Note 8 - Revenue

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 8: REVENUE

Disaggregation of Revenue

The following tables present revenue disaggregated by major product, portfolio summary and geography

Major Product

Three Months Ended
March 31, 2023
			Advanced
			Materials
			and
(in millions)	Print		Chemicals		Brand		All Other		Total
Core products (1)
Plates, inks and other consumables	$	144	$	6	$	—	$	—	$	150
Ongoing service arrangements		51		—		—		—		51
Total annuities		195		6		—		—		201
Equipment & software		14		—		—		—		14
Film and chemicals		—		52		—		—		52
Total Core		209		58		—		—		267
Growth products (2)		—		3		—		—		3
Other (3)		—		—		4		4		8
Total	$	209	$	61	$	4	$	4	$	278

Three Months Ended
March 31, 2022
			Advanced
			Materials
			and
(in millions)	Print		Chemicals		Brand		All Other		Total
Core products (1)
Plates, inks and other consumables	$	161	$	6	$	—	$	—	$	167
Ongoing service arrangements		53		—		—		—		53
Total annuities		214		6		—		—		220
Equipment & software		14		—		—		—		14
Film and chemicals		—		45		—		—		45
Total Core		228		51		—		—		279
Growth products (2)		—		3		—		—		3
Other (3)		—		—		4		4		8
Total	$	228	$	54	$	4	$	4	$	290

⁽¹⁾ Core includes the Print business, Motion Picture, and Industrial Film and Chemicals, excluding coating and product commercialization services (“Coating Services”).

⁽²⁾ Growth consists of Coating Services and Advanced Materials and Functional Printing within the Advanced Materials and Chemicals segment.

⁽³⁾ Other consists of Intellectual Property Licensing, Brand Licensing and Eastman Business Park. 

Geography ^(1):

Three Months Ended
March 31, 2023
			Advanced
			Materials
			and
(in millions)	Print		Chemicals		Brand		All Other		Total
United States	$	66	$	48	$	4	$	4	$	122
Canada		3		1		—		—		4
North America		69		49		4		4		126
Europe, Middle East and Africa		89		5		—		—		94
Asia Pacific		45		7		—		—		52
Latin America		6		—		—		—		6
Total	$	209	$	61	$	4	$	4	$	278

Three Months Ended
March 31, 2022
			Advanced
			Materials
			and
(in millions)	Print		Chemicals		Brand		All Other		Total
United States	$	62	$	40	$	4	$	4	$	110
Canada		5		—		—		—		5
North America		67		40		4		4		115
Europe, Middle East and Africa		103		4		—		—		107
Asia Pacific		49		10		—		—		59
Latin America		9		—		—		—		9
Total	$	228	$	54	$	4	$	4	$	290

⁽¹⁾ Sales are reported in the geographic area in which they originate.

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  March 31, 2023 and December 31, 2022 was $1 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 amount recorded for contract liabilities in the Consolidated Statement of Financial Position at both  March 31, 2023 and December 31, 2022 was $51 million, of which $40 million was reported in Other current liabilities and $11 million was reported in Other long-term liabilities.

Revenue recognized for the three months ended March 31, 2023 and 2022 that was included in the contract liability balance at the beginning of the year was $21 million and $20 million, respectively, and primarily represented revenue from prepaid service contracts and equipment revenue recognition. Contract liabilities as of March 31, 2023 and 2022 included $21 million and $24 million of cash payments received during the three months ended March 31, 2023 and 2022, 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 March 31, 2023, there was approximately $50 million of unrecognized revenue from unsatisfied performance obligations. Approximately 30% of the revenue from unsatisfied performance obligations is expected to be recognized in the remainder of 2023, 25% in 2024, 15% in 2025 and 30% thereafter.