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Note 10 - Leases

12 Months Ended

Dec. 31, 2023

Leases as Lessee and Lessor Disclosure[Text Block]

NOTE 10: LEASES

Kodak as lessee

The table below presents the lease-related assets and liabilities on the balance sheet:

	*Classification in the*	*December 31,*
(in millions)	*Consolidated Statement of Financial Position*	*2023*		*2022*
Assets
Operating lease assets	Operating lease right-of-use assets	$	30	$	39
Finance lease assets	Property, plant and equipment, net		1		1
Total lease assets		$	31	$	40

Liabilities
Current
Operating	Current portion of operating leases	$	13	$	15
Noncurrent
Operating	Operating leases, net of current portion		24		31
Finance	Long-term debt, net of current portion		1		1
Total lease liabilities		$	38	$	47

Lease Costs

The table below presents certain information related to the lease expense for finance and operating leases. Lease expense is presented gross of sublease income. See “Kodak as Lessor” section below for income from subleases.

	*Year Ended December 31,*
(in millions)	*2023*		*2022*		*2021*
Finance lease expense
Amortization of leased assets	$	1	$	1	$	1
Interest on lease liabilities		—		—		—
Operating lease expense		16		17		19
Variable lease expense ⁽¹⁾		7		7		9
Total lease expense	$	24	$	25	$	29

⁽¹⁾

Variable lease expense is related to real estate leases and primarily includes taxes, insurance and operating costs.

Other Information

The table below presents supplemental information related to leases. Changes in operating lease liabilities and operating lease assets are included in Increase (decrease) in liabilities excluding borrowings and trade payables, and Other items, net, respectively, in the Consolidated Statement of Cash Flows.

	*Year Ended December 31,*
(in millions)	*2023*			*2022*			*2021*
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	20		$	19		$	21
Operating cash flow for finance leases		—			—			—
Financing cash flow for finance leases		1			1			1
Total	$	21		$	20		$	22

Weighted-average remaining lease term (in years)
Operating		5			5			5
Finance		3			3			2
Weighted-average discount rate
Operating		13.22	%		12.17	%		11.91	%
Finance		6.42	%		5.18	%		5.56	%

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for the next five years and thereafter to the finance lease liabilities and operating lease liabilities recorded on the balance sheet.

Undiscounted future cash flows:
(in millions)	*Operating Leases*			*Finance Leases*
2024	$	17		$	—
2025		8			1
2026		6			—
2027		5			—
2028		5			—
Thereafter		13			—
Total minimum lease payments		54			1
Less: amount of lease payments representing interest		(17	)		—
Present value of future minimum lease payments		37			1
Less: current obligations under leases		13			—
Long-term lease obligations	$	24		$	1

At December 31, 2023 leases that had not yet commenced were not significant.

Kodak as Lessor

Kodak’s net investment in sales-type leases as of December 31, 2023 and 2022 was $3 million and $4 million, respectively. The current portion of the net investment in sales-type leases is included in Other current assets in the Consolidated Statement of Financial Position. The portion of the net investment in sales-type leases due after one year is included in Other long-term assets.

The table below reconciles the undiscounted cash flows to be received for the next five years and thereafter to the net investment in sales-type leases recorded in the Consolidated Statement of Financial Position:

(in millions)
2024	$	1
2025		1
2026 and thereafter		1
Total minimum lease payments		3
Less: unearned interest		—
Net investment in sales-type leases	$	3

Undiscounted cash flows to be received for the next five years and thereafter for operating leases and subleases are:

(in millions)
2024	$	9
2025		5
2026		3
2027		2
2028		2
Thereafter		6
Total minimum lease payments	$	27

Income recognized on lease arrangements for the years ended December 31, 2023, 2022 and 2021 is presented below:

	*Year Ended December 31,*
(in millions)	*2023*		*2022*		*2021*
Lease income - sales-type leases	$	1	$	1	$	3
Lease income - operating leases		9		8		8
Variable lease income ⁽¹⁾		5		5		5
Total lease income	$	15	$	14	$	16

⁽¹⁾

Variable lease income primarily represents operating costs under real estate leases and incremental variable income based on usage under equipment leases.

Equipment subject to operating leases and the related accumulated depreciation were as follows:

	*As of December 31,*
(in millions)	*2023*			*2022*
Equipment subject to operating leases	$	26		$	19
Accumulated depreciation		(18	)		(16	)
Equipment subject to operating leases, net	$	8		$	3

Equipment subject to operating leases, net is included in Property, plant and equipment, net in the Consolidated Statement of Financial Position.