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Note 14 - Revenue
12 Months Ended
Dec. 31, 2018
Revenue From Contract With Customer [Abstract]  
Revenue [Text Block]

NOTE 14:  REVENUE

 

Disaggregation of Revenue

The following tables present revenue disaggregated by major product, portfolio summary and geography.

 

Major product:

 

 

 

Year Ended

 

 

 

December 31, 2018

 

 

 

Print Systems

 

 

Enterprise Inkjet Systems

 

 

Software & Solutions

 

 

Consumer & Film

 

 

Advanced Materials and 3D Printing Technology

 

 

Eastman Business Park

 

 

Total

 

Plates, inks and other

   consumables

 

$

685

 

 

$

32

 

 

$

 

 

$

16

 

 

$

 

 

$

 

 

$

733

 

Ongoing service

   arrangements (1)

 

 

132

 

 

 

79

 

 

 

48

 

 

 

3

 

 

 

 

 

 

 

 

 

262

 

Total Annuities

 

 

817

 

 

 

111

 

 

 

48

 

 

 

19

 

 

 

 

 

 

 

 

 

995

 

Equipment & Software

 

 

78

 

 

 

25

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

120

 

Film and chemicals

 

 

 

 

 

 

 

 

 

 

 

159

 

 

 

 

 

 

 

 

 

159

 

Other (2)

 

 

 

 

 

 

 

 

19

 

 

 

11

 

 

 

4

 

 

 

17

 

 

 

51

 

Total

 

$

895

 

 

$

136

 

 

$

84

 

 

$

189

 

 

$

4

 

 

$

17

 

 

$

1,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Service revenue in the Consolidated Statement of Operations includes the ongoing service revenue shown above as well as revenue from project-based document management and managed print services businesses, which is included in Other above.

 

 

(2)

Other includes revenue from professional services, non-recurring engineering services, print and managed media services, tenant rent and related property management services and licensing.

 

Product Portfolio Summary:

 

 

 

Year Ended

 

 

 

December 31, 2018

 

 

 

Print Systems

 

 

Enterprise Inkjet Systems

 

 

Software & Solutions

 

 

Consumer & Film

 

 

Advanced Materials and 3D Printing Technology

 

 

Eastman Business Park

 

 

Total

 

Growth engines (1)

 

$

159

 

 

$

84

 

 

$

84

 

 

$

11

 

 

$

3

 

 

$

 

 

$

341

 

Strategic other businesses (2)

 

 

700

 

 

 

 

 

 

 

 

 

162

 

 

 

1

 

 

 

17

 

 

 

880

 

Planned declining

   businesses (3)

 

 

36

 

 

 

52

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

104

 

 

 

$

895

 

 

$

136

 

 

$

84

 

 

$

189

 

 

$

4

 

 

$

17

 

 

$

1,325

 

 

 

(1)

Growth engines consist of Sonora, PROSPER, Software and Solutions, AM3D, excluding intellectual property (IP) licensing, and brand licensing.

 

 

(2)

Strategic Other Businesses include plates, Computer to Plate (“CTP”) and related service, and Nexpress and related toner business in the Print Systems segment, Motion Picture and Industrial Film and Chemicals in the Consumer and Film segment, Eastman Business Park and IP licensing.

 

 

(3)

Planned Declining Businesses are product lines where the decision has been made to stop new product development and manage an orderly expected decline in the installed product and annuity base. These product families consist of Consumer Inkjet in the Consumer and Film segment, Versamark in the Enterprise Inkjet Systems segment and Digimaster in the Print Systems segment.

 

Geography (1):

 

 

Year Ended

 

 

 

December 31, 2018

 

 

 

Print Systems

 

 

Enterprise Inkjet Systems

 

 

Software & Solutions

 

 

Consumer & Film

 

 

Advanced Materials and 3D Printing Technology

 

 

Eastman Business Park

 

 

Total

 

United States

 

$

234

 

 

$

45

 

 

$

29

 

 

$

125

 

 

$

4

 

 

$

17

 

 

$

454

 

Canada

 

 

13

 

 

 

1

 

 

 

4

 

 

 

3

 

 

 

 

 

 

 

 

 

21

 

North America

 

 

247

 

 

 

46

 

 

 

33

 

 

 

128

 

 

 

4

 

 

 

17

 

 

 

475

 

Europe, Middle East and Africa

 

 

367

 

 

 

56

 

 

 

22

 

 

 

20

 

 

 

 

 

 

 

 

 

465

 

Asia Pacific

 

 

226

 

 

 

31

 

 

 

25

 

 

 

41

 

 

 

 

 

 

 

 

 

323

 

Latin America

 

 

55

 

 

 

3

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

62

 

Total Sales

 

$

895

 

 

$

136

 

 

$

84

 

 

$

189

 

 

$

4

 

 

$

17

 

 

$

1,325

 

 

 

(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 year ended December 31, 2018.

 

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed trade receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) in the Consolidated Statement of Financial Position.  The contract assets are transferred to trade receivables when the rights to consideration become unconditional.   The amounts recorded for contract assets at December 31, 2018 and 2017 were $3 million and $2 million, respectively, and are reported in Other current assets and Trade receivables, respectively, in the Consolidated Statement of Financial Position.  The contract liabilities primarily relate to prepaid service contracts, upfront payments for certain equipment purchases or prepaid royalties on intellectual property arrangements.  The amounts recorded for contract liabilities at December 31, 2018 and 2017 were $48 million and $35 million, respectively, of which $42 million and $35 million, respectively, are reported in Other current liabilities and $6 million and $0 million, respectively, are reported in Other long-term liabilities in the Consolidated Statement of Financial Position.

 

Revenue recognized for the twelve months ended December 31, 2018 that was included in the contract liability balance at the beginning of the year was $34 million and primarily represented revenue from prepaid service contracts and equipment revenue recognition.  Contract liabilities as of December 31, 2018 include $36 million of cash payments received during the twelve months ended December 31, 2018.