XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2
Note 10 - Revenue
 9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 10: REVENUE

 

Disaggregation of Revenue

 

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

Major Product

 

Three Months Ended

 

September 30, 2022

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

Plates, inks and other consumables

 $139  $15  $6  $—  $—  $160 

Ongoing service arrangements (1)

  19   31   4   —   —   54 

Total annuities

  158   46   10   —   —   214 

Equipment & software

  11   9   —   —   —   20 

Film and chemicals

  —   —   47   —   —   47 

Other (2)

  —   —   1   3   4   8 

Total

 $169  $55  $58  $3  $4  $289 

 

Nine Months Ended

 

September 30, 2022

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

Plates, inks and other consumables

 $449  $47  $20  $—  $—  $516 

Ongoing service arrangements (1)

  57   99   9   —   —   165 

Total annuities

  506   146   29   —   —   681 

Equipment & software

  29   23   —   —   —   52 

Film and chemicals

  —   —   142   —   —   142 

Other (2)

  —   —   2   11   12   25 

Total

 $535  $169  $173  $11  $12  $900 

 

Three Months Ended

 

September 30, 2021

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

Plates, inks and other consumables

 $134  $18  $7  $—  $—  $159 

Ongoing service arrangements (1)

  20   34   1   —   —   55 

Total annuities

  154   52   8   —   —   214 

Equipment & software

  12   6   —   —   —   18 

Film and chemicals

  —   —   47   —   —   47 

Other (2)

  —   —   —   4   4   8 

Total

 $166  $58  $55  $4  $4  $287 

 

Nine Months Ended

 

September 30, 2021

 
                         

(in millions)

 

Traditional Printing

  

Digital Printing

  

Advanced Materials and Chemicals

  

Brand

  

All Other

  

Total

 

Plates, inks and other consumables

 $389  $50  $17  $—  $—  $456 

Ongoing service arrangements (1)

  60   103   4   —   —   167 

Total annuities

  449   153   21   —   —   623 

Equipment & software

  34   31   —   —   —   65 

Film and chemicals

  —   —   133   —   —   133 

Other (2)

  —   —   1   10   11   22 

Total

 $483  $184  $155  $10  $11  $843 

 

(1)

Service revenue in the Consolidated Statement of Operations includes the ongoing service revenue shown above as well as one-time service revenue.

 

(2)

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

 

Product Portfolio Summary:

 

Three Months Ended

 

September 30, 2022

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

Growth engines (1)

 $61  $32  $1  $—  $—  $94 

Strategic other businesses (2)

  108   14   57   3   4   186 

Planned declining businesses (3)

  —   9   —   —   —   9 

Total

 $169  $55  $58  $3  $4  $289 

 

Nine Months Ended

 

September 30, 2022

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

Growth engines (1)

 $198  $97  $2  $—  $—  $297 

Strategic other businesses (2)

  337   40   171   11   12   571 

Planned declining businesses (3)

  —   32   —   —   —   32 

Total

 $535  $169  $173  $11  $12  $900 

 

Three Months Ended

 

September 30, 2021

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

Growth engines (1)

 $56  $32  $—  $—  $—  $88 

Strategic other businesses (2)

  110   14   55   4   4   187 

Planned declining businesses (3)

  —   12   —   —   —   12 

Total

 $166  $58  $55  $4  $4  $287 

 

Nine Months Ended

 

September 30, 2021

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

Growth engines (1)

 $156  $105  $—  $—  $—  $261 

Strategic other businesses (2)

  327   42   155   10   11   545 

Planned declining businesses (3)

  —   37   —   —   —   37 

Total

 $483  $184  $155  $10  $11  $843 

 

(1)

Growth engines consist of Sonora in the Traditional Printing segment, PROSPER and Software in the Digital Printing segment, and Advanced Materials and Functional Printing in the Advanced Materials and Chemicals segment, excluding intellectual property (“IP”) licensing.

 

(2)

Strategic other businesses include plates (excluding Sonora plates) and Computer to Plate (“CTP”) equipment and related service in the Traditional Printing segment; Nexpress and related toner business in the Digital Printing segment and Motion Picture and Industrial Film and Chemicals (including external inks) and IP licensing in the Advanced Materials and Chemicals segment; the Brand segment and All Other.

 

(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 or are otherwise not strategic to Kodak. These product families consist of VERSAMARK and Digimaster in the Digital Printing segment.

 

Geography (1):

 

Three Months Ended

 

September 30, 2022

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

United States

 $42  $26  $44  $3  $4  $119 

Canada

  3   2   —   —   —   5 

North America

  45   28   44   3   4   124 

Europe, Middle East and Africa

  76   19   6   —   —   101 

Asia Pacific

  40   8   8   —   —   56 

Latin America

  8   —   —   —   —   8 

Total

 $169  $55  $58  $3  $4  $289 

 

Nine Months Ended

 

September 30, 2022

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

United States

 $122  $81  $130  $11  $12  $356 

Canada

  9   6   1   —   —   16 

North America

  131   87   131   11   12   372 

Europe, Middle East and Africa

  258   57   15   —   —   330 

Asia Pacific

  123   23   27   —   —   173 

Latin America

  23   2   —   —   —   25 

Total

 $535  $169  $173  $11  $12  $900 

 

Three Months Ended

 

September 30, 2021

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

United States

 $36  $25  $40  $4  $4  $109 

Canada

  3   2   —   —   —   5 

North America

  39   27   40   4   4   114 

Europe, Middle East and Africa

  75   21   4   —   —   100 

Asia Pacific

  44   9   11   —   —   64 

Latin America

  8   1   —   —   —   9 

Total

 $166  $58  $55  $4  $4  $287 

 

Nine Months Ended

 

September 30, 2021

 
                         
          

Advanced

             
          

Materials

             
  

Traditional

  

Digital

  

and

             

(in millions)

 

Printing

  

Printing

  

Chemicals

  

Brand

  

All Other

  

Total

 

United States

 $101  $78  $111  $10  $11  $311 

Canada

  9   7   1   —   —   17 

North America

  110   85   112   10   11   328 

Europe, Middle East and Africa

  219   62   12   —   —   293 

Asia Pacific

  132   34   31   —   —   197 

Latin America

  22   3   —   —   —   25 

Total

 $483  $184  $155  $10  $11  $843 

 

 

(1)

Sales are reported in the geographic area in which they originate.

 

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 amount recorded for contract assets at September 30, 2022 and December 31, 2021 was $2 million and $3 million, respectively, and is 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 September 30, 2022 and December 31, 2021 were $50 million and $57 million, respectively, in the Consolidated Statement of Financial Position, of which $38 million and $43 million are reported in Other current liabilities, respectively, and $12 million and $14 million are reported in Other long-term liabilities, respectively.

 

Revenue recognized for the three and nine months ended September 30, 2022 and 2021 that was included in the contract liability balance at the beginning of the year was $7 million and $36 million, respectively, in 2022 and $9 million and $34 million, respectively, in 2021 and primarily represented revenue from prepaid service contracts and equipment revenue recognition. Contract liabilities as of September 30, 2022 included $19 million and $33 million of cash payments received during the three and nine months ended September 30, 2022 respectively. Contract liabilities as of  September 30, 2021 included $19 million and $26 million of cash payments received during the three and nine months ended September 30, 2021, respectively.

 

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 September 30, 2022, there was approximately $60 million of unrecognized revenue from unsatisfied performance obligations. Approximately 10% of the revenue from unsatisfied performance obligations is expected to be recognized in the remainder of 2022, 30% in 2023, 30% in the two-year period 2024 through 2025 and 30% thereafter.