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Note 24 - Segment Information | 12 Months Ended
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Dec. 31, 2017
Disclosure Text Block [Abstract] |
Segment Reporting Disclosure [Text Block] | NOTE 24: SEGMENT INFORMATION Effective January 1, 2017, Kodak changed its organizational structure. Micro 3D Printing, within the Micro 3D Printing and Packaging segment, was moved into the Intellectual Property Solutions segment, which has been renamed the Advanced Materials and 3D Printing Technology segment. The Flexographic Packaging business, formerly part of the Micro 3D Printing and Packaging segment, is now being reported as a dedicated segment. Effective April 1, 2017, Kodak made another change to its organizational structure. Digital front-end controllers within the Prosper business in the Enterprise Inkjet Systems segment was moved to the Unified Workflow Solutions business within the Software and Solutions segment. Prior period segment results have been revised to conform to the current period segment reporting structure. Financial information is reported for seven reportable segments: Print Systems, Enterprise Inkjet Systems, Flexographic Packaging, Software and Solutions, Consumer and Film, Advanced Materials and 3D Printing Technology and Eastman Business Park. A description of the reportable segments follows. Print Systems: The Print Systems segment is comprised of two lines of business: Prepress Solutions and Electrophotographic Printing Solutions. Enterprise Inkjet Systems: The Enterprise Inkjet Systems segment is comprised of two lines of business: the Prosper business and the Versamark business. Flexographic Packaging: The Flexographic Packaging segment is comprised of the Packaging line of business. Software and Solutions: The Software and Solutions segment is comprised of two lines of business: Unified Workflow Solutions and Kodak Technology Solutions. Consumer and Film: The Consumer and Film segment is comprised of three lines of business: Industrial Film and Chemicals, Motion Picture and Consumer Products (which includes Consumer Inkjet Solutions). Advanced Materials and 3D Printing Technology: The Advanced Materials and 3D Printing Technology segment includes the Kodak Research Laboratories and associated new business opportunities and intellectual property licensing not directly related to other business segments. Eastman Business Park: The Eastman Business Park segment includes the operations of the Eastman Business Park, a more than 1,200 acre technology center and industrial complex. All Other: All Other was primarily composed of the RED utilities variable interest entity until deconsolidation in December 2016, (refer to Note 1 “Summary of Significant Accounting Policies – Basis of Consolidation”). Segment financial information is shown below. Asset information by segment is not disclosed as this information is not separately identified and reported to the Chief Operating Decision Maker. Net Revenues from Continuing Operations by Reportable Segment
|  | Year Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
(in millions) |  |  |  |  |  |  |  |  |  |  |  |
Print Systems |  | $ | 942 |  |  | $ | 1,018 |  |  | $ | 1,107 |
Enterprise Inkjet Systems |  |  | 144 |  |  |  | 166 |  |  |  | 165 |
Flexographic Packaging |  |  | 145 |  |  |  | 132 |  |  |  | 127 |
Software and Solutions |  |  | 85 |  |  |  | 90 |  |  |  | 120 |
Consumer and Film |  |  | 198 |  |  |  | 221 |  |  |  | 269 |
Advanced Materials and 3D Printing Technology |  |  | 1 |  |  |  | 1 |  |  |  | 2 |
Eastman Business Park |  |  | 16 |  |  |  | 15 |  |  |  | 13 |
Consolidated total |  | $ | 1,531 |  |  | $ | 1,643 |  |  | $ | 1,803 |
Segment Measure of Profit and Loss Kodak’s segment measure of profit and loss is an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”). As demonstrated in the table below, Operational EBITDA represents the earnings (loss) from continuing operations excluding the provision (benefit) for income taxes; corporate components of pension and OPEB income; depreciation and amortization expense; restructuring costs; overhead costs no longer absorbed by discontinued operations; stock-based compensation expense; the 2015 changes in the U.S. vacation benefits; consulting and other costs; idle costs; manufacturing costs originally planned to be absorbed by silver metal mesh touch screen production; other operating expense, net (unless otherwise indicated); loss on early extinguishment of debt; interest expense; other charges, net and reorganization items, net. Kodak’s segments are measured using Operational EBITDA both before and after allocation of corporate selling, general and administrative expenses (“SG&A”). The segment earnings measure reported is after allocation of corporate SG&A as this most closely aligns with U.S. GAAP. Research and development activities not directly related to the other segments are reported within the Advanced Materials and 3D Printing Technology segment. Change in Segment Measure of Profit and Loss During the first quarter of 2017 the segment measure was changed to exclude internal costs associated with corporate strategic initiatives. The segment measure already excluded external costs associated with those initiatives. Additionally, third party costs associated with incremental idle building space has been added to idle costs. Segment Operational EBITDA and Consolidated Earnings (Loss) from Continuing Operations Before Income Taxes
|  | Year Ended December 31, |
(in millions) |  | 2017 |  |  | 2016 |  |  | 2015 |
Print Systems |  | $ | 58 |  |  | $ | 106 |  |  | $ | 99 |
Enterprise Inkjet Systems |  |  | 5 |  |  |  | (16 | ) |  |  | (27 | )
Flexographic Packaging |  |  | 31 |  |  |  | 24 |  |  |  | 24 |
Software and Solutions |  |  | 1 |  |  |  | 1 |  |  |  | 10 |
Consumer and Film |  |  | (16 | ) |  |  | 16 |  |  |  | 52 |
Advanced Materials and 3D Printing Technology |  |  | (26 | ) |  |  | (26 | ) |  |  | (35 | )
Eastman Business Park |  |  | 4 |  |  |  | 2 |  |  |  | 2 |
Total of reportable segments |  |  | 57 |  |  |  | 107 |  |  |  | 125 |
All Other (1) |  |  | — |  |  |  | 3 |  |  |  | 5 |
Corporate components of pension and OPEB income (2) |  |  | 144 |  |  |  | 161 |  |  |  | 133 |
Depreciation and amortization |  |  | (80 | ) |  |  | (105 | ) |  |  | (145 | )
Restructuring costs and other |  |  | (38 | ) |  |  | (16 | ) |  |  | (38 | )
Stock-based compensation |  |  | (9 | ) |  |  | (8 | ) |  |  | (18 | )
Consulting and other costs (3) |  |  | (5 | ) |  |  | (7 | ) |  |  | (14 | )
Idle costs (5) |  |  | (3 | ) |  |  | (3 | ) |  |  | (3 | )
Change in U.S. vacation benefits (4) |  |  | — |  |  |  | — |  |  |  | 17 |
Manufacturing costs originally planned to be absorbed by silver halide touch screen production (6) |  |  | — |  |  |  | (3 | ) |  |  | (2 | )
Costs previously allocated to discontinued operations (7) |  |  | — |  |  |  | — |  |  |  | (1 | )
Other operating (expense) income, net excluding gain related to Unipixel termination (8) |  |  | (28 | ) |  |  | (16 | ) |  |  | 3 |
Goodwill impairment loss (9) |  |  | (56 | ) |  |  | — |  |  |  | (8 | )
Interest expense (9) |  |  | (32 | ) |  |  | (60 | ) |  |  | (63 | )
Loss on early extinguishment of debt, net (9) |  |  | — |  |  |  | (4 | ) |  |  | — |
Other income (charges), net (9) |  |  | 37 |  |  |  | (4 | ) |  |  | (21 | )
Reorganization items, net (9) |  |  | — |  |  |  | 6 |  |  |  | (5 | )
Consolidated (loss) earnings from continuing operations before income taxes |  | $ | (13 | ) |  | $ | 51 |  |  | $ | (35 | )
(1) | RED utilities variable interest entity which was deconsolidated as of December 31, 2016 (interest and depreciation of RED are included in the respective lines below).
(2) | Composed of interest cost, expected return on plan assets, amortization of actuarial gains and losses, and curtailments and settlement components of pension and other postretirement benefit expenses.
(3) | Consulting and other costs are professional services and internal costs associated with certain corporate strategic initiatives.
(4) | In the fourth quarter of 2015, Kodak changed the timing of when affected U.S. employees earn their vacation benefits, which reduced Kodak’s obligation to employees and the related accrual by $17 million as of December 31, 2015. The reduction in the accrual impacted gross profit by approximately $9 million, SG&A by approximately $5 million and R&D by approximately $3 million.
(5) | Consists of third party costs such as security, maintenance, and utilities required to maintain land and buildings in certain locations not used in any Kodak operations.
(6) | Consists of manufacturing costs originally planned to be absorbed by silver metal mesh touch screen production that are now excluded from the measure of segment profit and loss.
(7) | Includes indirect costs originally associated with businesses that are now included in discontinued operations. When the businesses met the criteria to be reported as discontinued operations, the allocated indirect costs were removed and recorded in continuing operations.
(8) | In 2015 a $3 million gain was recognized related to assets that were acquired for no monetary consideration as a part of the termination of the relationship with Unipixel. The gain was reported in Other operating expense (income), net in the Consolidated Statement of Operations. Other operating expense (income), net is typically excluded from the segment measure. However, this particular gain was included in the Advanced Materials and 3D Printing Technology segment’s earnings in 2015.
(9) | As reported in the Consolidated Statement of Operations.
Kodak reduced workers’ compensation reserves by approximately $8 million in both 2016 and 2015, primarily driven by changes in discount rates. The reduction in reserves impacted gross profit by approximately $4 million, SG&A by approximately $3 million and R&D by approximately $1 million in both years. Amortization and depreciation expense by segment are not included in the segment measure of profit and loss but are regularly provided to the CODM.
(in millions) |  | Year Ended December 31, |
Intangible asset amortization expense from continuing operations: |  | 2017 |  |  | 2016 |  |  | 2015 |
Print Systems |  | $ | 8 |  |  | $ | 9 |  |  | $ | 9 |
Enterprise Inkjet Systems |  |  | 3 |  |  |  | 1 |  |  |  | 4 |
Flexographic Packaging Division |  |  | 1 |  |  |  | 1 |  |  |  | 1 |
Software & Solutions |  |  | 1 |  |  |  | 2 |  |  |  | 2 |
Consumer & Film |  |  | 1 |  |  |  | — |  |  |  | 1 |
Advanced Materials and 3D Printing |  |  | 4 |  |  |  | 6 |  |  |  | 8 |
Consolidated total |  | $ | 18 |  |  | $ | 19 |  |  | $ | 25 |
(in millions) |  | Year Ended December 31, |
Depreciation expense from continuing operations: |  | 2017 |  |  | 2016 |  |  | 2015 |
Print Systems |  | $ | 36 |  |  | $ | 36 |  |  | $ | 39 |
Enterprise Inkjet Systems |  |  | 8 |  |  |  | 5 |  |  |  | 11 |
Flexographic Packaging Division |  |  | 3 |  |  |  | 3 |  |  |  | 3 |
Software & Solutions |  |  | 1 |  |  |  | 2 |  |  |  | 2 |
Consumer & Film |  |  | 7 |  |  |  | 15 |  |  |  | 30 |
Advanced Materials and 3D Printing |  |  | 4 |  |  |  | 5 |  |  |  | 5 |
Eastman Business Park |  |  | 3 |  |  |  | 4 |  |  |  | 6 |
Sub-total |  |  | 62 |  |  |  | 70 |  |  |  | 96 |
Other |  |  | — |  |  |  | 16 |  |  |  | 16 |
Restructuring-related depreciation |  |  | — |  |  |  | — |  |  |  | 8 |
Consolidated total |  | $ | 62 |  |  | $ | 86 |  |  | $ | 120 |
Geographic Information
(in millions) |  | Year Ended December 31, |
Net sales to external customers attributed to (1): |  | 2017 |  |  | 2016 |  |  | 2015 |
The United States |  | $ | 504 |  |  | $ | 559 |  |  | $ | 627 |
Europe, Middle East and Africa |  |  | 527 |  |  |  | 555 |  |  |  | 597 |
Asia Pacific |  |  | 369 |  |  |  | 397 |  |  |  | 402 |
Canada and Latin America |  |  | 131 |  |  |  | 132 |  |  |  | 177 |
Non U.S. countries total |  |  | 1,027 |  |  |  | 1,084 |  |  |  | 1,176 |
Consolidated total |  | $ | 1,531 |  |  | $ | 1,643 |  |  | $ | 1,803 |
| (1) | Sales are reported in the geographic area in which they originate. No non-U.S. country generated more than 10% of net sales in the years ended December 31, 2017, 2016 and 2015.
(in millions) |  | Year Ended December 31, |
Long-lived assets (1) located in: |  | 2017 |  |  | 2016 |  |  | 2015 |
The United States (2) |  | $ | 126 |  |  | $ | 143 |  |  | $ | 217 |
Europe, Middle East and Africa |  |  | 51 |  |  |  | 55 |  |  |  | 55 |
Asia Pacific |  |  | 53 |  |  |  | 57 |  |  |  | 76 |
Canada and Latin America |  |  | 84 |  |  |  | 87 |  |  |  | 78 |
Non U.S. countries total (3) |  |  | 188 |  |  |  | 199 |  |  |  | 209 |
Consolidated total |  | $ | 314 |  |  | $ | 342 |  |  | $ | 426 |
(1) | Long-lived assets are comprised of property, plant and equipment, net.
(2) | The decrease in property, plant and equipment, net in the United States in 2016 was primarily due to the deconsolidation of RED, which had $52 million in property, plant and equipment, net as of December 31, 2015.
(3) | Of the total non U.S. property, plant and equipment in 2017, $71 million are located in Brazil and $38 million are located in China. Of the total non U.S. property, plant and equipment in 2016, $75 million are located in Brazil and $43 million are located in China. Of the total non U.S. property, plant and equipment in 2015, $64 million are located in Brazil and $60 million are located in China.
Major Customers No single customer represented 10% or more of Kodak’s total net revenue in any year presented.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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