Note 22 - Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 22:  SEGMENT INFORMATION

Current Segment Reporting Structure

Effective in the third quarter of 2012, Kodak had three reportable segments: the Graphics, Entertainment and Commercial Films Segment, the Digital Printing and Enterprise Segment, and the Personalized and Document Imaging Segment. Effective in the first quarter of 2013, the Intellectual Property and Brand Licensing strategic product group is reported in the Graphics, Entertainment and Commercial Films segment. The Intellectual Property and Brand Licensing strategic product group was previously reported in the Personalized and Document Imaging segment.  Effective in the second quarter of 2013, due to the Personalized and Document Imaging Segment (excluding the Consumer Film business, for which Kodak has entered into an ongoing supply arrangement with one or more of the KPP Purchasing Parties) being reported as Discontinued operations, Kodak has two reportable segments:  the Graphics, Entertainment and Commercial Films Segment and the Digital Printing and Enterprise Segment.  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 segments follows.

Graphics, Entertainment and Commercial Films: The Graphics, Entertainment and Commercial Films Segment encompasses Graphics, Entertainment Imaging & Commercial Films, and Kodak’s intellectual property and brand licensing activities.  Product and service offerings include; digital plates, CTP output devices, digital controllers, unified workflow solutions, and entertainment imaging and commercial films.  On February 1, 2013, Kodak sold certain digital imaging patents.

Digital Printing and Enterprise:  The Digital Printing and Enterprise Segment encompasses Digital Printing, including PROSPER equipment and STREAM technology, Packaging and Functional Printing, Enterprise Services & Solutions, and Consumer Inkjet Systems.  On September 28, 2012, Kodak announced a plan, starting in 2013, to focus its Consumer Inkjet business solely on the sale of ink to its installed printer base.

All Other:  All Other is composed of Kodak’s consumer film business and a utilities variable interest entity. Effective August 31, 2013 the Company sold certain utilities and related facilities and entered into utilities supply and servicing arrangements with RED, a variable interest entity.

Change in Segment Measure of Profit and Loss

During the second quarter of 2013, the Predecessor Company changed its segment measure of profit and loss to exclude amortization of prior service credits related to the U.S. Postretirement Benefit Plan. Prior to this change, Kodak excluded certain other components of pension and other postretirement benefit obligation (“OPEB”) costs from the segment measure of profitability.  As a result of this change, the operating segment results now exclude the interest cost, expected return on plan assets, amortization of actuarial gains and losses, amortization of prior service credits related to the U.S. Postretirement Benefit Plan, and special termination benefit, curtailment and settlement components of pension and OPEB expense.  The service cost component for all plans will continue to be reported as a part of operating segment results, as will the amortization of prior service cost component for all plans other than for the U.S. Postretirement Benefit Plan. Prior period segment results have been revised to reflect this change.

Upon adoption of fresh start accounting, the Successor Company eliminated prior service credits related to the U.S. Postretirement Benefit Plan. Therefore the one month ended September 30, 2013 does not include any amortization related to prior service credits related to the U.S. Postretirement Benefit Plan.

Segment financial information is shown below:

	Successor		Predecessor				Successor		Predecessor
	One Month Ended September 30, 2013		Two Months Ended August 31, 2013		Three Months Ended September 30, 2012		One Month Ended September 30, 2013		Eight Months Ended August 31, 2013		Nine Months Ended September 30, 2012
(in millions)
Net sales from continuing operations:
Graphics, Entertainment & Commercial Films	$	123	$	230	$	404	$	123	$	987	$	1,230
Digital Printing and Enterprise		74		124		231		74		519		670
All Other		1		11		25		1		36		80
Consolidated total	$	198	$	365	$	660	$	198	$	1,542	$	1,980

	Successor			Predecessor						Successor			Predecessor
	One Month Ended September 30, 2013			Two Months Ended August 31, 2013			Three Months Ended September 30, 2012			One Month Ended September 30, 2013			Eight Months Ended August 31, 2013			Nine Months Ended September 30, 2012
(in millions)
Segment (loss) earnings and Consolidated (loss) earnings from continuing operations before income taxes:
Graphics, Entertainment and Commercial Films	$	(11	)	$	(6	)	$	(34	)	$	(11	)	$	5		$	(166	)
Digital Printing and Enterprise		(13	)		(8	)		(58	)		(13	)		(37	)		(221	)
Total of reportable segments	$	(24	)	$	(14	)	$	(92	)	$	(24	)	$	(32	)	$	(387	)
All Other		(4	)		3			(1	)		(4	)		-			(3	)
Restructuring costs and other		4			3			120			4			49			207
Corporate components of pension and OPEB income (expense) (1)		13			16			(6	)		13			43			(10	)
Other operating income, net		-			-			4			-			495			5
Loss on early extinguishment of debt, net		-			2			-			-			8			7
Interest expense		6			33			36			6			106			103
Other income (charges), net		0			(2	)		6			0			(13	)		3
Reorganization items, net		5			(2,217	)		56			5			(2,026	)		304
Consolidated (loss) earnings from continuing operations before income taxes	$	(30	)	$	2,182		$	(301	)	$	(30	)	$	2,356		$	(1,013	)

(1)   Composed of interest cost, expected return on plan assets, amortization of actuarial gains and losses, amortization of prior service credits related to the U.S. Postretirement Benefit Plan 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 and curtailments and settlements included in Earnings (loss) from discontinued operations, net of income taxes  in the Consolidated Statement of Operations.  

	Successor		Predecessor
(in millions)	As of		As of
	September 30,		December 31,
	2013		2012
Segment total assets:
Graphics, Entertainment and Commercial Films	$	1,497	$	1,352
Digital Printing and Enterprise		757		524
Total of reportable segments		2,254		1,876
All Other		111		183
Cash and marketable securities		839		1,139
Deferred income tax assets		83		545
Assets held for sale		123		578
Consolidated total assets	$	3,410	$	4,321