Note 8 - Revenue

3 Months Ended

Mar. 31, 2024

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 and geography:

Major Product:

Three Months Ended
March 31, 2024
			Advanced
			Materials
			and
(in millions)	Print		Chemicals		Brand		All Other		Total
Core products (1)
Plates, inks and other consumables	$	128	$	7	$	—	$	—	$	135
Ongoing service arrangements		41		—		—		—		41
Total annuities		169		7		—		—		176
Equipment & software		13		—		—		—		13
Film and chemicals		—		51		—		—		51
Total Core		182		58		—		—		240
Growth products (2)		—		1		—		—		1
Other (3)		—		—		4		4		8
Total	$	182	$	59	$	4	$	4	$	249

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

⁽¹⁾ Core includes the Print segment and the Motion Picture and Industrial Film and Chemicals businesses within the Advanced Materials and Chemicals segment, 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 ("IP Licensing"), Brand Licensing and Eastman Business Park. 

Geography ^(1):

Three Months Ended
March 31, 2024
			Advanced
			Materials
			and
(in millions)	Print		Chemicals		Brand		All Other		Total
United States	$	57	$	47	$	4	$	4	$	112
Canada		3		—		—		—		3
North America		60		47		4		4		115
Europe, Middle East and Africa		80		5		—		—		85
Asia Pacific		38		7		—		—		45
Latin America		4		—		—		—		4
Total	$	182	$	59	$	4	$	4	$	249

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

⁽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, 2024 and December 31, 2023 was $1 million and is reported in Other current assets in the Consolidated Statement of Financial Position. The contract liabilities primarily relate to brand licensing agreements, prepaid service contracts or upfront payments for certain equipment purchases. The amount recorded for contract liabilities in the Consolidated Statement of Financial Position at  March 31, 2024 and December 31, 2023 was $97 million and $100 million, respectively, of which $35 million and $37 million, respectively, was reported in Other current liabilities and $61 million and $63 million, respectively, was reported in Other long-term liabilities.

Revenue recognized for both the three months ended March 31, 2024 and 2023 that was included in the contract liability balance at the beginning of the year was $21 million and primarily represented revenue from prepaid service contracts and equipment revenue recognition. Contract liabilities as of March 31, 2024 and  March 31, 2023 included $18 million and $21 million of cash payments received during the three months ended March 31, 2024 and 2023, 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, 2024, there was approximately $95 million of unrecognized revenue from unsatisfied performance obligations. Approximately 10% of the revenue from unsatisfied performance obligations is expected to be recognized in the remainder of 2024, 15% in 2025, 10% in each of 2026 and 2027 and 55% thereafter.