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Note 14 - Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | NOTE 14: INCOME TAXES The components of (loss) earnings from continuing operations before income taxes and the related provision (benefit) for U.S. and other income taxes were as follows (in millions):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Earnings (loss) from continuing operations before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | (39 | ) |  | $ | (136 | ) |  | $ | (151 | )
Outside the U.S. |  |  | 117 |  |  |  | 138 |  |  |  | 102 |
Total |  | $ | 78 |  |  | $ | 2 |  |  | $ | (49 | )
U.S. income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current provision (benefit) |  | $ | 1 |  |  | $ | 1 |  |  | $ | (2 | )
Deferred provision |  |  | 6 |  |  |  | 9 |  |  |  | 4 |
Income taxes outside the U.S.: |  |  |  |  |  |  |  |  |  |  |  |
Current provision (benefit) |  |  | 14 |  |  |  | 20 |  |  |  | (1 | )
Deferred provision |  |  | 11 |  |  |  | — |  |  |  | 7 |
State and other income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current provision |  |  | — |  |  |  | — |  |  |  | 1 |
Deferred provision |  |  | — |  |  |  | — |  |  |  | 1 |
Total provision |  | $ | 32 |  |  | $ | 30 |  |  | $ | 10 |
The differences between income taxes computed using the U.S. federal income tax rate and the provision for income taxes for continuing operations were as follows (in millions):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Amount computed using the statutory rate |  | $ | 27 |  |  | $ | 1 |  |  | $ | (17 | )
Increase (reduction) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State and other income taxes, net of federal |  |  | — |  |  |  | — |  |  |  | 1 |
Unremitted foreign earnings |  |  | 6 |  |  |  | 26 |  |  |  | 4 |
Operations outside the U.S. |  |  | 19 |  |  |  | 25 |  |  |  | 95 |
Legislative rate changes |  |  | 6 |  |  |  | — |  |  |  | — |
Valuation allowance |  |  | (67 | ) |  |  | (83 | ) |  |  | (127 | )
Tax settlements and adjustments, including interest |  |  | 2 |  |  |  | 2 |  |  |  | (5 | )
Discharge of debt and other reorganization related items |  |  | 40 |  |  |  | 60 |  |  |  | 57 |
Other, net |  |  | (1 | ) |  |  | (1 | ) |  |  | 2 |
Provision for income taxes |  | $ | 32 |  |  | $ | 30 |  |  | $ | 10 |
The significant components of deferred tax assets and liabilities were as follows (in millions):
|  | As of December 31, |
|  | 2016 |  |  | 2015 |
Deferred tax assets |  |  |  |  |  |  |  |
Pension and postretirement obligations |  | $ | 162 |  |  | $ | 187 |
Restructuring programs |  |  | 1 |  |  |  | 3 |
Foreign tax credit |  |  | 335 |  |  |  | 314 |
Inventories |  |  | 10 |  |  |  | 14 |
Investment tax credit |  |  | 71 |  |  |  | 80 |
Employee deferred compensation |  |  | 41 |  |  |  | 46 |
Depreciation |  |  | 63 |  |  |  | 62 |
Research and development costs |  |  | 144 |  |  |  | 188 |
Tax loss carryforwards |  |  | 435 |  |  |  | 380 |
Other deferred revenue |  |  | 11 |  |  |  | 13 |
Other |  |  | 80 |  |  |  | 112 |
Total deferred tax assets |  | $ | 1,353 |  |  | $ | 1,399 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Leasing |  | $ | 1 |  |  | $ | 1 |
Goodwill/Intangibles |  |  | 48 |  |  |  | 49 |
Unremitted foreign earnings |  |  | 76 |  |  |  | 121 |
Total deferred tax liabilities |  |  | 125 |  |  |  | 171 |
Net deferred tax assets before valuation allowance |  |  | 1,228 |  |  |  | 1,228 |
Valuation allowance |  |  | 1,209 |  |  |  | 1,201 |
Net deferred tax assets |  | $ | 19 |  |  | $ | 27 |
Deferred tax assets (liabilities) are reported in the following components within the Consolidated Statement of Financial Position (in millions):
|  | As of December 31, |
|  | 2016 |  |  | 2015 |
Deferred income taxes (current) |  | $ | — |  |  | $ | 22 |
Deferred income taxes (non-current) |  |  | 35 |  |  |  | 23 |
Other long-term liabilities |  |  | (16 | ) |  |  | (18 | )
Net deferred tax assets |  | $ | 19 |  |  | $ | 27 |
As of December 31, 2016, Kodak had available domestic and foreign net operating loss carry-forwards for income tax purposes of approximately $1,657 million, of which approximately $499 million have an indefinite carry-forward period. The remaining $1,158 million expire between the years 2017 and 2036. As of December 31, 2016, Kodak had unused foreign tax credits and investment tax credits of $335 million and $71 million, respectively, with various expiration dates through 2031. Utilization of post-emergence net operating losses and tax credits may be subject to limitations in the event of significant changes in stock ownership of the Company in the future. Section 382 of the Internal Revenue Code of 1986, as amended, imposes annual limitations on the utilization of net operating loss (“NOL”) carryforwards, other tax carryforwards, and certain built-in losses as defined under that Section, upon an ownership change. In general terms, an ownership change may result from transactions that increase the aggregate ownership of certain stockholders in Kodak’s stock by more than 50 percentage points over a testing period (generally three years). The undistributed earnings of Kodak’s foreign subsidiaries are not considered permanently reinvested. Kodak has a deferred tax liability (net of related foreign tax credits) of $56 million and $102 million on the foreign subsidiaries’ undistributed earnings as of December 31, 2016 and 2015, respectively. Kodak has recorded a deferred tax liability of $20 million and $19 million for the potential foreign withholding taxes on the undistributed earnings as of December 31, 2016 and 2015, respectively. Kodak’s valuation allowance as of December 31, 2016 was $1,209 million. Of this amount, $237 million was attributable to Kodak’s net deferred tax assets outside the U.S. of $312 million, and $972 million related to Kodak’s net deferred tax assets in the U.S. of $916 million, for which Kodak believes it is not more likely than not that the assets will be realized. Kodak’s valuation allowance as of December 31, 2015 was $1,201 million. Of this amount, $266 million was attributable to Kodak’s net deferred tax assets outside the U.S. of $344 million, and $935 million related to Kodak’s net deferred tax assets in the U.S. of $884 million, for which Kodak believes it is not more likely than not that the assets will be realized. The net deferred tax assets in excess of the valuation allowance of approximately $19 million and $27 million as of December 31, 2016 and 2015, respectively, relate primarily to net operating loss carry-forwards, certain tax credits, and pension related tax benefits for which Kodak believes it is more likely than not that the assets will be realized. Accounting for Uncertainty in Income Taxes A reconciliation of the beginning and ending amount of Kodak’s liability for income taxes associated with unrecognized tax benefits is as follows (in millions):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Balance as of January 1 |  | $ | 85 |  |  | $ | 92 |  |  | $ | 106 |
Tax positions related to the current year: |  |  |  |  |  |  |  |  |  |  |  |
Additions |  |  | — |  |  |  | 1 |  |  |  | 2 |
Tax positions related to prior years: |  |  |  |  |  |  |  |  |  |  |  |
Additions |  |  | 1 |  |  |  | — |  |  |  | 1 |
Reductions |  |  | (2 | ) |  |  | (7 | ) |  |  | (14 | )
Settlements with taxing jurisdictions |  |  | — |  |  |  | — |  |  |  | (1 | )
Lapses in statute of limitations |  |  | — |  |  |  | (1 | ) |  |  | (2 | )
Balance as of December 31 |  | $ | 84 |  |  | $ | 85 |  |  | $ | 92 |
Kodak’s policy regarding interest and/or penalties related to income tax matters is to recognize such items as a component of income tax (benefit) expense. Kodak had approximately $23 million and $21 million of interest and penalties associated with uncertain tax benefits accrued as of December 31, 2016 and 2015, respectively. Kodak had uncertain tax benefits of approximately $36 million as of December 31, 2016 and 2015 that, if recognized, would affect the effective income tax rate. Kodak has classified certain income tax liabilities as current or noncurrent based on management’s estimate of when these liabilities will be settled. The current liabilities are recorded in Other current liabilities in the Consolidated Statement of Financial Position. Noncurrent income tax liabilities are recorded in Other long-term liabilities in the Consolidated Statement of Financial Position. It is reasonably possible that the liability associated with Kodak’s unrecognized tax benefits will increase or decrease within the next twelve months. These changes may be the result of settling ongoing audits or the expiration of statutes of limitations. Such changes to the unrecognized tax benefits could range from $0 to $15 million based on current estimates. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. Although management believes that adequate provision has been made for such issues, there is the possibility that the ultimate resolution of such issues could have an adverse effect on the earnings of Kodak. Conversely, if these issues are resolved favorably in the future, the related provision would be reduced, thus having a positive impact on earnings. During 2014, Kodak reached a settlement outside of the U.S. and settled an audit for calendar year 2003. Kodak originally recorded liabilities for uncertain tax positions (“UTPs”) totaling $8 million (plus interest of approximately $2 million). The settlement resulted in a reduction in Other current liabilities and the recognition of a $10 million tax benefit. Kodak is subject to taxation and files income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. Kodak has substantially concluded all U.S. federal and state income tax matters for years through 2012 with respective tax authorities. With respect to countries outside the U.S., Kodak has substantially concluded all material foreign income tax matters through 2009 with respective foreign tax jurisdiction authorities.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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