Note 28: Quarterly Sales And Earnings Data - Unaudited

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information [Text Block]

NOTE 28:  QUARTERLY SALES AND EARNINGS DATA – UNAUDITED

(in millions, except per share data)	4th Qtr.			3rd Qtr.			2nd Qtr.			1st Qtr.
2012
Net sales from continuing operations	$	1,120		$	1,018		$	1,048		$	928
Gross profit from continuing operations		188			159			182			62
Loss from continuing operations		(400	)(4)		(307	)(3)		(290	)(2)		(306	)(1)
Loss from discontinued operations (9)		(2	)		(4	)		(9	)		(61	)
Net loss attributable to Eastman Kodak Company		(402	)		(311	)		(299	)		(367	)
Basic and diluted net loss per share attributable to Eastman Kodak Company common shareholders:
Continuing operations	$	(1.47	)	$	(1.13	)	$	(1.07	)	$	(1.13	)
Discontinued operations		(0.01	)		(0.02	)		(0.03	)		(0.22	)
Total	$	(1.48	)	$	(1.15	)	$	(1.10	)	$	(1.35	)
2011
Net sales from continuing operations	$	1,471		$	1,261		$	1,266		$	1,150
Gross profit from continuing operations		316			180			177			125
Loss from continuing operations		(118	)(8)		(213	)(7)		(159	)(6)		(217	)(5)
Loss from discontinued operations (9)		-			(8	)		(20	)		(29	)
Net loss attributable to Eastman Kodak Company		(118	)		(221	)		(179	)		(246	)
Basic and diluted net loss per share attributable to Eastman Kodak Company common shareholders:
Continuing operations	$	(0.44	)	$	(0.79	)	$	(0.59	)	$	(0.81	)
Discontinued operations		-			(0.03	)		(0.08	)		(0.10	)
Total	$	(0.44	)	$	(0.82	)	$	(0.67	)	$	(0.91	)

(1) Includes pre-tax restructuring charges of $81 million ($1 million included in Cost of sales and $80 million included in Restructuring costs and other), which decreased net earnings from continuing operations by $78 million; corporate components of pension and OPEB costs of $30 million (included in Cost of sales, SG&A, and R&D), which decreased net earnings from continuing operations by $26 million; and $88 million of Reorganization items, net.

(2) Includes pre-tax restructuring charges of $11 million ($2 million included in Cost of sales and $9 million included in Restructuring costs and other), which decreased net earnings from continuing operations by $10 million; corporate components of pension and OPEB costs of $35 million (included in Cost of sales, SG&A, and R&D), which decreased net earnings from continuing operations by $32 million; and $160 million of Reorganization items, net.

(3) Includes pre-tax restructuring charges of $126 million ($9 million included in Cost of sales and $117 million included in Restructuring costs and other), which decreased net earnings from continuing operations by $119 million; corporate components of pension and OPEB costs of $35 million (included in Cost of sales, SG&A, and R&D), which decreased net earnings from continuing operations by $28 million; and $56 million of Reorganization items, net.

(4) Includes pre-tax restructuring charges of $27 million ($5 million included in Cost of sales and $22 million included in Restructuring costs and other), which decreased net earnings from continuing operations by $30 million; corporate components of pension and OPEB costs of $23 million (included in Cost of sales, SG&A, and R&D), which decreased net earnings from continuing operations by $18 million; and $539 million of Reorganization items, net.

(5) Includes pre-tax restructuring charges of $33 million ($2 million included in Cost of sales and $31 million included in Restructuring costs and other), which decreased net earnings from continuing operations by $32 million; and corporate components of pension and OPEB costs of $8 million (included in Cost of sales, SG&A, and R&D), which decreased net earnings from continuing operations by $6 million.

(6) Includes pre-tax restructuring charges of $35 million ($7 million included in Cost of sales and $28 million included in Restructuring costs and other), which decreased net earnings from continuing operations by $32 million; and corporate components of pension and OPEB costs of $4 million (included in Cost of sales, SG&A, and R&D), which decreased net earnings from continuing operations by $2 million.

(7) Includes pre-tax restructuring charges of $18 million ($1 million included in Cost of sales and $17 million included in Restructuring costs and other), which decreased net earnings from continuing operations by $18 million; corporate components of pension and OPEB costs of $13 million (included in Cost of sales, SG&A, and R&D), which decreased net earnings from continuing operations by $9 million; and a pre-tax impairment charge of $8 million (included in Other operating expenses (income), net), which decreased net earnings from continuing operations by $8 million.

(8) Includes pre-tax restructuring charges of $44 million ($2 million included in Cost of sales and $42 million included in Restructuring costs and other), which decreased net earnings from continuing operations by $42 million; corporate components of pension and OPEB costs of $4 million (included in Cost of sales, SG&A, and R&D), which decreased net earnings from continuing operations by $1 million.

(9) Refer to Note 25, “Discontinued Operations,” in the Notes to Financial Statements for a discussion regarding loss from discontinued operations.

Corporate components of pension and OPEB include interest cost, expected return on plan assets, amortization of actuarial gains and losses, and special termination benefits, curtailments and settlement components of pension and other postretirement benefit expenses, except for settlements in connection with the chapter 11 bankruptcy proceedings that are recorded in Reorganization items, net in the Consolidated Statement of Operations.

Changes in Estimates Recorded During the Fourth Quarter Ended December 31, 2012

During the fourth quarter ended December 31, 2012, Kodak recorded an increase of expense of approximately $35 million, net of tax, related to changes in estimates with respect to certain of its employee benefit and compensation accruals.  These changes in estimates negatively impacted results for the quarter by $.13 per share.

	2012			2011			2010			2009			2008
Net sales from continuing operations (7)	$	4,114		$	5,148		$	5,993		$	6,248		$	7,535
Loss from continuing operations before interest expense, other income (charges), net, reorganization items, net, and income taxes		(573	)		(540	)		(198	)		86			(686	)
(Loss) earnings from:
Continuing operations		(1,303	)(1)		(707	)(2)		(535	)(3)		(116	)(4)		(574	)
Discontinued operations		(76	)(6)		(57	)(6)		(152	)(6)		(99	)		132
Extraordinary item, net of tax		-			-			-			6			-
Net Loss		(1,379	)		(764	)		(687	)		(209	)		(442	)
Less: Net earnings attributable to noncontrolling interests		-			-			-			(1	)		-
Net Loss Attributable to Eastman Kodak Company		(1,379	)		(764	)		(687	)		(210	)		(442	)
Earnings and Dividends
(Loss) earnings from continuing operations
- % of net sales from continuing operations		-31.7	%		-13.7	%		-8.9	%		-1.9	%		-7.6	%
Net (loss) earnings
- % return on average equity		-45.8	%		-44.6	%		-124.0	%		-41.2	%		-21.7	%
Basic and diluted (loss) earnings per share attributable to Eastman Kodak Company common shareholders:
Continuing operations		(4.79	)		(2.63	)		(1.99	)		(0.43	)		(2.04	)
Discontinued operations		(0.28	)		(0.21	)		(0.57	)		(0.37	)		0.47
Extraordinary item, net of tax		-			-			-			0.02			-
Total		(5.07	)		(2.84	)		(2.56	)		(0.78	)		(1.57	)
Cash dividends declared and paid
- on common shares		-			-			-			-			139
- per comon share		-			-			-			-			0.50
Weighted average common shares outstanding at year end		271.8			269.1			268.5			268.0			281.8
Shareholders at year end		48,656			49,760			51,802			54,078			56,115
Statement of Financial Position Data
Working capital		474			577			966			1,407			1,566
Property, plant and equipment, net		693			895			1,037			1,254			1,551
Total assets		4,286			4,678			6,226			7,682			9,179
Short-term borrowings and current portion of long-term debt		699			152			50			62			51
Long-term debt, net of current portion		740			1,363			1,195			1,129			1,252

	2012			2011		2010		2009		2008
Supplemental Information
Net sales from continuing operations
Graphics, Entertainment and Commercial Films	$	1,742		$	2,251	$	2,407	$	2,782	$	3,508
Digital Printing and Enterprise		940			1,098		950		854		886
Personalized and Document Imaging		1,432			1,799		2,636		2,607		3,134
All Other		-			-		-		5		7
Research and development costs		207			235		249		280		383
Depreciation		218			253		318		354		420
Taxes (excludes payroll, sales and excise taxes)		(229	)		38		142		145		(121	)
Wages, salaries and employee benefits		1,465			1,578		1,572		1,732		2,141
Employees as of year end
- in the U.S.		5,980			8,350		9,600		10,630		12,800
- worldwide		13,100			17,100		18,800		20,250		24,400

* Historical results are not indicative of future results.

(1) Includes impairment charges of $2 million; pre-tax restructuring charges of $245 million; $843 million in pre-tax reorganization items, net; $62 million of income related to gains on assets sales; $35 million associated with the termination of a supply agreement; corporate components of pension and OPEB costs of $122 million; $4 million of income related to reversals of value-added tax reserves; and a net benefit of $320 million related to of discrete tax items.  These items increased net loss from continuing operations by $912 million.

(2) Includes pre-tax goodwill and other impairment charges of $13 million; pre-tax restructuring charges of $130 million; $78 million of income related to gains and assets sales; corporate components of pension costs of $28 million; $3 million of income related to reversals of value-added tax reserves; and a net benefit of $38 million related to discrete tax items.  These items increased net loss from continuing operations by $31 million.

(3) Includes a pre-tax goodwill impairment charge of $626 million; pre-tax restructuring charges of $77 million; a $102 million loss on early extinguishment of debt; $8 million of income related to gains on assets sales; $19 million of income related to legal contingencies and settlements; $6 million of charges related to foreign contingencies; and a net benefit of $109 million related to discrete tax items.  These items increased net loss from continuing operations by $698 million.

(4) Includes pre-tax restructuring and rationalization charges of $245 million; a $5 million charge related to a legal settlement; $100 million of income related to gains on asset sales; $7 million of income related to the reversal of negative goodwill; $10 million of income related to reversals of value-added tax reserves; and a $6 million asset impairment charge. These items increased net loss from continuing operations by $131 million.

(5) Includes a pre-tax goodwill impairment charge of $785 million; pre-tax restructuring and rationalization charges of $149 million, net of reversals; $22 million of income related to gains on sales of assets and businesses; $3 million of charges related to asset impairments; $41 million of charges for legal contingencies and settlements; $10 million of charges for support of an educational institution; $94 million of income related to postemployment benefit plans; $3 million of income for a foreign export contingency; $270 million of income related to an IRS refund; and charges of $27 million related to discrete tax items.  These items increased net loss from continuing operations by $611 million.

(6) Refer to Note 25, “Discontinued Operations” in the Notes to Financial Statements for a discussion regarding the earnings from discontinued operations.

(7) Includes revenues from non-recurring intellectual property licensing agreements of $(61) million in 2012, $82 million in 2011, $838 million in 2010, $435 million in 2009, and $227 million in 2008.

Corporate components of pension and OPEB include interest cost, expected return on plan assets, amortization of actuarial gains and losses, and special termination benefits, curtailments and settlement components of pension and other postretirement benefit expenses, except for settlements in connection with the chapter 11 bankruptcy proceedings that are recorded in Reorganization items, net in the Consolidated Statement of Operations.