Note 18 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Loss before Income Tax, Domestic and Foreign

The components of (Loss) earnings from continuing operations before income taxes and the related provision for U.S. and other income taxes were as follows (in millions):

	Year Ended December 31,
	2020			2019
(Loss) earnings from continuing operations before    income taxes:
U.S.	$	(388	)	$	(68	)
Outside the U.S.		12			8
Total	$	(376	)	$	(60	)
U.S. income taxes:
Current benefit	$	—		$	—
Deferred provision		2			—
Income taxes outside the U.S.:
Current (benefit) provision		(3	)		7
Deferred provision		169			24
Total provision	$	168		$	31

Schedule of Effective Income Tax Rate Reconciliation

The differences between income taxes computed using the U.S. federal income tax rate and the provision for income taxes for continuing operations were as follows (in millions):

	Year Ended December 31,
	2020			2019
Amount computed using the statutory rate	$	(79	)	$	(13	)
Increase (reduction) in taxes resulting from:
Unremitted foreign earnings		2			(1	)
Operations outside the U.S.		3			22
Legislative tax law and rate changes		(11	)		1
Valuation allowance		220			11
Tax settlements and adjustments, including interest		(43	)		2
Embedded derivative liability		81			9
Other, net		(5	)		—
Provision from income taxes	$	168		$	31

Schedule of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities were as follows (in millions):

	As of December 31,
	2020			2019
Deferred tax assets
Pension and postretirement obligations	$	25		$	39
Restructuring programs		2			2
Leasing		4			1
Foreign tax credit		358			355
Inventories		9			8
Investment tax credit		42			46
Employee deferred compensation		26			24
Depreciation		36			41
Research and development costs		40			56
Tax loss carryforwards		480			325
Other deferred revenue		2			2
Other		89			86
Total deferred tax assets	$	1,113		$	985
Deferred tax liabilities
Goodwill/intangibles	$	10		$	11
Unremitted foreign earnings		22			19
Total deferred tax liabilities		32			30
Net deferred tax assets before valuation allowance		1,081			955
Valuation allowance		1,112			821
Net deferred tax (liabilities) assets	$	(31	)	$	134

Schedule of Components of Income Tax Expense (Benefit)

Deferred tax (liabilities) assets are reported in the following components within the Consolidated Statement of Financial Position (in millions):

	As of December 31,
	2020			2019
Deferred income taxes	$	—		$	147
Other long-term liabilities		(31	)		(13	)
Net deferred tax (liabilities) assets	$	(31	)	$	134

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of Kodak’s liability for income taxes associated with unrecognized tax benefits is as follows

(in millions):

	Year Ended December 31,
	2020			2019
Balance as of January 1	$	54		$	57
Tax positions related to the current year:
Additions		—			—
Tax positions related to prior years:
Additions		2			1
Reductions		(42	)		(1	)
Settlements with taxing jurisdictions		(6	)		(3	)
Balance as of December 31	$	8		$	54