Note 14 - Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 14: SEGMENT INFORMATION

Effective January 1, 2015, Kodak has seven reportable segments:  Print Systems, Enterprise Inkjet Systems, Micro 3D Printing and Packaging, Software and Solutions, Consumer and Film, Intellectual Property Solutions and Eastman Business Park.  The balance of Kodak’s continuing operations, which do not meet the criteria of a reportable segment, are reported in All Other.  Prior period segment results have been revised to conform to the current period segment reporting structure.  A description of the reportable segments follows:

Print Systems: The Print Systems segment is comprised of two lines of business:  Prepress Solutions and Electrophotographic Printing Solutions.

Enterprise Inkjet Systems: The Enterprise Inkjet Systems segment is comprised of two lines of business:  Commercial Inkjet Printing Solutions and Digital Front-End Controllers.

Micro 3D Printing and Packaging: The Micro 3D Printing and Packaging segment is comprised of two lines of business:  Packaging and Functional Printing.

Software and Solutions: The Software and Solutions segment is comprised of two lines of business:  Kodak Technology Solutions and Unified Workflow Solutions.

Consumer and Film: The Consumer and Film segment is comprised of three lines of business:  Consumer Inkjet Solutions; Entertainment Imaging and Commercial Films, and Brand Licensing.

Intellectual Property Solutions: The Intellectual Property Solutions segment includes licensing and research and development activities not directly related to the other segments.

Eastman Business Park: The Eastman Business Park segment includes the operations of the Eastman Business Park, a 1,200 acre technology center and industrial complex.

All Other: All Other is composed of Kodak’s consumer film business in countries where that business has not yet transferred ownership to the KPP Purchasing Parties (as defined in Note 15 “Discontinued Operations”) and the RED utilities variable interest entity.

Segment financial information is shown below:

	Three Months Ended March 31,
(in millions)	2015		2014
	Revenue		Revenue
Revenues from continuing operations:
Print Systems	$	254	$	288
Enterprise Inkjet Systems		39		48
Micro 3D Printing and Packaging		31		29
Software and Solutions		28		24
Consumer and Film		72		86
Intellectual Property Solutions		-		9
Eastman Business Park		3		4
Consolidated total	$	427	$	488

	Three Months Ended March 31,
(in millions)	2015			2014
Segment Operational EBITDA and Consolidated (loss) earnings from continuing operations before income taxes
Print Systems	$	13		$	12
Enterprise Inkjet Systems		(13	)		(12	)
Micro 3D Printing and Packaging		-			(2	)
Software and Solutions		2			(1	)
Consumer and Film		18			10
Intellectual Property Solutions		(7	)		-
Eastman Business Park		(1	)		-
Total of reportable segments		12			7
All Other		3			1
Restructuring costs and other		(17	)		(13	)
Corporate components of pension and   OPEB income (1)		33			30
Depreciation and amortization		(38	)		(56	)
Stock-based compensation		(7	)		(2	)
Consulting and other costs		(2	)		(2	)
Idle costs (2)		(1	)		(1	)
Costs previously allocated to discontinued operations		-			(3	)
Fresh start adjustments		-			1
Other operating expense, net		(3	)		-
Interest expense		(15	)		(16	)
Other charges, net		(10	)		(1	)
Reorganization items, net		(5	)		(5	)
Consolidated loss  from continuing   operations before income taxes	$	(50	)	$	(60	)

(1)   Composed of interest cost, expected return on plan assets, amortization of actuarial gains and losses and curtailments and settlement components of pension and other postretirement benefit expenses.

(2)   Consists of third party costs such as security, maintenance, and utilities required to maintain land and buildings in certain locations not used in any Kodak operations.

Change in Segment Measure of Profit and Loss

During the first quarter of 2015, Kodak changed its segment measure of profit and loss to an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”).  The segment measure now excludes depreciation and amortization, stock-based compensation, certain consulting costs, costs previously allocated to discontinued operations, the impact of fresh start adjustments and idle costs. Prior period segment results have been revised to reflect these changes.

Kodak’s segments are measured using Operational EBITDA both before and after allocation of corporate selling, general and administrative expenses (“SG&A”).  The segment earnings measure reported is after allocation of corporate SG&A as this most closely aligns with U.S. GAAP.  Research and development activities not directly related to the other segments are reported within the Intellectual Property Solutions segment.