Note 8 - Revenue

3 Months Ended

Mar. 31, 2022

Revenue From Contract With Customer [Abstract]

Revenue

NOTE 8:  REVENUE

Disaggregation of Revenue

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

Major Product:

Three Months Ended
March 31, 2022
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Plates, inks and other    consumables	$	145	$	16	$	7	$	—	$	—	$	168
Ongoing service    arrangements (1)		19		34		2		—		—		55
Total annuities		164		50		9		—		—		223
Equipment & software		8		6		—		—		—		14
Film and chemicals		—		—		45		—		—		45
Other (2)		—		—		—		4		4		8
Total	$	172	$	56	$	54	$	4	$	4	$	290

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

⁽¹⁾ Service revenue in the Consolidated Statement of Operations includes the ongoing service revenue shown above as well as one-time service revenue.

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

Product Portfolio Summary:

Three Months Ended
March 31, 2022
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Growth engines (1)	$	65	$	31	$	1	$	—	$	—	$	97
Strategic other businesses (2)		107		13		53		4		4		181
Planned declining    businesses (3)		—		12		—		—		—		12
Total	$	172	$	56	$	54	$	4	$	4	$	290

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

⁽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 and Computer to Plate (“CTP”) equipment and related service in the Traditional Printing segment; 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; the Brand segment and All Other.

⁽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 VERSAMARK and Digimaster in the Digital Printing segment.

Geography ^(1):

Three Months Ended
March 31, 2022
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
United States	$	36	$	26	$	40	$	4	$	4	$	110
Canada		3		2		—		—		—		5
North America		39		28		40		4		4		115
Europe, Middle East    and Africa		84		19		4		—		—		107
Asia Pacific		41		8		10		—		—		59
Latin America		8		1		—		—		—		9
Total	$	172	$	56	$	54	$	4	$	4	$	290

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

⁽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 amount recorded for contract assets at both March 31, 2022 and December 31, 2021 was $3 million and is 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, 2022 and December 31, 2021 were $61 million and $57 million, respectively, in the Consolidated Statement of Financial Position, of which $47 million and $43 million are reported in Other current liabilities, respectively, and $14 million is reported in Other long-term liabilities for both periods.

Revenue recognized for the three months ended March 31, 2022 and 2021 that was included in the contract liability balance at the beginning of the year was $20 million and $25 million, respectively, and primarily represented revenue from prepaid service contracts and equipment revenue recognition.  Contract liabilities as of March 31, 2022 and 2021 included $24 million and $19 million of cash payments received during the three months ended March 31, 2022 and 2021 respectively.

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, 2022, 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 2022, 25% in 2023, 25% in the two-year period 2024 through 2025 and 25% thereafter.