XML 159 R34.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 25 - Segment Information
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 25:  SEGMENT INFORMATION

Current Segment Reporting Structure

Effective in the third quarter of 2012, Kodak had three reportable segments: the Graphics, Entertainment and Commercial Films Segment, the Digital Printing and Enterprise Segment, and the Personalized and Document Imaging Segment. Effective in the first quarter of 2013, the Intellectual Property and Brand Licensing strategic product group is reported in the Graphics, Entertainment and Commercial Films Segment. The Intellectual Property and Brand Licensing strategic product group was previously reported in the Personalized and Document Imaging Segment. Effective in the second quarter of 2013, due to the Personalized and Document Imaging Segment (excluding the Consumer Film business, for which Kodak has entered into an ongoing supply arrangement) being reported as discontinued operations, Kodak has two reportable segments: the Graphics, Entertainment and Commercial Films Segment and the Digital Printing and Enterprise Segment. The balance of Kodak’s continuing operations, which do not meet the criteria of a reportable segment, are reported in All Other. Prior period segment results have been revised to conform to the current period segment reporting structure. A description of the segments follows.

Graphics, Entertainment and Commercial Films: The Graphics, Entertainment and Commercial Films Segment provides digital and traditional product and service offerings to a variety of commercial industries, including commercial print, direct mail, book publishing, newspapers and magazines, packaging, motion picture entertainment, printed electronics, and the aerial and industrial film markets.   The Graphics, Entertainment and Commercial Films Segment encompass Graphics, Entertainment Imaging & Commercial Films and Kodak’s intellectual property and brand licensing activities.   Products and services offerings include digital plates, CTP output devices, digital controllers, unified workflow solutions and entertainment imaging and commercial films.  On February 1, 2013, Kodak sold certain digital imaging patents.

Digital Printing and Enterprise: The Digital Printing and Enterprise Segment serves a variety of customers in the creative, in-plant, data center, consumer printing, commercial printing, packaging, newspaper and digital service bureau market segments with a range of software, media and hardware products that provide customers with a variety of solutions.  The Digital Printing and Enterprise Segment encompasses Digital Printing, including PROSPER equipment and STREAM technology, Packaging and Functional Printing which includes the FLEXCEL NX and FLEXCEL direct platforms, Enterprise Services & Solutions, and Consumer Inkjet Systems.  On September 28, 2012, Kodak announced a plan, starting in 2013, to focus its Consumer Inkjet business solely on the sale of ink to its installed printer base.

All Other: All Other is composed of Kodak’s consumer film business and a utilities variable interest entity. Effective August 31, 2013 the Company sold certain utilities and related facilities and entered into utilities supply and servicing arrangements with RED-Rochester, LLC (“RED”), a variable interest entity of which Kodak is the primary beneficiary.

Change in Segment Measure of Profit and Loss

During the second quarter of 2013, the Predecessor Company changed its segment measure of profit and loss to exclude amortization of prior service credits related to the U.S. Postretirement Benefit Plan. Prior to this change, Kodak excluded certain other components of pension and other postretirement benefit obligation (“OPEB”) costs from the segment measure of profitability. As a result of this change, the operating segment results now exclude the interest cost, expected return on plan assets, amortization of actuarial gains and losses, amortization of prior service credits related to the U.S. Postretirement Benefit Plan, and special termination benefit, curtailment and settlement components of pension and OPEB expense. The service cost component for all plans will continue to be reported as a part of operating segment results, as will the amortization of prior service cost component for all plans other than for the U.S. Postretirement Benefit Plan. Prior period segment results have been revised to reflect this change.

Upon adoption of fresh start accounting, the Successor Company eliminated prior service credits related to the U.S. Postretirement Benefit Plan. Therefore the four months ended December 31, 2013 does not include any amortization related to prior service credits related to the U.S. Postretirement Benefit Plan.

Segment financial information is shown below.

   
Successor
   
Predecessor
 
   
Four Months Ended December 31, 2013
   
Eight Months Ended August 31, 2013
   
Year Ended December 31, 2012
   
Year Ended December 31, 2011
 
(in millions)
                       
                         
Net sales from continuing operations:
                       
                         
Graphics, Entertainment & Commercial Films
  $ 519     $ 987     $ 1,680     $ 2,341  
Digital Printing and Enterprise
    284       519       939       1,099  
All Other
    2       36       100       145  
  Consolidated total
  $ 805     $ 1,542     $ 2,719     $ 3,585  
                                 

   
Successor
   
Predecessor
 
(in millions)
 
Four Months Ended December 31, 2013
   
Eight Months Ended August 31, 2013
   
Year Ended December 31, 2012
   
Year Ended December 31, 2011
 
Segment (loss) earnings and Consolidated (loss) earnings from continuing operations before income taxes:
                       
                         
Graphics, Entertainment and Commercial Films
  $ (37 )   $ 5     $ (210 )   $ (8 )
Digital Printing and Enterprise
    (59 )     (37 )     (280 )     (613 )
  Total of reportable segments
  $ (96 )   $ (32 )   $ (490 )   $ (621 )
                                 
All Other
    (3 )     -       (3 )     8  
Restructuring costs and other
    17       49       232       120  
Corporate components of pension and OPEB income (expense) (1)
    67       43       (2 )     61  
Other operating (expense) income, net
    (2 )     495       86       56  
Legal contingencies, settlements and other
    (3 )     -       1       -  
Loss on early extinguishment of debt, net
    -       8       7       -  
Interest expense
    22       106       139       138  
Other income (charges), net
    12       (13 )     21       (3 )
Reorganization items, net
    16       (2,026 )     843       -  
Consolidated (loss) earnings from continuing operations before income taxes
  $ (74 )   $ 2,356     $ (1,610 )   $ (757 )
                                 

(1) Composed of interest cost, expected return on plan assets, amortization of actuarial gains and losses, amortization of prior service credits related to the U.S. Postretirement Benefit Plan and special termination benefits, curtailments and settlement components of pension and other postretirement benefit expenses, except for settlements in connection with the chapter 11 bankruptcy proceedings that are recorded in Reorganization items, net and curtailments and settlements included in Earnings (loss) from discontinued operations, net of income taxes in the Consolidated Statement of Operations.

(in millions)
 
Successor
   
Predecessor
 
   
December 31,
   
December 31,
   
December 31,
 
 
2013
   
2012
   
2011
 
                   
Segment total assets:
                 
                   
Graphics, Entertainment and Commercial Films
  $ 1,322     $ 1,350     $ 1,451  
Digital Printing and Enterprise
    681       524       549  
   Total of reportable segments
    2,003       1,874       2,000  
All Other
    156       189       607  
Cash and cash equivalents
    844       1,135       861  
Deferred income tax assets
    102       545       509  
Assets held for sale
    95       578       699  
Consolidated total assets
  $ 3,200     $ 4,321     $ 4,676  
                         

(in millions)
                       
Intangible asset amortization expense
  from continuing operations:
 
Four Months Ended December 31, 2013
   
Eight Months Ended August 31, 2013
   
Year Ended December 31, 2012
   
Year Ended December 31, 2011
 
Graphics, Entertainment and Commercial Films
  $ 3     $ 7     $ 21     $ 33  
Digital Printing and Enterprise
    5       3       5       6  
     Consolidated total
  $ 8     $ 10     $ 26     $ 39  
                                 
                                 

(in millions)
                       
Depreciation expense from continuing
  operations:
 
Four Months Ended December 31, 2013
   
Eight Months Ended August 31, 2013
   
Year Ended December 31, 2012
   
Year Ended December 31, 2011
 
Graphics, Entertainment and Commercial Films
  $ 46     $ 61     $ 100     $ 106  
Digital Printing and Enterprise
    13       20       41       49  
     Sub-total
    59       81       141       155  
     Other
    8       6       29       56  
     Restructuring-related depreciation
    -       4       12       10  
     Consolidated total
  $ 67     $ 91     $ 182     $ 221  
                                 
                                 

   
Successor
   
Predecessor
 
(in millions)
 
Four Months Ended December 31, 2013
   
Eight Months Ended August 31, 2013
   
Year Ended December 31, 2012
   
Year Ended December 31, 2011
 
Capital additions from continuing
  operations:
Graphics, Entertainment and Commercial Films
  $ 13     $ 10     $ 14     $ 35  
Digital Printing and Enterprise
    8       6       18       47  
     Sub-total
    21       16       32       82  
     Other
    -       2       1       9  
     Consolidated total
  $ 21     $ 18     $ 33     $ 91  
                                 

   
Successor
   
Predecessor
 
(in millions)
 
Four Months Ended December 31, 2013
   
Eight Months Ended August 31, 2013
   
Year Ended December 31, 2012
   
Year Ended December 31, 2011
 
Net sales to external customers
  attributed to (1):
  The United States
  $ 236     $ 515     $ 852     $ 1,162  
  Europe, Middle East and Africa
  $ 287     $ 548     $ 966     $ 1,225  
  Asia Pacific
    207       330       660       808  
  Canada and Latin America
    75       149       241       390  
     Non U.S. countries total
  $ 569     $ 1,027     $ 1,867     $ 2,423  
     Consolidated total
  $ 805     $ 1,542     $ 2,719     $ 3,585  
                                 

(1)  
Sales are reported in the geographic area in which they originate.  The Company’s operations in Japan generated more than 10% of net sales in the year ended December 31, 2012, totaling $274 million.  No other non-U.S. country generated more than 10% of net sales in the four months ended December 31, 2013, the eight months ended August 31, 2103 or the years ended December 31, 2012 and 2011.

   
Successor
   
Predecessor
 
(in millions)
 
 
December 31,
2013
   
December 31,
2012
   
December 31,
 2011
 
Property, plant and equipment, net located in:
  The United States
  $ 378     $ 395     $ 519  
  Europe, Middle East and Africa
  $ 91     $ 85     $ 112  
  Asia Pacific
    83       96       134  
  Canada and Latin America
    132       31       31  
     Non U.S. countries total (1)
  $ 306     $ 212     $ 277  
     Consolidated total
  $ 684     $ 607     $ 796  
                         

(1)  
Of the total non U.S. property, plant and equipment in 2013, $113 million are located in Brazil and in 2011; $94 million are located in China.  No other non U.S. country had greater than 10% of property, plant and equipment in 2013, 2012 or 2011.