XML 68 R23.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Note 16 - Financial Instruments | 6 Months Ended
--- | ---
Jun. 30, 2014
Fair Value Disclosures [Abstract] |
Fair Value Disclosures [Text Block] | NOTE 16: FINANCIAL INSTRUMENTS The following tables present the carrying amounts, estimated fair values, and location in the Consolidated Statement of Financial Position for Kodak’s financial instruments:
|  |  | Value Of Items Recorded At Fair Value |
(in millions) |  |  | As of June 30, 2014 |
|  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term foreign exchange contracts | Receivables, net |  | $ | 1 |  |  | $ | - |  |  | $ | 1 |  |  | $ | - |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term foreign exchange contracts | Other current liabilities |  |  | 1 |  |  |  | - |  |  |  | 1 |  |  |  | - |
(in millions) |  |  |  | Value Of Items Not Recorded At Fair Value |
|  |  |  | As of June 30, 2014 |
|  |  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term debt | Current portion of long-term debt | Carrying value |  | $ | 4 |  |  | $ | - |  |  | $ | 4 |  |  | $ | - |
|  | Fair value |  |  | 4 |  |  |  | - |  |  |  | 4 |  |  |  | - |
Long-term debt | Long-term debt, net of current portion | Carrying value |  |  | 673 |  |  |  | - |  |  |  | 673 |  |  |  | - |
|  | Fair value |  |  | 703 |  |  |  | - |  |  |  | 703 |  |  |  | - |
|  |  | Value Of Items Recorded At Fair Value |
(in millions) |  |  | As of December 31, 2013 |
|  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term foreign exchange contracts | Receivables, net |  | $ | 1 |  |  | $ | - |  |  | $ | 1 |  |  | $ | - |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term foreign exchange contracts | Other current liabilities |  |  | 3 |  |  |  | - |  |  |  | 3 |  |  |  | - |
|  |  |  | Value Of Items Not Recorded At Fair Value |
(in millions) |  |  |  | As of December 31, 2013 |
|  |  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term debt | Current portion of long-term debt | Carrying value |  | $ | 4 |  |  | $ | - |  |  | $ | 4 |  |  | $ | - |
|  | Fair value |  |  | 4 |  |  |  | - |  |  |  | 4 |  |  |  | - |
Long-term debt | Long-term debt, net of current portion | Carrying value |  |  | 674 |  |  |  | - |  |  |  | 674 |  |  |  | - |
|  | Fair value |  |  | 687 |  |  |  | - |  |  |  | 687 |  |  |  | - |
Kodak does not utilize financial instruments for trading or other speculative purposes. Fair Value Fair values of Kodak’s forward contracts are determined using observable inputs (Level 2 fair value measurements), and are based on the present value of expected future cash flows (an income approach valuation technique) considering the risks involved and using discount rates appropriate for the duration of the contracts. Transfers between levels of the fair value hierarchy are recognized based on the actual date of the event or change in circumstances that caused the transfer. There were no transfers between levels of the fair value hierarchy during the three months or six months ended June 30, 2014. Fair values of long-term borrowings are determined by reference to quoted market prices, if available, or by pricing models based on the value of related cash flows discounted at current market interest rates. The carrying values of cash and cash equivalents and trade receivables (which are not shown in the table above) approximate their fair values. Foreign Exchange Foreign exchange gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in Other charges, net in the accompanying Consolidated Statement of Operations. The net effects of foreign currency transactions, including changes in the fair value of foreign exchange contracts, are shown below:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | Successor |  |  | Predecessor |  |  | Successor |  |  | Predecessor |
(in millions) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Net loss |  | $ | (1 | ) |  | $ | (1 | ) |  | $ | (3 | ) |  | $ | (3 | )
Derivative Financial Instruments Kodak, as a result of its global operating and financing activities, is exposed to changes in foreign currency exchange rates, commodity prices, and interest rates, which may adversely affect its results of operations and financial position. Kodak manages such exposures, in part, with derivative financial instruments. Foreign currency forward contracts are used to mitigate currency risk related to foreign currency denominated assets and liabilities. Kodak’s exposure to changes in interest rates results from its investing and borrowing activities used to meet its liquidity needs. Kodak’s financial instrument counterparties are high-quality investment or commercial banks with significant experience with such instruments. Kodak manages exposure to counterparty credit risk by requiring specific minimum credit standards and diversification of counterparties. Kodak has procedures to monitor the credit exposure amounts. The maximum credit exposure at June 30, 2014 was not significant to Kodak. In the event of a default under the Company’s Senior Secured First Lien Term Credit Agreement, Senior Secured Second Lien Term Credit Agreement, the ABL Credit Agreement, or a default under any derivative contract or similar obligation of Kodak, subject to certain minimum thresholds, the derivative counterparties would have the right, although not the obligation, to require immediate settlement of some or all open derivative contracts at their then-current fair value, but with liability positions netted against asset positions with the same counterparty. At June 30, 2014, Kodak had open derivative contracts in liability positions with a total fair value of $1 million. Kodak had no derivatives designated as hedging instruments for the three and six months ended June 30, 2014 and 2013. The location and amounts of pre-tax gains and losses related to derivatives not designated as hedging instruments reported in the Consolidated Statement of Operations are shown in the following table:
Derivatives Not Designated as Hedging Instruments, Foreign Exchange Contracts
(in millions) |  |  |
Location of Gain or (Loss) Recognized in Income on Derivative | Gain (Loss) Recognized in Income on Derivative
| Three Months Ended
| June 30,
| Successor |  | Predecessor
| 2014 |  | 2013
Other charges, net | $ 4 |  | $ (1)
Location of Gain or (Loss) Recognized in Income on Derivative | Gain (Loss) Recognized in Income on Derivative
| Six Months Ended
| June 30,
| Successor |  | Predecessor
| 2014 |  | 2013
Other charges, net | $ 8 |  | $ (3)
Foreign Currency Forward Contracts Kodak’s foreign currency forward contracts used to mitigate currency risk related to existing foreign currency denominated assets and liabilities are not designated as hedges, and are marked to market through net (loss) earnings at the same time that the exposed assets and liabilities are re-measured through net (loss) earnings (both in Other charges, net) in the Consolidated Statement of Operations). The notional amount of such contracts open at June 30, 2014 was approximately $415 million. The majority of the contracts of this type held by Kodak as of June 30, 2014 were denominated in euros.

X
- Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13537-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13433-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13504-108611 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration