Note 10 - Revenue

3 Months Ended

Mar. 31, 2021

Revenue From Contract With Customer [Abstract]

Revenue

NOTE 10:  REVENUE

Disaggregation of Revenue

The following tables present revenue disaggregated by major product, portfolio summary and geography.

Major Product:

Three Months Ended
March 31, 2021
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Plates, inks and other    consumables	$	121	$	17	$	5	$	—	$	—	$	143
Ongoing service arrangements (1)		20		34		1		—		—		55
Total annuities		141		51		6		—		—		198
Equipment & software		7		13		—		—		—		20
Film and chemicals		—		—		40		—		—		40
Other (2)		—		—		—		3		4		7
Total	$	148	$	64	$	46	$	3	$	4	$	265

Three Months Ended
March 31, 2020
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Plates, inks and other consumables	$	126	$	18	$	5	$	—	$	—	$	149
Ongoing service arrangements (1)		21		35		—		—		—		56
Total annuities		147		53		5		—		—		205
Equipment & software		7		12		—		—		—		19
Film and chemicals		—		—		35		—		—		35
Other (2)		—		—		2		3		3		8
Total	$	154	$	65	$	42	$	3	$	3	$	267

⁽¹⁾ Service revenue in the Consolidated Statement of Operations includes the ongoing service revenue shown above as well as revenue from project-based document management and managed print services businesses, which is included in Other above.

⁽²⁾ Other includes revenue from professional services, non-recurring engineering services, print and managed media services, tenant rent and related property management services and licensing.

Product Portfolio Summary:

Three Months Ended
March 31, 2021
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Growth engines (1)	$	47	$	37	$	1	$	—	$	—	$	85
Strategic other businesses (2)		101		14		45		3		4		167
Planned declining    businesses (3)		—		13		—		—		—		13
Total	$	148	$	64	$	46	$	3	$	4	$	265

Three Months Ended
March 31, 2020
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Growth engines (1)	$	44	$	36	$	—	$	—	$	—	$	80
Strategic other businesses (2)		110		15		39		3		3		170
Planned declining    businesses (3)		—		14		3		—		—		17
Total	$	154	$	65	$	42	$	3	$	3	$	267

⁽¹⁾ Growth engines consist of Sonora in the Traditional Printing segment, PROSPER and Software in the Digital Printing segment, and Advanced Materials and Functional Printing in the Advanced Materials and Chemicals segment, excluding intellectual property (IP) licensing.

⁽²⁾ Strategic other businesses include plates in the Traditional Printing segment; Computer to Plate (“CTP”) equipment and related service and Nexpress and related toner business in the Digital Printing segment and Motion Picture and Industrial Film and Chemicals (including external inks) and IP licensing in the Advanced Materials and Chemicals segment and the Brand segment.

⁽³⁾ Planned declining businesses are product lines where the decision has been made to stop new product development and manage an orderly expected decline in the installed product and annuity base or are otherwise not strategic to Kodak. These product families consist of Kodak Services for Business in the Advanced Materials and Chemicals segment and Versamark and Digimaster in the Digital Printing segment.

Geography ^(1):

Three Months Ended
March 31, 2021
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
United States	$	29	$	27	$	33	$	3	$	4	$	96
Canada		2		3		—		—		—		5
North America		31		30		33		3		4		101
Europe, Middle East and Africa		68		19		3		—		—		90
Asia Pacific		42		14		10		—		—		66
Latin America		7		1		—		—		—		8
Total	$	148	$	64	$	46	$	3	$	4	$	265

Three Months Ended
March 31, 2020
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
United States	$	35	$	28	$	30	$	3	$	3	$	99
Canada		3		2		—		—		—		5
North America		38		30		30		3		3		104
Europe, Middle East and Africa		68		24		3		—		—		95
Asia Pacific		39		10		9		—		—		58
Latin America		9		1		—		—		—		10
Total	$	154	$	65	$	42	$	3	$	3	$	267

⁽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 amounts recorded for contract assets at March 31, 2021 and December 31, 2020 were $1 million and $2 million, respectively, and are reported in Other current assets in the Consolidated Statement of Financial Position.  The contract liabilities primarily relate to prepaid service contracts, upfront payments for certain equipment purchases or prepaid royalties on intellectual property arrangements.  The amounts recorded for contract liabilities at March 31, 2021 and December 31, 2020 were $57 million and $64 million, respectively, of which $41 million and $47 million are reported in Other current liabilities, respectively, and $16 million and $17 million, respectively, are reported in Other long-term liabilities in the Consolidated Statement of Financial Position.

Revenue recognized for the three months ended March 31, 2021 and 2020 that was included in the contract liability balance at the beginning of the year was $25 million and $26 million, respectively, and primarily represented revenue from prepaid service contracts and equipment revenue recognition.  Contract liabilities as of both March 31, 2021 and 2020 included $19 million of cash payments received during the three months ended March 31, 2021 and 2020.

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, 2021, there was approximately $70 million of unrecognized revenue from unsatisfied performance obligations. Approximately 25% of the revenue from unsatisfied performance obligations is expected to be recognized in the remainder of 2021, 25% in 2022, 20% in 2023 and 30% thereafter.