NOTE 10: OTHER OPERATING EXPENSE (INCOME), NET

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(in millions)	2017		2016			2017			2016
Expense (income):
Asset impairments ^{(1) (2) (3)}	$	20	$	—		$	22		$	25
Prosper asset remeasurement ⁽⁴⁾		—		—			12			—
Legal settlements ^{(5) (6)}		—		(6	)		—			(16	)
Gain on sale of assets ⁽⁷⁾		—		—			(2	)		(7	)
Total	$	20	$	(6	)	$	32		$	2

⁽¹⁾

In the third quarter of 2017, due to canceling its copper mesh touch screen program, Kodak concluded that the carrying value of property, plant and equipment (PP&E) and intangible assets associated with those operations exceeded their fair value. Kodak recorded pre-tax impairment charges in the three months ended September 30, 2017 of $8 million related to the PP&E and $12 million for the intangible assets

⁽²⁾

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 PP&E associated with those operations exceeded their fair value and recorded pre-tax impairment charges of $12 million. Kodak also wrote off related intangible assets with a gross carrying amount of $14 million and accumulated amortization of $6 million and recorded an impairment charge of $8 million.

⁽³⁾	In the first quarter of 2016, Kodak concluded the carrying value of the Kodak trade name exceeded its fair value and recorded an impairment charge of $5 million related to the Kodak trade name.

⁽⁴⁾	In the first quarter of 2017, Kodak reduced the carrying value of Prosper fixed assets ($8 million) and intangible assets ($4 million) to the amount that would have been recorded had the Prosper assets been continuously classified as held and used. Refer to Note 21, “Discontinued Operations’.

⁽⁵⁾	In the third quarter of 2016, Kodak settled a legal contingency and reduced the associated reserve by $6 million.

⁽⁶⁾	In the first quarter of 2016, Kodak received $10 million representing net litigation proceeds from DuPont.

(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 is accounting for this investment under the equity method of accounting. Kodak recognized a gain of approximately $7 million on this transaction.