NOTE 20: SEGMENT INFORMATION

Kodak has seven reportable segments: Print Systems, Enterprise Inkjet Systems, Flexographic Packaging, Software and Solutions, Consumer and Film, Advanced Materials and 3D Printing Technology and Eastman Business Park. 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: the Prosper business and the Versamark business.

Flexographic Packaging: The Flexographic Packaging segment is comprised of the Packaging line of business.

Software and Solutions: The Software and Solutions segment is comprised of two lines of business: Unified Workflow Solutions and Kodak Technology Solutions.

Consumer and Film: The Consumer and Film segment is comprised of three lines of business: Industrial Film and Chemicals, Motion Picture and Consumer Products (which includes Consumer Inkjet Solutions).

Advanced Materials and 3D Printing Technology: The Advanced Materials and 3D Printing Technology segment includes the Kodak Research Laboratories and associated new business opportunities and intellectual property licensing not directly related to other business 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.

Segment financial information is shown below:

Segment Revenues

	Three Months Ended
	March 31,
(in millions)	2018		2017
Print Systems	$	216	$	213
Enterprise Inkjet Systems		31		37
Flexographic Packaging		37		33
Software and Solutions		20		21
Consumer and Film		48		49
Advanced Materials and 3D Printing Technology		1		—
Eastman Business Park		4		4
Consolidated total	$	357	$	357

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

	Three Months Ended
	March 31,
(in millions)	2018			2017
Print Systems	$	4		$	12
Enterprise Inkjet Systems		—			—
Flexographic Packaging		7			6
Software and Solutions		—			—
Consumer and Film		(6	)		(4	)
Advanced Materials and 3D Printing Technology		(4	)		(8	)
Eastman Business Park		—			—
Total of reportable segments		1			6
Depreciation and amortization		(19	)		(19	)
Restructuring costs and other		(2	)		(13	)
Stock based compensation		(2	)		(2	)
Consulting and other costs ⁽¹⁾		(3	)		(1	)
Idle costs ⁽²⁾		(1	)		(1	)
Other operating (expense) income, net ⁽³⁾		—			(10	)
Interest expense ⁽³⁾		(8	)		(8	)
Pension income excluding service cost component ⁽³⁾		32			38
Other (charges) income, net ⁽³⁾		(16	)		20
Consolidated (loss) earnings from continuing operations before income taxes	$	(18	)	$	10

⁽¹⁾	Consulting and other costs are professional services and internal costs associated with certain corporate strategic initiatives.

⁽²⁾	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.

⁽³⁾	As reported in the Consolidated Statement of Operations.

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 above table, Operational EBITDA represents the (loss) earnings from continuing operations excluding the provision for income taxes; non-service cost components of pension and OPEB income; depreciation and amortization expense; restructuring costs; stock-based compensation expense; consulting and other costs; idle costs; other operating expense, net (unless otherwise indicated); goodwill impairment losses; interest expense; and other (charges) income, net.

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 Advanced Materials and 3D Printing Technology segment.

Change in Segment Measure of Profitability

During the first quarter of 2018 the segment measure was changed to exclude amortization of prior service costs and credits which, due to the adoption of ASU 2017-17, are no longer reported in the same line item as other compensation costs arising from services rendered during the period. Refer to the Recently Adopted Accounting Pronouncements section of Note 1, “Basis of Presentation and Recent Accounting Pronouncements.