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Note 21 - Segment Information | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Segment Information | NOTE 21: SEGMENT INFORMATION Change in Segments Effective in January 2019 Kodak changed its organizational structure. Kodak Technology Solutions, formerly part of the Software and Solutions segment, was moved into the Consumer and Film segment. The Consumer and Film segment was renamed the Brand, Film & Imaging segment. The Unified Workflow Solutions business, formerly part of the Software and Solutions segment, will operate as a dedicated segment named Kodak Software segment. Financial information is reported for six reportable segments: Print Systems, Enterprise Inkjet Systems, Kodak Software, Brand, Film and Imaging, 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. Kodak Software: The Kodak Software segment is comprised of the Software business. Brand, Film and Imaging: The Brand, Film and Imaging segment is comprised of five lines of business: Consumer Products, Industrial Film and Chemicals, Motion Picture, Kodak Services for Business (“KSB”) and Kodakit. 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. Segment financial information is shown below: Segment Revenues
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
(in millions) |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Print Systems |  | $ | 207 |  |  | $ | 227 |  |  | $ | 399 |  |  | $ | 443 |
Enterprise Inkjet Systems |  |  | 29 |  |  |  | 33 |  |  |  | 61 |  |  |  | 64 |
Kodak Software |  |  | 14 |  |  |  | 16 |  |  |  | 28 |  |  |  | 32 |
Brand, Film and Imaging |  |  | 54 |  |  |  | 53 |  |  |  | 103 |  |  |  | 105 |
Advanced Materials and 3D Printing Technology |  |  | — |  |  |  | 1 |  |  |  | 2 |  |  |  | 2 |
Eastman Business Park |  |  | 3 |  |  |  | 2 |  |  |  | 5 |  |  |  | 4 |
Consolidated total |  | $ | 307 |  |  | $ | 332 |  |  | $ | 598 |  |  | $ | 650 |
Segment Operational EBITDA and Consolidated (Loss) Gain from Continuing Operations Before Income Taxes
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
(in millions) |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Print Systems |  | $ | 7 |  |  | $ | 6 |  |  | $ | 12 |  |  | $ | 9 |
Enterprise Inkjet Systems |  |  | (3 | ) |  |  | 1 |  |  |  | (3 | ) |  |  | 1 |
Kodak Software |  |  | — |  |  |  | 1 |  |  |  | (1 | ) |  |  | 2 |
Brand, Film and Imaging |  |  | (2 | ) |  |  | (5 | ) |  |  | (9 | ) |  |  | (12 | )
Advanced Materials and 3D Printing Technology |  |  | (3 | ) |  |  | (4 | ) |  |  | (5 | ) |  |  | (8 | )
Eastman Business Park |  |  | — |  |  |  | (1 | ) |  |  | (1 | ) |  |  | (3 | )
Total of reportable segments |  |  | (1 | ) |  |  | (2 | ) |  |  | (7 | ) |  |  | (11 | )
Depreciation and amortization |  |  | (14 | ) |  |  | (19 | ) |  |  | (29 | ) |  |  | (37 | )
Restructuring costs and other |  |  | (2 | ) |  |  | (2 | ) |  |  | (4 | ) |  |  | (4 | )
Stock based compensation |  |  | (2 | ) |  |  | (1 | ) |  |  | (5 | ) |  |  | (3 | )
Consulting and other costs (1) |  |  | (2 | ) |  |  | (4 | ) |  |  | (5 | ) |  |  | (7 | )
Idle costs (2) |  |  | (2 | ) |  |  | — |  |  |  | (3 | ) |  |  | (1 | )
Former CEO separation agreement compensation |  |  | — |  |  |  | — |  |  |  | (2 | ) |  |  | — |
Other operating (expense) income, net, excluding income from transition services agreement (3) |  |  | (2 | ) |  |  | 2 |  |  |  | (2 | ) |  |  | 2 |
Interest expense (4) |  |  | (5 | ) |  |  | (2 | ) |  |  | (8 | ) |  |  | (4 | )
Pension income excluding service cost component (4) |  |  | 26 |  |  |  | 32 |  |  |  | 53 |  |  |  | 64 |
Other income (charges), net (4) |  |  | — |  |  |  | (1 | ) |  |  | (1 | ) |  |  | (17 | )
Consolidated (loss) income from continuing operations before income taxes |  | $ | (4 | ) |  | $ | 3 |  |  | $ | (13 | ) |  | $ | (18 | )
(1) | Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives.
(2) | 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 and the costs, net of any rental income received, of underutilized portions of certain properties.
(3) | $2 million of income from the transition services agreement with the Purchaser was recognized in the quarter and year-to-date period ended June 30, 2019. The income was reported in Other operating income, net in the Consolidated Statement of Operations. Other operating income, net is typically excluded from the segment measure. However, the income from the transition services agreement was included in the segment measure.
(4) | As reported in the Consolidated Statement of Operations.
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 above table, Operational EBITDA represents the earnings (loss) from continuing operations excluding the provision for income taxes; non-service cost components of pension and OPEB income; depreciation and amortization expense; restructuring costs; stock-based compensation expense; consulting and other costs; idle costs; former CEO separation agreement compensation; other operating (expense) income, net (unless otherwise indicated); goodwill impairment losses; interest expense; and other (income) charges, 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 Profitability During the first quarter of 2019 the segment measure was changed to exclude the costs, net of any rental income received, of underutilized portions of certain properties. Additionally, the allocation of costs from EBP to the Brand, Film and Imaging segment and Advanced Materials and 3D Printing Technology segment as tenants of EBP and to each of the segments as users of shared corporate space at the global headquarters changed. Prior year results have been revised to reflect these changes.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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