Note 9 - Revenue

6 Months Ended

Jun. 30, 2022

Revenue From Contract With Customer [Abstract]

Revenue

NOTE 9:  REVENUE

Disaggregation of Revenue

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

Major Product

Three Months Ended
June 30, 2022
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Plates, inks and other    consumables	$	165	$	17	$	7	$	—	$	—	$	189
Ongoing service    arrangements (1)		19		33		3		—		—		55
Total annuities		184		50		10		—		—		244
Equipment & software		10		8		—		—		—		18
Film and chemicals		—		—		50		—		—		50
Other (2)		—		—		1		4		4		9
Total	$	194	$	58	$	61	$	4	$	4	$	321
Six Months Ended
June 30, 2022
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Plates, inks and other    consumables	$	310	$	33	$	14	$	—	$	—	$	357
Ongoing service    arrangements (1)		38		67		5		—		—		110
Total annuities		348		100		19		—		—		467
Equipment & software		18		14		—		—		—		32
Film and chemicals		—		—		95		—		—		95
Other (2)		—		—		1		8		8		17
Total	$	366	$	114	$	115	$	8	$	8	$	611

Three Months Ended
June 30, 2021
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Plates, inks and other    consumables	$	135	$	16	$	5	$	—	$	—	$	156
Ongoing service    arrangements (1)		20		33		2		—		—		55
Total annuities		155		49		7		—		—		211
Equipment & software		14		13		—		—		—		27
Film and chemicals		—		—		47		—		—		47
Other (2)		—		—		—		3		3		6
Total	$	169	$	62	$	54	$	3	$	3	$	291
Six Months Ended
June 30, 2021
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Plates, inks and other    consumables	$	256	$	33	$	10	$	—	$	—	$	299
Ongoing service    arrangements (1)		40		67		3		—		—		110
Total annuities		296		100		13		—		—		409
Equipment & software		21		26		—		—		—		47
Film and chemicals		—		—		86		—		—		86
Other (2)		—		—		1		6		7		14
Total	$	317	$	126	$	100	$	6	$	7	$	556

⁽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
June 30, 2022
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Growth engines (1)	$	71	$	34	$	1	$	—	$	—	$	106
Strategic other businesses (2)		123		13		60		4		4		204
Planned declining    businesses (3)		—		11		—		—		—		11
Total	$	194	$	58	$	61	$	4	$	4	$	321
Six Months Ended
June 30, 2022
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Growth engines (1)	$	137	$	65	$	1	$	—	$	—	$	203
Strategic other businesses (2)		229		26		114		8		8		385
Planned declining    businesses (3)		—		23		—		—		—		23
Total	$	366	$	114	$	115	$	8	$	8	$	611

Three Months Ended
June 30, 2021
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Growth engines (1)	$	53	$	36	$	—	$	—	$	—	$	89
Strategic other businesses (2)		116		15		54		3		3		191
Planned declining    businesses (3)		—		11		—		—		—		11
Total	$	169	$	62	$	54	$	3	$	3	$	291
Six Months Ended
June 30, 2021
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
Growth engines (1)	$	100	$	73	$	—	$	—	$	—	$	173
Strategic other businesses (2)		217		28		100		6		7		358
Planned declining    businesses (3)		—		25		—		—		—		25
Total	$	317	$	126	$	100	$	6	$	7	$	556

⁽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 (excluding Sonora 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
June 30, 2022
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
United States	$	44	$	29	$	46	$	4	$	4	$	127
Canada		3		2		1		—		—		6
North America		47		31		47		4		4		133
Europe, Middle East    and Africa		98		19		5		—		—		122
Asia Pacific		42		7		9		—		—		58
Latin America		7		1		—		—		—		8
Total	$	194	$	58	$	61	$	4	$	4	$	321
Six Months Ended
June 30, 2022
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
United States	$	80	$	55	$	86	$	8	$	8	$	237
Canada		6		4		1		—		—		11
North America		86		59		87		8		8		248
Europe, Middle    East and Africa		182		38		9		—		—		229
Asia Pacific		83		15		19		—		—		117
Latin America		15		2		—		—		—		17
Total	$	366	$	114	$	115	$	8	$	8	$	611

Three Months Ended
June 30, 2021
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
United States	$	36	$	26	$	38	$	3	$	3	$	106
Canada		4		2		1		—		—		7
North America		40		28		39		3		3		113
Europe, Middle    East and Africa		76		22		5		—		—		103
Asia Pacific		46		11		10		—		—		67
Latin America		7		1		—		—		—		8
Total	$	169	$	62	$	54	$	3	$	3	$	291
Six Months Ended
June 30, 2021
(in millions)	Traditional Printing		Digital Printing		Advanced Materials and Chemicals		Brand		All Other		Total
United States	$	65	$	53	$	71	$	6	$	7	$	202
Canada		6		5		1		—		—		12
North America		71		58		72		6		7		214
Europe, Middle    East and Africa		144		41		8		—		—		193
Asia Pacific		88		25		20		—		—		133
Latin America		14		2		—		—		—		16
Total	$	317	$	126	$	100	$	6	$	7	$	556

⁽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 June 30, 2022 and December 31, 2021 was $1 million and $3 million, respectively, 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 June 30, 2022 and December 31, 2021 were $61 million and $57 million, respectively, in the Consolidated Statement of Financial Position, of which $48 million and $43 million are reported in Other current liabilities, respectively, and $13 million and $14 million are reported in Other long-term liabilities, respectively.

Revenue recognized for the three and six months ended June 30, 2022 and 2021 that was included in the contract liability balance at the beginning of the year was $12 million and $29 million, respectively, in 2022 and $6 million and $31 million, respectively, in 2021 and primarily represented revenue from prepaid service contracts and equipment revenue recognition.  Contract liabilities as of June 30, 2022 included $22 million and $33 million of cash payments received during the three and six months ended June 30, 2022 respectively.  Contract liabilities as of June 30, 2021 included $22 million and $26 million of cash payments received during the three and six months ended June 30, 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 June 30, 2022, there was approximately $65 million of unrecognized revenue from unsatisfied performance obligations. Approximately 15% of the revenue from unsatisfied performance obligations is expected to be recognized in the remainder of 2022, 30% in 2023, 30% in the two-year period 2024 through 2025 and 25% thereafter.