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Note 22 - Earnings Per Share

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 22: EARNINGS PER SHARE

Basic earnings per share are calculated using the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share calculations include any dilutive effect of potential common shares. In periods with a net loss from continuing operations, diluted earnings per share are calculated using weighted-average basic shares for that period, as utilizing diluted shares would be anti-dilutive to loss per share.

A reconciliation of the amounts used to calculate basic and diluted earnings per share for the years ended December 31, 2022, 2021 and 2020 follows:

		*Year Ended December 31,*
(in millions)		*2022*				*2021*				*2020*
Income (loss) from continuing operations attributable to Eastman Kodak Company		$	26			$	24			$	(544	)
Less: Preferred Stock cash and accrued dividends			(4	)			(4	)			(11	)
Less: Preferred Stock in-kind dividends			(5	)			(4	)			—
Less: Preferred Stock deemed dividends			(2	)			(3	)			(9	)
Plus: Expiration of Series A embedded derivative			—				11				—
Less: Earnings attributable to Series C Preferred shareholders			(2	)			(2	)			—
Income (loss) from continuing operations available to common shareholders - basic and diluted		$	13			$	22			$	(564	)

		*Year Ended December 31,*
(in millions)		*2022*				*2021*				*2020*
Net income (loss) attributable to Eastman Kodak Company		$	26			$	24			$	(541	)
Less: Preferred Stock cash and accrued dividends			(4	)			(4	)			(11	)
Less: Preferred Stock in-kind dividends			(5	)			(4	)			—
Less: Preferred Stock deemed dividends			(2	)			(3	)			(9	)
Plus: Expiration of Series A embedded derivative			—				11				—
Less: Earnings attributable to Series C Preferred shareholders			(2	)			(2	)			—
Net income (loss) available to common shareholders - basic and diluted		$	13			$	22			$	(561	)

		*Year Ended December 31,*
		*2022*				*2021*				*2020*
Weighted-average common shares outstanding - basic			78.9				78.4				57.4
Effect of dilutive securities:
Unvested restricted stock units and awards			0.6				0.1				—
Stock options			1.1				2.0				—
Weighted-average common shares outstanding - diluted			80.6				80.5				57.4

The computation of diluted earnings per share for the year ended December 31, 2022 excluded the impact of (1) the assumed conversion of $25 million of 2021 Convertible Notes, (2) the assumed conversion of 1.0 million shares of Series B Preferred Stock, (3) the assumed conversion of 1.1 million shares of Series C Preferred Stock and (4) the assumed exercise of 3.3 million outstanding employee stock options in each case because they would have been anti-dilutive.

The computation of diluted earnings per share for the year ended December 31, 2021 excluded the impact of (1) the assumed conversion of $25 million of 2021 Convertible Notes, (2) the assumed conversion of 1.0 million shares of Series B Preferred Stock, (3) the assumed conversion of 1.0 million shares of Series C Preferred Stock and (4) the assumed exercise of 2.9 million outstanding employee stock options in each case because they would have been anti-dilutive.

As a result of the loss from continuing operations available to common shareholders for the year ended December 31, 2020, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding. If Kodak reported earnings from continuing operations available to common shareholders for the year ended December 31, 2020 the calculation of diluted earnings per share would have included the assumed vesting of 0.6 million unvested restricted stock units and the exercise of 0.7 million stock options.

The computation of diluted earnings per share for the year ended December 31, 2020 excluded the impact of (1) the assumed conversion of 2.0 million shares of Series A Preferred Stock, and (2) the assumed exercise of 4.0 million outstanding employee stock options in each case because they would have been anti-dilutive.