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Note 12 - Revenue
3 Months Ended
Mar. 31, 2019
Revenue From Contract With Customer [Abstract]  
Revenue

NOTE 12:  REVENUE

 

Disaggregation of Revenue

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

 

Major product:

 

 

Three Months Ended

 

 

 

March 31, 2019

 

 

 

Print Systems

 

 

Enterprise Inkjet Systems

 

 

Kodak Software

 

 

Brand, Film and Imaging

 

 

Advanced Materials and 3D Printing Technology

 

 

Eastman Business Park

 

 

Total

 

Plates, inks and other

   consumables

 

$

149

 

 

$

8

 

 

$

 

 

$

3

 

 

$

 

 

$

 

 

$

160

 

Ongoing service

   arrangements (1)

 

 

31

 

 

 

19

 

 

 

11

 

 

 

1

 

 

 

 

 

 

 

 

 

62

 

Total Annuities

 

 

180

 

 

 

27

 

 

 

11

 

 

 

4

 

 

 

 

 

 

 

 

 

222

 

Equipment & Software

 

 

12

 

 

 

5

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

20

 

Film and chemicals

 

 

 

 

 

 

 

 

 

 

 

37

 

 

 

 

 

 

 

 

 

37

 

Other (2)

 

 

 

 

 

 

 

 

-

 

 

 

8

 

 

 

2

 

 

 

2

 

 

 

12

 

Total

 

$

192

 

 

$

32

 

 

$

14

 

 

$

49

 

 

$

2

 

 

$

2

 

 

$

291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 2018

 

 

 

Print Systems

 

 

Enterprise Inkjet Systems

 

 

Kodak Software

 

 

Brand, Film and Imaging

 

 

Advanced Materials and 3D Printing Technology

 

 

Eastman Business Park

 

 

Total

 

Plates, inks and other consumables

 

$

167

 

 

$

8

 

 

$

 

 

$

5

 

 

$

 

 

$

 

 

$

180

 

Ongoing service arrangements (1)

 

 

34

 

 

 

20

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

66

 

Total Annuities

 

 

201

 

 

 

28

 

 

 

12

 

 

 

5

 

 

 

 

 

 

 

 

 

246

 

Equipment & Software

 

 

15

 

 

 

3

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

22

 

Film and chemicals

 

 

 

 

 

 

 

 

 

 

 

40

 

 

 

 

 

 

 

 

 

40

 

Other (2)

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

1

 

 

 

2

 

 

 

10

 

Total

 

$

216

 

 

$

31

 

 

$

16

 

 

$

52

 

 

$

1

 

 

$

2

 

 

$

318

 

 

(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:

 

 

 

Three Months Ended

 

 

 

March 31, 2019

 

 

 

Print Systems

 

 

Enterprise Inkjet Systems

 

 

Kodak Software

 

 

Brand, Film and Imaging

 

 

Advanced Materials and 3D Printing Technology

 

 

Eastman Business Park

 

 

Total

 

Growth engines (1)

 

$

39

 

 

$

21

 

 

$

14

 

 

$

8

 

 

$

2

 

 

$

 

 

$

84

 

Strategic other businesses (2)

 

 

144

 

 

 

 

 

 

 

 

 

38

 

 

 

 

 

 

2

 

 

 

184

 

Planned declining

   businesses (3)

 

 

9

 

 

 

11

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

23

 

 

 

$

192

 

 

$

32

 

 

$

14

 

 

$

49

 

 

$

2

 

 

$

2

 

 

$

291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 2018

 

 

 

Print Systems

 

 

Enterprise Inkjet Systems

 

 

Kodak Software

 

 

Brand, Film and Imaging

 

 

Advanced Materials and 3D Printing Technology

 

 

Eastman Business Park

 

 

Total

 

Growth engines (1)

 

$

35

 

 

$

18

 

 

$

16

 

 

$

6

 

 

$

1

 

 

$

 

 

$

76

 

Strategic other businesses (2)

 

 

170

 

 

 

 

 

 

 

 

 

41

 

 

 

 

 

 

2

 

 

 

213

 

Planned declining

   businesses (3)

 

 

11

 

 

 

13

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

29

 

 

 

$

216

 

 

$

31

 

 

$

16

 

 

$

52

 

 

$

1

 

 

$

2

 

 

$

318

 

 

(1)

Growth engines consist of Sonora, PROSPER, Kodak Software, 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 Brand, Film and Imaging 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 Brand, Film and Imaging segment, Versamark in the Enterprise Inkjet Systems segment and Digimaster in the Print Systems segment.

 

Geography:

 

 

 

Three Months Ended

 

 

 

March 31, 2019

 

 

 

Print Systems

 

 

Enterprise Inkjet Systems

 

 

Kodak Software

 

 

Brand, Film and Imaging

 

 

Advanced Materials and 3D Printing Technology

 

 

Eastman Business Park

 

 

Total

 

United States

 

$

54

 

 

$

15

 

 

$

6

 

 

$

31

 

 

$

2

 

 

$

2

 

 

$

110

 

Canada

 

 

3

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

4

 

North America

 

 

57

 

 

 

15

 

 

 

7

 

 

 

31

 

 

 

2

 

 

 

2

 

 

 

114

 

Europe, Middle East and Africa

 

 

77

 

 

 

10

 

 

 

5

 

 

 

4

 

 

 

 

 

 

 

 

 

96

 

Asia Pacific

 

 

47

 

 

 

6

 

 

 

2

 

 

 

13

 

 

 

 

 

 

 

 

 

68

 

Latin America

 

 

11

 

 

 

1

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

13

 

Total Sales

 

$

192

 

 

$

32

 

 

$

14

 

 

$

49

 

 

$

2

 

 

$

2

 

 

$

291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 2018

 

 

 

Print Systems

 

 

Enterprise Inkjet Systems

 

 

Kodak Software

 

 

Brand, Film and Imaging

 

 

Advanced Materials and 3D Printing Technology

 

 

Eastman Business Park

 

 

Total

 

United States

 

$

57

 

 

$

11

 

 

$

7

 

 

$

32

 

 

$

1

 

 

$

2

 

 

$

110

 

Canada

 

 

3

 

 

 

 

 

 

1

 

 

 

1

 

 

 

 

 

 

 

 

 

5

 

North America

 

 

60

 

 

 

11

 

 

 

8

 

 

 

33

 

 

 

1

 

 

 

2

 

 

 

115

 

Europe, Middle East and Africa

 

 

93

 

 

 

12

 

 

 

6

 

 

 

5

 

 

 

 

 

 

 

 

 

116

 

Asia Pacific

 

 

49

 

 

 

7

 

 

 

2

 

 

 

13

 

 

 

 

 

 

 

 

 

71

 

Latin America

 

 

14

 

 

 

1

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

16

 

Total Sales

 

$

216

 

 

$

31

 

 

$

16

 

 

$

52

 

 

$

1

 

 

$

2

 

 

$

318

 

 

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 both March 31, 2019 and December 31, 2018 were $3 million and are reported in Other current assets 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 March 31, 2019 and December 31, 2018 were $45 million and $48 million, respectively, of which $37 million and $42 million, respectively, are reported in Other current liabilities and $8 million and $6 million, respectively, are reported in Other long-term liabilities in the Consolidated Statement of Financial Position.

 

Revenue recognized for the three months ended March 31, 2019 and 2018 that was included in the contract liability balance at the beginning of the year was $24 million and $25 million, respectively, and primarily represented revenue from prepaid service contracts and equipment revenue recognition.  Contract liabilities as of March 31, 2019 and 2018 include $20 million and $23 million of cash payments received during the three months ended March 31, 2019 and 2018, respectively.

 

Unsatisfied Performance Obligations

Kodak does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less or for which revenue is recognized at the amount to which Kodak has the right to invoice for services performed. Performance obligations with an original expected length of greater than one year generally consist of deferred service contracts, operating leases and licensing arrangements. As of March 31, 2019, there was approximately $70 million of unrecognized revenue from unsatisfied performance obligations. Approximately 30% of the revenue from unsatisfied performance obligations is expected to be recognized in both the rest of 2019 and in 2020, 20% in 2021 and 20% thereafter.