Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 04, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | EASTMAN KODAK COMPANY | |
Entity Central Index Key | 0000031235 | |
Trading Symbol | KODK | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 78,652,200 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 1-00087 | |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Total revenues | [1] | $ 287 | $ 252 | $ 843 | $ 732 |
Total cost of revenues | 244 | 221 | 712 | 644 | |
Gross profit | 43 | 31 | 131 | 88 | |
Selling, general and administrative expenses | 43 | 56 | 131 | 138 | |
Research and development costs | 8 | 8 | 24 | 25 | |
Restructuring costs and other | 1 | 1 | 9 | ||
Other operating expense (income), net | 1 | (1) | (6) | (11) | |
Loss from operations before interest expense, pension income excluding service cost component, loss on early extinguishment of debt, other (income) charges, net and income taxes | (9) | (33) | (19) | (73) | |
Interest expense | 9 | 3 | 23 | 11 | |
Pension income excluding service cost component | (25) | (26) | (76) | (79) | |
Loss on early extinguishment of debt | 2 | 2 | |||
Other (income) charges, net | (2) | 432 | (1) | 387 | |
Earnings (loss) from operations before income taxes | 9 | (444) | 35 | (394) | |
Provision for income taxes | 1 | 1 | 5 | 167 | |
Net income (loss) | $ 8 | $ (445) | $ 30 | $ (561) | |
Basic net income (loss) per share attributable to Eastman Kodak Company common shareholders | $ 0.06 | $ (6.94) | $ 0.40 | $ (11.34) | |
Diluted net income (loss) per share attributable to Eastman Kodak Company common shareholders | $ 0.06 | $ (6.94) | $ 0.39 | $ (11.34) | |
Number of common shares used in basic and diluted net income (loss) per share | |||||
Basic | 78.6 | 64.8 | 78.3 | 50.8 | |
Diluted | 80.6 | 64.8 | 80.5 | 50.8 | |
Product [Member] | |||||
Total revenues | $ 231 | $ 195 | $ 674 | $ 568 | |
Total cost of revenues | 206 | 183 | 595 | 533 | |
Service [Member] | |||||
Total revenues | 56 | 57 | 169 | 164 | |
Total cost of revenues | $ 38 | $ 38 | $ 117 | $ 111 | |
[1] |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 8 | $ (445) | $ 30 | $ (561) |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustments | (1) | 3 | (17) | |
Pension and other postretirement benefit plan obligation activity, net of tax | 7 | 3 | 21 | 15 |
Other comprehensive income (loss), net of tax | 7 | 2 | 24 | (2) |
COMPREHENSIVE INCOME (LOSS), NET OF TAX | $ 15 | $ (443) | $ 54 | $ (563) |
Consolidated Statement of Finan
Consolidated Statement of Financial Position (Unaudited) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 380 | $ 196 |
Trade receivables, net of allowances of $8 and $10, respectively | 167 | 177 |
Inventories, net | 240 | 206 |
Other current assets | 47 | 46 |
Current assets held for sale | 2 | 2 |
Total current assets | 836 | 627 |
Property, plant and equipment, net of accumulated depreciation of $440 and $430, respectively | 140 | 152 |
Goodwill | 12 | 12 |
Intangible assets, net | 35 | 39 |
Operating lease right-of-use assets | 46 | 48 |
Restricted cash | 64 | 53 |
Other long-term assets | 402 | 317 |
TOTAL ASSETS | 1,535 | 1,248 |
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | ||
Accounts payable, trade | 151 | 118 |
Short-term borrowings and current portion of long-term debt | 2 | 2 |
Current portion of operating leases | 18 | 12 |
Other current liabilities | 141 | 164 |
Total current liabilities | 312 | 296 |
Long-term debt, net of current portion | 250 | 17 |
Pension and other postretirement liabilities | 384 | 406 |
Operating leases, net of current portion | 40 | 49 |
Other long-term liabilities | 210 | 212 |
Total liabilities | 1,196 | 980 |
Commitments and Contingencies (Note 8) | ||
Redeemable, convertible preferred stock, no par value, $100 per share liquidation preference | 195 | 191 |
Equity | ||
Common stock, $0.01 par value | ||
Additional paid in capital | 1,166 | 1,152 |
Treasury stock, at cost | (10) | (9) |
Accumulated deficit | (590) | (620) |
Accumulated other comprehensive loss | (422) | (446) |
Total shareholders’ equity | 144 | 77 |
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | 1,535 | 1,248 |
Convertible Preferred Stock [Member] | ||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | ||
Redeemable, convertible preferred stock, no par value, $100 per share liquidation preference | $ 195 | $ 191 |
Consolidated Statement of Fin_2
Consolidated Statement of Financial Position (Unaudited) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Allowance for trade receivables | $ 8 | $ 10 |
Property, plant and equipment, accumulated depreciation | $ 440 | $ 430 |
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, 2021 | Sep. 30, 2020 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 30 | $ (561) | |
Adjustments to reconcile to net cash used in operating activities: | |||
Depreciation and amortization | 23 | 29 | |
Pension income | (63) | (65) | |
Change in fair value of embedded derivatives in the Series A, Series B and Series C Preferred Stock and Convertible Notes | [1] | (3) | 382 |
Loss on early extinguishment of debt | 2 | ||
Net loss (gain) on sales of assets | 1 | (9) | |
Asset impairments | [2] | 3 | |
Stock based compensation | 6 | 18 | |
Non-cash changes in workers' compensation reserves | (4) | 9 | |
(Benefit) provision for deferred income taxes | (1) | 160 | |
Decrease in trade receivables | 6 | 53 | |
Increase in inventories | (38) | (19) | |
Increase (decrease) in trade payables | 33 | (33) | |
Decrease in liabilities excluding borrowings and trade payables | (26) | (24) | |
Other items, net | 3 | 7 | |
Total adjustments | (63) | 513 | |
Net cash used in operating activities | (33) | (48) | |
Cash flows from investing activities: | |||
Additions to properties | (10) | (13) | |
Net proceeds from sales of assets | 1 | 2 | |
Net proceeds from return on equity investment | 2 | ||
Net cash used in investing activities | (9) | (9) | |
Cash flows from financing activities: | |||
Net proceeds from Term Loan Credit Agreement | 215 | ||
Net proceeds from Convertible Notes | 25 | ||
Net proceeds from Series C Preferred Stock | 99 | ||
Proceeds from sale of common stock | 10 | ||
Repurchase of Series A Preferred Stock | (100) | ||
Debt issuance costs | (2) | ||
Proceeds from stock option exercises | 29 | ||
Preferred stock cash dividend payments | (6) | (19) | |
Treasury stock purchases | (1) | ||
Net cash provided by financing activities | 240 | 10 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3) | (2) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 195 | (49) | |
Cash, cash equivalents and restricted cash, beginning of period | 256 | 290 | |
Cash, cash equivalents and restricted cash, end of period | $ 451 | $ 241 | |
[1] | Refer to Note 20, “Financial Instruments”. | ||
[2] |
Consolidated Statement of Equit
Consolidated Statement of Equity (Deficit) (Unaudited) - USD ($) $ in Millions | Total | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Redeemable Convertible Preferred Stock [Member] | Convertible Redeemable Series B Preferred Stock [Member] | Convertible Redeemable Series C Preferred Stock [Member] | |
Equity (deficit) at Dec. 31, 2019 | $ 99 | $ 604 | $ (79) | $ (417) | $ (9) | ||||
Equity (deficit) at Dec. 31, 2019 | $ 182 | ||||||||
Net income (loss) | (111) | (111) | |||||||
Currency translation adjustments | (12) | (12) | |||||||
Pension and other postretirement liability adjustments | 3 | 3 | |||||||
Preferred stock cash dividends | (3) | (3) | |||||||
Preferred stock deemed dividends | (2) | (2) | |||||||
Redeemable preferred stock deemed dividends | (2) | ||||||||
Stock-based compensation | 1 | 1 | |||||||
Equity (deficit) at Mar. 31, 2020 | (25) | 600 | (190) | (426) | (9) | ||||
Equity (deficit) at Mar. 31, 2020 | 184 | ||||||||
Equity (deficit) at Dec. 31, 2019 | 99 | 604 | (79) | (417) | (9) | ||||
Equity (deficit) at Dec. 31, 2019 | 182 | ||||||||
Net income (loss) | (561) | ||||||||
Equity (deficit) at Sep. 30, 2020 | 88 | 1,156 | (640) | (419) | (9) | ||||
Equity (deficit) at Sep. 30, 2020 | 189 | ||||||||
Equity (deficit) at Mar. 31, 2020 | (25) | 600 | (190) | (426) | (9) | ||||
Equity (deficit) at Mar. 31, 2020 | 184 | ||||||||
Net income (loss) | (5) | (5) | |||||||
Currency translation adjustments | (4) | (4) | |||||||
Pension and other postretirement liability adjustments | 9 | 9 | |||||||
Preferred stock cash dividends | (3) | (3) | |||||||
Preferred stock deemed dividends | (2) | (2) | |||||||
Redeemable preferred stock deemed dividends | (2) | ||||||||
Equity (deficit) at Jun. 30, 2020 | (30) | 595 | (195) | (421) | (9) | ||||
Equity (deficit) at Jun. 30, 2020 | 186 | ||||||||
Net income (loss) | (445) | (445) | |||||||
Currency translation adjustments | (1) | (1) | |||||||
Pension and other postretirement liability adjustments | 3 | 3 | |||||||
Preferred stock cash dividends | (2) | (2) | |||||||
Preferred stock deemed dividends | (3) | (3) | |||||||
Redeemable preferred stock deemed dividends | (3) | ||||||||
Conversion of Convertible Notes | 520 | 520 | |||||||
Stock options exercised | 29 | 29 | |||||||
Stock-based compensation | 17 | 17 | |||||||
Equity (deficit) at Sep. 30, 2020 | 88 | 1,156 | (640) | (419) | (9) | ||||
Equity (deficit) at Sep. 30, 2020 | 189 | ||||||||
Equity (deficit) at Dec. 31, 2020 | 77 | 1,152 | (620) | (446) | (9) | ||||
Equity (deficit) at Dec. 31, 2020 | 191 | 191 | |||||||
Net income (loss) | 6 | 6 | |||||||
Currency translation adjustments | (1) | (1) | |||||||
Pension and other postretirement liability adjustments | 6 | 6 | |||||||
Repurchase of Redeemable Convertible Preferred Stock | (100) | ||||||||
Exchange of Series A preferred stock | 92 | 92 | (92) | ||||||
Expiration of Series A preferred stock embedded derivative | 11 | 11 | |||||||
Issuance of convertible, redeemable Series B preferred stock, net | (95) | (95) | |||||||
Issuance of convertible, redeemable preferred stock, net of offering costs | $ 93 | $ 97 | |||||||
Issuance of common stock | 10 | 10 | |||||||
Preferred stock cash dividends | (1) | (1) | |||||||
Preferred stock deemed dividends | (2) | (2) | |||||||
Redeemable preferred stock deemed dividends | (2) | ||||||||
Series C Preferred stock in-kind dividends | (1) | (1) | |||||||
Redeemable preferred stock in-kind dividends | 1 | ||||||||
Purchase of treasury stock | [1] | (1) | (1) | ||||||
Stock-based compensation | 3 | 3 | |||||||
Equity (deficit) at Mar. 31, 2021 | 104 | 1,169 | (614) | (441) | (10) | ||||
Equity (deficit) at Mar. 31, 2021 | 192 | ||||||||
Equity (deficit) at Dec. 31, 2020 | 77 | 1,152 | (620) | (446) | (9) | ||||
Equity (deficit) at Dec. 31, 2020 | 191 | 191 | |||||||
Net income (loss) | 30 | ||||||||
Equity (deficit) at Sep. 30, 2021 | 144 | 1,166 | (590) | (422) | (10) | ||||
Equity (deficit) at Sep. 30, 2021 | 195 | 195 | |||||||
Equity (deficit) at Mar. 31, 2021 | 104 | 1,169 | (614) | (441) | (10) | ||||
Equity (deficit) at Mar. 31, 2021 | 192 | ||||||||
Net income (loss) | 16 | 16 | |||||||
Currency translation adjustments | 4 | 4 | |||||||
Pension and other postretirement liability adjustments | 8 | 8 | |||||||
Preferred stock cash dividends | (2) | (2) | |||||||
Series C Preferred stock in-kind dividends | (1) | (1) | |||||||
Redeemable preferred stock in-kind dividends | 1 | ||||||||
Stock-based compensation | 1 | 1 | |||||||
Equity (deficit) at Jun. 30, 2021 | 130 | 1,167 | (598) | (429) | (10) | ||||
Equity (deficit) at Jun. 30, 2021 | 193 | ||||||||
Net income (loss) | 8 | 8 | |||||||
Pension and other postretirement liability adjustments | 7 | 7 | |||||||
Preferred stock cash dividends | (1) | (1) | |||||||
Preferred stock deemed dividends | (1) | (1) | |||||||
Redeemable preferred stock deemed dividends | (1) | ||||||||
Series C Preferred stock in-kind dividends | (1) | (1) | |||||||
Redeemable preferred stock in-kind dividends | 1 | ||||||||
Stock-based compensation | 2 | 2 | |||||||
Equity (deficit) at Sep. 30, 2021 | 144 | $ 1,166 | $ (590) | $ (422) | $ (10) | ||||
Equity (deficit) at Sep. 30, 2021 | $ 195 | $ 195 | |||||||
[1] | Represents purchases of common stock to satisfy tax withholding obligations. |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Recent Accounting Pronouncements | 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, 2020 (the “2020 Form 10-K”). Reclassifications Certain amounts for prior periods have been reclassified to conform to the current period classification in the disaggregated revenue information for the Advanced Materials and Chemicals segment. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20)” and “Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies accounting for convertible instruments. More convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted EPS calculation in certain circumstances. The ASU is effective January 1, 2024 for Kodak. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which removes certain exceptions related to intra-period tax allocations and deferred tax accounting on outside basis differences in foreign subsidiaries and equity method investments. Additionally, it provides other simplifying measures for the accounting for income taxes. The new standard is effective for fiscal years beginning after December 15, 2020 (January 1, 2021 for Kodak). Kodak adopted this ASU prospectively on January 1, 2021 and it did not have any impact on Kodak’s consolidated financial statements. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In July 2021, the FASB issued ASU 2021-05, “Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments”. Under this ASU, lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in Topic 842 and (2) the lessor would have otherwise recognized a day-one loss. The amendments are effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years for all public business entities (January 1, 2022 for Kodak). Kodak adopted this ASU prospectively on October 1, 2021. The adoption did not have an impact on Kodak’s consolidated financial statements. 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 ASUs 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-02 and 2020-03) requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. In addition, the ASU requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The ASU is effective January 1, 2023 for Kodak, and interim periods within that fiscal year. 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, 2021 | |
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 Consolidated 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) 2021 2020 Cash and cash equivalents $ 380 $ 196 Restricted cash reported in Other current assets 7 7 Restricted cash 64 53 Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows $ 451 $ 256 Restricted cash reported in Other current assets on the Consolidated Statement of Financial Position primarily represents amounts that support hedging activities. Restricted cash includes $45 million as of September 30, 2021 representing the cash collateral required to be posted by the Company under the Letter of Credit Facility (“L/C Cash Collateral”). Restricted cash included $35 million as of December 31, 2020, supporting compliance with the Excess Availability threshold under the ABL Credit Agreement, as defined therein (Refer to Note 5, “Debt and Finance Leases” for information on the Restricted cash supporting the L/C Cash Collateral and the Excess Availability threshold). In addition, Restricted cash as of September 30, 2021 and December 31, 2020 includes an escrow of $14 million and $12 million, respectively, in China to secure various ongoing obligations under the agreements for a strategic relationship with Lucky HuaGuang Graphics Co. Ltd. Restricted cash also included $3 million and $4 million of security posted related to Brazilian legal contingencies as of September 30, 2021 and December 31, 2020, respectively. |
Note 3 - Inventories, Net
Note 3 - Inventories, Net | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | NOTE 3: INVENTORIES, NET September 30, December 31, (in millions) 2021 2020 Finished goods $ 113 $ 97 Work in process 67 54 Raw materials 60 55 Total $ 240 $ 206 |
Note 4 - Other Long-term Assets
Note 4 - Other Long-term Assets | 9 Months Ended |
Sep. 30, 2021 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Other Long-term Assets | NOTE 4: OTHER LONG-TERM ASSETS September 30, December 31, (in millions) 2021 2020 Pension assets $ 347 $ 262 Estimated workers' compensation recoveries 17 18 Long-term receivables 11 11 Other 27 26 Total $ 402 $ 317 The Other component above consists of other miscellaneous long-term assets that, individually, were less than 5% of the total assets component within the Consolidated Statement of Financial Position as of the end of the preceding year, and therefore have been aggregated in accordance with Regulation S-X. |
Note 5 - Debt And Finance Lease
Note 5 - Debt And Finance Leases | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Finance Leases | NOTE 5: DEBT AND FINANCE LEASES Debt and finance leases and related maturities and interest rates were as follows at September 30, 2021 and December 31, 2020: (in millions) Type Maturity Weighted-Average Effective Interest Rate September 30, 2021 December 31, 2020 Current portion: RED-Rochester, LLC 2033 11.46% $ 1 $ 1 Finance leases Various Various 1 1 2 2 Non-current portion: Term note 2026 13.86% 222 — Convertible debt 2026 17.27% 14 — RED-Rochester, LLC 2033 11.46% 12 12 Finance leases Various Various 1 3 Other debt Various Various 1 2 250 17 $ 252 $ 19 Annual maturities of debt and finance leases outstanding at September 30, 2021 were as follows: Carrying Value Maturity Value Q4 2021 $ 1 $ 1 2022 2 2 2023 1 1 2024 1 1 2025 1 1 2026 and thereafter 246 317 Total $ 252 $ 323 Term Loan Credit Agreement On February 26, 2021, the Company entered into a Credit Agreement (the “Term Loan Credit Agreement”) with certain funds affiliated with Kennedy Lewis Investment Management LLC (“KLIM”) as lenders (the “Term Loan Lenders”) and Alter Domus (US) LLC, as administrative agent. Pursuant to the Term Loan Credit Agreement, the Term Loan Lenders provided the Company with (i) an initial term loan in the amount of $225 million, which was drawn in full on the same date, and (ii) a commitment to provide delayed draw term loans in an aggregate principal amount of up to $50 million on or before February 26, 2023 (collectively, the “Term Loans”). Net proceeds from the Term Loan Credit Agreement were $215 million ($225 million aggregate principal less $10 million in debt transaction costs). The Term Loans have a five-year The Term Loans bear interest at a rate of 8.5% per annum payable quarterly in cash and 4.0% per annum Paid-In-Kind interest PIK which is being added to the carrying value of the debt through the term and interest expense will be recorded using the effective interest method including 100 % of the stock of material U.S. subsidiaries and 65 % of the stock of material foreign subsidiaries (the “Term Loan Priority C ollateral”) and (ii) a third priority lien on the ABL Priority Collateral and L/C Cash Collateral. The Term Loan Credit Agreement limits, among other things, the ability of the Company and its Restricted Subsidiaries (as defined in the Term Loan Credit Agr eement) to (i) incur indebtedness, (ii) incur or create liens, (iii) dispose of assets, (iv) make restricted payments and (v) make investments. The Term Loan Credit Agreement does not include a financial maintenance covenant or any subjective acceleration clauses . The Term Loan Credit Agreement does contain customary affirmative covenants including delivery of certain of the Company’s financial statements and customary event of default provisions, including a cross-default provision that would give rise to an event of default if there is a default under or acceleration of “Material Indebtedness”. Material Indebtedness includes obligations having a principal amount of at least $ 25 million and obligations under the Asset Based Loan Facility or Letter of Credit Facility. Board Rights Agreement On February 26, 2021, in connection with the execution of the Term Loan Credit Agreement, the Company entered into a letter agreement with KLIM (the “Board Rights Agreement”). Pursuant to the Board Rights Agreement, the Company’s Board of Directors (“Board”) appointed an individual designated by KLIM as a member of the Board effective April 1, 2021. The individual appointed was elected to serve a one-year Until KLIM ceases to hold at least 50% of the original principal amount of the Term Loans and commitments under the Term Loan Credit Agreement, at any time that KLIM’s designated director is not serving on the Board, KLIM will have the right to designate a non-voting observer to the Board. Such observer will have the right to attend meetings of the Board and, under certain circumstances, committees and subcommittees of the Board and to receive information and materials made available to the Board, in each case, subject to certain restrictions and exceptions. Securities Purchase Agreement On February 26, 2021, the Company and the Term Loan Lenders (the “Buyers”), entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) pursuant to which the Company sold to the Buyers (i) an aggregate of 1,000,000 shares (the “Purchased Shares”) of the Company’s common stock (“Common Stock”) for a purchase price of $10.00 in cash per share for an aggregate purchase price of $10 million and (ii) $25 million aggregate principal amount of the Company’s newly issued 5.0% unsecured convertible promissory notes due May 28, 2026 (the “Convertible Notes”) in a private placement transaction. The issuance and sale of the Purchased Shares and Convertible Notes were consummated on February 26, 2021. Convertible Notes The Convertible Notes bear interest at a rate of 5.0% per annum, which will be payable in cash on the maturity date and in 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 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 May 28, 2026. Conversion Features The Buyers will have the right to elect at any time to convert the Convertible Notes into shares of Common Stock at an initial conversion rate equal to 100 shares of Common Stock per each $1,000 principal amount of the Convertible Notes (based on an initial conversion price equal to $10.00 per share of Common Stock). The conversion rate and conversion price will be subject to certain customary anti-dilution adjustments. If the closing price of the Common Stock equals or exceeds $14.50 (subject to adjustment in the same manner as the conversion price) for 45 trading days within any period of 60 consecutive trading days, the Company will have the right to cause the mandatory conversion of the Convertible Notes into shares of Common Stock. In the event of certain fundamental transactions, the Buyers 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 require prepayment of the Convertible Notes at par plus accrued and unpaid interest or convert all or a portion of the Convertible Notes into shares of Common Stock at the conversion rate then in effect plus any additional shares based on the price per share of Common Stock in connection with the fundamental transaction, or to receive the shares of a successor entity, if any. Embedde d Derivatives The Convertible Notes were considered more akin to a debt-type instrument and the economic characteristics and risks of the embedded conversion features are 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. Kodak allocated $12 million of the net proceeds received to a derivative liability based on the aggregate fair value of the embedded features on the date of issuance which reduced the net carrying value of the Convertible Notes. The carrying value of the Convertible Notes at September 30, 2021 and the time of issuance was $14 million and $13 million ($25 million aggregate gross proceeds less $12 million allocated to the derivative liability), respectively. The estimated fair value of the Convertible Notes as of September 30, 2021 was $22 million (Level 3). The carrying value is being accreted to the aggregate principal amount using the effective interest method from the date of issuance through the maturity date. Securities Registration Rights Agreement On February 26, 2021, the Company and the Buyers entered into a Registration Rights Agreement (the “Securities Registration Rights Agreement”) providing the Buyers with registration rights in respect of the Purchased Shares and the Common Stock issuable upon conversion of the Convertible Notes. The Securities Registration Rights Agreement contains other customary terms and conditions, including certain customary indemnification obligations; however, the Securities Registration Rights Agreement does not obligate the Company to facilitate an underwritten offering of the registered Common Stock by the Buyers. Amended and Restated ABL Credit Agreement On February 26, 2021, the Company and the Subsidiary Guarantors entered into an amendment to the Amended and Restated Credit Agreement, dated as of May 26, 2016 (the “ABL Credit Agreement” and, as amended in 2021, the “Amended ABL Credit Agreement”), among the Company, the Subsidiary Guarantors, the lenders party thereto, Bank of America, N.A., as agent (the “Agent”), and Bank of America, N.A. and JPMorgan Chase Bank, N.A., as arrangers, with the Agent and the Required Lenders. Each of the capitalized and undefined terms has the meaning ascribed to such term in the ABL Credit Agreement . The Amended ABL Credit Agreement amends the ABL Credit Agreement to, among other things, (i) extend the maturity date to February 26, 2024 or the date that is 90 days prior to the earliest scheduled maturity date or mandatory redemption date of any of the Company’s Term Loans, Convertible Notes, Series B Preferred Stock, Series C Preferred Stock or any refinancings of any of the foregoing and (ii) decrease the aggregate amount of commitments from $110 million to $90 million. Commitments under the Amended ABL Credit Agreement continue to be able to be used in the form of revolving loans or letters of credit. The Company had issued approximately $42 million letters of credit under the Amended ABL Credit Agreement as of September 30, 2021 and $90 million letters of credit under the ABL Credit Agreement as of December 31, 2020. The revolving loans bear interest at the rate of LIBOR plus 3.50%-4.00% per annum (subject to provisions providing for a replacement benchmark rate upon the discontinuation of LIBOR) or a floating Base Rate (as defined in the Amended ABL Credit Agreement) plus 2.50%-3.00% per annum, based on Excess Availability (as defined in the Amended ABL Credit Agreement). The Company will pay an unused line fee of 37.5-50 basis points per annum, depending on whether the unused portion of the maximum amount available is less than or equal to 50% or greater than 50%, respectively. The Company will pay a letter of credit fee of 3.50%-4.00% per annum, based on Excess Availability, on issued and outstanding letters of credit, in addition to a fronting fee of 25 basis points on such letters of credit. Obligations under the Amended ABL Credit Agreement continue to be secured by: (i) a first priority lien on assets of the Company and the Subsidiary Guarantors constituting cash (other than L/C Cash Collateral, as defined below), accounts receivable, inventory, machinery and equipment and certain other assets (the “ABL Priority Collateral”) and (ii) a second priority lien on substantially all assets of the Company and the Subsidiary Guarantors (subject to certain exceptions) other than the ABL Priority Collateral, including the L/C cash collateral and 100% of the stock of material U.S. subsidiaries and 65% of the stock of material foreign subsidiaries. The Amended ABL Credit Agreement continues to limit, among other things, the ability of the Company and its Restricted Subsidiaries (as defined in the Amended ABL Credit Agreement) to (i) incur indebtedness, (ii) incur or create liens, (iii) dispose of assets, (iv) make restricted payments and (v) make investments. The Amended ABL Credit Agreement leave s in place customary affirmative covenants, including delivery of certain of the Company’s financial statements set forth therein. Under the Amended ABL Credit Agreement the Company is required to maintain Minimum Liquidity of at least $80 million, which is tested at the end of each quarter. Minimum Liquidity was $263 million at September 30, 2021. If Minimum Liquidity falls below $80 million an Event of Default would occur and the Agent has the right to declare the obligation of each Lender to make Revolving Loans and of the Issuing Banks to issue Letters of Credit to be terminated, and declare the Revolving Loans, all interest thereon and all other amounts payable under the Amended ABL Credit Agreement to be due and payable. Under both the Amended ABL Credit Agreement and the ABL Credit Agreement the Company is required to maintain Excess Availability above 12.5% of lender commitments ($11.25 million and $13.75 million as of September 30, 2021 and December 31, 2020, respectively), which is tested at the end of each month. Excess Availability was $39 million and $20 million as of September 30, 2021 and December 31, 2020, respectively. If Excess Availability falls below 12.5% of lender commitments a Fixed Charge Coverage Ratio Trigger Event would occur. During any Fixed Charge Coverage Ratio Trigger Event, the Company would be required to maintain a Fixed Charge Coverage Ratio of greater than or equal to 1.0 to 1.0. 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, 2021 and December 31, 2020, Kodak was not required to have a minimum Fixed Charge Coverage Ratio of 1.0 to 1.0. The Amended ABL Credit Agreement also removed Eligible Cash from the Borrowing Base. Therefore, amounts funded into the Eligible Cash account will no longer increase Excess Availability for purposes of compliance reporting. As of December 31, 2020, to maintain Excess Availability of greater than 12.5% of lender commitments, Kodak funded $35 million to the Eligible Cash account held with the ABL Credit Agreement Administrative Agent, which was classified as Restricted Cash in the Consolidated Statement of Financial Position. If Excess Availability falls below 12.5% of lender commitments and the Fixed Charge Coverage Ratio is less than 1.0 to 1.0, an Event of Default would occur and the Agent has the right to declare the obligation of each Lender to make Revolving Loans and of the Issuing Banks to issue Letters of Credit to be terminated, and declare the Revolving Loans, all interest thereon and all other amounts payable under the Amended ABL Credit Agreement to be due and payable. Letter of Credit Facility Agreement On February 26, 2021, the Company and the Subsidiary Guarantors entered into a Letter of Credit Facility Agreement (the “L/C Facility Agreement”, and together with the Term Loan Credit Agreement and the Amended ABL Credit Agreement the “Credit Agreements”) among the Company, the Subsidiary Guarantors, the lenders party thereto (the “L/C Lenders”), Bank of America, N.A., as agent, and Bank of America, N.A., as issuing bank. Pursuant to the L/C Facility Agreement, the L/C Lenders committed to issue letters of credit on the Company’s behalf in an aggregate amount of up to $50 million, provided that the Company posts cash collateral in an amount greater than or equal to 103% of the aggregate amount of letters of credit issued and outstanding at any given time (the “L/C Cash Collateral”). The term of the L/C Facility Agreement is three years, subject to the same automatic springing maturity as the Amended ABL Credit Agreement. The Company had issued approximately $44 million letters of credit under the Agreement as of September 30, 2021. |
Note 6 - Redeemable, Convertibl
Note 6 - Redeemable, Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable, Convertible Preferred Stock | NOTE 6: REDEEMABLE, CONVERTIBLE PREFERRED STOCK Redeemable convertible preferred stock was as follows at September 30, 2021 and December 31, 2020: September 30, December 31, (in millions) 2021 2020 Series A preferred stock $ — $ 191 Series B preferred stock 94 — Series C preferred stock 101 — Total $ 195 $ 191 Series A Preferred Stock On November 15, 2016, the Company issued 2,000,000 shares of Series A Preferred Stock for an aggregate purchase price of $200 million, or $100 per share, pursuant to a Series A Preferred Stock Purchase Agreement with Southeastern Asset Management, Inc. (“Southeastern”) and Longleaf Partners Small-Cap Fund, C2W Partners Master Fund Limited and Deseret Mutual Pension Trust, which are investment funds managed by Southeastern (such investment funds, collectively, the “Purchasers”), dated November 7, 2016. The Company classified the Series A Preferred Stock as temporary equity in the Consolidated Statement of Financial Position. Repurchase and Exchange Agreement On February 26, 2021 the Company entered into a Series A Preferred Stock Repurchase and Exchange Agreement (the “Repurchase and Exchange Agreement”) with Southeastern and the Purchasers. The Company repurchased one million shares of the Series A Preferred Stock under the terms of the Repurchase and Exchange Agreement for $100,641,667, representing the liquidation value of the Series A Preferred Stock plus accrued and unpaid dividends. In addition, the Company and the Purchasers agreed to exchange the remaining one million shares of Series A Preferred Stock held by the Purchasers for shares of the Company’s newly created 4.0% Series B Convertible Preferred Stock, no Embedded Conversion Features Kodak allocated $43 million of the net proceeds from the issuance of the Series A Stock 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 20, “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), was 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. Extinguishment of Series A Preferred Stock The carrying value, including the fair value of the embedded derivative liability, of the Series A Preferred Stock prior to extinguishment approximated $203 million. Upon repurchase and exchange of the Series A Preferred Stock, Kodak recorded $8 million as a deemed dividend to Additional paid in capital in the Consolidated Statement of Financial Position, representing the difference between the fair value of consideration transferred and the carrying value of the Series A Preferred Stock. Dividend and Other Rights The holders of Series A Preferred Stock were entitled to cumulative dividends payable quarterly in cash at a rate of 5.50% per annum. Series B Preferred Stock The fair value of the Series B Preferred Stock at the time of issuance approximated $95 million. The Company has classified the Series B Preferred Stock as temporary equity in the Consolidated Statement of Financial Position. Dividend and Other Rights On February 25, 2021, the Company filed with the Department of Treasury of the State of New Jersey a Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of the Company (the “Series B Certificate of Designations”) which established the designation, number of shares, rights, preferences and limitations of the Series B Preferred Stock which became effective upon filing. The Series B Preferred Stock ranks senior to the Common Stock and pari passu pari passu Conversion Features Each share of Series B Preferred Stock is convertible, at the option of each holder at any time, into shares of Common Stock at the initial conversion rate of 9.5238 shares of Common Stock for each share of Series B Preferred Stock (equivalent to an initial conversion price of $10.50 per share of Common Stock). The initial conversion rate and the corresponding conversion price will be subject to certain customary anti-dilution adjustments. If a holder elects to convert any shares of Series B Preferred Stock during a specified period in connection with a fundamental change (as defined in the Series B Certificate of Designations), such holder can elect to have the conversion rate adjusted and can elect to receive a cash payment in lieu of shares for a portion of the shares. Such holder will also be entitled to a payment in respect of accumulated dividends. In addition, the Company will have the right to require holders to convert any shares of Series B Preferred Stock in connection with certain reorganization events in which case the conversion rate will be adjusted, subject to certain limitations. The Company will have the right to cause the mandatory conversion of the Series B Preferred Stock into shares of Common Stock at any time after the initial issuance of the Series B Preferred Stock if the closing price of the Common Stock has equaled or exceeded $14.50 (subject to adjustment in the same manner as the conversion price) for 45 trading days within a period of 60 consecutive trading days. Embedded Conversion Features The Company concluded that the Series B Preferred Stock is considered more akin to a debt-type instrument and that the economic characteristics and risks of the conversion option upon a fundamental change by the holder was not considered clearly and closely related to the Series B Preferred Stock. Accordingly, this embedded conversion feature was bifurcated from the Series B Preferred Stock and separately accounted for at fair value as a derivative. The Company allocated $1 million to the derivative liability based on the aggregate fair value of the embedded conversion feature on the date of issuance which reduced the original carrying value of the Series B Preferred Stock. The derivative is being accounted for at fair value with subsequent changes in the fair value being reported as part of Other (income) charges, net in the Consolidated Statement of Operations. The fair value of the Series B Preferred Stock embedded derivative as of September 30, 2021 was a liability of $1 million and is included in Other long-term liabilities in the accompanying Consolidated Statement of Financial Position. Refer to Note 20, “Financial Instruments” for information on the valuation of the derivative. The carrying value of the Series B Preferred Stock at the time of issuance, $93 million ($95 million fair value of Series B Preferred Stock on February 26, 2021 less $1 million allocated to the derivative liability and $1 million of 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, May 28, 2026. Redemption Features If any shares of Series B Preferred Stock have not been converted prior to May 28, 2026 (the “Redemption Date”), the Company is required to redeem such shares at $100 per share plus the amount of accrued and unpaid dividends. As the Company concluded that the Series B Preferred Stock is considered more akin to a debt-type instrument, the redemption feature is considered to be clearly and closely related to the host contract and therefore was not required to be separated from the Series B Preferred Stock. Series C Preferred Stock Purchase Agreement On February 26, 2021, the Company and GO EK Ventures IV, LLC (the “Investor”) entered into a Series C Preferred Stock Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company agreed to sell to the Investor, and the Investor agreed to purchase from the Company, an aggregate of 1,000,000 shares of the Company’s newly created 5.0% Series C Convertible Preferred Stock, no Dividend and Other Rights On February 25, 2021, the Company filed with the Department of Treasury of the State of New Jersey a Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of the Company (the “Series C Certificate of Designations”) which established the designation, number of shares, rights, preferences and limitations of the Series C Preferred Stock and became effective upon filing. The Series C Preferred Stock ranks senior to the Common Stock and pari passu Holders of Series C Preferred Stock are entitled to vote together with the holders of the Common Stock as a single class, in each case, on an as-converted basis, except where a separate class vote is required by law. Holders of Series C Preferred Stock have certain limited special approval rights, including with respect to the issuance of pari passu Pursuant to the Purchase Agreement, the Investor has the right to nominate one director at each annual or special meeting of the Company’s shareholders until the earlier of the third anniversary of the execution of the Purchase Agreement and such time as the Investor and its Affiliates (as defined in the Purchase Agreement) do not hold at least a majority of the Series C Preferred Stock purchased under the Purchase Agreement. The Investor’s nominee pursuant to this right was elected at the Company’s annual meeting held on May 19, 2021 to serve a one-year term. Conversion Features Each share of Series C Preferred Stock is convertible, at the option of each holder at any time, into shares of Common Stock at the initial conversion price of $10 per share of Common Stock. The initial conversion price and the corresponding conversion rate will be subject to certain customary anti-dilution adjustments and to proportional increase in the event the liquidation preference of the Series C Preferred Stock is automatically increased as described above. If a holder elects to convert any shares of Series C Preferred Stock during a specified period in connection with a fundamental change (as defined in the Series C Certificate of Designations), such holder can elect to have the conversion rate adjusted and can elect to receive a cash payment in lieu of shares for a portion of the shares of Common Stock. Such holder will also be entitled to a payment in respect of accumulated dividends and a payment based on the present value of all required remaining dividend payments through May 28, 2026, the mandatory redemption date. Such additional payments will be payable at the Company’s option in cash or in additional shares of Common Stock. In addition, the Company will have the right to require holders to convert any shares of Series C Preferred Stock in connection with certain reorganization events in which case the conversion rate will be adjusted, subject to certain limitations. The Company will have the right to cause the mandatory conversion of the Series C Preferred Stock into shares of Common Stock (i) at any time after February 26, 2023 if the closing price of the Common Stock has equaled or exceeded 200% of the then-effective conversion price for 45 trading days within a period of 60 consecutive trading days, or (ii) at any time after February 26, 2024 if the closing price of the Common Stock has equaled or exceeded 150% of the then-effective conversion price for 45 trading days within a period of 60 consecutive trading days. Embedded Conversion Features The Company concluded that the Series C Preferred Stock is considered more akin to a debt-type instrument and that the economic characteristics and risks of the conversion option upon a fundamental change by the holder is not considered clearly and closely related to the Series C Preferred Stock. Accordingly, this embedded conversion feature was bifurcated from the Series C Preferred Stock and separately accounted for as a derivative. The Company allocated $2 million of the net proceeds received to the derivative liability based on the aggregate fair value of the embedded conversion features on the dates of issuance which reduced the original carrying value of the Series C Preferred Stock. The derivative is being accounted for at fair value with subsequent changes in the fair value being reported as part of Other (income) charges, net in the Consolidated Statement of Operations. The fair value of the Series C Preferred Stock derivative as of September 30, 2021 was a liability of $2 million and is included in Other long-term liabilities in the accompanying Consolidated Statement of Financial Position. Refer to Note 20, “Financial Instruments” for information on the valuation of the derivative. The carrying value of the Series C Preferred Stock at the time of issuance, $97 million ($100 million aggregate gross proceeds less $2 million allocated to the derivative liability and $1 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. Redemption Features If any shares of Series C Preferred Stock have not been converted prior to the Redemption Date, the Company is required to redeem such shares at $100 per share plus the amount of accrued and unpaid dividends thereon; provided that the holders of the Series C Preferred Stock have the right to extend such redemption date by up to two years. As the Company concluded that the Series C Preferred Stock is considered more akin to a debt-type instrument, the redemption feature is considered to be clearly and closely related to the host contract and therefore was not required to be separated from the Series C Preferred Stock. Series C Registration Rights Agreement On February 26, 2021, the Company and the Investor entered into a Registration Rights Agreement (the “Series C Registration Rights Agreement”) which provides the Investor with customary registration rights in respect of the shares of Common Stock issuable upon conversion of the Series C Preferred Stock. The Series C Registration Rights Agreement contains other customary terms and conditions, including certain customary indemnification obligations. |
Note 7 - Leases
Note 7 - Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | NOTE 7: LEASES Income recognized on operating lease arrangements for the three and nine months ended September 30, 2021 and 2020 is presented below. Income recognized for sales-type lease arrangements is $1 million and $2 million for the three and nine months ended September 30, 2021, respectively and $0 million for both the three and nine months ended September 30, 2020. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Lease income - operating leases: Lease income $ 2 $ 2 $ 6 $ 6 Sublease income — — — 2 Variable lease income 1 1 3 3 Total lease income $ 3 $ 3 $ 9 $ 11 |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8: COMMITMENTS AND CONTINGENCIES As of September 30, 2021, the Company had outstanding letters of credit of $42 million and $44 million issued under the Amended ABL Credit Agreement and the L/C Facility Agreement, respectively, as well as bank guarantees and letters of credit of $2 million, surety bonds in the amount of $29 million, and restricted cash of $71 million, primarily related to cash collateral for the outstanding letters of credit under the L/C Facility Agreement, to ensure payment of possible casualty and workers’ compensation claims, legal contingencies, hedging activities, environmental liabilities, rental payments and to support various customs, tax and trade activities. Kodak’s Brazilian operations are involved in various litigation matters in Brazil and have received or been the subject of numerous governmental assessments related to indirect and other taxes in various stages of litigation, as well as civil litigation and disputes associated with former employees and contract labor. The tax matters, which comprise the majority of the litigation matters, are primarily related to federal and state value-added taxes. Kodak’s Brazilian operations are disputing these matters and intend to vigorously defend its position. Kodak routinely assesses all these matters as to the probability of ultimately incurring a liability in its Brazilian operations and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. As of September 30, 2021, 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 $4 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, 2021, Kodak’s Brazilian operations have posted security composed of $3 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 $41 million. Generally, any encumbrances on the Brazilian assets would be removed to the extent the matter is resolved in Kodak's favor. On July 28, 2020, the U.S. International Development Finance Corporation (the “DFC”) announced (the “DFC Announcement”) the signing of a non-binding letter of interest to provide a subsidiary of the Company with a potential $765 million loan (the “DFC Loan”) to support the launch of Kodak Pharmaceuticals, an initiative that would manufacture pharmaceutical ingredients for essential generic drugs (the “DFC Pharmaceutical Project”). On August 13, 2020 Tiandong Tang commenced a class action lawsuit against the Company, its Executive Chairman and Chief Executive Officer and its Chief Financial Officer in Federal District Court in the District of New Jersey, and on August 26, 2020 Jimmie A. McAdams and Judy P. McAdams commenced a class action lawsuit against the Company and its Executive Chairman and Chief Executive Officer in Federal District Court in the Southern District of New York (collectively, the “Securities Class Actions”). The Securities Class Actions seek damages and other relief based on alleged violations of federal securities laws in the context of the DFC Announcement of the potential DFC Loan and DFC Pharmaceutical Project. The Securities Class Actions were transferred to the Federal District Court for the Western District of New York and were consolidated into a single proceeding (the “Consolidated Securities Class Action”) on June 22, 2021. Les Investissements Kiz Inc. and UAT Trading Service, Inc. were appointed by the court to serve as lead plaintiff for the Consolidated Securities Class Action on August 2, 2021, and the lead plaintiff filed an amended consolidated complaint on October 1, 2021. The Company intends to vigorously defend itself against the Consolidated Securities Class Action. On December 29, 2020 Robert Garfield commenced a class action lawsuit against the Company and current and former members of its Board of Directors in the Superior Court of Mercer County, New Jersey seeking equitable relief and damages in favor of the Company based on alleged breaches of fiduciary duty by the Company’s Board of Directors associated with alleged false and misleading proxy statement disclosures (including the successor New York lawsuit discussed below, the “Fiduciary Class Action”). The Company and each of the individual defendants filed motions to dismiss the Fiduciary Class Action on April 13, 2021. The plaintiff in the Fiduciary Class Action voluntarily dismissed the Fiduciary Class Action without prejudice on May 26, 2021 and filed a lawsuit substantially similar to the dismissed New Jersey lawsuit in the Supreme Court of the State of New York in Monroe County on October 27, 2021, this time on behalf of a purported class of beneficial and record owners of stock of the Company as of March 26, 2020 who continue to own such stock through the present. The Company intends to vigorously defend itself against the Fiduciary Class Action. The Company has also received five requests under New Jersey law demanding, among other things, that the Company take certain actions in response to alleged breaches of fiduciary duty relating to option grants and securities transactions in the context of the DFC Announcement and alleged proxy statement disclosure deficiencies (the “Derivative Demands”). On May 19, 2021 Louis Peters, one of the persons making a Derivative Demand (“Peters”), commenced a derivative lawsuit on behalf of the Company against certain officers and current and former directors of the Company and the Company as a nominal defendant in the Supreme Court of the State of New York in Monroe County seeking damages and equitable relief based on alleged breaches of fiduciary duty and unjust enrichment resulting from stock trades, option grants and a charitable contribution in the context of the DFC Announcement of the potential DFC Loan and DFC Pharmaceutical Project (the “State Derivative Lawsuit”). The plaintiff filed an amended complaint in the State Derivative Lawsuit on August 23, 2021, and the Company and individual defendants filed motions to dismiss (or alternatively, in the case of the Company, a motion for summary judgment) in the State Derivative Lawsuit on October 22, 2021. On September 2, 2021 Herbert Silverberg, another person making a Derivative Demand (“Silverberg”), commenced a derivative lawsuit on behalf of the Company against one current and one former director of the Company and the Company as a nominal defendant in the Federal District Court for the Western District of New York seeking damages and equitable relief on a basis overlapping with the State Derivative Lawsuit and alleged proxy statement misrepresentations and omissions. On October 4, 2021 Peters commenced a derivative lawsuit on behalf of the Company against the same parties named in the State Derivative Lawsuit in the Federal District Court for the Western District of New York seeking damages and equitable relief on a basis overlapping with the State Derivative Lawsuit and alleged violations of Section 10(b) of the Exchange Act. A process is underway to consolidate the Federal derivative lawsuits filed by Silverberg and Peters (the “Federal Derivative Lawsuits”) and appoint a lead plaintiff in the Federal Derivative Lawsuits. Additional shareholder derivative l awsuits may be brought based on the other Derivative Demands (any such lawsuits, collectively with the State Derivative Lawsuit, the Federal Derivative Lawsuits and the Fiduciary Class Action, the “Fiduciary Matters”). The Company, acting through a Specia l Committee of Independent Directors, previously determined that there was no merit to the claims alleged by the Derivative Demands (except with respect to the charitable contribution, which was not fully considered by the Special Committee). See the Comp any’s Current Report on Form 8-K filed with the SEC on September 16, 2020. The Company, acting through a separate Special Litigation Committee of Independent Directors, concurred with the first Special Committee’s findings and further concluded it is not in the Company’s interest to bring or allow any other shareholder to assert any of the claims alleged by the State Derivative Lawsuit or Federal Derivative Lawsuits (with the exception of the Peters claim purportedly arising under Section 10(b) of the Exchange Act, which was not addressed as no demand was made with respect to such claim). The second Special Litigation Committee will carefully review any other additional complaints constituting Fiduciary Matters which may be filed. The DFC Announcement has also prompted investigations by several congressional committees, the SEC and the New York Attorney General’s office. The Company is cooperating with the investigations. As previously reported, the Attorney General of the State of New York (the “NYAG”) has threatened to file a lawsuit against the Company and its Chief Executive Officer alleging violations of New York State’s Martin Act (the “Threatened Claim”). In connection with the Threatened Claim, on June 15, 2021 the Supreme Court of the State of New York in New York County issued an order providing for additional document production by the Company to the NYAG and the taking by the NYAG of investigative testimony of the Company’s Chief Executive Officer and General Counsel. The Company has completed its document production and its officers have provided the testimony as contemplated by such order. The Company intends to vigorously defend itself against the Threatened Claim should it be filed. 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 and claims arising out of Kodak’s licensing its brand. 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 9 - Guarantees
Note 9 - Guarantees | 9 Months Ended |
Sep. 30, 2021 | |
Guarantees [Abstract] | |
Guarantees | NOTE 9: GUARANTEES In connection with the settlement of certain of the Company’s historical environmental liabilities at Eastman Business Park, a more than 1,200-acre technology center and industrial complex in Rochester, New York, in the event the historical liabilities exceed $99 million, the Company will become liable for 50% of the portion above $99 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, 2020 to September 30, 2021, 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, 2020 $ 19 New extended warranty and maintenance arrangements deferred 67 Recognition of extended warranty and maintenance arrangement revenue (68 ) Deferred revenue on extended warranties as of September 30, 2021 $ 18 |
Note 10 - Revenue
Note 10 - Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | NOTE 10: REVENUE Disaggregation of Revenue The following tables present revenue disaggregated by major product, portfolio summary and geography. Major Product: Three Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Plates, inks and other consumables $ 134 $ 18 $ 7 $ — $ — $ 159 Ongoing service arrangements (1) 20 33 1 — — 54 Total annuities 154 51 8 — — 213 Equipment & software 12 7 — — — 19 Film and chemicals — — 47 — — 47 Other (2) — — — 4 4 8 Total $ 166 $ 58 $ 55 $ 4 $ 4 $ 287 Nine Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Plates, inks and other consumables $ 389 $ 50 $ 17 $ — $ — $ 456 Ongoing service arrangements (1) 60 101 4 — — 165 Total annuities 449 151 21 — — 621 Equipment & software 34 33 — — — 67 Film and chemicals — — 133 — — 133 Other (2) — — 1 10 11 22 Total $ 483 $ 184 $ 155 $ 10 $ 11 $ 843 Three Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Plates, inks and other consumables $ 114 $ 15 $ 5 $ — $ — $ 134 Ongoing service arrangements (1) 20 33 1 — — 54 Total annuities 134 48 6 — — 188 Equipment & software 12 8 — — — 20 Film and chemicals — — 36 — — 36 Other (2) — — 2 3 3 8 Total $ 146 $ 56 $ 44 $ 3 $ 3 $ 252 Nine Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Plates, inks and other consumables $ 330 $ 45 $ 18 $ — $ — $ 393 Ongoing service arrangements (1) 60 97 2 — — 159 Total annuities 390 142 20 — — 552 Equipment & software 29 31 — — — 60 Film and chemicals — — 97 — — 97 Other (2) — — 7 8 8 23 Total $ 419 $ 173 $ 124 $ 8 $ 8 $ 732 (1) (2) Product Portfolio Summary: Three Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Growth engines (1) $ 56 $ 32 $ — $ — $ — $ 88 Strategic other businesses (2) 110 14 55 4 4 187 Planned declining businesses (3) — 12 — — — 12 Total $ 166 $ 58 $ 55 $ 4 $ 4 $ 287 Nine Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Growth engines (1) $ 156 $ 105 — — $ — $ 261 Strategic other businesses (2) 327 42 155 10 11 545 Planned declining businesses (3) — 37 — — — 37 Total $ 483 $ 184 $ 155 $ 10 $ 11 $ 843 Three Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Growth engines (1) $ 41 $ 32 $ 1 $ — $ — $ 74 Strategic other businesses (2) 105 12 42 3 3 165 Planned declining businesses (3) — 12 1 — — 13 Total $ 146 $ 56 $ 44 $ 3 $ 3 $ 252 Nine Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Growth engines (1) $ 112 $ 98 $ 2 $ — $ — $ 212 Strategic other businesses (2) 307 37 115 8 8 475 Planned declining businesses (3) — 38 7 — — 45 Total $ 419 $ 173 $ 124 $ 8 $ 8 $ 732 (1) (2) (3) Geography (1): Three Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total United States $ 36 $ 25 $ 40 $ 4 $ 4 $ 109 Canada 3 2 — — — 5 North America 39 27 40 4 4 114 Europe, Middle East and Africa 75 21 4 — — 100 Asia Pacific 44 9 11 — — 64 Latin America 8 1 — — — 9 Total $ 166 $ 58 $ 55 $ 4 $ 4 $ 287 Nine Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total United States $ 101 $ 78 $ 111 $ 10 $ 11 $ 311 Canada 9 7 1 — — 17 North America 110 85 112 10 11 328 Europe, Middle East and Africa 219 62 12 — — 293 Asia Pacific 132 34 31 — — 197 Latin America 22 3 — — — 25 Total $ 483 $ 184 $ 155 $ 10 $ 11 $ 843 Three Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total United States $ 29 $ 25 $ 30 $ 3 $ 3 $ 90 Canada 5 3 — — — 8 North America 34 28 30 3 3 98 Europe, Middle East and Africa 64 19 4 — — 87 Asia Pacific 41 8 10 — — 59 Latin America 7 1 — — — 8 Total $ 146 $ 56 $ 44 $ 3 $ 3 $ 252 Nine Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total United States $ 90 $ 77 $ 85 $ 8 $ 8 $ 268 Canada 11 6 1 — — 18 North America 101 83 86 8 8 286 Europe, Middle East and Africa 181 61 9 — — 251 Asia Pacific 116 26 29 — — 171 Latin America 21 3 — — — 24 Total $ 419 $ 173 $ 124 $ 8 $ 8 $ 732 (1) Contract Balances The timing of revenue recognition, billings and cash collections results in billed trade receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) in the Consolidated Statement of Financial Position. The contract assets are transferred to trade receivables when the rights to consideration become unconditional. The amount recorded for contract assets at both September 30, 2021 and December 31, 2020 was $2 million and is 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, 2021 and December 31, 2020 were $58 million and $64 million, respectively, of which $43 million and $47 million are reported in Other current liabilities, respectively, and $15 million and $17 million, respectively, are reported in Other long-term liabilities in the Consolidated Statement of Financial Position. Revenue recognized for the three and nine months ended September 30, 2021 and 2020 that was included in the contract liability balance at the beginning of the year was $9 million and $34 million in 2021, respectively, and $4 million and $35 million in 2020, respectively, and primarily represented revenue from prepaid service contracts and equipment revenue recognition. Contract liabilities as of September 30, 2021 included $19 million and $26 million of cash payments received during the three and nine months ended September 30, 2021 respectively. Contract liabilities as of September 30, 2020 included $21 million and $31 million of cash payments received during the three and nine months ended September 30, 2020, respectively. 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, 2021, 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 remainder of 2021, 30% in 2022, 20% in 2023, 15% in 2024 and 25% thereafter |
Note 11 - Other Operating Expen
Note 11 - Other Operating Expense (Income), Net | 9 Months Ended |
Sep. 30, 2021 | |
Other Operating Expense Income Net [Abstract] | |
Other Operating Expense (Income), Net | NOTE 11: OTHER OPERATING EXPENSE (INCOME), NET Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Expense (income): Legal settlements $ — $ — $ (7 ) $ — Loss (gain) on sale of assets (1) 1 — 1 (9 ) Asset impairments (2) — — — 3 Transition services agreement income — (1 ) — (5 ) Total $ 1 $ (1 ) $ (6 ) $ (11 ) (1) (2) |
Note 12 - Other (Income) Charge
Note 12 - Other (Income) Charges, Net | 9 Months Ended |
Sep. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Other (Income) Charges, Net | NOTE 12: OTHER (INCOME) CHARGES, NET Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Loss on foreign exchange transactions $ 1 $ 1 $ 2 $ 6 Change in fair value of embedded conversion features derivative liability (1) (3 ) 431 (3 ) 382 Other — — — (1 ) Total $ (2 ) $ 432 $ (1 ) $ 387 (1) |
Note 13 - Income Taxes
Note 13 - Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13: INCOME TAXES Kodak’s income tax provision and effective tax rate were as follows: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Earnings (loss) from operations before income taxes $ 9 $ (444 ) $ 35 $ (394 ) Effective tax rate 11.1 % (0.2 )% 14.3 % (42.4 )% Provision for income taxes 1 1 5 167 Provision (benefit) for income taxes at U.S. statutory tax rate 2 (93 ) 7 (83 ) Difference between tax at effective vs. statutory rate $ (1 ) $ 94 $ (2 ) $ 250 For the three months ended September 30, 2021, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% is primarily attributable to: (1) the impact related to existing valuation allowances associated with changes in net deferred tax assets from current earnings and losses, (2) the results from operations in jurisdictions outside the U.S. and (3) a benefit associated with foreign withholding taxes on undistributed earnings. For the nine months ended September 30, 2021, 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. During the quarter ended March 31, 2021, Kodak agreed to terms with a taxing authority outside the U.S. and settled open tax audits for years through 2014. For these years, Kodak originally recorded liabilities for unrecognized tax positions totaling $3 million (plus interest of approximately $4 million), which were substantially offset by pre-paid assets. For the three months ended September 30, 2020, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% is primarily attributable to: (1) the impact related to existing valuation allowances associated with changes in net deferred tax assets from current earnings and losses and (2) the results from operations in jurisdictions outside the U.S. For the nine months ended September 30, 2020, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% is primarily attributable to: (1) a provision of $167 million associated with the establishment of valuation allowances in certain outside U.S. jurisdictions, (2) the impact related to existing valuation allowances associated with changes in net deferred tax assets from current earnings and losses, (3) the results from operations in jurisdictions outside the U.S., (4) a provision associated with foreign withholding taxes on undistributed earnings and (5) changes in audit reserves. Kodak establishes valuation allowances for deferred income tax assets in accordance with U.S. GAAP, which provides that such valuation allowances shall be established unless realization of the income tax benefits is more likely than not. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. At each reporting period, Kodak considers the scheduled reversal of deferred tax liabilities and assets, available taxes in carryback periods, tax planning strategies and projected future taxable income in making this assessment. As of March 31, 2020, Kodak determined that it was more likely than not that deferred tax assets outside the U.S. which were not offset with valuation allowances as of March 31, 2020 would not be realized due to reductions in estimates of future profitability as a result of the COVID-19 pandemic in locations outside the U.S. Accordingly, Kodak recorded a provision of $167 million associated with the establishment of a valuation allowance on those deferred tax assets. Additionally, on February 21, 2020, Kodak agreed to terms with the IRS and settled the federal audit for calendar years 2013 and 2014. For these years, Kodak originally recorded a federal unrecognized tax position totaling $41 million, which was fully offset by tax attributes. This settlement resulted in an increase in net deferred tax assets and was fully offset by a corresponding increase in Kodak’s U.S. valuation allowance, resulting in no net tax benefit. |
Note 14 - Retirement Plans and
Note 14 - Retirement Plans and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans and Other Postretirement Benefits | NOTE 14: RETIREMENT PLANS AND OTHER POSTRETIREMENT BENEFITS Components of the net periodic benefit cost for all major U.S. and non-U.S. defined benefit plans are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in millions) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Major defined benefit plans: Service cost $ 3 $ 1 $ 2 $ 1 $ 8 $ 3 $ 8 $ 3 Interest cost 12 2 21 2 36 4 64 6 Expected return on plan assets (42 ) (4 ) (48 ) (5 ) (126 ) (11 ) (146 ) (14 ) Amortization of: Prior service credit (2 ) — (2 ) — (5 ) — (5 ) — Actuarial loss 7 2 4 2 22 6 11 5 Net pension (income) expense before special termination benefits (22 ) 1 (23 ) — (65 ) 2 (68 ) — Special termination benefits — — 1 — — — 2 — Net pension (income) expense from major plans (22 ) 1 (22 ) — (65 ) 2 (66 ) — Other plans — — — — — — — 1 Total net pension (income) expense $ (22 ) $ 1 $ (22 ) $ — $ (65 ) $ 2 $ (66 ) $ 1 The special termination benefits 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 that period. |
Note 15 - Earnings Per Share
Note 15 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 15: 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 computations include any dilutive effect of potential common shares. In periods with a net loss available to common shareholders, diluted earnings per share are calculated using weighted-average basic shares for that period, as utilizing diluted shares would be anti-dilutive to loss per share. A reconciliation of the amounts used to calculate basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020 follows: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Net income (loss) $ 8 $ (445 ) $ 30 $ (561 ) Less: Series B preferred stock cash and deemed dividends (1 ) — (3 ) — Less: Series C preferred stock in-kind and deemed dividends (2 ) — (4 ) — Less: Series A preferred stock cash and deemed dividends — (5 ) (3 ) (15 ) Plus: Expiration of Series A preferred stock embedded derivative — — 11 — Net income (loss) available to common shareholders - basic and diluted $ 5 $ (450 ) $ 31 $ (576 ) Three Months Ended Nine Months Ended September 30, September 30, (in millions of shares) 2021 2020 2021 2020 Weighted average shares — basic 78.6 64.8 78.3 50.8 Effect of dilutive securities Employee stock options 1.9 — 2.1 — Unvested restricted stock units 0.1 — 0.1 — Weighted average shares — diluted 80.6 64.8 80.5 50.8 The computation of diluted earnings per share for the three and nine months ended September 30, 2021 excluded the impact of (1) the assumed conversion of $25 million of Convertible Notes issued in 2021, (2) the assumed conversion of 1.0 million 1.0 million As a result of the net loss available to common shareholders for the three and nine months ended September 30, 2020, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding. If Kodak reported income available to common shareholders for the three and nine months ended September 30, 2020 the calculation of diluted earnings per share would have included the assumed vesting of 0.6 million and 0.5 million unvested restricted stock units, respectively. The calculation of diluted earnings per share for the three months ended September 30, 2020 would have also included the assumed conversion of 1.2 million outstanding employee stock options. The computation of diluted earnings per share for the three and nine months ended September 30, 2020 also excluded the impact of (1) the assumed conversion of 2.0 million shares of Series A Preferred Stock and (2) the assumed exercise of 3.1 million and 3.6 million outstanding employee stock options, respectively. |
Note 16 - Stock-based Compensat
Note 16 - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | NOTE 16: STOCK-BASED COMPENSATION On February 26, 2021 James V. Continenza, Executive Chairman and Chief Executive Officer of Kodak, and the Company entered into an Executive Chairman and CEO Agreement (the “New Employment Agreement”). The New Employment Agreement is effective for a three-year period beginning on February 26, 2021. Pursuant to the New Employment Agreement, Mr. Continenza will not have the right to exercise any stock options granted to him in February 2019 or July 2020 to the extent that, after giving effect to the issuance of the Company’s common stock resulting from such exercise, Mr. Continenza (together with his affiliates and any person acting as a group), would beneficially own more than 4.99% of the then issued and outstanding shares of Common Stock (the “Beneficial Ownership Limitation”). The Beneficial Ownership Limitation shall cease and be of no further force and effect upon a Change of Control (as such term is defined in the Company’s Amended and Restated 2013 Omnibus Incentive Plan). The restrictions on the exercisability of previous stock option awards are a modification of the original awards. As the February 2019 and July 2020 stock options were fully vested prior to the modification date and there was no incremental value provided in the modification, no additional compensation expense was recognized. Also pursuant to the New Employment Agreement, Mr. Continenza was granted 200,000 fully vested restricted stock units. The Company recognized $2 million of stock-based compensation expense associated with the grant of restricted stock units. |
Note 17 - Shareholders' Equity
Note 17 - Shareholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 17: SHAREHOLDERS’ EQUITY The Company has 560 million shares of authorized stock, consisting of: (i) 500 million shares of common stock, par value $0.01 per share and (ii) 60 million shares of preferred stock, no par value, issuable in one or more series. Common Stock As of September 30, 2021 and December 31, 2020, there were 78.6 million and 77.2 million shares of common stock outstanding, respectively. In the three months ended March 31, 2021 the Company issued 1.0 million shares of common stock pursuant to the Securities Purchase Agreement. Refer to Note 5, “Debt and Finance Leases” for information on the Securities Purchase Agreement. Preferred Stock Preferred stock issued and outstanding as of September 30, 2021 consisted of 1.0 million shares of Series B Preferred Stock and 1.0 million shares of Series C Preferred Stock. Preferred stock issued and outstanding as of December 31, 2020 consisted of 2.0 million shares of Series A Preferred Stock. Refer to Note 6, “Redeemable, Convertible Preferred Stock” for information on the changes in preferred stock. Treasury Stock Treasury stock consisted of approximately 0.8 million shares and 0.7 million shares as of September 30, 2021 and December 31, 2020, respectively. |
Note 18 - Other Comprehensive I
Note 18 - Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |
Other Comprehensive Income (Loss) | NOTE 18: 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) 2021 2020 2021 2020 Currency translation adjustments $ — $ (1 ) $ 3 $ (17 ) Pension and other postretirement benefit plan changes Newly established net actuarial (loss) gain — — (1 ) 6 Tax Provision — — — — Newly established net actuarial (loss) gain, net of tax — — (1 ) 6 Reclassification adjustments: Amortization of prior service credit (1) (2 ) (2 ) (6 ) (6 ) Amortization of actuarial losses (1) 9 5 28 15 Recognition of losses due to curtailments and settlements — — — 1 Total reclassification adjustments 7 3 22 10 Tax provision — — — (1 ) Reclassification adjustments, net of tax 7 3 22 9 Pension and other postretirement benefit plan changes, net of tax 7 3 21 15 Other comprehensive income (loss) $ 7 $ 2 $ 24 $ (2 ) (1) |
Note 19 - Segment Information
Note 19 - Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 19: SEGMENT INFORMATION Kodak has four reportable segments: Traditional Printing, Digital Printing, Advanced Materials and Chemicals and Brand. A description of Kodak’s reportable segments follows. Traditional Printing : The Traditional Printing segment is comprised of Prepress Solutions. Digital Printing : The Digital Printing segment is comprised of four lines of business: the Electrophotographic Printing Solutions business, the Prosper business, the Versamark business and the Kodak Software business. Advanced Materials and Chemicals: The Advanced Materials and Chemicals segment is comprised of four lines of business: Industrial Film and Chemicals, Motion Picture, Advanced Materials and Functional Printing and Kodak Services for Business (“KSB”). KSB was sold to Swiss Post Solutions in December 2020. Brand : The Brand segment contains the brand licensing business. All Other : All Other is comprised of the operations of the Eastman Business Park, a more than 1,200-acre technology center and industrial complex Segmen t financial information is shown below: Segment Revenues Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Traditional Printing $ 166 $ 146 $ 483 $ 419 Digital Printing 58 56 184 173 Advanced Materials and Chemicals 55 44 155 124 Brand 4 3 10 8 All Other 4 3 11 8 Consolidated total $ 287 $ 252 $ 843 $ 732 Segment Operational EBITDA and Consolidated Income (Loss) from Operations Before Income Taxes Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Traditional Printing $ 5 $ 5 $ 16 $ 7 Digital Printing (2 ) (3 ) (2 ) (8 ) Advanced Materials and Chemicals — (6 ) (3 ) (22 ) Brand 3 3 8 7 Total of reportable segments 6 (1 ) 19 (16 ) All Other — — 1 — Depreciation and amortization (7 ) (9 ) (23 ) (29 ) Restructuring costs and other — (1 ) (1 ) (9 ) Stock based compensation (2 ) (17 ) (6 ) (18 ) Consulting and other costs (1) (4 ) (4 ) (13 ) (5 ) Idle costs (2) (1 ) (1 ) (2 ) (2 ) Other operating (expense) income, net, excluding income from transition services agreement (3) (1 ) — 6 6 Interest expense (4) (9 ) (3 ) (23 ) (11 ) Pension income excluding service cost component (4) 25 26 76 79 Loss on early extinguishment of debt (4) — (2 ) - (2 ) Other income (charges) net (4) 2 (432 ) 1 (387 ) Consolidated income (loss) from operations before income taxes $ 9 $ (444 ) $ 35 $ (394 ) (1) Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives, investigations and litigation. (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) $1 million and $5 million of income from the transition services agreement with the purchaser of Kodak’s Flexographic Packaging Business was recognized in the three and nine months ended September 30, 2020, respectively. No income has been recognized in 2021. 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. Kodak decreased workers’ compensation reserves by approximately $1 million and $4 million in the three and nine months ended September 30, 2021, respectively, driven by changes in discount rates. The decrease in reserves in the three and nine months ended September 30, 2021 impacted gross profit by approximately $1 million and $3 million, respectively. Selling, general and administrative expenses (“SG&A”) were not impacted in the three months ended September 30, 2021 and were impacted by approximately $1 million in the nine months ended September 30, 2021. Kodak increased workers’ compensation reserves by approximately $9 million in the third quarter of 2020 driven by changes in discount rates. The increase in reserves in the third quarter of 2020 impacted gross profit by approximately $6 million, SG&A by approximately $2 million and R&D by approximately $1 million. Segment Measure of Profit and Loss Kodak’s segment measure of profit and loss is an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”). As demonstrated in the above table, Operational EBITDA represents the earnings (loss) from operations excluding the provision for income taxes; non-service cost components of pension and other postemployment benefits (“OPEB”) income; loss on early extinguishment of debt, depreciation and amortization expense; restructuring costs; stock-based compensation expense; consulting and other costs; idle costs; other operating (expense) income, net (unless otherwise indicated); interest expense and other income (charges), net. Kodak’s segments are measured using Operational EBITDA both before and after allocation of corporate 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 |
Note 20 - Financial Instruments
Note 20 - Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | NOTE 20: 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 income (loss) at the same time that the exposed assets and liabilities are remeasured through net income (loss) (both in Other (income) charges, net in the Consolidated Statement of Operations). The notional amount of such contracts open at September 30, 2021 and December 31, 2020 was approximately $317 million and $361 million, respectively. The majority of the contracts of this type held by Kodak as of September 30, 2021 and December 31, 2020 are denominated in euros, Chinese renminbi and Japanese yen. 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) 2021 2020 2021 2020 Net (gain) loss from derivatives not designated as hedging instruments $ (1 ) $ (4 ) $ 1 $ (6 ) Kodak had no derivatives designated as hedging instruments for the three and nine months ended September 30, 2021 and 2020. In the event of a default under the Company’s Credit Agreements, or a default under any derivative contract or similar obligation of Kodak, subject to certain minimum thresholds, the derivative counterparties would have the right, although not the 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 5, “Debt and Finance Leases”, the Company concluded that the Convertible Notes are c onsidered more akin to a debt-type instrument and that the economic characteristics and risks of the embedded conversion features are not considered clearly and closely related to the Convertible Notes. The embedded conversion features not considered clea rly and closely related are the conversion at the option of the holder (“Optional Conversion”), the mandatory conversion by Kodak (“Mandatory Conversion”) and the conversion in the event of a fundamental transaction by the holder at the then applicable con version rate (“Fundamental Change”). Accordingly, these embedded conversion features were bifurcated from the Convertible Notes and separately accounted for on a combined basis as a single derivative asset or liability. The derivative was in a liability position at September 30, 2021 and was 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 included in Other (income) charges, net in the Consolidated Statement of Operations. As discussed in Note 6, “Redeemable, Convertible, Preferred Stock”, the Company concluded that the Series B Preferred Stock and the Series C Preferred Stock are considered more akin to a debt-type instrument and that the economic characteristics and risks of the conversion in the event of a Fundamental Change is not considered clearly and closely related to the Series B and Series C Preferred Stock. Accordingly, this embedded conversion feature was bifurcated from both the Series B and Series C Preferred Stock and both are separately accounted for as a single derivative asset or liability. Both derivatives were in a liability position at September 30, 2021 and were reported in Other long-term liabilities in the Consolidated Statement of Financial Position. The derivatives are being accounted for at fair value with changes in fair value included in Other (income) charges, net in the Consolidated Statement of Operations. As discussed in Note 6, “Redeemable, Convertible, Preferred Stock”, the Company concluded that the Series A Preferred Stock was 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 embedded conversion features were revalued as of February 26, 2021 when the Company repurchased one million of the Series A Preferred Stock and exchanged the remaining one million shares of Series A Preferred Stock for Series B Preferred Stock. The revaluation as of February 26, 2021 resulted in the recognition of $2 million of net expense which was included in Other (income) charges, net in the Consolidated Statement of Operations. With the repurchase and exchange of the shares of the Series A Preferred Stock the embedded conversion features derivative liability expired. The derivative was in a liability position at December 31, 2020 and was reported in Other current liabilities in the Consolidated Statement of Financial Position. The derivative was being accounted for at fair value with changes in fair value included in Other (income) 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 both September 30, 2021 and December 31, 2020 was $1 million. The gross fair value of foreign currency forward contracts in a liability position as of both September 30, 2021 and December 31, 2020 was $0 million. Transfers between levels of the fair value hierarchy are recognized based on the actual date of the event or change in circumstances that caused the transfer. There were no transfers between levels of the fair value hierarchy during the three and nine months ended September 30, 2021. The fair value of the embedded conversion features derivatives was calculated using unobservable inputs (Level 3 fair measurements). The value of the embedded derivatives associated with the Convertible Notes and Series A, Series B and Series C Preferred Stock were calculated using a binomial lattice model. The following tables present the key inputs in the determination of fair value for the embedded conversion features: Convertible Notes: Valuation Date February 26, September 30, 2021 2021 (Inception) Total value of embedded derivative liability ($ millions) $ 7 $ 12 Kodak's closing stock price $ 6.81 $ 8.62 Expected stock price volatility 47.50 % 70.00 % Risk free rate 0.90 % 0.80 % Implied credit spread on the Convertible Notes 18.41 % 18.25 % Series B Preferred Stock: Valuation Date February 26, September 30, 2021 2021 (Inception) Total value of embedded derivative liability ($ millions) $ 1 $ 1 Kodak's closing stock price $ 6.81 $ 8.62 Expected stock price volatility 47.50 % 70.00 % Risk free rate 0.90 % 0.80 % Implied credit spread on the preferred stock 19.91 % 19.75 % Series C Preferred Stock: Valuation Date March 30, February 26, 2021 2021 September 30, 2021 (Inception - Final Sale) (Inception - Initial Sale) Total value of embedded derivative liability ($ millions) $ 2 $ 1 $ 1 Kodak's closing stock price $ 6.81 $ 8.05 $ 8.62 Expected stock price volatility 47.50 % 70.00 % 70.00 % Risk free rate 0.90 % 0.94 % 0.80 % Implied credit spread on the preferred stock 21.91 % 21.75 % 21.75 % Series A Preferred Stock: Valuation Date February 26, December 31, 2021 2020 Total value of embedded derivative liability ($ millions) $ 11 $ 9 Kodak's closing stock price $ 8.62 $ 8.14 Expected stock price volatility 137.53 % 133.44 % Risk free rate 0.07 % 0.10 % Implied credit spread on the preferred stock 14.02 % 11.97 % The Fundamental Change values at issuance were calculated as the difference between the total value of the Convertible Notes, Series B or Series C Preferred Stock, as applicable, and the sum of the net present value of the cash flows if the Convertible Not es are repaid at their maturity date or Series B and Series C Preferred Stock are redeemed on their redemption date and the values of the other embedded derivatives. The Fundamental Change values reduce the value of the embedded conversion features deriva tive liability. Other than events that alter the likelihood of a fundamental change or reorganization event, the value of the Fundamental Change reflects the value as of the issuance date, amortized for the passage of time. The fair values of long-term debt (Level 2 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 $276 million and $17 million at September 30, 2021 and December 31, 2020, respectively. The carrying values of cash and cash equivalents, restricted cash and the current portion of long-term debt approximate their fair values at both September 30, 2021 and December 31, 2020. |
Basis of Presentation and Recen
Basis of Presentation and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020 (the “2020 Form 10-K”). |
Reclassifications | Reclassifications Certain amounts for prior periods have been reclassified to conform to the current period classification in the disaggregated revenue information for the Advanced Materials and Chemicals segment. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20)” and “Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies accounting for convertible instruments. More convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted EPS calculation in certain circumstances. The ASU is effective January 1, 2024 for Kodak. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which removes certain exceptions related to intra-period tax allocations and deferred tax accounting on outside basis differences in foreign subsidiaries and equity method investments. Additionally, it provides other simplifying measures for the accounting for income taxes. The new standard is effective for fiscal years beginning after December 15, 2020 (January 1, 2021 for Kodak). Kodak adopted this ASU prospectively on January 1, 2021 and it did not have any impact on Kodak’s consolidated financial statements. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In July 2021, the FASB issued ASU 2021-05, “Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments”. Under this ASU, lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (1) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in Topic 842 and (2) the lessor would have otherwise recognized a day-one loss. The amendments are effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years for all public business entities (January 1, 2022 for Kodak). Kodak adopted this ASU prospectively on October 1, 2021. The adoption did not have an impact on Kodak’s consolidated financial statements. 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 ASUs 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-02 and 2020-03) requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. In addition, the ASU requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The ASU is effective January 1, 2023 for Kodak, and interim periods within that fiscal year. Early adoption is permitted. is currently evaluating the impact of this ASU. |
Note 2 - Cash, Cash Equivalen_2
Note 2 - Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 Consolidated 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) 2021 2020 Cash and cash equivalents $ 380 $ 196 Restricted cash reported in Other current assets 7 7 Restricted cash 64 53 Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows $ 451 $ 256 |
Note 3 - Inventories, Net (Tabl
Note 3 - Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | September 30, December 31, (in millions) 2021 2020 Finished goods $ 113 $ 97 Work in process 67 54 Raw materials 60 55 Total $ 240 $ 206 |
Note 4 - Other Long-term Asse_2
Note 4 - Other Long-term Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Schedule of Other Long-Term Assets | September 30, December 31, (in millions) 2021 2020 Pension assets $ 347 $ 262 Estimated workers' compensation recoveries 17 18 Long-term receivables 11 11 Other 27 26 Total $ 402 $ 317 |
Note 5 - Debt And Finance Lea_2
Note 5 - Debt And Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 and December 31, 2020: (in millions) Type Maturity Weighted-Average Effective Interest Rate September 30, 2021 December 31, 2020 Current portion: RED-Rochester, LLC 2033 11.46% $ 1 $ 1 Finance leases Various Various 1 1 2 2 Non-current portion: Term note 2026 13.86% 222 — Convertible debt 2026 17.27% 14 — RED-Rochester, LLC 2033 11.46% 12 12 Finance leases Various Various 1 3 Other debt Various Various 1 2 250 17 $ 252 $ 19 |
Schedule of Maturities of Debt and Finance Leases Outstanding | Annual maturities of debt and finance leases outstanding at September 30, 2021 were as follows: Carrying Value Maturity Value Q4 2021 $ 1 $ 1 2022 2 2 2023 1 1 2024 1 1 2025 1 1 2026 and thereafter 246 317 Total $ 252 $ 323 |
Note 6 - Redeemable, Converti_2
Note 6 - Redeemable, Convertible Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Redeemable Convertible Preferred Stock | Redeemable convertible preferred stock was as follows at September 30, 2021 and December 31, 2020: September 30, December 31, (in millions) 2021 2020 Series A preferred stock $ — $ 191 Series B preferred stock 94 — Series C preferred stock 101 — Total $ 195 $ 191 |
Note 7 - Leases (Tables)
Note 7 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Summary of Income Recognized on Lease Arrangements | Income recognized on operating lease arrangements for the three and nine months ended September 30, 2021 and 2020 is presented below. Income recognized for sales-type lease arrangements is $1 million and $2 million for the three and nine months ended September 30, 2021, respectively and $0 million for both the three and nine months ended September 30, 2020. Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Lease income - operating leases: Lease income $ 2 $ 2 $ 6 $ 6 Sublease income — — — 2 Variable lease income 1 1 3 3 Total lease income $ 3 $ 3 $ 9 $ 11 |
Note 9 - Guarantees (Tables)
Note 9 - Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Guarantees [Abstract] | |
Deferred Revenue, by Arrangement | (in millions) Deferred revenue on extended warranties as of December 31, 2020 $ 19 New extended warranty and maintenance arrangements deferred 67 Recognition of extended warranty and maintenance arrangement revenue (68 ) Deferred revenue on extended warranties as of September 30, 2021 $ 18 |
Note 10 - Revenue (Tables)
Note 10 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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. Major Product: Three Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Plates, inks and other consumables $ 134 $ 18 $ 7 $ — $ — $ 159 Ongoing service arrangements (1) 20 33 1 — — 54 Total annuities 154 51 8 — — 213 Equipment & software 12 7 — — — 19 Film and chemicals — — 47 — — 47 Other (2) — — — 4 4 8 Total $ 166 $ 58 $ 55 $ 4 $ 4 $ 287 Nine Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Plates, inks and other consumables $ 389 $ 50 $ 17 $ — $ — $ 456 Ongoing service arrangements (1) 60 101 4 — — 165 Total annuities 449 151 21 — — 621 Equipment & software 34 33 — — — 67 Film and chemicals — — 133 — — 133 Other (2) — — 1 10 11 22 Total $ 483 $ 184 $ 155 $ 10 $ 11 $ 843 Three Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Plates, inks and other consumables $ 114 $ 15 $ 5 $ — $ — $ 134 Ongoing service arrangements (1) 20 33 1 — — 54 Total annuities 134 48 6 — — 188 Equipment & software 12 8 — — — 20 Film and chemicals — — 36 — — 36 Other (2) — — 2 3 3 8 Total $ 146 $ 56 $ 44 $ 3 $ 3 $ 252 Nine Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Plates, inks and other consumables $ 330 $ 45 $ 18 $ — $ — $ 393 Ongoing service arrangements (1) 60 97 2 — — 159 Total annuities 390 142 20 — — 552 Equipment & software 29 31 — — — 60 Film and chemicals — — 97 — — 97 Other (2) — — 7 8 8 23 Total $ 419 $ 173 $ 124 $ 8 $ 8 $ 732 (1) (2) Product Portfolio Summary: Three Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Growth engines (1) $ 56 $ 32 $ — $ — $ — $ 88 Strategic other businesses (2) 110 14 55 4 4 187 Planned declining businesses (3) — 12 — — — 12 Total $ 166 $ 58 $ 55 $ 4 $ 4 $ 287 Nine Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Growth engines (1) $ 156 $ 105 — — $ — $ 261 Strategic other businesses (2) 327 42 155 10 11 545 Planned declining businesses (3) — 37 — — — 37 Total $ 483 $ 184 $ 155 $ 10 $ 11 $ 843 Three Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Growth engines (1) $ 41 $ 32 $ 1 $ — $ — $ 74 Strategic other businesses (2) 105 12 42 3 3 165 Planned declining businesses (3) — 12 1 — — 13 Total $ 146 $ 56 $ 44 $ 3 $ 3 $ 252 Nine Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total Growth engines (1) $ 112 $ 98 $ 2 $ — $ — $ 212 Strategic other businesses (2) 307 37 115 8 8 475 Planned declining businesses (3) — 38 7 — — 45 Total $ 419 $ 173 $ 124 $ 8 $ 8 $ 732 (1) (2) (3) Geography (1): Three Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total United States $ 36 $ 25 $ 40 $ 4 $ 4 $ 109 Canada 3 2 — — — 5 North America 39 27 40 4 4 114 Europe, Middle East and Africa 75 21 4 — — 100 Asia Pacific 44 9 11 — — 64 Latin America 8 1 — — — 9 Total $ 166 $ 58 $ 55 $ 4 $ 4 $ 287 Nine Months Ended September 30, 2021 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total United States $ 101 $ 78 $ 111 $ 10 $ 11 $ 311 Canada 9 7 1 — — 17 North America 110 85 112 10 11 328 Europe, Middle East and Africa 219 62 12 — — 293 Asia Pacific 132 34 31 — — 197 Latin America 22 3 — — — 25 Total $ 483 $ 184 $ 155 $ 10 $ 11 $ 843 Three Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total United States $ 29 $ 25 $ 30 $ 3 $ 3 $ 90 Canada 5 3 — — — 8 North America 34 28 30 3 3 98 Europe, Middle East and Africa 64 19 4 — — 87 Asia Pacific 41 8 10 — — 59 Latin America 7 1 — — — 8 Total $ 146 $ 56 $ 44 $ 3 $ 3 $ 252 Nine Months Ended September 30, 2020 (in millions) Traditional Printing Digital Printing Advanced Materials and Chemicals Brand All Other Total United States $ 90 $ 77 $ 85 $ 8 $ 8 $ 268 Canada 11 6 1 — — 18 North America 101 83 86 8 8 286 Europe, Middle East and Africa 181 61 9 — — 251 Asia Pacific 116 26 29 — — 171 Latin America 21 3 — — — 24 Total $ 419 $ 173 $ 124 $ 8 $ 8 $ 732 (1) |
Note 11 - Other Operating Exp_2
Note 11 - Other Operating Expense (Income), Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Operating Expense Income Net [Abstract] | |
Summary of Other Operating Expense (Income), by Component | Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Expense (income): Legal settlements $ — $ — $ (7 ) $ — Loss (gain) on sale of assets (1) 1 — 1 (9 ) Asset impairments (2) — — — 3 Transition services agreement income — (1 ) — (5 ) Total $ 1 $ (1 ) $ (6 ) $ (11 ) (1) (2) |
Note 12 - Other (Income) Char_2
Note 12 - Other (Income) Charges, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Schedule of Other (Income) Charges, Net | Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Loss on foreign exchange transactions $ 1 $ 1 $ 2 $ 6 Change in fair value of embedded conversion features derivative liability (1) (3 ) 431 (3 ) 382 Other — — — (1 ) Total $ (2 ) $ 432 $ (1 ) $ 387 (1) |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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) 2021 2020 2021 2020 Earnings (loss) from operations before income taxes $ 9 $ (444 ) $ 35 $ (394 ) Effective tax rate 11.1 % (0.2 )% 14.3 % (42.4 )% Provision for income taxes 1 1 5 167 Provision (benefit) for income taxes at U.S. statutory tax rate 2 (93 ) 7 (83 ) Difference between tax at effective vs. statutory rate $ (1 ) $ 94 $ (2 ) $ 250 |
Note 14 - Retirement Plans an_2
Note 14 - Retirement Plans and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 (in millions) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Major defined benefit plans: Service cost $ 3 $ 1 $ 2 $ 1 $ 8 $ 3 $ 8 $ 3 Interest cost 12 2 21 2 36 4 64 6 Expected return on plan assets (42 ) (4 ) (48 ) (5 ) (126 ) (11 ) (146 ) (14 ) Amortization of: Prior service credit (2 ) — (2 ) — (5 ) — (5 ) — Actuarial loss 7 2 4 2 22 6 11 5 Net pension (income) expense before special termination benefits (22 ) 1 (23 ) — (65 ) 2 (68 ) — Special termination benefits — — 1 — — — 2 — Net pension (income) expense from major plans (22 ) 1 (22 ) — (65 ) 2 (66 ) — Other plans — — — — — — — 1 Total net pension (income) expense $ (22 ) $ 1 $ (22 ) $ — $ (65 ) $ 2 $ (66 ) $ 1 |
Note 15 - Earnings Per Share (T
Note 15 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 the three and nine months ended September 30, 2021 and 2020 follows: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Net income (loss) $ 8 $ (445 ) $ 30 $ (561 ) Less: Series B preferred stock cash and deemed dividends (1 ) — (3 ) — Less: Series C preferred stock in-kind and deemed dividends (2 ) — (4 ) — Less: Series A preferred stock cash and deemed dividends — (5 ) (3 ) (15 ) Plus: Expiration of Series A preferred stock embedded derivative — — 11 — Net income (loss) available to common shareholders - basic and diluted $ 5 $ (450 ) $ 31 $ (576 ) Three Months Ended Nine Months Ended September 30, September 30, (in millions of shares) 2021 2020 2021 2020 Weighted average shares — basic 78.6 64.8 78.3 50.8 Effect of dilutive securities Employee stock options 1.9 — 2.1 — Unvested restricted stock units 0.1 — 0.1 — Weighted average shares — diluted 80.6 64.8 80.5 50.8 |
Note 18 - Other Comprehensive_2
Note 18 - Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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) 2021 2020 2021 2020 Currency translation adjustments $ — $ (1 ) $ 3 $ (17 ) Pension and other postretirement benefit plan changes Newly established net actuarial (loss) gain — — (1 ) 6 Tax Provision — — — — Newly established net actuarial (loss) gain, net of tax — — (1 ) 6 Reclassification adjustments: Amortization of prior service credit (1) (2 ) (2 ) (6 ) (6 ) Amortization of actuarial losses (1) 9 5 28 15 Recognition of losses due to curtailments and settlements — — — 1 Total reclassification adjustments 7 3 22 10 Tax provision — — — (1 ) Reclassification adjustments, net of tax 7 3 22 9 Pension and other postretirement benefit plan changes, net of tax 7 3 21 15 Other comprehensive income (loss) $ 7 $ 2 $ 24 $ (2 ) (1) |
Note 19 - Segment Information (
Note 19 - Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Traditional Printing $ 166 $ 146 $ 483 $ 419 Digital Printing 58 56 184 173 Advanced Materials and Chemicals 55 44 155 124 Brand 4 3 10 8 All Other 4 3 11 8 Consolidated total $ 287 $ 252 $ 843 $ 732 Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2021 2020 2021 2020 Traditional Printing $ 5 $ 5 $ 16 $ 7 Digital Printing (2 ) (3 ) (2 ) (8 ) Advanced Materials and Chemicals — (6 ) (3 ) (22 ) Brand 3 3 8 7 Total of reportable segments 6 (1 ) 19 (16 ) All Other — — 1 — Depreciation and amortization (7 ) (9 ) (23 ) (29 ) Restructuring costs and other — (1 ) (1 ) (9 ) Stock based compensation (2 ) (17 ) (6 ) (18 ) Consulting and other costs (1) (4 ) (4 ) (13 ) (5 ) Idle costs (2) (1 ) (1 ) (2 ) (2 ) Other operating (expense) income, net, excluding income from transition services agreement (3) (1 ) — 6 6 Interest expense (4) (9 ) (3 ) (23 ) (11 ) Pension income excluding service cost component (4) 25 26 76 79 Loss on early extinguishment of debt (4) — (2 ) - (2 ) Other income (charges) net (4) 2 (432 ) 1 (387 ) Consolidated income (loss) from operations before income taxes $ 9 $ (444 ) $ 35 $ (394 ) (1) Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives, investigations and litigation. (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) $1 million and $5 million of income from the transition services agreement with the purchaser of Kodak’s Flexographic Packaging Business was recognized in the three and nine months ended September 30, 2020, respectively. No income has been recognized in 2021. 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 20 - Financial Instrumen_2
Note 20 - Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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) 2021 2020 2021 2020 Net (gain) loss from derivatives not designated as hedging instruments $ (1 ) $ (4 ) $ 1 $ (6 ) |
Derivative Liability Key Inputs in Determination of Fair Value for Embedded Conversion Features | The following tables present the key inputs in the determination of fair value for the embedded conversion features: Convertible Notes: Valuation Date February 26, September 30, 2021 2021 (Inception) Total value of embedded derivative liability ($ millions) $ 7 $ 12 Kodak's closing stock price $ 6.81 $ 8.62 Expected stock price volatility 47.50 % 70.00 % Risk free rate 0.90 % 0.80 % Implied credit spread on the Convertible Notes 18.41 % 18.25 % Series B Preferred Stock: Valuation Date February 26, September 30, 2021 2021 (Inception) Total value of embedded derivative liability ($ millions) $ 1 $ 1 Kodak's closing stock price $ 6.81 $ 8.62 Expected stock price volatility 47.50 % 70.00 % Risk free rate 0.90 % 0.80 % Implied credit spread on the preferred stock 19.91 % 19.75 % Series C Preferred Stock: Valuation Date March 30, February 26, 2021 2021 September 30, 2021 (Inception - Final Sale) (Inception - Initial Sale) Total value of embedded derivative liability ($ millions) $ 2 $ 1 $ 1 Kodak's closing stock price $ 6.81 $ 8.05 $ 8.62 Expected stock price volatility 47.50 % 70.00 % 70.00 % Risk free rate 0.90 % 0.94 % 0.80 % Implied credit spread on the preferred stock 21.91 % 21.75 % 21.75 % Series A Preferred Stock: Valuation Date February 26, December 31, 2021 2020 Total value of embedded derivative liability ($ millions) $ 11 $ 9 Kodak's closing stock price $ 8.62 $ 8.14 Expected stock price volatility 137.53 % 133.44 % Risk free rate 0.07 % 0.10 % Implied credit spread on the preferred stock 14.02 % 11.97 % |
Note 2 - Schedule of Reconcilia
Note 2 - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 380 | $ 196 | ||
Restricted cash reported in Other current assets | 7 | 7 | ||
Restricted cash | 64 | 53 | ||
Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows | $ 451 | $ 256 | $ 241 | $ 290 |
Note 2 - Cash, Cash Equivalen_3
Note 2 - Cash, Cash Equivalents and Restricted Cash (Details Textual) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Cash Collateralized Letter of Credit Facility [Member] | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 45 | |
ABL Credit Agreement [Member] | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 35 | |
Brazil [Member] | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Restricted cash | 3 | 4 |
China [Member] | Lucky HuaGuang Graphics Co Ltd [Member] | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Escrow deposit | $ 14 | $ 12 |
Note 3 - Inventories (Details)
Note 3 - Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 113 | $ 97 |
Work in process | 67 | 54 |
Raw materials | 60 | 55 |
Total | $ 240 | $ 206 |
Note 4 - Schedule of Other Long
Note 4 - Schedule of Other Long-Term Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Pension assets | $ 347 | $ 262 |
Estimated workers' compensation recoveries | 17 | 18 |
Long-term receivables | 11 | 11 |
Other | 27 | 26 |
Total | $ 402 | $ 317 |
Note 4 - Other Long-term Asse_3
Note 4 - Other Long-term Assets (Details Textual) | Sep. 30, 2021 |
Maximum [Member] | |
Other Long-term Assets [Line Items] | |
Percentage of other long-term assets | 5.00% |
Note 5 - Debt and Finance Lea_3
Note 5 - Debt and Finance Leases and Related Maturities and Interest Rates (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Carrying Value | $ 252 | $ 19 |
Current Portion, Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 2 | 2 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 250 | 17 |
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 | 1 |
RED-Rochester, LLC [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2033 | |
Weighted-Average Effective Interest Rate | 11.46% | |
Carrying Value | $ 12 | 12 |
Finance leases [Member] | Current Portion, Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | 1 | 1 |
Finance leases [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 1 | 3 |
Term Note [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2026 | |
Weighted-Average Effective Interest Rate | 13.86% | |
Carrying Value | $ 222 | |
Convertible Debt [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2026 | |
Weighted-Average Effective Interest Rate | 17.27% | |
Carrying Value | $ 14 | |
Other Debt [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 1 | $ 2 |
Note 5 - Annual Maturities of L
Note 5 - Annual Maturities of Long-Term Debt and Finance Leases (Details) $ in Millions | Sep. 30, 2021USD ($) |
Annual Maturities Of Long Term Debt [Abstract] | |
Q4 2021 | $ 1 |
2022 | 2 |
2023 | 1 |
2024 | 1 |
2025 | 1 |
2026 and thereafter | 246 |
Total | 252 |
Q4 2021 | 1 |
2022 | 2 |
2023 | 1 |
2024 | 1 |
2025 | 1 |
2026 and thereafter | 317 |
Total | $ 323 |
Note 5 - Debt and Finance Lea_4
Note 5 - Debt and Finance Leases (Details Textual) | Mar. 30, 2021 | Feb. 26, 2021USD ($)$ / sharesshares | May 24, 2019USD ($) | Sep. 30, 2021USD ($)$ / sharesshares | Feb. 25, 2021USD ($) | Dec. 31, 2020USD ($) |
Debt And Capital Leases [Line Items] | ||||||
Proceeds from issuance of debt | $ 215,000,000 | |||||
Proceeds from sale of common stock | $ 10,000,000 | |||||
Percentage of Stock of Material Domestic Subsidiaries Securing Credit Agreement | 100.00% | |||||
Percentage of Stock of Material First Tier Foreign Subsidiaries Securing Credit Agreement | 65.00% | |||||
Amended and Restated ABL Credit Agreement [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Debt instrument, maturity date | Feb. 26, 2024 | |||||
Credit facility, maturity date | The Amended ABL Credit Agreement amends the ABL Credit Agreement to, among other things, (i) extend the maturity date to February 26, 2024 or the date that is 90 days prior to the earliest scheduled maturity date or mandatory redemption date of any of the Company’s Term Loans, Convertible Notes, Series B Preferred Stock, Series C Preferred Stock or any refinancings of any of the foregoing | |||||
Line of credit facility, maximum borrowing capacity | $ 90,000,000 | $ 110,000,000 | ||||
Long-term line of credit | $ 42,000,000 | $ 90,000,000 | ||||
Unused line fee payment description | The Company will pay an unused line fee of 37.5-50 basis points per annum, depending on whether the unused portion of the maximum amount available is less than or equal to 50% or greater than 50%, respectively. | |||||
Minimum liquidity value, required to maintain at end of each quarter | 80,000,000 | |||||
Minimum liquidity current balance | $ 263,000,000 | |||||
Excess availability percentage of lender commitments threshold triggering cash dominion control | 12.50% | 12.50% | ||||
Excess availability below which fixed charge coverage ratio is triggered | 12.50% | 12.50% | ||||
Fixed charged coverage ratio required | 1 | 1 | ||||
Lender commitments, threshold trigger, excess availability amount | $ 11,250,000 | $ 13,750,000 | ||||
Excess availability amount | $ 39,000,000 | 20,000,000 | ||||
Amended and Restated ABL Credit Agreement [Member] | Letter of Credit [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Line of credit facility fee payment description | The Company will pay a letter of credit fee of 3.50%-4.00% per annum, based on Excess Availability, on issued and outstanding letters of credit, in addition to a fronting fee of 25 basis points on such letters of credit. | |||||
ABL Credit Agreement [Member] | Restricted Cash [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Eligible cash | $ 35,000,000 | |||||
Letter of Credit Facility Agreement [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||||
Minimum percentage of aggregate cash collateral | 103.00% | |||||
Credit facility term | 3 years | |||||
Letters of Credit issued | $ 44,000,000 | |||||
Letter of credit cash collateral | 45,000,000 | |||||
Proceeds of the financing transactions deposited in cash collateral account | 14,000,000 | |||||
Minimum liquidity requirement | 80,000,000 | |||||
Convertible Notes Embedded Derivative [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Net proceeds received to derivative liability | 12,000,000 | |||||
Fair value of derivative liability | $ 7,000,000 | |||||
Minimum [Member] | Amended and Restated ABL Credit Agreement [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Percentage of unused fee payment | 50.00% | |||||
Percentage of letter of credit fee | 3.50% | |||||
Minimum [Member] | Amended and Restated ABL Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||
Minimum [Member] | Amended and Restated ABL Credit Agreement [Member] | Base Rate [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||
Maximum [Member] | Amended and Restated ABL Credit Agreement [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Percentage of unused fee payment | 50.00% | |||||
Percentage of letter of credit fee | 4.00% | |||||
Maximum [Member] | Amended and Restated ABL Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 4.00% | |||||
Maximum [Member] | Amended and Restated ABL Credit Agreement [Member] | Base Rate [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.00% | |||||
Term Loans and Commitments under Term Loan Credit Agreement [Member] | Minimum [Member] | Board Rights Agreement | ||||||
Debt And Capital Leases [Line Items] | ||||||
Percentage of original principal amount | 50.00% | |||||
Convertible Notes [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Proceeds from issuance of debt | $ 25,000,000 | |||||
Debt instrument interest rate | 5.00% | 5.00% | ||||
Debt instrument, aggregate principal amount | $ 25,000,000 | |||||
Debt instrument, maturity date | May 28, 2026 | May 28, 2026 | ||||
Initial conversion rate, number of shares of common stock per each principal amount of Convertible Notes | shares | 100 | |||||
Debt instrument, principal amount of conversion calculation | $ 1,000 | |||||
Initial conversion price per share of common stock | $ / shares | $ 10 | |||||
Convertible notes, terms of conversion features | The Buyers will have the right to elect at any time to convert the Convertible Notes into shares of Common Stock at an initial conversion rate equal to 100 shares of Common Stock per each $1,000 principal amount of the Convertible Notes (based on an initial conversion price equal to $10.00 per share of Common Stock). The conversion rate and conversion price will be subject to certain customary anti-dilution adjustments. If the closing price of the Common Stock equals or exceeds $14.50 (subject to adjustment in the same manner as the conversion price) for 45 trading days within any period of 60 consecutive trading days, the Company will have the right to cause the mandatory conversion of the Convertible Notes into shares of Common Stock. In the event of certain fundamental transactions, the Buyers 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 require prepayment of the Convertible Notes at par plus accrued and unpaid interest or convert all or a portion of the Convertible Notes into shares of Common Stock at the conversion rate then in effect plus any additional shares based on the price per share of Common Stock in connection with the fundamental transaction, or to receive the shares of a successor entity, if any. | |||||
Closing price of Common Stock equals or exceeds | $ / shares | $ 14.50 | |||||
Holder fundamental transaction election period | 30 days | |||||
Carrying value of stock at issuance | $ 13,000,000 | $ 14,000,000 | ||||
Fair value of derivative liability | 12,000,000 | |||||
Estimated fair value of the convertible notes | $ 22,000,000 | |||||
Convertible Notes [Member] | Minimum [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Trading days | 45 days | |||||
Convertible Notes [Member] | Maximum [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Trading days | 60 days | |||||
Term Loan Credit Agreement | ||||||
Debt And Capital Leases [Line Items] | ||||||
Long-term debt | 225,000,000 | |||||
Long-term debt, maximum additional proceeds | 50,000,000 | |||||
Proceeds from issuance of debt | 215,000,000 | |||||
Debt transaction costs | $ 10,000,000 | |||||
Long-term debt, term | 5 years | |||||
Debt instrument interest rate | 12.50% | |||||
Term Loan Credit Agreement | Board Rights Agreement | ||||||
Debt And Capital Leases [Line Items] | ||||||
Term period for which individual is appointed | 1 year | |||||
Term Loan Credit Agreement | Securities Purchase Agreement [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Common stock, shares, issued | shares | 1,000,000 | 1,000,000 | ||||
Common stock, shares, issued price | $ / shares | $ 10 | |||||
Proceeds from sale of common stock | $ 10,000,000 | |||||
Term Loan Credit Agreement | Term Loan [Member] | Paid-In-Cash Interest [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Debt instrument interest rate | 8.50% | |||||
Term Loan Credit Agreement | Term Loan [Member] | Paid-In-Kind Interest [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Debt instrument interest rate | 4.00% | |||||
Term Loan Credit Agreement | Asset Based Loan Facility [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Debt instrument, aggregate principal amount | $ 25,000,000 | |||||
Term Loan Credit Agreement | U.S. [Member] | Subsidiaries [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Percentage of material stock | 100.00% | |||||
Term Loan Credit Agreement | Foreign [Member] | Subsidiaries [Member] | ||||||
Debt And Capital Leases [Line Items] | ||||||
Percentage of material stock | 65.00% |
Note 6 - Redeemable, Converti_3
Note 6 - Redeemable, Convertible Preferred Stock (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Temporary Equity [Line Items] | ||
Total | $ 195 | $ 191 |
Series A Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Total | $ 191 | |
Series B Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Total | 94 | |
Series C Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Total | $ 101 |
Note 6 - Redeemable, Converti_4
Note 6 - Redeemable, Convertible Preferred Stock (Details Textual) - USD ($) | Mar. 30, 2021 | Feb. 26, 2021 | Feb. 25, 2021 | Nov. 15, 2016 | Sep. 30, 2021 |
Temporary Equity [Line Items] | |||||
Payments for repurchase of preferred stock | $ 100,000,000 | ||||
Preferred stock, par value | $ 0 | ||||
Series A Redeemable Preferred Stock [Member] | Purchase Agreement [Member] | |||||
Temporary Equity [Line Items] | |||||
Preferred stock, number of shares issued | 2,000,000 | ||||
Gross proceeds from issuance of shares | $ 200,000,000 | ||||
Preferred stock, liquidation preference per share | $ 100 | ||||
Purchase agreement date | Nov. 7, 2016 | ||||
Series A Preferred Stock [Member] | |||||
Temporary Equity [Line Items] | |||||
Stock repurchased | 1,000,000 | ||||
Percentage of cash dividend payable on preferred stock | 5.50% | ||||
Net proceeds received to derivative liability | $ 43,000,000 | ||||
Carrying value of 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 | ||||
Preferred stock prior to extinguishment carrying value including fair value of embedded derivative liability | $ 203,000,000 | ||||
Temporary equity deemed preferred stock dividends | $ 8,000,000 | ||||
Series A Preferred Stock [Member] | Repurchase and Exchange Agreement [Member] | |||||
Temporary Equity [Line Items] | |||||
Stock repurchased | 1,000,000 | ||||
Payments for repurchase of preferred stock | $ 100,641,667 | ||||
Stock exchanged during period shares | 1,000,000 | ||||
Accrued and unpaid dividends | $ 641,667 | ||||
Series B Preferred Stock [Member] | |||||
Temporary Equity [Line Items] | |||||
Preferred stock, liquidation preference per share | $ 100 | ||||
Percentage of cash dividend payable on preferred stock | 4.00% | ||||
Carrying value of preferred stock at issuance | 93,000,000 | ||||
Fair value of derivative liability | 1,000,000 | ||||
Transaction costs | $ 1,000,000 | ||||
Preferred stock, redemption date | May 28, 2026 | ||||
Temporary equity fair value of preferred stock at the time of issuance | $ 95,000,000 | ||||
Common stock price equal or exceeds preferred stock conversion price | $ 14.50 | ||||
Preferred stock conversion description | The Company will have the right to cause the mandatory conversion of the Series B Preferred Stock into shares of Common Stock at any time after the initial issuance of the Series B Preferred Stock if the closing price of the Common Stock has equaled or exceeded $14.50 (subject to adjustment in the same manner as the conversion price) for 45 trading days within a period of 60 consecutive trading days. | ||||
Fair value allocated to derivative liability | $ 1,000,000 | ||||
Preferred stock, redemption price per share | $ 100 | ||||
Series B Preferred Stock [Member] | Other Long-Term Liabilities [Member] | |||||
Temporary Equity [Line Items] | |||||
Fair value of derivative liability | $ 1,000,000 | ||||
Series B Preferred Stock [Member] | Purchase Agreement [Member] | |||||
Temporary Equity [Line Items] | |||||
Initial conversion rate of preferred stock to common stock | 9.5238 | ||||
Initial conversion price of preferred stock per share of common stock | $ 10.50 | ||||
Series B Preferred Stock [Member] | Repurchase and Exchange Agreement [Member] | |||||
Temporary Equity [Line Items] | |||||
Preferred stock, number of shares issued | 1,000,000 | ||||
Percentage of cash dividend payable on preferred stock | 4.00% | ||||
Preferred stock, par value | |||||
Temporary equity exchange basis | one-for-one | ||||
Series C Preferred Stock [Member] | |||||
Temporary Equity [Line Items] | |||||
Net proceeds received to derivative liability | $ 2,000,000 | ||||
Carrying value of preferred stock at issuance | 97,000,000 | ||||
Fair value of derivative liability | 2,000,000 | ||||
Transaction costs | $ 1,000,000 | ||||
Preferred stock conversion description | The Company will have the right to cause the mandatory conversion of the Series C Preferred Stock into shares of Common Stock (i) at any time after February 26, 2023 if the closing price of the Common Stock has equaled or exceeded 200% of the then-effective conversion price for 45 trading days within a period of 60 consecutive trading days, or (ii) at any time after February 26, 2024 if the closing price of the Common Stock has equaled or exceeded 150% of the then-effective conversion price for 45 trading days within a period of 60 consecutive trading days. | ||||
Preferred stock, redemption price per share | $ 100 | ||||
Preferred stock, right to extend redemption date term | 2 years | ||||
Series C Preferred Stock [Member] | After February 26, 2023 [Member] | |||||
Temporary Equity [Line Items] | |||||
Common stock price equal or exceeds preferred stock conversion price percentage | 200.00% | ||||
Series C Preferred Stock [Member] | After February 26, 2024 [Member] | |||||
Temporary Equity [Line Items] | |||||
Common stock price equal or exceeds preferred stock conversion price percentage | 150.00% | ||||
Series C Preferred Stock [Member] | Other Long-Term Liabilities [Member] | |||||
Temporary Equity [Line Items] | |||||
Fair value of derivative liability | $ 2,000,000 | ||||
Series C Preferred Stock [Member] | Purchase Agreement [Member] | |||||
Temporary Equity [Line Items] | |||||
Preferred stock, number of shares issued | 250,000 | 750,000 | |||
Preferred stock, liquidation preference per share | $ 100 | ||||
Preferred stock, par value | |||||
Gross proceeds from preferred stock | $ 25,000,000 | $ 75,000,000 | |||
Preferred stock, redemption date | May 28, 2026 | ||||
Initial conversion price of preferred stock per share of common stock | $ 10 | ||||
Preferred stock, number of shares issued | 1,000,000 | ||||
Gross proceeds owed on issuance of preferred stock | $ 100,000,000 | ||||
Percentage of in-kind dividend payable on preferred stock | 5.00% | ||||
Series C Preferred Stock [Member] | Dividend and Other Rights [Member] | |||||
Temporary Equity [Line Items] | |||||
Percentage of in-kind dividend payable on preferred stock | 5.00% | ||||
Preferred stock, liquidation preference | $ 100 | ||||
Series C Preferred Stock [Member] | Registration Rights Agreement [Member] | |||||
Temporary Equity [Line Items] | |||||
Purchase agreement date | Feb. 26, 2021 |
Note 7 - Leases (Details Textua
Note 7 - Leases (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Income recognized for sales-type lease arrangements | $ 1 | $ 0 | $ 2 | $ 0 |
Note 7 - Summary of Income Reco
Note 7 - Summary of Income Recognized on Operating Lease Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lease income - operating leases: | ||||
Lease income | $ 2 | $ 2 | $ 6 | $ 6 |
Sublease income | 2 | |||
Variable lease income | 1 | 1 | 3 | 3 |
Total lease income | $ 3 | $ 3 | $ 9 | $ 11 |
Note 8 - Commitments and Cont_2
Note 8 - Commitments and Contingencies (Details Textual) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Jul. 28, 2020 |
Commitments And Contingencies [Line Items] | |||
Total restricted cash | $ 71,000,000 | ||
DFC Loan [Member] | |||
Commitments And Contingencies [Line Items] | |||
Loan | $ 765,000,000 | ||
BRAZIL | |||
Commitments And Contingencies [Line Items] | |||
Restricted Cash | 3,000,000 | $ 4,000,000 | |
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 | 4,000,000 | ||
Threat of Expropriation of Assets [Member] | BRAZIL | |||
Commitments And Contingencies [Line Items] | |||
Restricted Cash | 3,000,000 | ||
Assets, Noncurrent | 41,000,000 | ||
Amended ABL Credit Agreement [Member] | |||
Commitments And Contingencies [Line Items] | |||
Long-term line of credit | 42,000,000 | ||
L/C Facility Agreement [Member] | |||
Commitments And Contingencies [Line Items] | |||
Long-term line of credit | 44,000,000 | ||
Bank Guarantees and Letters of Credit [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | 2,000,000 | ||
Surety Bond [Member] | |||
Commitments And Contingencies [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 29,000,000 |
Note 9 - Guarantees (Details Te
Note 9 - Guarantees (Details Textual) | 9 Months Ended |
Sep. 30, 2021USD ($)a | |
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 |
Eastman Business Park [Member] | Minimum [Member] | |
Guarantee Obligations [Line Items] | |
Area of Real Estate Property | a | 1,200 |
Note 9 - Guarantees (Details)
Note 9 - Guarantees (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Guarantee Obligations [Line Items] | |
Deferred revenue on extended warranties | $ 64 |
Deferred revenue on extended warranties | 58 |
Extended Warranty Arrangements [Member] | |
Guarantee Obligations [Line Items] | |
Deferred revenue on extended warranties | 19 |
New extended warranty and maintenance arrangements deferred | 67 |
Recognition of extended warranty and maintenance arrangement revenue | (68) |
Deferred revenue on extended warranties | $ 18 |
Note 10 - Disaggregated Revenue
Note 10 - Disaggregated Revenue - Major Product (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | $ 287 | $ 252 | $ 843 | $ 732 |
Plates, Inks And Other Consumables [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 159 | 134 | 456 | 393 | |
Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 54 | 54 | 165 | 159 |
Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 213 | 188 | 621 | 552 | |
Equipment And Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 19 | 20 | 67 | 60 | |
Film And Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 47 | 36 | 133 | 97 | |
Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 8 | 8 | 22 | 23 |
Traditional Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 166 | 146 | 483 | 419 |
Traditional Printing [Member] | Plates, Inks And Other Consumables [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 134 | 114 | 389 | 330 | |
Traditional Printing [Member] | Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 20 | 20 | 60 | 60 |
Traditional Printing [Member] | Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 154 | 134 | 449 | 390 | |
Traditional Printing [Member] | Equipment And Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 12 | 12 | 34 | 29 | |
Digital Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 58 | 56 | 184 | 173 |
Digital Printing [Member] | Plates, Inks And Other Consumables [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 18 | 15 | 50 | 45 | |
Digital Printing [Member] | Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 33 | 33 | 101 | 97 |
Digital Printing [Member] | Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 51 | 48 | 151 | 142 | |
Digital Printing [Member] | Equipment And Software [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 7 | 8 | 33 | 31 | |
Advanced Materials and Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 55 | 44 | 155 | 124 |
Advanced Materials and Chemicals [Member] | Plates, Inks And Other Consumables [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 7 | 5 | 17 | 18 | |
Advanced Materials and Chemicals [Member] | Ongoing service arrangements [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 1 | 1 | 4 | 2 |
Advanced Materials and Chemicals [Member] | Total Annuities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 8 | 6 | 21 | 20 | |
Advanced Materials and Chemicals [Member] | Film And Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | 47 | 36 | 133 | 97 | |
Advanced Materials and Chemicals [Member] | Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 2 | 1 | 7 | |
Brand [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 3 | 10 | 8 |
Brand [Member] | Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 4 | 3 | 10 | 8 |
All Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 3 | 11 | 8 |
All Other [Member] | Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | $ 4 | $ 3 | $ 11 | $ 8 |
[1] | |||||
[2] | |||||
[3] |
Note 10 - Disaggregated Reven_2
Note 10 - Disaggregated Revenue - Product Portfolio Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | $ 287 | $ 252 | $ 843 | $ 732 |
Growth Engines [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 88 | 74 | 261 | 212 |
Strategic Other Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 187 | 165 | 545 | 475 |
Planned Declining Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [4] | 12 | 13 | 37 | 45 |
Traditional Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 166 | 146 | 483 | 419 |
Traditional Printing [Member] | Growth Engines [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 56 | 41 | 156 | 112 |
Traditional Printing [Member] | Strategic Other Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 110 | 105 | 327 | 307 |
Digital Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 58 | 56 | 184 | 173 |
Digital Printing [Member] | Growth Engines [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 32 | 32 | 105 | 98 |
Digital Printing [Member] | Strategic Other Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 14 | 12 | 42 | 37 |
Digital Printing [Member] | Planned Declining Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [4] | 12 | 12 | 37 | 38 |
Advanced Materials and Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 55 | 44 | 155 | 124 |
Advanced Materials and Chemicals [Member] | Growth Engines [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [2] | 1 | 2 | ||
Advanced Materials and Chemicals [Member] | Strategic Other Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 55 | 42 | 155 | 115 |
Advanced Materials and Chemicals [Member] | Planned Declining Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [4] | 1 | 7 | ||
Brand [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 3 | 10 | 8 |
Brand [Member] | Strategic Other Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | 4 | 3 | 10 | 8 |
All Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 3 | 11 | 8 |
All Other [Member] | Strategic Other Businesses [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [3] | $ 4 | $ 3 | $ 11 | $ 8 |
[1] | |||||
[2] | |||||
[3] | |||||
[4] |
Note 10 - Disaggregated Reven_3
Note 10 - Disaggregated Revenue - Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | $ 287 | $ 252 | $ 843 | $ 732 |
Traditional Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 166 | 146 | 483 | 419 |
Digital Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 58 | 56 | 184 | 173 |
Advanced Materials and Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 55 | 44 | 155 | 124 |
Brand [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 3 | 10 | 8 |
All Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 3 | 11 | 8 |
U.S. [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 109 | 90 | 311 | 268 |
U.S. [Member] | Traditional Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 36 | 29 | 101 | 90 |
U.S. [Member] | Digital Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 25 | 25 | 78 | 77 |
U.S. [Member] | Advanced Materials and Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 40 | 30 | 111 | 85 |
U.S. [Member] | Brand [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 3 | 10 | 8 |
U.S. [Member] | All Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 3 | 11 | 8 |
Canada [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 5 | 8 | 17 | 18 |
Canada [Member] | Traditional Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 3 | 5 | 9 | 11 |
Canada [Member] | Digital Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 2 | 3 | 7 | 6 |
Canada [Member] | Advanced Materials and Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 1 | 1 | ||
North America [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 114 | 98 | 328 | 286 |
North America [Member] | Traditional Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 39 | 34 | 110 | 101 |
North America [Member] | Digital Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 27 | 28 | 85 | 83 |
North America [Member] | Advanced Materials and Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 40 | 30 | 112 | 86 |
North America [Member] | Brand [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 3 | 10 | 8 |
North America [Member] | All Other [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 3 | 11 | 8 |
Europe, Middle East and Africa [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 100 | 87 | 293 | 251 |
Europe, Middle East and Africa [Member] | Traditional Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 75 | 64 | 219 | 181 |
Europe, Middle East and Africa [Member] | Digital Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 21 | 19 | 62 | 61 |
Europe, Middle East and Africa [Member] | Advanced Materials and Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 4 | 4 | 12 | 9 |
Asia Pacific [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 64 | 59 | 197 | 171 |
Asia Pacific [Member] | Traditional Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 44 | 41 | 132 | 116 |
Asia Pacific [Member] | Digital Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 9 | 8 | 34 | 26 |
Asia Pacific [Member] | Advanced Materials and Chemicals [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 11 | 10 | 31 | 29 |
Latin America [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 9 | 8 | 25 | 24 |
Latin America [Member] | Traditional Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | 8 | 7 | 22 | 21 |
Latin America [Member] | Digital Printing [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total sales | [1] | $ 1 | $ 1 | $ 3 | $ 3 |
[1] |
Note 10 - Revenue (Details Text
Note 10 - Revenue (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||||
Contract liabilities | $ 58 | $ 58 | $ 64 | ||
Revenue recognized, contract liabilities | 9 | $ 4 | 34 | $ 35 | |
Contract with customer, cash payments received for liabilities that have been deferred | 19 | $ 21 | 26 | $ 31 | |
Other Current Assets [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract assets | 2 | 2 | 2 | ||
Other Current Liabilities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract liabilities, current | 43 | 43 | 47 | ||
Other Long-Term Liabilities [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract liabilities, non-current | $ 15 | $ 15 | $ 17 |
Note 10 - Revenue (Details Te_2
Note 10 - Revenue (Details Textual 1) $ in Millions | Sep. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
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: 2022-01-01 | |
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: 2023-01-01 | |
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: 2024-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Unsatisfied performance obligations, expected to be recognized | 15.00% |
Unsatisfied performance obligations, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Unsatisfied performance obligations, expected to be recognized | 25.00% |
Unsatisfied performance obligations, expected timing of satisfaction |
Note 11 - Summary of Other Oper
Note 11 - Summary of Other Operating Expense (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Expense (income): | |||||
Legal settlements | $ (7) | ||||
Loss (gain) on sale of assets | [1] | $ 1 | 1 | $ (9) | |
Asset impairments | [2] | 3 | |||
Transition services agreement income | $ (1) | (5) | |||
Total | $ 1 | $ (1) | $ (6) | $ (11) | |
[1] | |||||
[2] |
Note 12 - Other (Income) Char_3
Note 12 - Other (Income) Charges , Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Other Income And Expenses [Abstract] | |||||
Loss on foreign exchange transactions | $ 1 | $ 1 | $ 2 | $ 6 | |
Change in fair value of embedded conversion features derivative liability | [1] | (3) | 431 | (3) | 382 |
Other | (1) | ||||
Total | $ (2) | $ 432 | $ (1) | $ 387 | |
[1] | Refer to Note 20, “Financial Instruments”. |
Note 13 - Income Taxes - Schedu
Note 13 - Income Taxes - Schedule of Income Tax Provision and Effective Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Earnings (loss) from operations before income taxes | $ 9 | $ (444) | $ 35 | $ (394) |
Effective tax rate | 11.10% | (0.20%) | 14.30% | (42.40%) |
Provision for income taxes | $ 1 | $ 1 | $ 5 | $ 167 |
Provision (benefit) for income taxes at U.S. statutory tax rate | 2 | (93) | 7 | (83) |
Difference between tax at effective vs. statutory rate | $ (1) | $ 94 | $ (2) | $ 250 |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2021 | Feb. 21, 2020 | |
Schedule Of Income Taxes [Line Items] | ||||
U.S. corporate income tax rate | 21.00% | |||
Valuation Allowance of Deferred Tax Assets [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Provision associated with establishment of valuation allowance on deferred tax assets | $ 167 | $ 167 | ||
Foreign Tax Authority [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Liability for Uncertain Tax Positions, Current | $ 3 | |||
Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued | $ 4 | |||
Domestic Tax Authority [Member] | IRS [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Liability for Uncertain Tax Positions, Current | $ 41 |
Note 14 - Component of the Net
Note 14 - Component of the Net Periodic benefit Cost - (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Income Expense From Continuing And Discontinued Operations For Major Defined Benefit Plans [Line Items] | ||||
Total net pension (income) expense | $ (63) | $ (65) | ||
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 | $ 2 | 8 | 8 |
Interest cost | 12 | 21 | 36 | 64 |
Expected return on plan assets | (42) | (48) | (126) | (146) |
Prior service credit | (2) | (2) | (5) | (5) |
Actuarial loss | 7 | 4 | 22 | 11 |
Net pension (income) expense before special termination benefits | (22) | (23) | (65) | (68) |
Special termination benefits | 1 | 2 | ||
Net pension (income) expense from major plans | (22) | (22) | (65) | (66) |
Total net pension (income) expense | (22) | (22) | (65) | (66) |
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 | 1 | 3 | 3 |
Interest cost | 2 | 2 | 4 | 6 |
Expected return on plan assets | (4) | (5) | (11) | (14) |
Actuarial loss | 2 | $ 2 | 6 | 5 |
Net pension (income) expense before special termination benefits | 1 | 2 | ||
Net pension (income) expense from major plans | 1 | 2 | ||
Other plans | 1 | |||
Total net pension (income) expense | $ 1 | $ 2 | $ 1 |
Note 15 - Summary of Reconcilia
Note 15 - 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, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share Basic [Line Items] | ||||||||
Net income (loss) | $ 8 | $ 16 | $ 6 | $ (445) | $ (5) | $ (111) | $ 30 | $ (561) |
Net income (loss) available to common shareholders - basic and diluted | $ 5 | $ (450) | $ 31 | $ (576) | ||||
Basic | 78.6 | 64.8 | 78.3 | 50.8 | ||||
Effect of dilutive securities | ||||||||
Weighted average shares — diluted | 80.6 | 64.8 | 80.5 | 50.8 | ||||
Employee Stock Option [Member] | ||||||||
Effect of dilutive securities | ||||||||
Effect of dilutive securities | 1.9 | 2.1 | ||||||
Unvested Restricted Stock Units [Member] | ||||||||
Effect of dilutive securities | ||||||||
Effect of dilutive securities | 0.1 | 0.1 | ||||||
Series B Preferred Stock [Member] | ||||||||
Earnings Per Share Basic [Line Items] | ||||||||
Less: preferred stock cash and deemed dividends | $ (1) | $ (3) | ||||||
Series C Preferred Stock [Member] | ||||||||
Earnings Per Share Basic [Line Items] | ||||||||
Less: preferred stock in-kind and deemed dividends | $ (2) | (4) | ||||||
Series A Preferred Stock [Member] | ||||||||
Earnings Per Share Basic [Line Items] | ||||||||
Less: preferred stock cash and deemed dividends | $ (5) | (3) | $ (15) | |||||
Plus: Expiration of Series A preferred stock embedded derivative | $ 11 |
Note 15 - Earnings Per Share (D
Note 15 - Earnings Per Share (Details Textual) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
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 | ||
Series B Preferred Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 1 | 1 | ||
Series C Preferred Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 1 | 1 | ||
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 | $ 25 | $ 25 | ||
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 | 3.1 | 3.1 | 3.1 | 3.6 |
Antidilutive securities not included to the computation of earnings per share, amount | 1.2 | |||
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0.3 | ||
Antidilutive securities not included to the computation of earnings per share, amount | 0.6 | 0.5 |
Note 16 - Stock-based Compens_2
Note 16 - Stock-based Compensation (Details Textual) - New Employment Agreement [Member] | Feb. 26, 2021USD ($)shares |
Stock Based Compensation [Line Items] | |
Incremental value provided in modification | $ 0 |
Additional compensation expense recognized | $ 0 |
Minimum [Member] | |
Stock Based Compensation [Line Items] | |
Percentage of issued and outstanding shares of common stock owned | 4.99% |
Restricted Stock Units [Member] | |
Stock Based Compensation [Line Items] | |
Stock-based compensation expense | $ 2,000,000 |
Executive Chairman And Chief Executive Officer | Restricted Stock Units [Member] | |
Stock Based Compensation [Line Items] | |
Fully vested shares granted | shares | 200,000 |
Note 17 - Shareholders' Equity
Note 17 - Shareholders' Equity (Details Textual) - $ / shares | Sep. 30, 2021 | Feb. 26, 2021 | Dec. 31, 2020 |
Shareholders Equity [Line Items] | |||
Stock Authorized | 560,000,000 | ||
Common Stock, Shares Authorized | 500,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Preferred Stock, Shares Authorized | 60,000,000 | ||
Preferred Stock, No Par Value | $ 0 | ||
Common Stock, Shares, Outstanding | 78,600,000 | 77,200,000 | |
Treasury Stock, Shares | 800,000 | 700,000 | |
Securities Purchase Agreement [Member] | Term Loan Credit Agreement | |||
Shareholders Equity [Line Items] | |||
Common stock, shares, issued | 1,000,000 | 1,000,000 | |
Series A Preferred Stock [Member] | |||
Shareholders Equity [Line Items] | |||
Preferred Stock Shares Outstanding | 2,000,000 | ||
Preferred Stock Shares Issued | 2,000,000 | ||
Series B Preferred Stock [Member] | |||
Shareholders Equity [Line Items] | |||
Preferred Stock Shares Outstanding | 1,000,000 | ||
Preferred Stock Shares Issued | 1,000,000 | ||
Series C Preferred Stock [Member] | |||
Shareholders Equity [Line Items] | |||
Preferred Stock Shares Outstanding | 1,000,000 | ||
Preferred Stock Shares Issued | 1,000,000 |
Note 18 - Changes in Other Comp
Note 18 - Changes in Other Comprehensive Income (Loss), by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |||||
Currency translation adjustments | $ (1) | $ 3 | $ (17) | ||
Newly established net actuarial (loss) gain | (1) | 6 | |||
Newly established net actuarial (loss) gain, net of tax | (1) | 6 | |||
Amortization of prior service credit | [1] | $ (2) | (2) | (6) | (6) |
Amortization of actuarial losses | [1] | 9 | 5 | 28 | 15 |
Recognition of losses due to curtailments and settlements | 1 | ||||
Total reclassification adjustments | 7 | 3 | 22 | 10 | |
Tax provision | (1) | ||||
Reclassification adjustments, net of tax | 7 | 3 | 22 | 9 | |
Pension and other postretirement benefit plan changes, net of tax | 7 | 3 | 21 | 15 | |
Other comprehensive income (loss), net of tax | $ 7 | $ 2 | $ 24 | $ (2) | |
[1] | Reclassified to Total Net Periodic Benefit Cost - refer to Note 14, "Retirement Plans and Other Postretirement Benefits". |
Note 19 - Segment Information_2
Note 19 - Segment Information (Details Textual) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021USD ($)a | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)a | |
Segment Reporting Information [Line Items] | |||
Increase (decrease) in employee benefit reserves | $ (1) | $ 9 | $ (4) |
Gross Profit [Member] | |||
Segment Reporting Information [Line Items] | |||
Increase (decrease) in employee benefit reserves | $ (1) | 6 | (3) |
Selling, General and Administrative Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Increase (decrease) in employee benefit reserves | 2 | $ (1) | |
Research and Development Expense [Member] | |||
Segment Reporting Information [Line Items] | |||
Increase (decrease) in employee benefit reserves | $ 1 | ||
Eastman Business Park [Member] | Minimum [Member] | |||
Segment Reporting Information [Line Items] | |||
Area of Real Estate Property | a | 1,200 | 1,200 |
Note 19 - Revenues and Loss fro
Note 19 - Revenues and Loss from Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | $ 287 | $ 252 | $ 843 | $ 732 |
Depreciation and amortization | (23) | (29) | |||
Restructuring costs and other | (1) | (1) | (9) | ||
Interest expense | (9) | (3) | (23) | (11) | |
Pension income excluding service cost component | 25 | 26 | 76 | 79 | |
Loss on early extinguishment of debt | (2) | (2) | |||
Other income (charges) net | 2 | (432) | 1 | (387) | |
Earnings (loss) from operations before income taxes | 9 | (444) | 35 | (394) | |
Continuing Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 287 | 252 | 843 | 732 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | 6 | (1) | 19 | (16) | |
Depreciation and amortization | (7) | (9) | (23) | (29) | |
Restructuring costs and other | (1) | (1) | (9) | ||
Stock based compensation | (2) | (17) | (6) | (18) | |
Consulting and other costs | [2] | (4) | (4) | (13) | (5) |
Idle costs | [3] | (1) | (1) | (2) | (2) |
Other operating (expense) income, net, excluding income from transition services agreement | [4] | (1) | 6 | 6 | |
Interest expense | [5] | (9) | (3) | (23) | (11) |
Pension income excluding service cost component | [5] | 25 | 26 | 76 | 79 |
Loss on early extinguishment of debt | (2) | (2) | |||
Other income (charges) net | [5] | 2 | (432) | 1 | (387) |
Earnings (loss) from operations before income taxes | 9 | (444) | 35 | (394) | |
Continuing Operations [Member] | Traditional Printing [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 166 | 146 | 483 | 419 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | 5 | 5 | 16 | 7 | |
Continuing Operations [Member] | Digital Printing [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 58 | 56 | 184 | 173 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | (2) | (3) | (2) | (8) | |
Continuing Operations [Member] | Advanced Materials and Chemicals [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 55 | 44 | 155 | 124 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | (6) | (3) | (22) | ||
Continuing Operations [Member] | Brand [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4 | 3 | 10 | 8 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | 3 | 3 | 8 | 7 | |
Continuing Operations [Member] | All Other [Member] | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 4 | $ 3 | 11 | $ 8 | |
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization | $ 1 | ||||
[1] | |||||
[2] | Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives, investigations and litigation. | ||||
[3] | 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. | ||||
[4] | $1 million and $5 million of income from the transition services agreement with the purchaser of Kodak’s Flexographic Packaging Business was recognized in the three and nine months ended September 30, 2020, respectively. No income has been recognized in 2021. The income was reported in Other operating expense (income), net in the Consolidated Statement of Operations. Other operating expense (income), net is typically excluded from the segment measure. However, the income from the transition services agreement was included in the segment measure. | ||||
[5] | As reported in the Consolidated Statement of Operations. |
Note 19 - Revenues and Loss f_2
Note 19 - Revenues and Loss from Operations (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
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 | $ 0 | $ 1 | $ 0 | $ 5 |
Note 20 - Financial Instrumen_3
Note 20 - Financial Instruments (Details Textual) - USD ($) $ in Millions | Feb. 26, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Fair Value, Inputs, Level 2 [Member] | ||||||
Long-term Debt, Fair Value | $ 276 | $ 276 | $ 17 | |||
Forward Contracts [Member] | ||||||
Gross fair value of foreign currency in an asset position | 1 | 1 | 1 | |||
Gross fair value of foreign currency in a liability position | 0 | 0 | 0 | |||
Series A Preferred Stock [Member] | ||||||
Stock repurchased | 1,000,000 | |||||
Preferred stock, number of shares exchanged | 1,000,000 | |||||
Series A Preferred Stock [Member] | Other Charges (income) Net [Member] | ||||||
Net expense | $ 2 | |||||
Series B Preferred Stock [Member] | ||||||
Preferred stock, number of shares exchanged | 1,000,000 | |||||
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||||||
Derivative Asset, Notional Amount | 317 | 317 | $ 361 | |||
Designated as Hedging Instrument [Member] | ||||||
Derivatives Hedging Instruments | $ 0 | $ 0 | $ 0 | $ 0 |
Note 20 - Derivatives Not Desig
Note 20 - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financial Instruments Owned At Fair Value [Abstract] | ||||
Net (gain) loss from derivatives not designated as hedging instruments | $ (1) | $ (4) | $ 1 | $ (6) |
Note 20 - Derivative Liability
Note 20 - Derivative Liability Key Inputs in Determination of Fair Value for Embedded Conversion Features (Details) - Fair Value, Inputs, Level 3 [Member] $ / shares in Units, $ in Millions | Sep. 30, 2021USD ($)$ / shares | Mar. 30, 2021USD ($)$ / shares | Feb. 26, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares |
Series C Preferred Stock [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Total value of embedded derivative liability | $ | $ 2 | $ 1 | $ 1 | |
Kodak's closing stock price | $ / shares | $ 6.81 | $ 8.05 | $ 8.62 | |
Series A Preferred Stock [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Total value of embedded derivative liability | $ | $ 11 | $ 9 | ||
Kodak's closing stock price | $ / shares | $ 8.62 | $ 8.14 | ||
Expected stock price volatility [Member] | Series C Preferred Stock [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Alternate measurement input percentage | 47.50 | 70 | 70 | |
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 | 137.53 | 133.44 | ||
Risk Free Rate [Member] | Series C Preferred Stock [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Alternate measurement input percentage | 0.90 | 0.94 | 0.80 | |
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 | 0.07 | 0.10 | ||
Implied Credit Spread [Member] | Series C Preferred Stock [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Alternate measurement input percentage | 21.91 | 21.75 | 21.75 | |
Implied Credit Spread [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 | 14.02 | 11.97 | ||
Convertible Notes [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Total value of embedded derivative liability | $ | $ 7 | $ 12 | ||
Kodak's closing stock price | $ / shares | $ 6.81 | $ 8.62 | ||
Convertible Notes [Member] | Expected stock price volatility [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Alternate measurement input percentage | 47.50 | 70 | ||
Convertible Notes [Member] | Risk Free Rate [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Alternate measurement input percentage | 0.90 | 0.80 | ||
Convertible Notes [Member] | Implied Credit Spread [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Alternate measurement input percentage | 18.41 | 18.25 | ||
Series B Preferred Stock [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Total value of embedded derivative liability | $ | $ 1 | $ 1 | ||
Kodak's closing stock price | $ / shares | $ 6.81 | $ 8.62 | ||
Series B Preferred Stock [Member] | Expected stock price volatility [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Alternate measurement input percentage | 47.50 | 70 | ||
Series B Preferred Stock [Member] | Risk Free Rate [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Alternate measurement input percentage | 0.90 | 0.80 | ||
Series B Preferred Stock [Member] | Implied Credit Spread [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Alternate measurement input percentage | 19.91 | 19.75 |