |
Other Comprehensive Income (Loss) | NOTE 20: OTHER COMPREHENSIVE INCOME (LOSS) The changes in Other comprehensive income (loss), by component, were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Currency translation adjustments $ (2 ) $ (12 ) $ 2 $ (19 ) Pension and other postretirement benefit plan changes Newly established net actuarial gain — 7 5 8 Tax Provision — (2 ) (2 ) (2 ) Newly established net actuarial gain, net of tax — 5 3 6 Reclassification adjustments: Amortization of prior service credit (a) (2 ) (2 ) (6 ) (6 ) Amortization of actuarial losses (a) 1 1 3 3 Recognition of (gains) losses due to curtailments and settlements — (2 ) (2 ) (1 ) Total reclassification adjustments (1 ) (3 ) (5 ) (4 ) Tax provision — 1 — 1 Reclassification adjustments, net of tax (1 ) (2 ) (5 ) (3 ) Pension and other postretirement benefit plan changes, net of tax (1 ) 3 (2 ) 3 Other comprehensive income (loss) $ (3 ) $ (9 ) $ — $ (16 ) (a) |
Note 21 - Segment Information
Note 21 - Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 21: SEGMENT INFORMATION Change in Segments Effective in January 2019 Kodak changed its organizational structure. Kodak Technology Solutions, formerly part of the Software and Solutions segment, was moved into the Consumer and Film segment. The Consumer and Film segment was renamed the Brand, Film & Imaging segment. The Unified Workflow Solutions business, formerly part of the Software and Solutions segment, will operate as a dedicated segment named Kodak Software segment. Financial information is reported for six reportable segments: Print Systems, Enterprise Inkjet Systems, Kodak Software, Brand, Film and Imaging, 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. Kodak Software : The Kodak Software segment is comprised of the Software business. Brand, Film and Imaging : The Brand, Film and Imaging segment is comprised of five lines of business: Consumer Products, Industrial Film and Chemicals, Motion Picture, Kodak Services for Business (“KSB”) and Kodakit. 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 Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Print Systems $ 213 $ 217 $ 612 $ 660 Enterprise Inkjet Systems 29 39 90 103 Kodak Software 14 15 42 47 Brand, Film and Imaging 56 54 159 159 Advanced Materials and 3D Printing Technology 1 1 3 3 Eastman Business Park 2 3 7 7 Consolidated total $ 315 $ 329 $ 913 $ 979 Segment Operational EBITDA and Consolidated (Loss) Gain from Continuing Operations Before Income Taxes Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Print Systems $ 20 $ 11 $ 32 $ 20 Enterprise Inkjet Systems (3 ) 2 (6 ) 3 Kodak Software 2 1 1 3 Brand, Film and Imaging (1 ) (3 ) (10 ) (15 ) Advanced Materials and 3D Printing Technology (4 ) (2 ) (9 ) (10 ) Eastman Business Park — 0 (1 ) (3 ) Total of reportable segments 14 9 7 (2 ) Depreciation and amortization (14 ) (17 ) (43 ) (54 ) Restructuring costs and other (3 ) (9 ) (7 ) (13 ) Stock based compensation (1 ) (2 ) (6 ) (5 ) Consulting and other costs (1) (2 ) (4 ) (7 ) (11 ) Idle costs (2) (1 ) (1 ) (4 ) (2 ) Former CEO separation agreement compensation — — (2 ) — Other operating (expense) income, net, excluding income from transition services agreement (3) (12 ) 10 (14 ) 12 Interest expense (4) (4 ) (2 ) (12 ) (6 ) Pension income excluding service cost component (4) 26 35 79 99 Other income (charges), net (4) (6 ) 4 (7 ) (13 ) Consolidated (loss) income from continuing operations before income taxes $ (3 ) $ 23 $ (16 ) $ 5 (1) Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives. (2) Consists of costs such as security, maintenance and utilities required to maintain land and buildings in certain locations not used in any Kodak operations and the costs, net of any rental income received, of underutilized portions of certain properties. (3) $2 million and $4 million of income from the transition services agreement with the Purchaser was recognized in the quarter and nine months ended September 30, 2019, respectively. The income was reported in Other operating (expense) income, net in the Consolidated Statement of Operations. Other operating (expense) income, net is typically excluded from the segment measure. However, the income from the transition services agreement was included in the segment measure. (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; former CEO separation agreement compensation; other operating (expense) income, net (unless otherwise indicated); goodwill impairment losses; interest expense; and other (income) charges, 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 2019 the segment measure was changed to exclude the costs, net of any rental income received, of underutilized portions of certain properties. Additionally, the allocation of costs from EBP to the Brand, Film and Imaging segment and Advanced Materials and 3D Printing Technology segment as tenants of EBP and to each of the segments as users of shared corporate space at the global headquarters changed. Prior year results have been revised to reflect these changes. |
Note 22 - Discontinued Operatio
Note 22 - Discontinued Operations | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 22: DISCONTINUED OPERATIONS Discontinued operations of Kodak include the former Flexographic Packaging segment comprised of Kodak’s Flexographic Packaging Business (“FPD”). Kodak consummated the sale of certain assets of FPD to the Purchaser on April 8, 2019 for net cash consideration at closing, in addition to the assumption by Purchaser of certain liabilities of FPD, of $320 million, pursuant to the Stock and Asset Purchase Agreement (“SAPA”) signed in November 2018 and amended in March 2019. Assets and liabilities of FPD in China were transferred at a deferred closing on July 1, 2019 for net cash consideration of $5.9 million at closing and a promissory note for $1.4 million in addition to the assumption by Purchaser of certain liabilities of FPD, in accordance with the SAPA. Kodak operated FPD in China, subject to certain covenants, until the deferred closing occurred. The promissory note was reduced by a true-up payment of $0.2 million owed by Kodak to the Purchaser which reflected the actual economic benefit attributable to the operation of FPD in China from the time of the initial closing through the time of the deferred closing. The divested business has the right to use Kodak’s corporate brand for a 10-year period related to Covered Products (as defined in the SAPA) for no additional consideration. Therefore, $10 million of consideration received for the sale of FPD was recognized as deferred revenue related to the brand license. The deferred revenue is reported in Long-term liabilities in the Consolidated Statement of Financial Condition and will be recognized as revenue over the term of the license. Proceeds were allocated between the sale of FPD and the brand license based on their relative fair values. Kodak recognized an after- tax gain on the sale of FPD of $212 million in the nine months ending September 30, 2019. Simultaneously with entering into the SAPA, the Company and the Purchaser entered into an Earn-out Agreement, pursuant to which the Company will be entitled to an aggregate of up to $35 million in additional cash consideration if FPD achieves agreed EBITDA targets for 2018 ($10 million earn-out), 2019 ($10 million earn-out) and 2020 ($15 million earn-out). The EBITDA target for 2018 was not achieved. On April 16, 2019 the Purchaser paid Kodak $15 million as a prepayment for services and products to be provided by Kodak to the Purchaser. The Purchaser has the option to satisfy its payment obligations to Kodak through a reduction of the prepayment balance or in cash. As of September 30, 2019, the remaining prepayment balance is $8 million. The results of operations of FPD are classified as discontinued operations in the Consolidated Statement of Operations for all periods presented. The results of operations of FPD are presented below: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Revenues $ — $ 36 $ 44 $ 111 Cost of revenues — 22 28 66 Selling, general and administrative expenses — 5 10 13 Research and development costs — 2 2 6 Interest expense — 7 7 20 Gain on divestiture (4 ) — (214 ) — Income (loss) from discontinued operations before taxes 4 — 211 6 (Benefit) provision for income taxes (1 ) 1 5 6 Income (loss) from discontinued operations $ 5 $ (1 ) $ 206 $ — After the initial closing, Kodak was required to use a portion of the proceeds from the sale of FPD to repay $312 million of the loans under the Term Credit Agreement. Interest expense on debt that was required to be repaid as a result of the sale was allocated to discontinued operations. A pproximately $6 million of transaction costs are included in Selling, general and administrative expenses in the year-to-date period ending September 30, 2019. The following table presents cash flow information associated with FPD: Nine Months Ended September 30, (in millions) 2019 2018 Depreciation $ — $ 3 Amortization — 1 Capital expenditures — 6 Depreciation and amortization of long-lived assets of FPD included in discontinued operations ceased as of December 1, 2018. |
Note 23 - Assets Held for Sale
Note 23 - Assets Held for Sale | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Assets Held for Sale | NOTE 23: ASSETS HELD FOR SALE Assets held for sale at December 31, 2018 include the assets and liabilities of the FPD business and the assets and liabilities of Kodak (China) Graphics Communication Co. Ltd., including the offset printing plates facility in Xiamen, China. The following table presents the aggregate carrying amount of major assets and liabilities of FPD: September 30, December 31, (in millions) 2019 2018 ASSETS Cash and cash equivalents $ — $ 2 Trade receivables, net — 28 Inventories, net — 33 Property, plant and equipment, net — 28 Goodwill — 20 Intangible assets — 1 Other assets — 1 Assets of business held for sale $ — $ 113 LIABILITIES Accounts payable, trade $ — $ 9 Pension and other postretirement liabilities — 4 Other current liabilities — 7 Liabilities of business held for sale $ — $ 20 A dedicated entity of FPD had intercompany receivables with Kodak of approximately $5 million as of December 31, 2018 that were part of the transaction but are not reflected in the table above as these amounts have been eliminated in deriving the consolidated financial statements. On August 3, 2019 Kodak reached an agreement with Lucky HuaGuang Graphics Co. Ltd (“HuaGuang”) to establish a strategic relationship in the People’s Republic of China. The relationship is comprised of an agreement for Kodak to sell its shares of the Kodak (China) Graphic Communication Co. Ltd. entity which includes the offset printing plates facility in Xiamen, China, and related assets and liabilities, to HuaGuang, a supply agreement from HuaGuang to Kodak and a license agreement under which Kodak licenses its plates technology to HuaGuang to sell into the plates market in China. The relationship was established at a closing on September 1, 2019 for net cash consideration at closing, in addition to the assumption by HuaGuang of certain liabilities, of $30 million and promissory notes of $8 million representing the outstanding amount of net intercompany receivables owed by Kodak to the Kodak (China) Graphic Communication Co. Ltd at the time of closing. Promissory note payments are being paid by HuaGuang monthly as Kodak remits payments to the Kodak (China) Graphic Communication Co. Ltd. for the outstanding intercompany receivables. The outstanding balance of the promissory notes as of September 30, 2019 is $4 million. The relationship with HuaGuang includes a license agreement under which Kodak licenses its plates technology to HuaGuang. Therefore, $13 million of the $30 million of consideration received was recognized as licensing revenue in the Print Systems segment in the three months ended September 30, 2019. Proceeds were allocated between the sale of the business and the intellectual property license based on their relative fair values. The following table presents the aggregate carrying amount of major assets and liabilities the offset printing plates facility in Xiamen, China: September 30, December 31, (in millions) 2019 2018 ASSETS Cash and cash equivalents $ — $ 13 Inventories, net — 5 Property, plant and equipment, net — 30 Intangible assets — 2 Other assets — 4 Assets of business held for sale $ — $ 54 LIABILITIES Accounts payable, trade $ — $ 19 Other current liabilities — 4 Liabilities of business held for sale $ — $ 23 Current assets held for sale as of September 30, 2019 in the Consolidated Statement of Financial Position included $2 million of assets under contract for sale not associated with either the FPD or HuaGuang transactions. |
Note 24 - Financial Instruments
Note 24 - Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | NOTE 24: 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 (income) charges, net in the Consolidated Statement of Operations). The notional amount of such contracts open at September 30, 2019 and December 31, 2018 was approximately $376 million and $415 million, respectively. The majority of the contracts of this type held by Kodak as of September 30, 2019 and December 31, 2018 are denominated in euros, Japanese yen, Chinese renminbi and Swiss francs. The net effect of foreign currency forward contracts in the results of operations is shown in the following table: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Net (loss) gain from derivatives not designated as hedging instruments $ (1 ) $ (2 ) $ 2 $ (8 ) Kodak had no derivatives designated as hedging instruments for the quarter and nine months ended September 30, 2019 and 2018. In the event of a default under the ABL 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 7, “Debt and Finance Leases”, the Company concluded that the Convertible Notes are considered more akin to a debt-type instrument and that the economic characteristics and risks of the embedded conversion features and term extension option were not considered clearly and closely related to the Convertible Notes. The embedded conversion features not considered clearly and closely related are the conversion at the option of the holder (“Optional Conversion”) and the conversion in the event of a fundamental change or reorganization (“Fundamental Change or Reorganization Conversion”). Accordingly, these embedded conversion features and term extension option were bifurcated from the Convertible Notes and separately accounted for on a combined basis as a single derivative asset or liability. The derivative is in a liability position at September 30, 2019 and is reported in Other long-term liabilities 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, net in the Consolidated Statement of Operations. As discussed in Note 8, “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 an asset position at both September 30, 2019 and December 31, 2018, and is reported in Other long-term assets 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, 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 Other current assets 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 September 30, 2019 and December 31, 2018 was $0 million and $3 million, respectively. The gross fair value of foreign currency forward contracts in a liability position as of September 30, 2019 and December 31, 2018 was $1 million, for both periods. Transfers between levels of the fair value hierarchy are recognized based on the actual date of the event or change in circumstances that caused the transfer. There were no transfers between levels of the fair value hierarchy during the quarter and nine months ended September 30, 2019. The fair value of the embedded conversion features and term extension option derivatives are calculated using unobservable inputs (Level 3 fair measurements). The value of the Optional Conversion associated with both the Convertible Notes and Series A Preferred Stock is calculated using a binomial lattice model. The value of the term extension option reflects the probability weighted average value of the Convertible Notes using the original maturity date and a hypothetical extended maturity date, with all other contractual terms unchanged. The following tables present the key inputs in the determination of fair value for the embedded conversion features and termination option derivatives: Convertible Notes: Valuation Date May 24, September 30, 2019 2019 (Inception) Total value of embedded derivative liability ($ millions) $ 18 $ 14 Kodak's closing stock price $ 2.64 $ 2.31 Expected stock price volatility 89.16 % 92.48 % Risk free rate 1.62 % 2.13 % Yield on the convertible notes 12.82 % 11.98 % Series A Preferred Stock: Valuation Date September 30, December 31, 2019 2018 Total value of embedded derivative asset ($ millions) $ 5 $ 4 Kodak's closing stock price $ 2.64 $ 2.55 Expected stock price volatility 89.16 % 95.55 % Risk free rate 1.62 % 2.46 % Yield on the preferred stock 19.20 % 23.77 % The Fundamental Change and Reorganization Conversion values at issuance were calculated as the difference between the total value of the Convertible Notes or Series A Preferred Stock, as applicable, and the sum of the net present value of the cash flows if the Convertible Notes are repaid at their initial maturity date or Series A Preferred Stock is redeemed on its fifth anniversary and the values of the other embedded derivatives. The Fundamental Change and Reorganization Conversion values reduce the value of the embedded conversion features and term extension option derivative liability. Other than events which 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 for the Series A Preferred Stock exceeded the value of the Optional Conversion and Mandatory Conversion values at both September 30, 2019 and December 31, 2018 resulting in the Series A Preferred Stock 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 The carrying values of cash and cash equivalents and restricted cash approximate their fair values at both September 30, 2019 and December 31, 2018. The fair value of the current portion of long-term debt at September 30, 2019 approximates its carrying value. |
Basis of Presentation and Recen
Basis of Presentation and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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, 2018 (the “2018 Form 10-K”). |
Going Concern | 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. As of September 30, 2019 and December 31, 2018, Kodak had approximately $225 million and $233 million, respectively, of cash and cash equivalents. $84 million and $117 million was held in the U.S. as of September 30, 2019 and December 31, 2018, respectively, and $141 million and $116 million were held outside the U.S. Cash balances held outside the U.S. are generally required to support local country operations and may have high tax costs or other limitations that delay the ability to repatriate, and therefore may not be readily available for transfer to other jurisdictions. Outstanding inter-company loans to the U.S. as of September 30, 2019 and December 31, 2018 were $403 million and $390 million, respectively, which includes short-term intercompany loans from Kodak’s international finance center of $105 million and $92 million as of September 30, 2019 and December 31, 2018, respectively. In China, where approximately $71 million and $59 million of cash and cash equivalents was held as of September 30, 2019 and December 31, 2018, respectively, there are limitations related to net asset balances that may impact the ability to make cash available to other jurisdictions in the world. Kodak had a net increase in cash, cash equivalents, restricted cash and cash in assets held for sale of $12 million for the nine months ended September 30, 2019 and a net decrease of $102 million the year ended December 31, 2018. Kodak used cash of $4 million and $79 million in operating activities for the nine months ended September 30, 2019 and 2018, respectively. The current year’s cash used in operating activities includes the receipt of brand and functional intellectual property licensing proceeds allocated from the overall consideration received as part of the divestiture of the Packaging segment ($10 million) and the establishment of a strategic relationship with Lucky HuaGuang Graphics Co. Ltd ($13 million). Cash used in operating activities also includes the receipt of a $15 million prepayment for transition services and products and services to be provided by Kodak associated with the Packaging segment divestiture, $8 million of which has not yet been utilized. 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 or prior to the conditions or events that create the going concern risk. Kodak is facing liquidity challenges due to operating losses and negative cash flow from operations. Kodak has eliminated current debt service requirements by paying down the Senior Secured First Lien Term Credit Agreement (the “Term Credit Agreement”) using proceeds from the sale of Kodak’s Flexographic Packaging business (“FPD”) and refinancing the remaining balance through the issuance of convertible debt which does not require any debt service until conversion or maturity on November 1, 2021. However, Kodak has significant cash requirements to fund ongoing operations, restructuring programs, pension and other postretirement obligations, and other obligations. Kodak’s plans to return to positive cash flow include growing revenues profitably, reducing operating expenses, simplifying the organizational structure, generating cash from selling and leasing underutilized assets and paring investment in new technology by eliminating or delaying product development programs. The current cash balance outside of China, recent trend of negative operating cash flow and lack of certainty regarding the return to positive cash flow . |
Reclassifications | RECLASSIFICATIONS Certain amounts for prior periods have been reclassified to conform to the current period classification due to Kodak’s new organization structure as of January 2019 and due to assets held for sale reporting requirements. In addition to the changes in segment reporting under the new organization structure there is a change in the segment measure of profitability. The segment measure of profitability was changed to exclude the costs, net of any rental income received, of underutilized portions of certain properties. Additionally, the allocation of costs from Eastman Business Park (“EBP”) to the Brand, Film and Imaging segment and Advanced Materials and 3D Printing Technology segment as tenants of EBP and to each of the segments as users of shared corporate space at the global headquarters changed. Refer to Note 21, “Segment Information” for additional information. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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. Kodak adopted the new standard on January 1, 2019. The adoption of this ASU did not have an impact on the Consolidated Financial Statements as a result of Kodak’s U.S. valuation allowance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Topic 842 (as amended by ASU’s 2018-01, 10, 11 and 20 and ASU 2019-01) 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 standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases and operating leases. 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). The original guidance required application on a modified retrospective basis to the earliest period presented. ASU 2018-11, Targeted improvements to ASC 842, includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842 as the date of initial application of transition. Kodak adopted the new standard on the effective date applying the new transition method allowed under ASU 2018-11. The impact of adoption on the Consolidated Statement of Financial Position is presented below: ($ million) Balance at December 31, 2018 Adjustments Due to ASU 2016-02 Balance at January 1, 2019 Operating lease right-of-use assets $ — $ 52 $ 52 Operating lease liabilities — 61 61 Deferred rent payable (1) 9 (9 ) — Deferred gain on previous sale leaseback transaction (1) 6 (6 ) — Net fixed assets from previous sale leaseback transaction 1 (1 ) — Accumulated deficit 200 (5 ) 195 (1) Deferred amounts were previously reported in Other current liabilities ($1 million) and Other long-term liabilities ($14 million) in the Consolidated Statements of Financial Position. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This guidance amended Topic 808 and Topic 606 to clarify that transactions in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a distinct good or service (i.e., unit of account). The amendments preclude an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. 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. The amendments should be applied retrospectively to the date of initial application of Topic 606. In September 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which amends the disclosure requirements in ASC 715-20 by adding, clarifying, or removing certain disclosures. ASU 2018-14 requires all entities to disclose (1) the weighted average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The ASU also clarifies certain disclosure requirements for entities with two or more defined benefit pension plans when aggregate disclosures are presented. The ASU removes other disclosures from the existing guidance, such as the requirement to disclose the effects of a one-percentage-point change in the assumed health care cost trend rates. The ASU is effective retrospectively for fiscal years ending after December 15, 2020 (the year ended December 31, 2020 for Kodak). Early adoption is permitted. The standard addresses disclosures only and will not have an impact on Kodak’s consolidated financial statements. In September 2018 the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which amends the disclosure requirements in ASC 820 by adding, changing, or removing certain disclosures. The ASU applies to disclosures about recurring or nonrecurring fair value measurements. The additional and/or modified disclosures relate primarily to Level 3 fair value measurements while removing certain disclosures related to transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU is effective retrospectively, for fiscal years beginning after December 15, 2019 (January 1, 2020 for Kodak) and interim periods within those fiscal years. Entities are permitted to early adopt any removed or modified disclosures but can delay adoption of the new disclosures until their effective date. Kodak retrospectively early adopted the provisions of the ASU that removed or modified disclosures in the fourth quarter of 2018 and expects to prospectively adopt the provisions related to new disclosures January 1, 2020. The standard addresses disclosures only and will not have an impact on Kodak’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which addresses how a customer should account for the costs of implementing a cloud computing service arrangement (also referred to as a “hosting arrangement”). Under ASU 2018-15, entities should account for costs associated with implementing a cloud computing arrangement that is considered a service contract in the same way as implementation costs associated with a software license; implementation costs incurred in the application development stage, such as costs for the cloud computing arrangement’s integration with on-premise software, coding, and configuration or customization, should be capitalized and amortized over the term of the cloud computing arrangement, including periods covered by certain renewal options. The ASU is effective in fiscal years beginning after December 15, 2019 (January 1, 2020 for Kodak) including interim periods within those fiscal years. Early adoption is permitted. The ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. 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 (as amended by ASU 2018-19 and ASU’s 2019-04 and 05) 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. In October, the FASB directed its staff to draft an ASU to defer the effective date of the standard for smaller reporting companies until fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, (January 1, 2023 for Kodak) (effective date for all SEC filers, including smaller reporting companies, was originally December 15, 2019). Early adoption is permitted. is currently evaluating the impact of this ASU. |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation and Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
ASU 2016-02 [Member] | |
Summary of Impact of Adoption on Consolidated Statement of Financial Position | The impact of adoption on the Consolidated Statement of Financial Position is presented below: ($ million) Balance at December 31, 2018 Adjustments Due to ASU 2016-02 Balance at January 1, 2019 Operating lease right-of-use assets $ — $ 52 $ 52 Operating lease liabilities — 61 61 Deferred rent payable (1) 9 (9 ) — Deferred gain on previous sale leaseback transaction (1) 6 (6 ) — Net fixed assets from previous sale leaseback transaction 1 (1 ) — Accumulated deficit 200 (5 ) 195 (1) Deferred amounts were previously reported in Other current liabilities ($1 million) and Other long-term liabilities ($14 million) in the Consolidated Statements of Financial Position. |
Note 2 - Cash, Cash Equivalen_2
Note 2 - Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Reconciliation of 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: September 30, December 31, (in millions) 2019 2018 Cash and cash equivalents $ 225 $ 233 Restricted cash included in Other current assets 18 8 Long-term restricted cash 36 11 Cash included in assets held for sale — 15 Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows $ 279 $ 267 |
Note 3 - Inventories, Net (Tabl
Note 3 - Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | September 30, December 31, (in millions) 2019 2018 Finished goods $ 124 $ 119 Work in process 58 54 Raw materials 60 58 Total $ 242 $ 231 |
Note 4 - Other Long-term Asse_2
Note 4 - Other Long-term Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Schedule of Other Long-Term Assets | September 30, December 31, (in millions) 2019 2018 Pension assets $ 147 $ 82 Estimated workers' compensation recoveries 17 17 Long-term receivables, net of reserve of $4 and $4, respectively 11 13 Other 30 31 Total $ 205 $ 143 |
Note 5 - Other Current Liabil_2
Note 5 - Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Current [Abstract] | |
Summary of Other Current Liabilities | September 30, December 31, (in millions) 2019 2018 Employee related liabilities $ 44 $ 41 Deferred revenue 32 34 Customer rebates 21 26 Deferred consideration on disposed businesses 14 24 Transition services agreement prepayment 8 — Series A Preferred Stock dividends payable 14 6 Workers compensation 9 9 Restructuring liabilities 7 8 Other 54 61 Total $ 203 $ 209 |
Note 6 - Other Long-term Liab_2
Note 6 - Other Long-term Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Noncurrent [Abstract] | |
Summary of Other Long-term Liabilities | September 30, December 31, (in millions) 2019 2018 Workers compensation $ 84 $ 83 Asset retirement obligations 46 48 Deferred brand licensing revenue 18 6 Convertible debt embedded derivative liability 18 — Deferred taxes 12 14 Environmental liabilities 10 10 Other (1) 7 17 Total $ 195 $ 178 (1) Other decreased $14 million due to the adoption of ASU 2016-02. Also see the Recently Adopted Accounting Pronouncements subsection of Note 1, “Basis of Presentation and Recent Accounting Pronouncements”. |
Note 7 - Debt And Finance Lea_2
Note 7 - Debt And Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Finance Leases and Related Maturities and Interest Rates | Debt and finance leases and related maturities and interest rates were as follows at September 30, 2019 and December 31, 2018: (in millions) Type Maturity Weighted-Average Effective Interest Rate September 30, 2019 December 31, 2018 Current portion: Term note 2019 $ — $ 394 RED-Rochester, LLC 2033 11.46% 1 — Finance leases Various Various 1 2 2 396 Non-current portion: Convertible debt 2021 11.72% 88 — RED-Rochester, LLC 2033 11.46% 13 — Finance leases Various Various 3 3 Other debt Various Various 2 2 106 5 $ 108 $ 401 |
Schedule of Maturities of Debt and Finance Leases Outstanding | Annual maturities of debt and finance leases outstanding as of September 30, 2019 were as follows (in millions): Carrying Value Maturity Value Q4 2019 $ 2 $ 2 2020 1 1 2021 88 113 2022 2 2 2023 1 1 2024 and thereafter 14 14 Total $ 108 $ 133 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Related Assets and Liabilities on Balance Sheet | The table below presents the lease-related assets and liabilities on the balance sheet: Classification in the September 30, (in millions) Consolidated Statement of Financial Position 2019 Assets Operating lease assets Operating lease right-of-use assets $ 49 Finance lease assets Property, plant and equipment, net 5 Total lease assets $ 54 Liabilities Current Operating Current portion of operating leases $ 26 Finance Short-term borrowings and current portion of long-term debt 1 Noncurrent Operating Operating leases, net of current portion 34 Finance Long-term debt, net of current portion 3 Total lease liabilities $ 64 Weighted-average remaining lease term Operating 6 years Finance (1) 319 years Weighted-average discount rate Operating (2) 16.50 % Finance 6.75 % (1) One finance lease has a remaining term of 968 years. The weighted-average lease term excluding the lease with a remaining term of 968 years is 4 years. (2) Upon adoption of ASC 842, Kodak’s incremental borrowing rate used for existing operating leases was established at January 1, 2019. |
Information Related to Lease Costs For finance and Operating Leases | The table below presents certain information related to the lease costs for finance and operating leases. Lease costs are presented gross of sublease income. See “Kodak as Lessor” section below for income from subleases. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2019 Finance lease cost Amortization of leased assets $ 1 $ 3 Interest on lease liabilities — — Operating lease cost 6 19 Variable lease cost 2 5 Total lease cost $ 9 $ 27 |
Schedule of Supplemental Cash Flow Information Related to Leases | The table below presents supplemental cash flow information related to leases. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 6 $ 19 Operating cash flow for finance leases — — Financing cash flow for finance leases 1 2 $ 7 $ 21 |
Summary of Undiscounted Cash Flows for Next Five Years and Thereafter to Finance Lease Liabilities and Operating Lease Liabilities Recorded on Balance Sheet | The table below reconciles the undiscounted cash flows for the next five years and thereafter to the finance lease liabilities and operating lease liabilities recorded on the balance sheet. (in millions) Operating Leases Finance Leases Q4 2019 $ 6 $ — 2020 27 1 2021 11 1 2022 8 1 2023 7 — Thereafter 34 110 Total minimum lease payments 93 113 Less: amount of lease payments representing interest 33 (110 ) Present value of future minimum lease payments 60 3 Less: current obligations under leases (26 ) — Long-term lease obligations $ 34 $ 3 |
Summary of Future Minimum Contractual Lease Payments For Operating Leases | Future minimum contractual lease payments for operating leases having initial or remaining noncancelable lease terms in excess of one year as of December 31, 2018 were as follows: (in millions) At December 31, 2018 2019 $ 20 2020 21 2021 13 2022 3 2023 3 Thereafter 7 $ 67 |
Summary of Undiscounted Cash Flows to Be Received for Net Investment in Sales-type Leases | The table below reconciles the undiscounted cash flows to be received for the next five years and thereafter to the net investment in sales-type leases recorded on the balance sheet: (in millions) Q4 2019 $ 1 2020 2 2021 1 2022 and thereafter 1 Total minimum lease payments 5 Less: unearned interest (1 ) Less: allowance for doubtful accounts — Net investment in sales-type leases $ 4 |
Summary of Undiscounted Cash Flows to Be Received for Operating Leases | Undiscounted cash flows to be received for the next five years and thereafter for operating leases and subleases are: (in millions) Q4 2019 $ 4 2020 9 2021 7 2022 6 2023 4 Thereafter 17 Total minimum lease payments $ 47 |
Equipment Subject to Operating Leases and Related Accumulated Depreciation | Equipment subject to operating leases and the related accumulated depreciation were as follows: September 30, December 31, (in millions) 2019 2018 Equipment subject to operating leases $ 33 $ 34 Accumulated depreciation (22 ) (19 ) Equipment subject to operating leases, net $ 11 $ 15 |
Summary of Income Recognized on Lease Arrangements | Income recognized on operating lease arrangements for the quarter and nine months ended September 30, 2019 is presented below (income recognized for sales-type lease arrangements is $0 million): Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2019 Lease income - operating leases: Lease income $ 3 $ 7 Sublease income 1 5 Variable lease income 1 3 Total lease income $ 5 $ 15 |
Note 11 - Guarantees (Tables)
Note 11 - Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Guarantees [Abstract] | |
Deferred Revenue, by Arrangement | (in millions) Deferred revenue on extended warranties as of December 31, 2018 $ 22 New extended warranty and maintenance arrangements in 2019 73 Recognition of extended warranty and maintenance arrangement revenue in 2019 (75 ) Deferred revenue on extended warranties as of September 30, 2019 $ 20 |
Note 12 - Revenue (Tables)
Note 12 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue by Major Product, Product Portfolio Summary and Geography | The following tables present revenue disaggregated by major product, portfolio summary and geography. Three Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Plates, inks and other consumables $ 149 $ 8 $ — $ 3 $ — $ — $ 160 Ongoing service arrangements (1) 33 18 11 1 — — 63 Total Annuities 182 26 11 4 — — 223 Equipment & Software 18 3 3 — — — 24 Film and chemicals — — — 45 — — 45 Other (2) 13 — — 7 1 2 23 Total $ 213 $ 29 $ 14 $ 56 $ 1 $ 2 $ 315 Nine Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Plates, inks and other consumables $ 457 $ 25 $ — $ 9 $ — $ — $ 491 Ongoing service arrangements (1) 97 55 33 3 — — 188 Total Annuities 554 80 33 12 — — 679 Equipment & Software 45 10 9 — — — 64 Film and chemicals — — — 125 — — 125 Other (2) 13 — — 22 3 7 45 Total $ 612 $ 90 $ 42 $ 159 $ 3 $ 7 $ 913 Three Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Plates, inks and other consumables $ 166 $ 8 $ — $ 4 $ — $ — $ 178 Ongoing service arrangements (1) 33 20 12 1 — — 66 Total Annuities 199 28 12 5 — — 244 Equipment & Software 18 11 3 — — — 32 Film and chemicals — — — 41 — — 41 Other (2) — — — 8 1 3 12 Total $ 217 $ 39 $ 15 $ 54 $ 1 $ 3 $ 329 Nine Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Plates, inks and other consumables $ 509 $ 24 $ — $ 13 $ — $ — $ 546 Ongoing service arrangements (1) 100 59 36 2 — — 197 Total Annuities 609 83 36 15 — — 743 Equipment & Software 51 20 11 — — — 82 Film and chemicals — — — 122 — — 122 Other (2) — — — 22 3 7 32 Total $ 660 $ 103 $ 47 $ 159 $ 3 $ 7 $ 979 (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, print and managed media services, tenant rent and related property management services and licensing. Product Portfolio Summary: Three Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Growth engines (1) $ 44 $ 18 $ 14 $ 7 $ 1 $ — $ 84 Strategic other businesses (2) 162 — — 46 — 2 210 Planned declining businesses (3) 7 11 — 3 — — 21 $ 213 $ 29 $ 14 $ 56 $ 1 $ 2 $ 315 Nine Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Growth engines (1) $ 128 $ 57 $ 42 $ 22 $ 3 $ — $ 252 Strategic other businesses (2) 461 — — 128 — 7 596 Planned declining businesses (3) 23 33 — 9 — — 65 $ 612 $ 90 $ 42 $ 159 $ 3 $ 7 $ 913 Three Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Growth engines (1) $ 39 $ 27 $ 15 $ 8 $ 1 $ — $ 90 Strategic other businesses (2) 170 — — 42 — 3 215 Planned declining businesses (3) 8 12 — 4 — — 24 $ 217 $ 39 $ 15 $ 54 $ 1 $ 3 $ 329 Nine Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total Growth engines (1) $ 113 $ 63 $ 47 $ 22 $ 3 $ — $ 248 Strategic other businesses (2) 520 — — 124 — 7 651 Planned declining businesses (3) 27 40 — 13 — — 80 $ 660 $ 103 $ 47 $ 159 $ 3 $ 7 $ 979 (1) Growth engines consist of Sonora, PROSPER, Kodak Software, brand licensing and AM3D, excluding intellectual property (IP) licensing. (2) Strategic Other Businesses include plates, Computer to Plate (“CTP”) equipment and related service, and Nexpress and related toner business in the Print Systems segment, Motion Picture and Industrial Film and Chemicals in the Brand, Film and Imaging segment, Eastman Business Park and IP 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 Brand, Film and Imaging segment, Versamark in the Enterprise Inkjet Systems segment and Digimaster in the Print Systems segment. Geography: Three Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total United States $ 65 $ 12 $ 6 $ 36 $ 1 $ 2 $ 122 Canada 4 — 1 1 — — 6 North America 69 12 7 37 1 2 128 Europe, Middle East and Africa 79 9 4 6 — — 98 Asia Pacific 53 7 3 13 — — 76 Latin America 12 1 — — — — 13 Total Sales $ 213 $ 29 $ 14 $ 56 $ 1 $ 2 $ 315 Nine Months Ended September 30, 2019 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total United States $ 175 $ 38 $ 19 $ 101 $ 3 $ 7 $ 343 Canada 11 1 2 2 — — 16 North America 186 39 21 103 3 7 359 Europe, Middle East and Africa 238 30 14 16 — — 298 Asia Pacific 153 19 6 39 — — 217 Latin America 35 2 1 1 — — 39 Total Sales $ 612 $ 90 $ 42 $ 159 $ 3 $ 7 $ 913 Three Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total United States $ 57 $ 13 $ 6 $ 33 $ 1 $ 3 $ 113 Canada 3 1 1 — — — 5 North America 60 14 7 33 1 3 118 Europe, Middle East and Africa 87 18 6 5 — — 116 Asia Pacific 56 7 1 15 — — 79 Latin America 14 — 1 1 — — 16 Total Sales $ 217 $ 39 $ 15 $ 54 $ 1 $ 3 $ 329 Nine Months Ended September 30, 2018 (in millions) Print Systems Enterprise Inkjet Systems Kodak Software Brand, Film and Imaging Advanced Materials and 3D Printing Technology Eastman Business Park Total United States $ 174 $ 35 $ 20 $ 98 $ 3 $ 7 $ 337 Canada 9 1 3 2 — — 15 North America 183 36 23 100 3 7 352 Europe, Middle East and Africa 273 43 17 15 — — 348 Asia Pacific 162 22 5 42 — — 231 Latin America 42 2 2 2 — — 48 Total Sales $ 660 $ 103 $ 47 $ 159 $ 3 $ 7 $ 979 |
Note 13 - Other Operating Exp_2
Note 13 - Other Operating Expense (Income), Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Operating Expense Income Net [Abstract] | |
Schedule of Other Operating Expense (Income), by Component | Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Expense (income): Transition services agreement income $ (2 ) $ — $ (4 ) $ — Loss (gain) on sale of assets (1) 12 (5 ) 13 (7 ) Legal reserve changes — (4 ) — (4 ) Other — (1 ) 1 (1 ) Total $ 10 $ (10 ) $ 10 $ (12 ) (1) In the third quarter of 2019, Kodak sold its shares of the Kodak (China) Graphic Communication Co., Ltd and recognized a loss of $12 million. Refer to Note 23: “Assets Held for Sale”. |
Note 14 - Other Charges (Inco_2
Note 14 - Other Charges (Income), Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Charges (Income), Net | Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Change in fair value of embedded conversion features derivative liability (1) $ 4 $ (5 ) $ 3 $ 2 Loss on foreign exchange transactions 3 2 4 11 Other (1 ) (1 ) — — Total $ 6 $ (4 ) $ 7 $ 13 (1) |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision and Effective Tax Rate | Kodak’s income tax provision and effective tax rate were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 (Loss) earnings from continuing operations before income taxes $ (3 ) $ 23 $ (16 ) $ 5 Effective tax rate (233.3 )% 13.0 % (75.0 )% 140.0 % Provision for income taxes 7 3 12 7 (Benefit) provision for income taxes at U.S. statutory tax rate (1 ) 5 (3 ) 1 Difference between tax at effective vs. statutory rate $ 8 $ (2 ) $ 15 $ 6 |
Note 16 - Restructuring Liabi_2
Note 16 - Restructuring Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Reserve Activity | The activity in the accrued balances and the non-cash charges and credits incurred in relation to restructuring activities for the nine months ended September 30, 2019 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, 2018 $ 6 $ 2 $ — $ 8 Q1 charges 2 — — 2 Q1 utilization/cash payments (2 ) — — (2 ) Q1 other adjustments and reclasses (2) (1 ) — — (1 ) Balance as of March 31, 2019 $ 5 $ 2 $ — $ 7 Q2 charges - continuing operations $ 2 $ — $ — $ 2 Q2 charges - discontinued operations 1 — — 1 Q2 utilization/cash payments (2 ) — — (2 ) Q2 other adjustments and reclasses (2) (1 ) — — (1 ) Balance as of June 30, 2019 $ 5 $ 2 $ — $ 7 Q3 charges $ 3 $ — $ — $ 3 Q3 utilization/cash payments (2 ) (1 ) — (3 ) Balance as of September 30, 2019 $ 6 $ 1 $ — $ 7 (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 17 - Retirement Plans an_2
Note 17 - Retirement Plans and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Component of the Net Periodic benefit Cost | 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 Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (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 $ — $ 4 $ 1 $ 8 $ 2 $ 10 $ 3 Interest cost 30 3 27 3 91 9 82 9 Expected return on plan assets (53 ) (6 ) (55 ) (7 ) (160 ) (17 ) (167 ) (20 ) Amortization of: Prior service credit (2 ) — (2 ) — (5 ) — (6 ) — Actuarial loss — 2 1 1 — 4 4 3 Net pension income before special termination benefits (22 ) (1 ) (25 ) (2 ) (66 ) (2 ) (77 ) (5 ) Special termination benefits — — 3 — 2 — 4 — Curtailment gain — — — — (2 ) — — — Net pension income from major plans (22 ) (1 ) (22 ) (2 ) (66 ) (2 ) (73 ) (5 ) Other plans — — — (3 ) — (4 ) — (3 ) Total net pension income $ (22 ) $ (1 ) $ (22 ) $ (5 ) $ (66 ) $ (6 ) $ (73 ) $ (8 ) |
Note 18 - Earnings Per Share (T
Note 18 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Basic and Diluted Earnings Per Share | A reconciliation of the amounts used to calculate basic and diluted earnings per share for quarter and nine months ended September 30, 2019 and 2018 follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 (Loss) income from continuing operations $ (10 ) $ 20 $ (28 ) $ (2 ) Less: Series A convertible preferred stock cash dividend (2 ) (2 ) (8 ) (8 ) Less: Series A convertible preferred stock deemed dividend (3 ) (3 ) (7 ) (7 ) (Loss) income from continuing operations available to common shareholders - basic and diluted $ (15 ) $ 15 $ (43 ) $ (17 ) Net (loss) income $ (5 ) $ 19 $ 178 $ (2 ) Less: Series A convertible preferred stock cash dividend (2 ) (2 ) (8 ) (8 ) Less: Series A convertible preferred stock deemed dividend (3 ) (3 ) (7 ) (7 ) Net (loss) income available to common shareholders - basic and diluted $ (10 ) $ 14 $ 163 $ (17 ) (in millions of shares) Weighted average shares - basic 43.0 42.7 43.0 42.7 Effect of dilutive securities Unvested restricted stock units — 0.3 — — Weighted average shares - diluted EPS calculation 43.0 43.0 43.0 42.7 |
Note 20 - Other Comprehensive_2
Note 20 - Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |
Changes in Other Comprehensive Income (Loss), by Component | The changes in Other comprehensive income (loss), by component, were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Currency translation adjustments $ (2 ) $ (12 ) $ 2 $ (19 ) Pension and other postretirement benefit plan changes Newly established net actuarial gain — 7 5 8 Tax Provision — (2 ) (2 ) (2 ) Newly established net actuarial gain, net of tax — 5 3 6 Reclassification adjustments: Amortization of prior service credit (a) (2 ) (2 ) (6 ) (6 ) Amortization of actuarial losses (a) 1 1 3 3 Recognition of (gains) losses due to curtailments and settlements — (2 ) (2 ) (1 ) Total reclassification adjustments (1 ) (3 ) (5 ) (4 ) Tax provision — 1 — 1 Reclassification adjustments, net of tax (1 ) (2 ) (5 ) (3 ) Pension and other postretirement benefit plan changes, net of tax (1 ) 3 (2 ) 3 Other comprehensive income (loss) $ (3 ) $ (9 ) $ — $ (16 ) (a) |
Note 21 - Segment Information (
Note 21 - Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Print Systems $ 213 $ 217 $ 612 $ 660 Enterprise Inkjet Systems 29 39 90 103 Kodak Software 14 15 42 47 Brand, Film and Imaging 56 54 159 159 Advanced Materials and 3D Printing Technology 1 1 3 3 Eastman Business Park 2 3 7 7 Consolidated total $ 315 $ 329 $ 913 $ 979 Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Print Systems $ 20 $ 11 $ 32 $ 20 Enterprise Inkjet Systems (3 ) 2 (6 ) 3 Kodak Software 2 1 1 3 Brand, Film and Imaging (1 ) (3 ) (10 ) (15 ) Advanced Materials and 3D Printing Technology (4 ) (2 ) (9 ) (10 ) Eastman Business Park — 0 (1 ) (3 ) Total of reportable segments 14 9 7 (2 ) Depreciation and amortization (14 ) (17 ) (43 ) (54 ) Restructuring costs and other (3 ) (9 ) (7 ) (13 ) Stock based compensation (1 ) (2 ) (6 ) (5 ) Consulting and other costs (1) (2 ) (4 ) (7 ) (11 ) Idle costs (2) (1 ) (1 ) (4 ) (2 ) Former CEO separation agreement compensation — — (2 ) — Other operating (expense) income, net, excluding income from transition services agreement (3) (12 ) 10 (14 ) 12 Interest expense (4) (4 ) (2 ) (12 ) (6 ) Pension income excluding service cost component (4) 26 35 79 99 Other income (charges), net (4) (6 ) 4 (7 ) (13 ) Consolidated (loss) income from continuing operations before income taxes $ (3 ) $ 23 $ (16 ) $ 5 (1) Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives. (2) Consists of costs such as security, maintenance and utilities required to maintain land and buildings in certain locations not used in any Kodak operations and the costs, net of any rental income received, of underutilized portions of certain properties. (3) $2 million and $4 million of income from the transition services agreement with the Purchaser was recognized in the quarter and nine months ended September 30, 2019, respectively. The income was reported in Other operating (expense) income, net in the Consolidated Statement of Operations. Other operating (expense) income, net is typically excluded from the segment measure. However, the income from the transition services agreement was included in the segment measure. (4) As reported in the Consolidated Statement of Operations. |
Note 22 - Discontinued Operat_2
Note 22 - Discontinued Operations (Tables) - Flexographic Packaging Segment [Member] | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations for Flexographic Packaging Segment | The results of operations of FPD are presented below: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Revenues $ — $ 36 $ 44 $ 111 Cost of revenues — 22 28 66 Selling, general and administrative expenses — 5 10 13 Research and development costs — 2 2 6 Interest expense — 7 7 20 Gain on divestiture (4 ) — (214 ) — Income (loss) from discontinued operations before taxes 4 — 211 6 (Benefit) provision for income taxes (1 ) 1 5 6 Income (loss) from discontinued operations $ 5 $ (1 ) $ 206 $ — |
Discontinued Operations for Selected Cash Flow Statement Information | The following table presents cash flow information associated with FPD: Nine Months Ended September 30, (in millions) 2019 2018 Depreciation $ — $ 3 Amortization — 1 Capital expenditures — 6 |
Note 23 - Assets Held for Sale
Note 23 - Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Kodak China Graphic Communication Co Ltd [Member] | |
Discontinued Operations Carrying Amount of Major Assets and Liabilities | The following table presents the aggregate carrying amount of major assets and liabilities the offset printing plates facility in Xiamen, China: September 30, December 31, (in millions) 2019 2018 ASSETS Cash and cash equivalents $ — $ 13 Inventories, net — 5 Property, plant and equipment, net — 30 Intangible assets — 2 Other assets — 4 Assets of business held for sale $ — $ 54 LIABILITIES Accounts payable, trade $ — $ 19 Other current liabilities — 4 Liabilities of business held for sale $ — $ 23 |
Flexographic Packaging Segment [Member] | |
Discontinued Operations Carrying Amount of Major Assets and Liabilities | The following table presents the aggregate carrying amount of major assets and liabilities of FPD: September 30, December 31, (in millions) 2019 2018 ASSETS Cash and cash equivalents $ — $ 2 Trade receivables, net — 28 Inventories, net — 33 Property, plant and equipment, net — 28 Goodwill — 20 Intangible assets — 1 Other assets — 1 Assets of business held for sale $ — $ 113 LIABILITIES Accounts payable, trade $ — $ 9 Pension and other postretirement liabilities — 4 Other current liabilities — 7 Liabilities of business held for sale $ — $ 20 |
Note 24 - Financial Instrumen_2
Note 24 - Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Derivatives Not Designated as Hedging Instruments | The net effect of foreign currency forward contracts in the results of operations is shown in the following table: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2019 2018 2019 2018 Net (loss) gain from derivatives not designated as hedging instruments $ (1 ) $ (2 ) $ 2 $ (8 ) |
Derivative Liability (Asset) Key Inputs in Determination of Fair Value for Embedded Conversion Features and Termination Option | The following tables present the key inputs in the determination of fair value for the embedded conversion features and termination option derivatives: Convertible Notes: Valuation Date May 24, September 30, 2019 2019 (Inception) Total value of embedded derivative liability ($ millions) $ 18 $ 14 Kodak's closing stock price $ 2.64 $ 2.31 Expected stock price volatility 89.16 % 92.48 % Risk free rate 1.62 % 2.13 % Yield on the convertible notes 12.82 % 11.98 % Series A Preferred Stock: Valuation Date September 30, December 31, 2019 2018 Total value of embedded derivative asset ($ millions) $ 5 $ 4 Kodak's closing stock price $ 2.64 $ 2.55 Expected stock price volatility 89.16 % 95.55 % Risk free rate 1.62 % 2.46 % Yield on the preferred stock 19.20 % 23.77 % |
Note 1 - Basis of Presentatio_3
Note 1 - Basis of Presentation and Recent Accounting Pronouncements (Details Textual) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | ||||
Cash And Cash Equivalents | $ 225 | $ 233 | ||
Outstanding inter-company loans | 403 | 390 | ||
Short-Term Intercompany Loans | 105 | 92 | ||
Net increase (decrease) in cash and cash equivalents, restricted cash and cash in assets held for sale | 12 | $ (113) | (102) | |
Net cash used in operating activities | (4) | $ (79) | ||
ASU 2016-02 [Member] | ||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | ||||
Cumulative effect adjustment recorded to retained earnings | $ 5 | |||
Lucky HuaGuang Graphics Co Ltd [Member] | ||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | ||||
Proceeds from sale of intellectual property | 13 | |||
Flexographic Packaging Segment [Member] | ||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | ||||
Disposal group including discontinued operation consideration | 10 | |||
Prepayment for services and products | 15 | |||
Remaining prepayment balance | 8 | |||
United States [Member] | ||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | ||||
Cash And Cash Equivalents | 84 | 117 | ||
Outside US [Member] | ||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | ||||
Cash And Cash Equivalents | 141 | 116 | ||
China [Member] | ||||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | ||||
Cash And Cash Equivalents | $ 71 | $ 59 |
Note 1 - Summary of Impact of A
Note 1 - Summary of Impact of Adoption on Consolidated Statement of Financial Position (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||
Operating lease right-of-use assets | $ 49 | ||
Operating lease liabilities | 60 | ||
Deferred rent payable | $ 9 | ||
Deferred gain on previous sale leaseback transaction | 6 | ||
Net fixed assets from previous sale leaseback transaction | 1 | ||
Accumulated deficit | $ 17 | $ 200 | |
ASU 2016-02 [Member] | |||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||
Operating lease right-of-use assets | $ 52 | ||
Operating lease liabilities | 61 | ||
Accumulated deficit | 195 | ||
ASU 2016-02 [Member] | Adjustments Due to ASU 2016-02 [Member] | |||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||
Operating lease right-of-use assets | 52 | ||
Operating lease liabilities | 61 | ||
Deferred rent payable | (9) | ||
Deferred gain on previous sale leaseback transaction | (6) | ||
Net fixed assets from previous sale leaseback transaction | (1) | ||
Accumulated deficit | $ (5) |
Note 1 - Summary of Impact of_2
Note 1 - Summary of Impact of Adoption on Consolidated Statement of Financial Position (Parenthetical) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||
Other current liabilities | $ 203 | $ 209 | |
Other long-term liabilities | $ 7 | $ 17 | |
ASU 2016-02 [Member] | |||
Basis Of Presentation And Recent Accounting Pronouncements [Line Items] | |||
Other current liabilities | $ 1 | ||
Other long-term liabilities | $ 14 |
Note 2 - Schedule of Reconcilia
Note 2 - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 225 | $ 233 | ||
Restricted cash included in Other current assets | $ 18 | $ 8 | ||
Restricted Cash and Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherCurrentAssetsMember | us-gaap:OtherCurrentAssetsMember | ||
Long-term restricted cash | $ 36 | $ 11 | ||
Cash included in assets held for sale | 15 | |||
Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows | $ 279 | $ 267 | $ 256 | $ 369 |
Note 2 - Cash, Cash Equivalen_3
Note 2 - Cash, Cash Equivalents and Restricted Cash (Details Textual) - USD ($) | Apr. 16, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Amended Credit Agreement [Member] | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Long-term restricted cash | $ 14,000,000 | $ 3,000,000 | |
Flexographic Packaging Segment [Member] | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Prepayment for services and products | 15,000,000 | ||
Remaining prepayment balance | 8,000,000 | ||
MIR Bidco, SA [Member] | Flexographic Packaging Segment [Member] | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Remaining prepayment balance | 8,000,000 | ||
Cash collateral for guaranty | 10,000,000 | ||
United States [Member] | MIR Bidco, SA [Member] | Flexographic Packaging Segment [Member] | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Prepayment for services and products | $ 15,000,000 | ||
China [Member] | Lucky HuaGuang Graphics Co Ltd [Member] | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Escrow deposit | 14,000,000 | ||
China [Member] | MIR Bidco, SA [Member] | Flexographic Packaging Segment [Member] | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Guaranty supported by cash collateral | $ 15,000,000 | ||
BRAZIL | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Long-term restricted cash | $ 4,000,000 | $ 5,000,000 |
Note 3 - Inventories (Details)
Note 3 - Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 124 | $ 119 |
Work in process | 58 | 54 |
Raw materials | 60 | 58 |
Total | $ 242 | $ 231 |
Note 4 - Schedule of Other Long
Note 4 - Schedule of Other Long-Term Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Pension assets | $ 147 | $ 82 |
Estimated workers' compensation recoveries | 17 | 17 |
Long-term receivables, net of reserve of $4 and $4, respectively | 11 | 13 |
Other | 30 | 31 |
Total | $ 205 | $ 143 |
Note 4 - Schedule of Other Lo_2
Note 4 - Schedule of Other Long-Term Assets (Details) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Reserve for long-term receivables | $ 4 | $ 4 |
Note 5 - Other Current Liabil_3
Note 5 - Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Current Liabilities [Abstract] | ||
Employee related liabilities | $ 44 | $ 41 |
Deferred revenue | 32 | 34 |
Customer rebates | 21 | 26 |
Deferred consideration on disposed businesses | 14 | 24 |
Transition services agreement prepayment | 8 | |
Series A Preferred Stock dividends payable | 14 | 6 |
Workers compensation | 9 | 9 |
Restructuring liabilities | 7 | 8 |
Other | 54 | 61 |
Total | $ 203 | $ 209 |
Note 6 - Summary of Other Long-
Note 6 - Summary of Other Long-term Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Summary Of Other Long Term Liabilities [Abstract] | ||
Workers compensation | $ 84 | $ 83 |
Asset retirement obligations | 46 | 48 |
Deferred brand licensing revenue | 18 | 6 |
Convertible debt embedded derivative liability | 18 | |
Deferred taxes | 12 | 14 |
Environmental liabilities | 10 | 10 |
Other | 7 | 17 |
Total | $ 195 | $ 178 |
Note 6 - Summary of Other Lon_2
Note 6 - Summary of Other Long-term Liabilities (Details) (Parathetical) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other Long Term Liabilities [Line Items] | |||
Other long-term liabilities | $ 7 | $ 17 | |
ASU 2016-02 [Member] | |||
Other Long Term Liabilities [Line Items] | |||
Other long-term liabilities | $ 14 |
Note 7 - Debt and Finance Lea_3
Note 7 - Debt and Finance Leases and Related Maturities and Interest Rates (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Carrying Value | $ 108 | $ 401 |
Current Portion, Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 2 | 396 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 106 | 5 |
Term Note [Member] | Current Portion, Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2019 | |
Carrying Value | 394 | |
RED-Rochester, LLC [Member] | Current Portion, Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2033 | |
Weighted-Average Effective Interest Rate | 11.46% | |
Carrying Value | $ 1 | |
RED-Rochester, LLC [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2033 | |
Weighted-Average Effective Interest Rate | 11.46% | |
Carrying Value | $ 13 | |
Finance leases [Member] | Current Portion, Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 1 | 2 |
Finance leases [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 3 | 3 |
Convertible Debt [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2021 | |
Weighted-Average Effective Interest Rate | 11.72% | |
Carrying Value | $ 88 | |
Other Debt [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 2 | $ 2 |
Note 7 - Annual Maturities of L
Note 7 - Annual Maturities of Long-Term Debt and Finance Leases (Details) $ in Millions | Sep. 30, 2019USD ($) |
Annual Maturities Of Long Term Debt [Abstract] | |
Q4 2019 | $ 2 |
2020 | 1 |
2021 | 88 |
2022 | 2 |
2023 | 1 |
2024 and thereafter | 14 |
Total | 108 |
Q4 2019 | 2 |
2020 | 1 |
2021 | 113 |
2022 | 2 |
2023 | 1 |
2024 and thereafter | 14 |
Total | $ 133 |
Note 7 - Debt and Finance Lea_4
Note 7 - Debt and Finance Leases (Details Textual) | May 24, 2019USD ($) | May 20, 2019USD ($)$ / sharesshares | Apr. 12, 2019USD ($) | Apr. 09, 2019d | Nov. 15, 2016USD ($) | Jan. 31, 2019USD ($) | Mar. 31, 2018Subsidiary | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)d$ / sharesshares | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)$ / sharesshares |
Debt And Capital Leases [Line Items] | ||||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Proceeds from borrowings | $ 14,000,000 | |||||||||||
Fair value of derivative liability | $ 18,000,000 | $ 18,000,000 | ||||||||||
Stock outstanding percentage | 11.51% | |||||||||||
Number of subsidiaries designated as unrestricted subsidiaries | Subsidiary | 5 | |||||||||||
Total sales | $ 315,000,000 | $ 329,000,000 | $ 913,000,000 | $ 979,000,000 | ||||||||
Percentage of aggregate sales of unrestricted subsidiaries to consolidated sales of entity | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||
Aggregate assets of designated subsidiaries | $ 1,409,000,000 | $ 1,409,000,000 | $ 1,510,000,000 | |||||||||
Percentage of aggregate assets of unrestricted subsidiaries to consolidated assets of entity | 1.00% | 1.00% | 1.00% | |||||||||
Unrestricted Subsidiaries [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Total sales | $ 2,000,000 | $ 3,000,000 | $ 9,000,000 | $ 8,000,000 | ||||||||
Aggregate assets of designated subsidiaries | 20,000,000 | 20,000,000 | $ 21,000,000 | |||||||||
ABL Credit Agreement [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | 150,000,000 | 150,000,000 | ||||||||||
Long-term line of credit | 80,000,000 | 80,000,000 | 85,000,000 | |||||||||
Excess availability amount | $ 20,000,000 | $ 20,000,000 | 19,000,000 | |||||||||
Fixed charged coverage ratio required | 0.0100 | 0.0100 | ||||||||||
Excess availability below which the fixed charge coverage ratio is triggered | 12.50% | 12.50% | ||||||||||
Lender commitments, threshold trigger, excess availability amount | $ 18,750,000 | $ 18,750,000 | $ 18,750,000 | |||||||||
Excess availability percentage of lender commitments threshold triggering cash dominion control | 12.50% | 12.50% | 12.50% | |||||||||
ABL Credit Agreement [Member] | Restricted Cash [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Eligible cash | $ 14,000,000 | $ 14,000,000 | $ 3,000,000 | |||||||||
ABL Credit Agreement [Member] | Minimum [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Proforma fixed charge coverage ratio | 1.00% | |||||||||||
ABL Credit Agreement [Member] | Minimum [Member] | Pro Forma [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Excess availability amount | $ 30,000,000 | $ 30,000,000 | ||||||||||
ABL Credit Agreement [Member] | Maximum [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% | |||||||||||
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% | ||||||||||
Excess availability, calculation, percentage of net orderly liquidation value | 85.00% | 85.00% | ||||||||||
Excess availability, calculation, percentage of eligible inventory | 75.00% | 75.00% | ||||||||||
Excess availability, net orderly liquidation equipment amount | $ 8,000,000 | $ 8,000,000 | ||||||||||
Excess availability, calculation, percentage of eligible equipment | 75.00% | 75.00% | ||||||||||
Decrease in excess availability net orderly liquidation equipment amount | $ 1,000,000 | $ 1,000,000 | ||||||||||
Amended Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||||||||
Amended Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||||||||
Amended Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Debt instrument, basis spread on variable rate | 2.75% | |||||||||||
Amended Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Debt instrument, basis spread on variable rate | 1.75% | |||||||||||
Common Stock [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Secured convertible notes | $ 1,000 | $ 1,000 | ||||||||||
Conversion of notes, shares issued | 314.9785 | |||||||||||
Conversion of notes, price per share | $ / shares | $ 3.17482 | $ 3.17482 | ||||||||||
Conversion of notes, convertible percentage in excess of premium | 10.00% | 10.00% | ||||||||||
Debt instrument convertible trading days | d | 5 | 45 | ||||||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 150.00% | |||||||||||
Debt Instrument convertible consecutive trading days | d | 60 | |||||||||||
Conversion of notes, description | If the closing price of the Common Stock equals or exceeds 150% of the then-effective Conversion Price for 45 trading days within any period of 60 consecutive trading days, with the last trading day of such 60 day period ending on the trading day immediately preceding the business day on which the Company issues a press release announcing the mandatory conversion, the Company may elect to convert all outstanding Convertible Notes into shares of Common Stock at the Conversion Rate then in effect. | |||||||||||
Holder fundamental transaction election period | 30 days | |||||||||||
Common Stock [Member] | Beneficial Owner [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Shares outstanding | shares | 4,960,000 | |||||||||||
Convertible Notes [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Debt instrument, maturity date, description | The maturity date of the Convertible Notes is initially November 1, 2021. The Company has the option to extend the maturity of the Convertible Notes by up to three years in the event that the Series A Preferred Stock is refinanced with debt or equity or the mandatory redemption date of the Series A Preferred Stock is extended. If the Convertible Notes maturity date is extended, the new maturity date must be no later than 30 days before the maturity date of any new debt or the extended mandatory redemption date of the Series A Preferred Stock. | |||||||||||
Debt instrument, maturity date | Nov. 1, 2021 | |||||||||||
Net proceeds received to derivative liability | $ 14,000,000 | |||||||||||
Carrying value of stock at issuance | $ 84,000,000 | |||||||||||
Proceeds from borrowings | $ 100,000,000 | |||||||||||
Fair value of derivative liability | 14,000,000 | |||||||||||
Transaction costs | $ 2,000,000 | |||||||||||
Assumed stock outstanding percentage after conversion of debt | 42.24% | |||||||||||
Convertible Notes [Member] | Common Stock [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Conversion of notes, shares issuable upon conversion of debt | shares | 31,497,850 | |||||||||||
5.50% Series A Convertible Preferred Stock [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Preferred stock, dividend rate, percentage | 5.50% | |||||||||||
Series A Preferred Stock [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Net proceeds received to derivative liability | $ 43,000,000 | |||||||||||
Transaction costs | $ 2,000,000 | |||||||||||
Preferred stock outstanding | shares | 2,000,000 | 2,000,000 | 2,000,000 | |||||||||
Assumed stock outstanding percentage after conversion of debt | 26.68% | |||||||||||
Series A Preferred Stock [Member] | Common Stock [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Voting power percentage after conversion of debt | 30.15% | |||||||||||
Series A Preferred Stock [Member] | Convertible Notes [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Voting power percentage after conversion of debt | 55.71% | |||||||||||
Series A Preferred Stock [Member] | Convertible Notes [Member] | Beneficial Owner [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Assumed stock outstanding percentage after conversion of debt | 48.89% | |||||||||||
5.00% Secured Convertible Notes Due 2021 [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Secured convertible notes | $ 100,000,000 | |||||||||||
Secured convertible notes, interest rate | 5.00% | |||||||||||
Secured convertible notes, due | 2021 | |||||||||||
Term Credit Agreement [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Repayment of principal amount | $ 83,000,000 | $ 312,000,000 | ||||||||||
Prepayment of principal amount | $ 83,000,000 | |||||||||||
RED-Rochester, LLC [Member] | ||||||||||||
Debt And Capital Leases [Line Items] | ||||||||||||
Payment received under the agreement | $ 14,000,000 | |||||||||||
Minimum payments required under the agreement | 2,000,000 | |||||||||||
Debt amount under the agreement | $ 14,000,000 | |||||||||||
Debt Instrument Maturity Month and Year | 2033-08 |
Note 8 - Redeemable, Converti_2
Note 8 - Redeemable, Convertible Series A Preferred Stock (Details Textual) | Nov. 15, 2016USD ($)MemberDirector$ / sharesshares | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019Director$ / sharesshares |
Temporary Equity [Line Items] | ||||||
Expected number of members to nominate on conversion basis | Member | 2 | |||||
Series A Redeemable Preferred Stock [Member] | Purchase Agreement [Member] | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock, number of shares issued | shares | 2,000,000 | |||||
Percentage of cash dividend payable on preferred stock | 5.50% | |||||
Gross proceeds from issuance of shares | $ 200,000,000 | |||||
Preferred stock, liquidation preference per share | $ / shares | $ 100 | |||||
Purchase agreement date | Nov. 7, 2016 | |||||
Series A Preferred Stock [Member] | ||||||
Temporary Equity [Line Items] | ||||||
Net proceeds received to derivative liability | $ 43,000,000 | |||||
Carrying value of Series A preferred stock at issuance | 155,000,000 | |||||
Gross proceeds from preferred stock | 200,000,000 | |||||
Fair value of derivative liability | 43,000,000 | |||||
Transaction costs | $ 2,000,000 | |||||
Preferred stock, redemption date | Nov. 15, 2021 | |||||
Number of additional directors to elect if dividends in arrears | Director | 2 | |||||
Number of directors nominated by purchasers | Director | 2 | |||||
Number of shares redeemed | shares | 0 | |||||
Preferred stock, redemption price per share | $ / shares | $ 100 | |||||
Preferred stock conversion description | As of September 30, 2019, the Series A Preferred Stock has not been converted and none of the anti-dilution 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 | |||||
Dividend Declared [Member] | ||||||
Temporary Equity [Line Items] | ||||||
Dividends | $ 0 | $ 0 | $ 0 | $ 0 |
Note 9 - Summary of Lease Relat
Note 9 - Summary of Lease Related Assets and Liabilities on Balance Sheet (Details) $ in Millions | Sep. 30, 2019USD ($) | |
Assets | ||
Operating lease assets | $ 49 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | kodk:OperatingLeaseAssetsMember | |
Finance lease assets | $ 5 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentMember | |
Total lease assets | $ 54 | |
Current | ||
Operating | $ 26 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | kodk:CurrentPortionOfOperatingLeasesMember | |
Finance | $ 1 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | kodk:ShortTermBorrowingsAndCurrentPortionOfLongTermDebtMember | |
Noncurrent | ||
Operating | $ 34 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | kodk:OperatingLeasesNetOfCurrentPortionMember | |
Finance | $ 3 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | kodk:LongTermDebtNetOfCurrentPortionMember | |
Total lease liabilities | $ 64 | |
Weighted-average remaining lease term | ||
Operating | 6 years | |
Finance | 319 years | [1] |
Weighted-average discount rate | ||
Operating | 16.50% | [2] |
Finance | 6.75% | |
[1] | One finance lease has a remaining term of 968 years. The weighted-average lease term excluding the lease with a remaining term of 968 years is 4 years. | |
[2] | Upon adoption of ASC 842, Kodak’s incremental borrowing rate used for existing operating leases was established at January 1, 2019. |
Note 9 - Summary of Lease Rel_2
Note 9 - Summary of Lease Related Assets and Liabilities on Balance Sheet (Details) (Parenthetical) | 9 Months Ended |
Sep. 30, 2019 | |
Assets And Liabilities Lessee [Abstract] | |
Finance lease remaining term | 968 years |
Weighted average term excluding lease with remaining term | 4 years |
Note 9 - Schedule of Informatio
Note 9 - Schedule of Information Related to Lease Costs for Finance and Operating Leases (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Finance lease cost | ||
Amortization of leased assets | $ 1 | $ 3 |
Operating lease cost | 6 | 19 |
Variable lease cost | 2 | 5 |
Total lease cost | $ 9 | $ 27 |
Note 9 - Schedule of Supplement
Note 9 - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows for operating leases | $ 6 | $ 19 |
Financing cash flow for finance leases | 1 | 2 |
Cash paid for amounts included in measurement of lease liabilities | $ 7 | $ 21 |
Note 9 - Summary of Undiscounte
Note 9 - Summary of Undiscounted Cash Flows for Next Five Years and Thereafter to Finance Lease Liabilities and Operating Lease Liabilities Recorded on Balance Sheet (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, Q4 2019 | $ 6 |
Operating Leases, 2020 | 27 |
Operating Leases, 2021 | 11 |
Operating Leases, 2022 | 8 |
Operating Leases, 2023 | 7 |
Operating Leases, Thereafter | 34 |
Operating Leases, Total minimum lease payments | 93 |
Operating Leases, Less: amount of lease payments representing interest | 33 |
Operating Leases, Present value of future minimum lease payments | 60 |
Operating Leases, Less: current obligations under leases | (26) |
Operating Leases, Long-term lease obligations | 34 |
Finance Leases, 2020 | 1 |
Finance Leases, 2021 | 1 |
Finance Leases, 2022 | 1 |
Finance Leases, Thereafter | 110 |
Finance Leases, Total minimum lease payments | 113 |
Finance Leases, Less: amount of lease payments representing interest | (110) |
Finance Leases, Present value of future minimum lease payments | 3 |
Finance Leases, Less: current obligations under leases | (1) |
Finance Leases, Long-term lease obligations | $ 3 |
Note 9 - Summary of Future Mini
Note 9 - Summary of Future Minimum Contractual Lease Payments For Operating Lease (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 20 |
2020 | 21 |
2021 | 13 |
2022 | 3 |
2023 | 3 |
Thereafter | 7 |
Future minimum operating lease payments | $ 67 |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Direct financing leases | $ 0 | |
Net investment in sales-type leases | 4,000,000 | $ 3,000,000 |
Income recognized for sales-type lease arrangements | $ 0 |
Note 9 - Summary of Undiscoun_2
Note 9 - Summary of Undiscounted Cash Flows to Be Received for Net Investment in Sales-type Leases (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Capital Leases Future Minimum Payments Receivable [Abstract] | ||
Q4 2019 | $ 1 | |
2020 | 2 | |
2021 | 1 | |
2022 and thereafter | 1 | |
Total minimum lease payments | 5 | |
Less: unearned interest | (1) | |
Net investment in sales-type leases | $ 4 | $ 3 |
Note 9 - Summary of Undiscoun_3
Note 9 - Summary of Undiscounted Cash Flows to Be Received for Operating Leases and Subleases (Details) $ in Millions | Sep. 30, 2019USD ($) |
Lessor Operating Lease Payments Fiscal Year Maturity [Abstract] | |
Q4 2019 | $ 4 |
2020 | 9 |
2021 | 7 |
2022 | 6 |
2023 | 4 |
Thereafter | 17 |
Total minimum lease payments | $ 47 |
Note 9 - Equipment Subject to O
Note 9 - Equipment Subject to Operating Leases and Related Accumulated Depreciation (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Equipment Subject To Operating Leases [Abstract] | ||
Equipment subject to operating leases | $ 33 | $ 34 |
Accumulated depreciation | (22) | (19) |
Equipment subject to operating leases, net | $ 11 | $ 15 |
Note 9 - Summary of Income Reco
Note 9 - Summary of Income Recognized on Operating Lease Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease income - operating leases: | ||
Lease income | $ 3 | $ 7 |
Sublease income | 1 | 5 |
Variable lease income | 1 | 3 |
Total lease income | $ 5 | $ 15 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
BRAZIL | ||
Commitments And Contingencies [Line Items] | ||
Restricted Cash | $ 4 | $ 5 |
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 | 8 | |
Threat of Expropriation of Assets [Member] | BRAZIL | ||
Commitments And Contingencies [Line Items] | ||
Assets, Noncurrent | 55 | |
ABL Credit Agreement [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 80 | |
Bank Guarantees and Letters of Credit [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 13 | |
Surety Bond [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 40 | |
Restricted Cash and Deposits [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 54 |
Note 11 - Guarantees (Details T
Note 11 - Guarantees (Details Textual) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Warranty Arrangements Period [Member] | |
Guarantee Obligations [Line Items] | |
Extended Warranty Period | 1 year |
Amended Eastman Business Park Settlement Agreement [Member] | |
Guarantee Obligations [Line Items] | |
Accrual for Environmental Loss Contingencies | $ 0 |
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 |
Note 11 - Guarantees (Details)
Note 11 - Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Guarantee Obligations [Line Items] | ||||
Deferred revenue on extended warranties as of December 31, 2018 | $ 48 | |||
Recognition of extended warranty and maintenance arrangement revenue in 2019 | $ (4) | $ (1) | (34) | $ (29) |
Deferred revenue on extended warranties as of September 30, 2019 | 61 | 61 | ||
Extended Warranty Arrangements [Member] | ||||
Guarantee Obligations [Line Items] | ||||
Deferred revenue on extended warranties as of December 31, 2018 | 22 | |||
New extended warranty and maintenance arrangements in 2019 | 73 | |||
Recognition of extended warranty and maintenance arrangement revenue in 2019 | (75) | |||
Deferred revenue on extended warranties as of September 30, 2019 | $ 20 | $ 20 |
Note 12 - Disaggregated Revenue
Note 12 - Disaggregated Revenue - Major Product (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | $ 315 | $ 329 | $ 913 | $ 979 | |
Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 213 | 217 | 612 | 660 | |
Enterprise Inkjet Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 29 | 39 | 90 | 103 | |
Kodak Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 14 | 15 | 42 | 47 | |
Brand, Film and Imaging [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 56 | 54 | 159 | 159 | |
Advanced Materials and 3D Printing Technology [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 1 | 1 | 3 | 3 | |
Eastman Business Park [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 2 | 3 | 7 | 7 | |
Plates, Inks And Other Consumables [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 160 | 178 | 491 | 546 | |
Plates, Inks And Other Consumables [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 149 | 166 | 457 | 509 | |
Plates, Inks And Other Consumables [Member] | Enterprise Inkjet Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 8 | 8 | 25 | 24 | |
Plates, Inks And Other Consumables [Member] | Brand, Film and Imaging [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 3 | 4 | 9 | 13 | |
Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 63 | 66 | 188 | 197 |
Ongoing service arrangements [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 33 | 33 | 97 | 100 |
Ongoing service arrangements [Member] | Enterprise Inkjet Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 18 | 20 | 55 | 59 |
Ongoing service arrangements [Member] | Kodak Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 11 | 12 | 33 | 36 |
Ongoing service arrangements [Member] | Brand, Film and Imaging [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 1 | 1 | 3 | 2 |
Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 223 | 244 | 679 | 743 | |
Total Annuities [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 182 | 199 | 554 | 609 | |
Total Annuities [Member] | Enterprise Inkjet Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 26 | 28 | 80 | 83 | |
Total Annuities [Member] | Kodak Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 11 | 12 | 33 | 36 | |
Total Annuities [Member] | Brand, Film and Imaging [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 4 | 5 | 12 | 15 | |
Equipment And Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 24 | 32 | 64 | 82 | |
Equipment And Software [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 18 | 18 | 45 | 51 | |
Equipment And Software [Member] | Enterprise Inkjet Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 3 | 11 | 10 | 20 | |
Equipment And Software [Member] | Kodak Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 3 | 3 | 9 | 11 | |
Film And Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 45 | 41 | 125 | 122 | |
Film And Chemicals [Member] | Brand, Film and Imaging [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 45 | 41 | 125 | 122 | |
Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 23 | 12 | 45 | 32 |
Other [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 13 | 13 | ||
Other [Member] | Brand, Film and Imaging [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 7 | 8 | 22 | 22 |
Other [Member] | Advanced Materials and 3D Printing Technology [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 1 | 1 | 3 | 3 |
Other [Member] | Eastman Business Park [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | $ 2 | $ 3 | $ 7 | $ 7 |
[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, print and managed media services, tenant rent and related property management services and licensing. |
Note 12 - Disaggregated Reven_2
Note 12 - Disaggregated Revenue - Product Portfolio Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | $ 315 | $ 329 | $ 913 | $ 979 | |
Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 213 | 217 | 612 | 660 | |
Enterprise Inkjet Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 29 | 39 | 90 | 103 | |
Kodak Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 14 | 15 | 42 | 47 | |
Brand, Film and Imaging [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 56 | 54 | 159 | 159 | |
Advanced Materials and 3D Printing Technology [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 1 | 1 | 3 | 3 | |
Eastman Business Park [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 2 | 3 | 7 | 7 | |
Growth Engines [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 84 | 90 | 252 | 248 |
Growth Engines [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 44 | 39 | 128 | 113 |
Growth Engines [Member] | Enterprise Inkjet Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 18 | 27 | 57 | 63 |
Growth Engines [Member] | Kodak Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 14 | 15 | 42 | 47 |
Growth Engines [Member] | Brand, Film and Imaging [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 7 | 8 | 22 | 22 |
Growth Engines [Member] | Advanced Materials and 3D Printing Technology [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 1 | 1 | 3 | 3 |
Strategic Other Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 210 | 215 | 596 | 651 |
Strategic Other Businesses [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 162 | 170 | 461 | 520 |
Strategic Other Businesses [Member] | Brand, Film and Imaging [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 46 | 42 | 128 | 124 |
Strategic Other Businesses [Member] | Eastman Business Park [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 2 | 3 | 7 | 7 |
Planned Declining Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 21 | 24 | 65 | 80 |
Planned Declining Businesses [Member] | Print Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 7 | 8 | 23 | 27 |
Planned Declining Businesses [Member] | Enterprise Inkjet Systems [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 11 | 12 | 33 | 40 |
Planned Declining Businesses [Member] | Brand, Film and Imaging [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | $ 3 | $ 4 | $ 9 | $ 13 |
[1] | Growth engines consist of Sonora, PROSPER, Kodak Software, brand licensing and AM3D, excluding intellectual property (IP) licensing. | ||||
[2] | Strategic Other Businesses include plates, Computer to Plate (“CTP”) equipment and related service, and Nexpress and related toner business in the Print Systems segment, Motion Picture and Industrial Film and Chemicals in the Brand, Film and Imaging segment, Eastman Business Park and IP 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 Brand, Film and Imaging segment, Versamark in the Enterprise Inkjet Systems segment and Digimaster in the Print Systems segment. |
Note 12 - Disaggregated Reven_3
Note 12 - Disaggregated Revenue - Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Total sales | $ 315 | $ 329 | $ 913 | $ 979 |
Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 213 | 217 | 612 | 660 |
Enterprise Inkjet Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 29 | 39 | 90 | 103 |
Kodak Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 14 | 15 | 42 | 47 |
Brand, Film and Imaging [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 56 | 54 | 159 | 159 |
Advanced Materials and 3D Printing Technology [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 1 | 1 | 3 | 3 |
Eastman Business Park [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 2 | 3 | 7 | 7 |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 122 | 113 | 343 | 337 |
United States [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 65 | 57 | 175 | 174 |
United States [Member] | Enterprise Inkjet Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 12 | 13 | 38 | 35 |
United States [Member] | Kodak Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 6 | 6 | 19 | 20 |
United States [Member] | Brand, Film and Imaging [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 36 | 33 | 101 | 98 |
United States [Member] | Advanced Materials and 3D Printing Technology [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 1 | 1 | 3 | 3 |
United States [Member] | Eastman Business Park [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 2 | 3 | 7 | 7 |
Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 6 | 5 | 16 | 15 |
Canada [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 4 | 3 | 11 | 9 |
Canada [Member] | Enterprise Inkjet Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 1 | 1 | 1 | |
Canada [Member] | Kodak Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 1 | 1 | 2 | 3 |
Canada [Member] | Brand, Film and Imaging [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 1 | 2 | 2 | |
North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 128 | 118 | 359 | 352 |
North America [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 69 | 60 | 186 | 183 |
North America [Member] | Enterprise Inkjet Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 12 | 14 | 39 | 36 |
North America [Member] | Kodak Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 7 | 7 | 21 | 23 |
North America [Member] | Brand, Film and Imaging [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 37 | 33 | 103 | 100 |
North America [Member] | Advanced Materials and 3D Printing Technology [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 1 | 1 | 3 | 3 |
North America [Member] | Eastman Business Park [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 2 | 3 | 7 | 7 |
Europe, Middle East and Africa [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 98 | 116 | 298 | 348 |
Europe, Middle East and Africa [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 79 | 87 | 238 | 273 |
Europe, Middle East and Africa [Member] | Enterprise Inkjet Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 9 | 18 | 30 | 43 |
Europe, Middle East and Africa [Member] | Kodak Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 4 | 6 | 14 | 17 |
Europe, Middle East and Africa [Member] | Brand, Film and Imaging [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 6 | 5 | 16 | 15 |
Asia Pacific [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 76 | 79 | 217 | 231 |
Asia Pacific [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 53 | 56 | 153 | 162 |
Asia Pacific [Member] | Enterprise Inkjet Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 7 | 7 | 19 | 22 |
Asia Pacific [Member] | Kodak Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 3 | 1 | 6 | 5 |
Asia Pacific [Member] | Brand, Film and Imaging [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 13 | 15 | 39 | 42 |
Latin America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 13 | 16 | 39 | 48 |
Latin America [Member] | Print Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 12 | 14 | 35 | 42 |
Latin America [Member] | Enterprise Inkjet Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | $ 1 | 2 | 2 | |
Latin America [Member] | Kodak Software [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | 1 | 1 | 2 | |
Latin America [Member] | Brand, Film and Imaging [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total sales | $ 1 | $ 1 | $ 2 |
Note 12 - Revenue (Details Text
Note 12 - Revenue (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||
Contract liabilities | $ 61 | $ 61 | $ 48 | ||
Contract liabilities, current | 32 | 32 | 34 | ||
Revenue recognized, contract liabilities | 4 | $ 1 | 34 | $ 29 | |
Contract with customer, cash payments received for liabilities that have been deferred | 26 | $ 23 | 43 | $ 31 | |
Other Current Assets [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract assets | 2 | 2 | 3 | ||
Other Current Liabilities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract liabilities, current | 42 | 42 | 42 | ||
Other Long-Term Liabilities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract liabilities, non-current | $ 19 | $ 19 | $ 6 |
Note 12 - Revenue (Details Te_2
Note 12 - Revenue (Details Textual 1) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01 | |
Disaggregation Of Revenue [Line Items] | |
Unrecognized revenue from unsatisfied performance obligations | $ 70 |
Unsatisfied performance obligations, expected to be recognized | 10.00% |
Unsatisfied performance obligations, expected timing of satisfaction | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Unsatisfied performance obligations, expected to be recognized | 30.00% |
Unsatisfied performance obligations, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Unsatisfied performance obligations, expected to be recognized | 20.00% |
Unsatisfied performance obligations, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Unsatisfied performance obligations, expected to be recognized | 10.00% |
Unsatisfied performance obligations, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Unsatisfied performance obligations, expected to be recognized | 10.00% |
Unsatisfied performance obligations, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Unsatisfied performance obligations, expected to be recognized | 20.00% |
Unsatisfied performance obligations, expected timing of satisfaction |
Note 13 - Summary of Other Oper
Note 13 - Summary of Other Operating Expense (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Expense (income): | |||||
Transition services agreement income | $ (2) | $ (4) | |||
Loss (gain) on sale of assets | [1] | 12 | $ (5) | 13 | $ (7) |
Legal reserve changes | (4) | (4) | |||
Other | (1) | 1 | (1) | ||
Total | $ 10 | $ (10) | $ 10 | $ (12) | |
[1] | In the third quarter of 2019, Kodak sold its shares of the Kodak (China) Graphic Communication Co., Ltd and recognized a loss of $12 million. Refer to Note 23: “Assets Held for Sale”. |
Note 13 - Summary of Other Op_2
Note 13 - Summary of Other Operating Expense (Income), Net (Parentheticals) (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Other Operating Expense Income Net [Abstract] | |
Loss on sale of shares | $ 12 |
Note 14 - Other Charges (Inco_3
Note 14 - Other Charges (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Other Income And Expenses [Abstract] | |||||
Change in fair value of embedded conversion features derivative liability | [1] | $ 4 | $ (5) | $ 3 | $ 2 |
Loss on foreign exchange transactions | 3 | 2 | 4 | 11 | |
Other | (1) | (1) | |||
Total | $ 6 | $ (4) | $ 7 | $ 13 | |
[1] | Refer to Note 23, “Financial Instruments”. |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Income Taxes [Line Items] | ||||
Operating loss carryforwards limitations minimum ownership change percentage | 50.00% | 50.00% | ||
Operating loss carryforwards limitations ownership change period | 3 years | |||
Tax asset protection plan limiting transfer of common stock affecting ownership percentage | 10.00% | |||
Protective amendment limiting transfer of common stock affecting ownership percentage | 10.00% | |||
U.S. corporate income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Minimum [Member] | ||||
Schedule of Income Taxes [Line Items] | ||||
Tax asset protection plan limiting transfer of common stock additional shares acquired | 1,000,000 | 1,000,000 | ||
Protective amendment limiting transfer of common stock additional shares acquired | 1,000,000 | 1,000,000 |
Note 15 - Income Taxes - Schedu
Note 15 - Income Taxes - Schedule of Income Tax Provision and Effective Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
(Loss) earnings from continuing operations before income taxes | $ (3) | $ 23 | $ (16) | $ 5 |
Effective tax rate | (233.30%) | 13.00% | (75.00%) | 140.00% |
Provision for income taxes | $ 7 | $ 3 | $ 12 | $ 7 |
(Benefit) provision for income taxes at U.S. statutory tax rate | (1) | 5 | (3) | 1 |
Difference between tax at effective vs. statutory rate | $ 8 | $ (2) | $ 15 | $ 6 |
Note 16 - Restructuring Reserve
Note 16 - Restructuring Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | ||
Restructuring Cost And Reserve [Line Items] | |||||
Beginning Balance | $ 7 | $ 7 | $ 8 | $ 8 | |
Charges | 3 | 2 | |||
Utilization/cash payments | (3) | (2) | (2) | ||
Other adjustments and reclasses | [1] | (1) | (1) | ||
Ending Balance | 7 | 7 | 7 | 7 | |
Continuing Operations [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Charges | 2 | ||||
Discontinued Operations [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Charges | 1 | 1 | |||
Severance Reserve [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Beginning Balance | [2] | 5 | 5 | 6 | 6 |
Charges | [2] | 3 | 2 | ||
Utilization/cash payments | [2] | (2) | (2) | (2) | |
Other adjustments and reclasses | [1],[2] | (1) | (1) | ||
Ending Balance | [2] | 6 | 5 | 5 | 6 |
Severance Reserve [Member] | Continuing Operations [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Charges | [2] | 2 | |||
Severance Reserve [Member] | Discontinued Operations [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Charges | [2] | 1 | |||
Exit Costs Reserve [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Beginning Balance | [2] | 2 | 2 | 2 | 2 |
Utilization/cash payments | [2] | (1) | |||
Ending Balance | [2] | $ 1 | $ 2 | $ 2 | $ 1 |
[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 16 - Restructuring Liabi_3
Note 16 - Restructuring Liabilities (Details Textual) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)Position | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($)Position | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Costs | $ | $ 3 | $ 2 | ||
Restructuring and Related Cost, Number of Positions Eliminated | 25 | 100 | ||
United States and Canada [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 10 | 50 | ||
World Excluding US and Canada [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 15 | 50 | ||
Manufacturing Service Positions [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 10 | 30 | ||
Administrative and Sales Positions [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 15 | 70 | ||
Restructuring costs and other [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Costs | $ | $ 3 | $ 7 | ||
Discontinued Operations [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring Costs | $ | $ 1 | $ 1 |
Note 17 - Component of the Net
Note 17 - Component of the Net Periodic benefit Cost - (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pension Income Expense From Continuing And Discontinued Operations For Major Defined Benefit Plans [Line Items] | ||||
Total net pension income | $ (72) | $ (81) | ||
Defined Benefit Plans [Member] | U.S. [Member] | ||||
Pension Income Expense From Continuing And Discontinued Operations For Major Defined Benefit Plans [Line Items] | ||||
Service cost | $ 3 | $ 4 | 8 | 10 |
Interest cost | 30 | 27 | 91 | 82 |
Expected return on plan assets | (53) | (55) | (160) | (167) |
Prior service credit | (2) | (2) | (5) | (6) |
Actuarial loss | 1 | 4 | ||
Net pension income before special termination benefits | (22) | (25) | (66) | (77) |
Special termination benefits | 3 | 2 | 4 | |
Curtailment gain | (2) | |||
Net pension income from major plans | (22) | (22) | (66) | (73) |
Total net pension income | (22) | (22) | (66) | (73) |
Defined Benefit Plans [Member] | Non-US [Member] | ||||
Pension Income Expense From Continuing And Discontinued Operations For Major Defined Benefit Plans [Line Items] | ||||
Service cost | 1 | 2 | 3 | |
Interest cost | 3 | 3 | 9 | 9 |
Expected return on plan assets | (6) | (7) | (17) | (20) |
Actuarial loss | 2 | 1 | 4 | 3 |
Net pension income before special termination benefits | (1) | (2) | (2) | (5) |
Net pension income from major plans | (1) | (2) | (2) | (5) |
Other plans | (3) | (4) | (3) | |
Total net pension income | $ (1) | $ (5) | $ (6) | $ (8) |
Note 17 - Retirement Plans an_3
Note 17 - Retirement Plans and Other Postretirement Benefits - (Details Textual) - Flexographic Packaging Segment [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Curtailment gain | $ 2 |
Settlement gains | $ 5 |
Note 18 - Summary of Reconcilia
Note 18 - Summary of Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share Basic [Line Items] | ||||||||
(Loss) income from continuing operations | $ (10) | $ 20 | $ (28) | $ (2) | ||||
Less: Series A convertible preferred stock cash dividend | (2) | $ (3) | $ (3) | (2) | $ (3) | $ (3) | (8) | (8) |
Less: Series A convertible preferred stock deemed dividend | (3) | $ (2) | $ (2) | (3) | $ (2) | $ (2) | (7) | (7) |
(Loss) income from continuing operations available to common shareholders - basic and diluted | (15) | 15 | (43) | (17) | ||||
Net (loss) income | (5) | 19 | 178 | (2) | ||||
Net (loss) income available to common shareholders - basic and diluted | $ (10) | $ 14 | $ 163 | $ (17) | ||||
Weighted average shares - basic | 43 | 42.7 | 43 | 42.7 | ||||
Effect of dilutive securities | ||||||||
Weighted average shares - diluted EPS calculation | 43 | 43 | 43 | 42.7 | ||||
Restricted Stock Units [Member] | ||||||||
Effect of dilutive securities | ||||||||
Unvested restricted stock units | 0.3 |
Note 18 - Earnings Per Share (D
Note 18 - Earnings Per Share (Details Textual) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
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 |
Convertible Notes [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount, value | $ 100 | $ 100 | ||
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 | 0.6 | 0.6 | 0.2 | |
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 | 8.9 | 5.2 | 9 | 5 |
Note 19 - Shareholders' Equity
Note 19 - Shareholders' Equity (Details Textual) - $ / shares | Sep. 30, 2019 | May 20, 2019 | Dec. 31, 2018 |
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 | $ 0.01 |
Preferred Stock, Shares Authorized | 60,000,000 | ||
Preferred Stock, No Par Value | $ 0 | $ 0 | |
Common Stock, Shares, Outstanding | 43,100,000 | 42,800,000 | |
Treasury Stock, Shares | 700,000 | 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 20 - Changes in Other Comp
Note 20 - Changes in Other Comprehensive Income (Loss), by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |||||
Currency translation adjustments | $ (2) | $ (12) | $ 2 | $ (19) | |
Newly established net actuarial gain | 7 | 5 | 8 | ||
Tax Provision | (2) | (2) | (2) | ||
Newly established net actuarial gain, net of tax | 5 | 3 | 6 | ||
Amortization of prior service credit | [1] | (2) | (2) | (6) | (6) |
Amortization of actuarial losses | [1] | 1 | 1 | 3 | 3 |
Recognition of (gains) losses due to curtailments and settlements | (2) | (2) | (1) | ||
Total reclassification adjustments | (1) | (3) | (5) | (4) | |
Tax provision | 1 | 1 | |||
Reclassification adjustments, net of tax | (1) | (2) | (5) | (3) | |
Pension and other postretirement benefit plan changes, net of tax | (1) | 3 | $ (2) | 3 | |
Other comprehensive income (loss), net of tax | $ (3) | $ (9) | $ (16) | ||
[1] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 16, "Retirement Plans and Other Postretirement Benefits". |
Note 21 - Segment Information_2
Note 21 - Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2019aSegment | |
Segment Reporting Information [Line Items] | |
Number of Reportable Segments | Segment | 6 |
Eastman Business Park [Member] | Minimum [Member] | |
Segment Reporting Information [Line Items] | |
Area of Real Estate Property | a | 1,200 |
Note 21 - Revenues and (Loss) G
Note 21 - Revenues and (Loss) Gain from Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 315 | $ 329 | $ 913 | $ 979 | |
Depreciation and amortization | (43) | (58) | |||
Restructuring costs and other | (3) | (9) | (7) | (13) | |
Interest expense | (4) | (2) | (12) | (6) | |
Pension income excluding service cost component | 26 | 35 | 79 | 99 | |
Other income (charges), net | (6) | 4 | (7) | (13) | |
(Loss) earnings from continuing operations before income taxes | (3) | 23 | (16) | 5 | |
Continuing Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 315 | 329 | 913 | 979 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | 14 | 9 | 7 | (2) | |
Depreciation and amortization | (14) | (17) | (43) | (54) | |
Restructuring costs and other | (3) | (9) | (7) | (13) | |
Stock based compensation | (1) | (2) | (6) | (5) | |
Consulting and other costs | [1] | (2) | (4) | (7) | (11) |
Idle costs | [2] | (1) | (1) | (4) | (2) |
Former CEO separation agreement compensation | (2) | ||||
Other operating (expense) income, net, excluding income from transition services agreement | [3] | (12) | 10 | (14) | 12 |
Interest expense | [4] | (4) | (2) | (12) | (6) |
Pension income excluding service cost component | [4] | 26 | 35 | 79 | 99 |
Other income (charges), net | [4] | (6) | 4 | (7) | (13) |
(Loss) earnings from continuing operations before income taxes | (3) | 23 | (16) | 5 | |
Continuing Operations [Member] | Print Systems [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 213 | 217 | 612 | 660 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | 20 | 11 | 32 | 20 | |
Continuing Operations [Member] | Kodak Software [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 14 | 15 | 42 | 47 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | 2 | 1 | 1 | 3 | |
Continuing Operations [Member] | Enterprise Inkjet Systems [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 29 | 39 | 90 | 103 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | (3) | 2 | (6) | 3 | |
Continuing Operations [Member] | Brand, Film and Imaging [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 56 | 54 | 159 | 159 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | (1) | (3) | (10) | (15) | |
Continuing Operations [Member] | Advanced Materials and 3D Printing Technology [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1 | 1 | 3 | 3 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | (4) | (2) | (9) | (10) | |
Continuing Operations [Member] | Eastman Business Park [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 2 | 3 | 7 | 7 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | $ 0 | $ (1) | $ (3) | ||
[1] | Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives. | ||||
[2] | Consists of costs such as security, maintenance and utilities required to maintain land and buildings in certain locations not used in any Kodak operations and the costs, net of any rental income received, of underutilized portions of certain properties. | ||||
[3] | $2 million and $4 million of income from the transition services agreement with the Purchaser was recognized in the quarter and nine months ended September 30, 2019, respectively. The income was reported in Other operating (expense) income, net in the Consolidated Statement of Operations. Other operating (expense) income, net is typically excluded from the segment measure. However, the income from the transition services agreement was included in the segment measure. | ||||
[4] | As reported in the Consolidated Statement of Operations. |
Note 21 - Revenues and (Loss)_2
Note 21 - Revenues and (Loss) Gain from Continuing Operations (Details) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Continuing Operations [Member] | MIR Bidco, SA [Member] | Other Operating (Expense) Income, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Income from transition services agreement with purchaser | $ 2 | $ 4 |
Note 22 - Discontinued Operat_3
Note 22 - Discontinued Operations (Details Textual) - Flexographic Packaging Segment [Member] - USD ($) | Jul. 01, 2019 | Apr. 16, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Apr. 08, 2019 | Nov. 01, 2018 |
Discontinued Operations [Line Items] | ||||||
Disposal group including discontinued operation consideration | $ 10,000,000 | $ 10,000,000 | ||||
Gain on divestiture | 4,000,000 | 214,000,000 | ||||
Prepayment for services and products | 15,000,000 | |||||
Remaining prepayment balance | 8,000,000 | 8,000,000 | ||||
Selling, General and Administrative Expenses [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Transaction costs | 6,000,000 | |||||
Term Credit Agreement [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Repayment of loans using proceeds from sale of business | $ 312,000,000 | |||||
Stock and Asset Purchase Agreement (SAPA) [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Disposal group including discontinued operation consideration | $ 10,000,000 | |||||
Discontinued operations, divested business right to use period | 10 years | |||||
MIR Bidco, SA [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Remaining prepayment balance | 8,000,000 | $ 8,000,000 | ||||
MIR Bidco, SA [Member] | Stock and Asset Purchase Agreement (SAPA) [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Disposal group including discontinued operation consideration | $ 320,000,000 | |||||
Discontinued operation consideration payment for deferred closing | $ 5,900,000 | |||||
Disposal group including discontinued operation promissory notes | 1,400,000 | |||||
Disposal group including discontinued operation economic benefit from operation in china | $ 200,000 | |||||
Gain on divestiture | 212,000,000 | |||||
Maximum additional cash consideration upon achievement of EBITDA targets under earn-out agreement | $ 35,000,000 | |||||
Discontinued operation earn out EBITDA targets contingent consideration for 2018 | 10,000,000 | |||||
Discontinued operation earn out EBITDA targets contingent consideration for 2019 | 10,000,000 | |||||
Discontinued operation earn out EBITDA targets contingent consideration for 2020 | $ 15,000,000 | |||||
Prepayment for services and products | $ 15,000,000 | |||||
Remaining prepayment balance | $ 8,000,000 | $ 8,000,000 |
Note 22 - Discontinued Operat_4
Note 22 - Discontinued Operations for Flexographic Packaging Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Discontinued Operations [Line Items] | ||||
Revenues | $ 315 | $ 329 | $ 913 | $ 979 |
Cost of revenues | 262 | 279 | 778 | 846 |
Selling, general and administrative expenses | 48 | 53 | 161 | 170 |
Research and development costs | 11 | 12 | 33 | 37 |
Interest expense | 4 | 2 | 12 | 6 |
(Benefit) provision for income taxes | 7 | 3 | 12 | 7 |
Income (loss) from discontinued operations | 5 | (1) | 206 | |
Flexographic Packaging Segment [Member] | ||||
Discontinued Operations [Line Items] | ||||
Revenues | 36 | 44 | 111 | |
Cost of revenues | 22 | 28 | 66 | |
Selling, general and administrative expenses | 5 | 10 | 13 | |
Research and development costs | 2 | 2 | 6 | |
Interest expense | 7 | 7 | 20 | |
Gain on divestiture | (4) | (214) | ||
Income (loss) from discontinued operations before taxes | 4 | 211 | 6 | |
(Benefit) provision for income taxes | (1) | 1 | 5 | $ 6 |
Income (loss) from discontinued operations | $ 5 | $ (1) | $ 206 |
Note 22 - Discontinued Operat_5
Note 22 - Discontinued Operations for Selected Cash Flow Statement Information (Details) - Flexographic Packaging Segment [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Depreciation | $ 3 |
Amortization | 1 |
Capital expenditures | $ 6 |
Note 23 - Assets Held for Sal_2
Note 23 - Assets Held for Sale Carrying Amount of Major Assets and Liabilities (Details) $ in Millions | Dec. 31, 2018USD ($) |
Major Classes Of Assets And Liabilities Related To Disposition [Line Items] | |
Cash and cash equivalents | $ 15 |
Kodak China Graphic Communication Co Ltd [Member] | |
Major Classes Of Assets And Liabilities Related To Disposition [Line Items] | |
Cash and cash equivalents | 13 |
Inventories, net | 5 |
Property, plant and equipment, net | 30 |
Intangible assets | 2 |
Other assets | 4 |
Assets of business held for sale | 54 |
Accounts payable, trade | 19 |
Other current liabilities | 4 |
Liabilities of business held for sale | 23 |
Flexographic Packaging Segment [Member] | |
Major Classes Of Assets And Liabilities Related To Disposition [Line Items] | |
Cash and cash equivalents | 2 |
Trade receivables, net | 28 |
Inventories, net | 33 |
Property, plant and equipment, net | 28 |
Goodwill | 20 |
Intangible assets | 1 |
Other assets | 1 |
Assets of business held for sale | 113 |
Accounts payable, trade | 9 |
Pension and other postretirement liabilities | 4 |
Other current liabilities | 7 |
Liabilities of business held for sale | $ 20 |
Note 23 - Assets Held for Sal_3
Note 23 - Assets Held for Sale (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 01, 2019 | Dec. 31, 2018 | |
Long Lived Assets Held For Sale [Line Items] | |||
Intercompany receivables/Current assets held for sale | $ 2 | $ 167 | |
Print Systems [Member] | License and Service [Member] | |||
Long Lived Assets Held For Sale [Line Items] | |||
Licensing revenue | 13 | ||
Lucky HuaGuang Graphics Co Ltd [Member] | |||
Long Lived Assets Held For Sale [Line Items] | |||
Net cash consideration received | $ 30 | ||
Lucky HuaGuang Graphics Co Ltd [Member] | Print Systems [Member] | |||
Long Lived Assets Held For Sale [Line Items] | |||
Net cash consideration received | 30 | ||
Promissory Notes [Member] | Lucky HuaGuang Graphics Co Ltd [Member] | |||
Long Lived Assets Held For Sale [Line Items] | |||
Promissory notes outstanding amount | $ 4 | $ 8 | |
Flexographic Packaging Segment [Member] | |||
Long Lived Assets Held For Sale [Line Items] | |||
Intercompany receivables/Current assets held for sale | $ 5 |
Note 24 - Financial Instrumen_3
Note 24 - Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Inputs, Level 2 [Member] | |||||
Long-term Debt, Fair Value | $ 105 | $ 105 | $ 5 | ||
Fair value of current portion of long-term debt | 378 | ||||
Forward Contracts [Member] | |||||
Gross fair value of foreign currency in an asset position | 0 | 0 | 3 | ||
Gross fair value of foreign currency in a liability position | 1 | 1 | 1 | ||
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | |||||
Derivative Asset, Notional Amount | 376 | 376 | $ 415 | ||
Designated as Hedging Instrument [Member] | |||||
Derivatives Hedging Instruments | $ 0 | $ 0 | $ 0 | $ 0 |
Note 24 - Derivatives Not Desig
Note 24 - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financial Instruments Owned At Fair Value [Abstract] | ||||
Net (loss) gain from derivatives not designated as hedging instruments | $ (1) | $ (2) | $ 2 | $ (8) |
Note 24 - Derivative Liability
Note 24 - Derivative Liability (Asset) Key Inputs in Determination of Fair Value for Embedded Conversion Features and Termination Option (Details) - Fair Value, Inputs, Level 3 [Member] $ / shares in Units, $ in Millions | Sep. 30, 2019USD ($)$ / shares | May 24, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares |
Convertible Notes [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Total value of embedded derivative liability ($ millions) | $ | $ 18 | $ 14 | |
Kodak's closing stock price | $ / shares | $ 2.64 | $ 2.31 | |
Series A Preferred Stock [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Kodak's closing stock price | $ / shares | $ 2.64 | $ 2.55 | |
Total value of embedded derivative asset ($ millions) | $ | $ 5 | $ 4 | |
Expected stock price volatility [Member] | Convertible Notes [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Alternate measurement input percentage | 89.16 | 92.48 | |
Expected stock price volatility [Member] | Series A Preferred Stock [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Alternate measurement input percentage | 89.16 | 95.55 | |
Risk Free Rate [Member] | Convertible Notes [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Alternate measurement input percentage | 1.62 | 2.13 | |
Risk Free Rate [Member] | Series A Preferred Stock [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Alternate measurement input percentage | 1.62 | 2.46 | |
Measurement Input, Expected Dividend Rate | Convertible Notes [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Alternate measurement input percentage | 12.82 | 11.98 | |
Measurement Input, Expected Dividend Rate | Series A Preferred Stock [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Alternate measurement input percentage | 19.20 | 23.77 |