NOTE 8: OTHER OPERATING (INCOME) EXPENSE, NET

	Three Months Ended						Nine Months Ended
(in millions)	September 30,						September 30,
	2016			2015			2016			2015
(Income) expense:
Asset impairments ^{(1) (2) (3) (4)}	$	-		$	-		$	25		$	6
Legal settlements ^{(5) (6)}		(6	)		-			(16	)		-
Gain on sale of assets ⁽⁷⁾		-			-			(7	)		(5	)
Gain recognized on assets acquired for no monetary consideration ⁽⁸⁾		-			(3	)		-			(3	)
Other		-			1			-			2
Total	$	(6	)	$	(2	)	$	2		$	-

⁽¹⁾

In the first quarter of 2016, due to the exit of its position in silver metal mesh touch screen development, Kodak concluded that the carrying value of property, plant and equipment associated with those operations exceeded their fair value. Kodak recorded pre-tax impairment charges in the nine months ended September 30, 2016 of $12 million.

⁽²⁾	In the first quarter of 2016, Kodak recorded an impairment charge of $8 million related to silver metal mesh touch screen intangible assets. Refer to Note 4, “Intangible Assets.”

⁽³⁾	In the first quarter of 2016, Kodak recorded an impairment charge of $5 million related to the Kodak trade name. Refer to Note 4, “Intangible Assets.”

⁽⁴⁾

In the first quarter of 2015, due to the change in Kodak’s reporting units and the delay in commercializing new technologies in the Micro 3D Printing reporting unit, Kodak concluded the carrying value of the Micro 3D Printing reporting unit exceeded its implied fair value and recorded a goodwill impairment charge of $6 million representing the entire amount of goodwill for this reporting unit.

⁽⁵⁾	In the first quarter of 2016, Kodak received $10 million representing net litigation proceeds from DuPont.

⁽⁶⁾	In the third quarter of 2016, Kodak settled a legal contingency and reduced the associated reserve by $6 million.

⁽⁷⁾

On June 30, 2016, Kodak sold certain assets of its brand protection business to eApeiron Solutions Inc. in exchange for cash consideration of approximately $6 million and an equity investment of 19.9%. Kodak accounts for this investment under the equity method of accounting. Kodak recognized a gain of approximately $7 million on this transaction.

⁽⁸⁾	Refer to Note 17, “Segment Information”, footnote 7 to the table entitled, “Segment Operational EBITDA from Consolidated Earnings (Loss) from Continuing Operations before Income Taxes”.