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Note 17 - Discontinued Operations
 3 Months Ended
Mar. 31, 2016
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
NOTE 17: DISCONTINUED OPERATIONS
 
KODAK PROSPER Enterprise Inkjet Business
 
In March 2016 Kodak announced that it is in talks with prospective buyers about offers to purchase its KODAK PROSPER Enterprise Inkjet business (the “Business”).  The results of operations of the Business are classified as discontinued operations in the Consolidated Statement of Operations for all periods presented.  Additionally, the related assets and liabilities associated with the Business are classified as held for sale in the Consolidated Statement of Financial Position as of March 31, 2016 and December 31, 2015.  Kodak anticipates the sale may take up to a year to complete.
 
The results of operations of the Business are presented in the following table:
 
 
Three Months Ended
March 31,
 
(in millions)
 
2016
 
 
2015
 
Revenues
   $ 14     $ 16  
                 
Cost of sales
     12       23  
Selling, general and administrative expenses
     5       6  
Research and development expenses
     6       5  
Loss from discontinued operations, before income taxes
     (9
)
     (18
)
Provision (benefit) for income taxes
     1       (1
)
Loss from discontinued operations, net of income taxes
 
$
(10
)
 
$
(17
)
 
Loss from discontinued operations for the three months ended March 31, 2016 in the Consolidated Statement of Operations also included $1 million associated with discontinued operations of the Personalized Imaging and Document Imaging Business.
 
The following table presents the aggregate carrying amount of major assets and liabilities of the Business:
 
(in millions)
 
March 31,
2016
 
 
December 31,
2015
 
ASSETS
 
 
 
 
 
 
 
 
Cash and cash equivalents
   $ -     $ 1  
Receivables, net
     13       19  
Inventories, net
     52       51  
Property, plant and equipment, net
     36       32  
Intangible assets, net
     38       39  
Assets of business held for sale
 
$
139
 
 
$
142
 
LIABILITIES
 
 
 
 
 
 
 
 
Accounts payable, trade
   $ 6     $ 9  
Current portion of long-term debt
     -       1  
Other current liabilities
     20       12  
Long-term debt, net of current portion
     2       2  
Other long-term liabilities
     4       5  
Liabilities of business held for sale
 
$
32
 
 
$
29
 

Intercompany liabilities between a dedicated entity of the Business and Kodak of approximately $5 million as of March 31, 2016 that are part of the proposed transaction are not reflected in the table above as these amounts have been eliminated in deriving the consolidated financial statements.  There were no intercompany amounts that are part of the proposed transaction as of December 31, 2015.   
 
 
Current assets held for sale as of March 31, 2016 and December 31, 2015 in the Consolidated Statement of Financial Position also included $2 million from assets under contract for sale not associated with the Business.
 
The following table presents cash flow information associated with the Business:
 
 
 
Three Months Ended
March 31,
 
(in millions)
 
2016
 
 
2015
 
Depreciation
     2       1  
Amortization
     1       1  
Capital expenditures
     1  
 
 
-
 
 
Depreciation and amortization of long-lived assets of the Business included in discontinued operations ceased on April 1, 2016.
 
Direct operating expenses of the discontinued operations are included in the results of discontinued operations. Indirect expenses that were historically allocated to the discontinued operations have been included in the results of continuing operations. Prior period results have been reclassified to conform to the current period presentation.