EX-99.1 2 d595566dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Eastman Kodak Company

Unaudited Pro Forma Consolidated Statements of Operations

The unaudited pro forma consolidated statements of operations present financial information to give effect to the sale of assets and liabilities of Eastman Kodak Company’s (the “Company”) Personalized Imaging and Document Imaging businesses, assuming the entire sale occurred as of January 1, 2010. The sale of assets and liabilities of the Personalized Imaging and Document Imaging businesses closed on September 3, 2013 in 26 countries, including the United States and the United Kingdom. The carrying value of assets held for sale in those 26 countries as of December 31, 2012 was $457 million. Closing of the sale in 12 countries is occurring on a delayed basis, with all closings anticipated to be completed by December 31, 2014. The carrying value of assets held for sale in those 12 countries as of December 31, 2012 was $99 million. With the exception of the assumption of certain liabilities, consideration for the assets of the Personalized Imaging and Document Imaging businesses in each of the delayed closing countries was received by the Company on September 3, 2013 and is non-refundable. Until all closings are final, the Company will continue to operate the delayed close entities in the normal course of business. However, during the delayed close period, the economic benefit of operating the businesses in each delayed close country will be due to, and the economic detriment of operating the businesses in each delayed close country will be due from, the purchasers of those businesses.

The unaudited pro forma consolidated statements of operations include specific assumptions and adjustments related to the sale of the Personalized Imaging and Document Imaging businesses as described in the accompanying notes. The adjustments are based upon presently available information and assumptions that management believes are reasonable under the circumstances as of the date of this filing. However, actual adjustments may differ materially from the information presented.

The unaudited pro forma consolidated statements of operations presented are for informational purposes only. They are not intended to represent or be indicative of the consolidated results of operations that would have occurred had the sale been completed as of the dates presented nor are they intended to be indicative of future results of operations or financial position. Furthermore, these unaudited pro forma consolidated statements of operations do not reflect changes that may occur as a result of activities after the sale of the Personalized Imaging and Document Imaging businesses. The unaudited pro forma consolidated statements of operations, including notes thereto, should be read in conjunction with the historical financial statements of the Company included in its Annual Report on Form 10-K for the year ended December 31, 2012 and Form 10-Qs for the quarterly periods ended March 31, 2013 and June 30, 2013.

Eastman Kodak Company

Unaudited Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2010

 

(in millions, except per share data)    As reported on
on 2012 Form 10-K		     Pro Forma
Adjustments		     Pro Forma  

Net sales

       

Products

    $ 4,316      $ 1,198  (A)    $ 3,118   

Services

      775        298  (A)      477   

Licensing & royalties

      902        —           902   
  

 

 

    

 

 

    

 

 

  

Total net sales

    $ 5,993      $ 1,496  (A)    $ 4,497   
  

 

 

    

 

 

    

 

 

  

Cost of sales

       

Products

    $ 3,580      $ 944  (A)    $ 2,636   

Services

      590        230  (A)      360   
  

 

 

    

 

 

    

 

 

  

Total cost of sales

    $ 4,170      $ 1,174  (A)    $ 2,996   
  

 

 

    

 

 

    

 

 

  

Gross Profit

    $ 1,823      $ 322  (A)    $ 1,501   

Selling, general and administrative expenses

      1,084        199  (A)      885   

Research and development costs

      249        54  (A)      195   

Restructuring costs and other

      69        10  (A)      59   

Other operating (income) expenses, net

      619        —    (A)      619   
  

 

 

    

 

 

    

 

 

  

Loss from continuing operations before interest expense, other income (charges), net and income taxes

      (198 )      59  (A)      (257 ) 

Interest expense

      148        16  (B)      132   

Loss on early extinguishment of debt, net

      102        —          102   

Other income (charges), net

      23        1  (A)      22   
  

 

 

    

 

 

    

 

 

  

Loss from continuing operations before income taxes

      (425 )      44  (A)      (469 ) 

(Benefit) provision for income taxes

      110        23  (A)      87   
  

 

 

    

 

 

    

 

 

  

Loss from continuing operations

    $ (535 )      21  (A)    $ (556 ) 
  

 

 

    

 

 

    

 

 

  

Basic and diluted net loss per share attributable to Eastman Kodak Company common shareholders from continuing operations

    $ (1.99 )      $ (2.07 ) 
  

 

 

      

 

 

  

Number of common shares used in basic and diluted net (loss) earnings per share

      268.5          268.5   

See Notes to Pro Forma Consolidated Financial Statements

 

PAGE 2

Eastman Kodak Company

Unaudited Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2011

 

(in millions, except per share data)    As reported on
on 2012 Form 10-K		     Pro Forma
Adjustments		     Pro Forma  

Net sales

       

Products

    $ 4,238      $ 1,223  (A)    $ 3,015   

Services

      784        285  (A)      499   

Licensing & royalties

      126        —          126   
  

 

 

    

 

 

    

 

 

  

Total net sales

    $ 5,148      $ 1,508  (A)    $ 3,640   
  

 

 

    

 

 

    

 

 

  

Cost of sales

       

Products

    $ 3,741      $ 1,007  (A)    $ 2,734   

Services

      609        199  (A)      410   
  

 

 

    

 

 

    

 

 

  

Total cost of sales

    $ 4,350      $ 1,206  (A)    $ 3,144   
  

 

 

    

 

 

    

 

 

  

Gross Profit

    $ 798      $ 302  (A)    $ 496   

Selling, general and administrative expenses

      1,050        188  (A)      862   

Research and development costs

      235        40  (A)      195   

Restructuring costs and other

      118        11  (A)      107   

Other operating (income) expenses, net

      (65 )      (9)  (A)      (56 ) 
  

 

 

    

 

 

    

 

 

  

Loss from continuing operations before interest expense, other income (charges), net and income taxes

      (540 )      72  (A)      (612 ) 

Interest expense

      155        17  (B)      138   

Loss on early extinguishment of debt, net

      —          —          —     

Other income (charges), net

      (4 )      (1)  (A)      (3 ) 
  

 

 

    

 

 

    

 

 

  

Loss from continuing operations before income taxes

      (699 )      54  (A)      (753 ) 

(Benefit) provision for income taxes

      8        24  (A)      (16 ) 
  

 

 

    

 

 

    

 

 

  

Loss from continuing operations

    $ (707 )    $ 30  (A)    $ (737 ) 
  

 

 

    

 

 

    

 

 

  

Basic and diluted net loss per share attributable to Eastman Kodak Company common shareholders from continuing operations

    $ (2.63 )      $ (2.74 ) 
  

 

 

      

 

 

  

Number of common shares used in basic and diluted net (loss) earnings per share

      269.1          269.1   

See Notes to Pro Forma Consolidated Financial Statements

 

PAGE 3

Eastman Kodak Company

Unaudited Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2012

 

(in millions, except per share data)    As reported on
on 2012 Form 10-K		     Pro Forma
Adjustments		     Pro Forma  

Net sales

       

Products

    $ 3,441      $ 1,084  (A)    $ 2,357   

Services

      721        267  (A)      454   

Licensing & royalties

      (48 )      —          (48 ) 
  

 

 

    

 

 

    

 

 

  

Total net sales

    $ 4,114      $ 1,351  (A)    $ 2,763   
  

 

 

    

 

 

    

 

 

  

Cost of sales

       

Products

    $ 2,954      $ 868  (A)    $ 2,086   

Services

      569        195  (A)      374   
  

 

 

    

 

 

    

 

 

  

Total cost of sales

    $ 3,523      $ 1,063  (A)    $ 2,460   
  

 

 

    

 

 

    

 

 

  

Gross Profit

    $ 591      $ 288  (A)    $ 303   

Selling, general and administrative expenses

    $ 824      $ 178  (A)      646   

Research and development costs

    $ 207      $ 35  (A)      172   

Restructuring costs and other

    $ 228      $ 13  (A)      215   

Other operating (income) expenses, net

    $ (95 )    $ (8)  (A)      (87 ) 
  

 

 

    

 

 

    

 

 

  

Loss from continuing operations before interest expense, other income (charges), net, reorganization items, net and income taxes

      (573 )      70  (A)      (643 ) 

Interest expense (contractual interest for the year ended December 31, 2012 of $203)

      158        18  (B)      140   

Loss on early extinguishment of debt, net

      7        —          7   

Other income (charges), net

      21        —    (A)      21   

Reorganization items, net

      843        —          843   
  

 

 

    

 

 

    

 

 

  

Loss from continuing operations before income taxes

      (1,560 )      52  (A)      (1,612 ) 

(Benefit) provision for income taxes

      (257 )      15  (A)      (272 ) 
  

 

 

    

 

 

    

 

 

  

Loss from continuing operations

    $ (1,303 )    $ 37  (A)    $ (1,340 ) 
  

 

 

    

 

 

    

 

 

  

Basic and diluted net loss per share attributable to Eastman Kodak Company common shareholders from continuing operations

    $ (4.79 )      $ (4.93 ) 
  

 

 

      

 

 

  

Number of common shares used in basic and diluted net (loss) earnings per share

      271.8          271.8   

See Notes to Pro Forma Consolidated Financial Statements

 

PAGE 4

Notes to the Unaudited Pro Forma Consolidated Statements of Operations

The unaudited pro forma consolidated statements of operations give effect to the sale of the Company’s Personalized Imaging and Document Imaging businesses. The unaudited pro forma consolidated statements of operations are presented as if the sale occurred as of January 1, 2010. The anticipated after-tax gain on the sale is not reflected in the pro forma consolidated statements of operations.

 

  (A) The Pro Forma Adjustments represent the results of the Personalized Imaging and Document Imaging businesses’ operations previously consolidated in the Company’s historical financial statements as adjusted to reflect discontinued operations.

 

  (B) Interest on the Company’s outstanding debt that was required to be repaid as a result of the sale of the Personalized Imaging and Document Imaging businesses has been included in the Pro Forma Adjustments.

 

PAGE 5