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Note 18 - Discontinued Operations
 6 Months Ended
Jun. 30, 2016
Disclosure Text Block [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 18: 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 “Prosper Business”).  The results of operations of the Prosper 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 Prosper Business are classified as held for sale in the Consolidated Statement of Financial Position as of June 30, 2016 and December 31, 2015.  Kodak anticipates the sale may take up to a year to complete.

The results of operations of the Prosper Business are presented in the following table:

 

(in millions)

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Revenues

 

$

25

 

 

$

24

 

 

$

39

 

 

$

40

 

Cost of sales

 

 

18

 

 

 

22

 

 

 

30

 

 

 

45

 

Selling, general and administrative expenses

 

 

9

 

 

 

5

 

 

 

14

 

 

 

11

 

Research and development expenses

 

 

5

 

 

 

5

 

 

 

11

 

 

 

10

 

Loss from discontinued operations, before income taxes

 

 

(7

)

 

 

(8

)

 

 

(16

)

 

 

(26

)

Provision for income taxes related to discontinued operations

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1

 

Loss from discontinued operations, net of income taxes

 

$

(7

)

 

$

(8

)

 

$

(16

)

 

$

(25

)

 

 

Loss from discontinued operations for the three and six months ended June 30, 2016 in the Consolidated Statement of Operations also included $1 million and $2 million, respectively, 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 Prosper Business:

 

(in millions)

 

June 30,

2016

 

 

December 31,

2015

 

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2

 

 

$

1

 

Receivables, net

 

 

11

 

 

 

15

 

Inventories, net

 

 

48

 

 

 

51

 

Property, plant and equipment, net

 

 

37

 

 

 

32

 

Intangible assets, net

 

 

37

 

 

 

38

 

Other assets

 

 

3

 

 

 

4

 

Assets of business held for sale

 

$

138

 

 

$

141

 

LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable, trade

 

$

5

 

 

$

9

 

Current portion of long-term debt

 

 

-

 

 

 

1

 

Other current liabilities

 

 

16

 

 

 

12

 

Long-term debt, net of current portion

 

 

3

 

 

 

2

 

Other long-term liabilities

 

 

4

 

 

 

5

 

Liabilities of business held for sale

 

$

28

 

 

$

29

 

 

 

Intercompany liabilities between a dedicated entity of the Prosper Business and Kodak of approximately $7 million as of June 30, 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 June 30, 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 Prosper Business.

The following table presents cash flow information associated with the Prosper Business:

 

(in millions)

 

Six Months Ended

June 30,

 

 

 

2016

 

 

2015

 

Depreciation

 

 

2

 

 

 

3

 

Amortization

 

 

1

 

 

 

2

 

Capital expenditures

 

 

2

 

 

 

-

 

 

 

Depreciation and amortization of long-lived assets of the Prosper 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.