Note 23 - Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 23: 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 Micro 3D 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; Motion Picture, Industrial Chemicals and Films, and Consumer Products.

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 more than 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 had 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. Asset information by segment is not disclosed as this information is not separately identified and reported to the Chief Operating Decision Maker (“CODM”).

Net Revenues from Continuing Operations by Reportable Segment

	Successor						Predecessor
	Year Ended December 31, 2015		Year Ended December 31, 2014		Four Months Ended December 31, 2013		Eight Months Ended August 31, 2013
(in millions)
Print Systems	$	1,106	$	1,257	$	485	$	844
Enterprise Inkjet Systems		173		185		83		133
Micro 3D Printing and Packaging		128		130		42		75
Software and Solutions		112		108		39		82
Consumer and Film		265		352		147		371
Intellectual Property Solutions		1		70		9		1
Eastman Business Park		13		14		4		4
All Other		—		—		3		36
Consolidated total	$	1,798	$	2,116	$	812	$	1,546

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 table below, Operational EBITDA represents the income (loss) from continuing operations excluding the provision (benefit) for income taxes; depreciation and amortization expense; corporate components of pension and OPEB income; restructuring costs; stock-based compensation expense; change in U.S. vacation benefits; consulting and other costs; idle costs; indirect costs previously allocated to discontinued operations; other operating (expense) income, net (unless otherwise indicated); loss on early extinguishment of debt; interest expense; other (charges) income, net; reorganization items, net and; in prior periods, the impact of certain fresh start accounting adjustments.

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.

Change in Segment Measure of Profit and Loss

During the third quarter of 2015 a $3 million gain was recognized related to assets that were acquired for no monetary consideration. The gain was reported in Other operating (income) expense, net in the Consolidated Statement of Operations. Other operating (income) expense, net is typically excluded from the segment measure. However, this particular gain was included in the Micro 3D Printing and Packaging segment’s earnings for the year ended 2015. No other periods were impacted by this change.

Segment Operational EBITDA and Consolidated Loss from Continuing Operations Before Income Taxes

	Successor									Predecessor
(in millions)	Year Ended December 31, 2015			Year Ended December 31, 2014			Four Months Ended December 31, 2013			Eight Months Ended August 31, 2013
Print Systems	$	98		$	93		$	38		$	32
Enterprise Inkjet Systems		(26	)		(44	)		(15	)		(34	)
Micro 3D Printing and Packaging (5)		9			(1	)		—			(3	)
Software & Solutions		9			3			(1	)		(11	)
Consumer & Film		52			66			34			127
Intellectual Property Solutions		(22	)		40			(2	)		(19	)
Eastman Business Park		2			1			4			1
Total of reportable segments		122			158			58			93
All Other		5			5			4			5
Depreciation and amortization		(145	)		(199	)		(75	)		(97	)
Corporate components of pension and OPEB income (1)		133			110			67			43
Restructuring costs and other		(38	)		(59	)		(17	)		(45	)
Stock-based compensation		(18	)		(8	)		(1	)		(3	)
Change in U.S. vacation benefits (4)		17			—			—			—
Consulting and other costs (2)		(13	)		(6	)		(2	)		—
Idle costs (3)		(3	)		(4	)		—			1
Costs previously allocated to discontinued operations		(1	)		(4	)		(5	)		(35	)
Fresh start adjustments		—			—			(73	)		—
Other operating (expense) income, net excluding gain related to Unipixel termination (5)		(5	)		(9	)		(2	)		495
Loss on early extinguishment of debt, net		—			—			—			(8	)
Interest expense		(63	)		(62	)		(22	)		(106	)
Other charges, net		(21	)		(21	)		10			(13	)
Reorganization items, net		(5	)		(13	)		(16	)		2,026
Consolidated (loss) earnings from continuing operations before income taxes	$	(35	)	$	(112	)	$	(74	)	$	2,356

⁽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⁾ Consulting and other costs are primarily related to professional services provided for corporate strategic initiatives in the current year periods. The prior year periods primarily represent the cost of AlixPartners filling interim executive positions which are not captured within “Reorganization items, net” as well as consulting services provided by former executives during transitional periods.

⁽³⁾ 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.

⁽⁴⁾ In the fourth quarter of 2015, Kodak changed the timing of when U.S. employees earn their vacation benefits which reduced the related accrual as of December 31, 2015.

⁽⁵⁾ In 2015 a $3 million gain was recognized related to assets that were acquired for no monetary consideration as a part of the termination of the relationship with Unipixel. The gain was reported in Other operating (income) expense, net in the Consolidated Statement of Operations. Other operating (income) expense, net is typically excluded from the segment measure. However, this particular gain was included in the Micro 3D Printing and Packaging segment’s earnings in 2015.

Amortization and depreciation expense by segment are not included in the segment measure of profit and loss but are regularly provided to the CODM.

(in millions)	Successor						Predecessor
Intangible asset amortization expense from continuing operations:	Year Ended December 31, 2015		Year Ended December 31, 2014		Four Months Ended December 31, 2013		Eight Months Ended August 31, 2013
Print Systems	$	9	$	9	$	3	$	6
Enterprise Inkjet Systems		4		4		1		2
Micro 3D Packaging & Printing		9		9		3		1
Software & Solutions		2		2		1		1
Consumer & Film		1		1		—		—
Consolidated total	$	25	$	25	$	8	$	10

(in millions)	Successor						Predecessor
Depreciation expense from continuing operations:	Year Ended December 31, 2015		Year Ended December 31, 2014		Four Months Ended December 31,2013		Eight Months Ended August 31,2013
Print Systems	$	39	$	51	$	19	$	34
Enterprise Inkjet Systems		12		12		5		8
Micro 3D Packaging & Printing		6		8		3		4
Software & Solutions		1		2		1		2
Consumer & Film		30		65		23		23
Intellectual Property Solutions		2		8		4		2
Eastman Business Park		6		11		7		7
Sub-total		96		157		62		80
Other		16		15		5		3
Restructuring-related depreciation		8		2		—		4
Consolidated total	$	120	$	174	$	67	$	87

Geographic Information

(in millions)	Successor						Predecessor
Net sales to external customers attributed to (1):	Year Ended December 31, 2015		Year Ended December 31, 2014		Four Months Ended December 31, 2013		Eight Months Ended August 31, 2013
The United States	$	622	$	751	$	243	$	519
Europe, Middle East and Africa		597		727		287		548
Asia Pacific		402		451		207		330
Canada and Latin America		177		187		75		149
Non U.S. countries total		1,176		1,365		569		1,027
Consolidated total	$	1,798	$	2,116	$	812	$	1,546

⁽¹⁾ Sales are reported in the geographic area in which they originate. No non-U.S. country generated more than 10% of net sales in the years ended December 31, 2015 and December 31, 2014, four months ended December 31, 2013 or eight months ended August 31, 2013.

(in millions)	As of December 31,
Property, plant and equipment, net located in:	2015		2014		2013
The United States	$	217	$	271	$	378
Europe, Middle East and Africa		55		68		91
Asia Pacific		76		75		83
Canada and Latin America		78		110		132
Non U.S. countries total (1)		209		253		306
Consolidated total	$	426	$	524	$	684

⁽¹⁾ Of the total non U.S. property, plant and equipment in 2015, $64 million are located in Brazil and $60 million are located in China. Of the total non U.S. property, plant and equipment in 2014, $95 million are located in Brazil and $59 million are located in China. Of the total non U.S. property, plant and equipment in 2013, $113 million are located in Brazil. No other non U.S. country had greater than 10% of property, plant and equipment in 2015, 2014 or 2013.

Major Customers

No single customer represented 10% or more of Kodak’s total net revenue in any year presented.