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Note 8 - Revenue
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 8: REVENUE

 

Disaggregation of Revenue

 

The following tables present revenue disaggregated by major product and geography:

 

Major Product:

 

Three Months Ended

 

September 30, 2024

 
                     
      

Advanced

             
      

Materials

             
      

and

             

(in millions)

 

Print

  

Chemicals

  

Brand

  

All Other

  

Total

 

Core products (1)

 

Plates, inks and other consumables

 $126  $7  $—  $—  $133 

Ongoing service arrangements

  38   —   —   —   38 

Total annuities

  164   7   —   —   171 

Equipment & software

  18   —   —   —   18 

Film and chemicals

  —   63   —   —   63 

Total Core

  182   70   —   —   252 

Growth products (2)

  —   1   —   —   1 

Other (3)

  —   —   5   3   8 

Total

 $182  $71  $5  $3  $261 

 

Nine Months Ended

 

September 30, 2024

 
                     
      

Advanced

             
      

Materials

             
      

and

             

(in millions)

 

Print

  

Chemicals

  

Brand

  

All Other

  

Total

 

Core products (1)

                    

Plates, inks and other consumables

 $388  $20  $—  $—  $408 

Ongoing service arrangements

  118   —   —   —   118 

Total annuities

  506   20   —   —   526 

Equipment & software

  44   1   —   —   45 

Film and chemicals

  —   179   —   —   179 

Total Core

  550   200   —   —   750 

Growth products (2)

  —   3   —   —   3 

Other (3)

  —   —   13   11   24 

Total

 $550  $203  $13  $11  $777 

 

Three Months Ended

 

September 30, 2023

 
                     
      

Advanced

             
      

Materials

             
      

and

             

(in millions)

 

Print

  

Chemicals

  

Brand

  

All Other

  

Total

 

Core products (1)

                    

Plates, inks and other consumables

 $135  $7  $—  $—  $142 

Ongoing service arrangements

  45   —   —   —   45 

Total annuities

  180   7   —   —   187 

Equipment & software

  16   —   —   —   16 

Film and chemicals

  —   53   —   —   53 

Total Core

  196   60   —   —   256 

Growth products (2)

  —   4   —   —   4 

Other (3)

  —   —   4   5   9 

Total

 $196  $64  $4  $5  $269 

 

Nine Months Ended

 

September 30, 2023

 
                     
      

Advanced

             
      

Materials

             
      

and

             

(in millions)

 

Print

  

Chemicals

  

Brand

  

All Other

  

Total

 

Core products (1)

                    

Plates, inks and other consumables

 $427  $19  $—  $—  $446 

Ongoing service arrangements

  142   —   —   —   142 

Total annuities

  569   19   —   —   588 

Equipment & software

  51   —   —   —   51 

Film and chemicals

  —   166   —   —   166 

Total Core

  620   185   —   —   805 

Growth products (2)

  —   12   —   —   12 

Other (3)

  —   —   12   13   25 

Total

 $620  $197  $12  $13  $842 

 

(1)

Core includes the Print segment and the Motion Picture and Industrial Film and Chemicals businesses within the Advanced Materials and Chemicals segment, excluding coating and product commercialization services (“Coating Services”).

 

(2)

Growth consists of Coating Services and Advanced Materials and Functional Printing within the Advanced Materials and Chemicals segment.

 

(3)

Other consists of Intellectual Property Licensing ("IP Licensing") within the Advanced Materials and Chemicals segment, Brand Licensing and Eastman Business Park. 

 

Geography (1):

 

Three Months Ended

 

September 30, 2024

 
                     
      

Advanced

             
      

Materials

             
      and             

(in millions)

 

Print

  

Chemicals

  

Brand

  

All Other

  

Total

 

United States

 $56  $56  $5  $3  $120 

Canada

  4   1   —   —   5 

North America

  60   57   5   3   125 

Europe, Middle East and Africa

  74   6   —   —   80 

Asia Pacific

  43   8   —   —   51 

Latin America

  5   —   —   —   5 

Total

 $182  $71  $5  $3  $261 

 

Nine Months Ended

 

September 30, 2024

 
                     
      

Advanced

             
      

Materials

             
      

and

             

(in millions)

 

Print

  

Chemicals

  

Brand

  

All Other

  

Total

 

United States

 $173  $161  $13  $11  $358 

Canada

  11   2   —   —   13 

North America

  184   163   13   11   371 

Europe, Middle East and Africa

  234   17   —   —   251 

Asia Pacific

  118   23   —   —   141 

Latin America

  14   —   —   —   14 

Total

 $550  $203  $13  $11  $777 

 

Three Months Ended

 

September 30, 2023

 
                     
      

Advanced

             
      

Materials

             
      

and

             

(in millions)

 

Print

  

Chemicals

  

Brand

  

All Other

  

Total

 

United States

 $60  $48  $4  $5  $117 

Canada

  5   —   —   —   5 

North America

  65   48   4   5   122 

Europe, Middle East and Africa

  86   5   —   —   91 

Asia Pacific

  40   10   —   —   50 

Latin America

  5   1   —   —   6 

Total

 $196  $64  $4  $5  $269 

 

Nine Months Ended

 

September 30, 2023

 
                     
      

Advanced

             
      

Materials

             
      

and

             

(in millions)

 

Print

  

Chemicals

  

Brand

  

All Other

  

Total

 

United States

 $192  $155  $12  $13  $372 

Canada

  13   1   —   —   14 

North America

  205   156   12   13   386 

Europe, Middle East and Africa

  267   15   —   —   282 

Asia Pacific

  131   25   —   —   156 

Latin America

  17   1   —   —   18 

Total

 $620  $197  $12  $13  $842 

 

(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, 2024 and December 31, 2023 was $2 million and $1 million, respectively, and is reported in Other current assets in the Consolidated Statement of Financial Position. The contract liabilities primarily relate to brand licensing agreements, prepaid service contracts or upfront payments for certain equipment purchases. The amount recorded for contract liabilities in the Consolidated Statement of Financial Position at  September 30, 2024 and December 31, 2023 was $94 million and $100 million, respectively, of which $35 million and $37 million, respectively, was reported in Other current liabilities and $59 million and $63 million, respectively, was reported in Other long-term liabilities.

 

Revenue recognized for the three and nine months ended September 30, 2024 and 2023 that was included in the contract liability balance at the beginning of the year was $9 million and $29 million, respectively, in 2024 and $6 million and $31 million, respectively, in 2023 and primarily represented revenue from prepaid service contracts and equipment sales. Contract liabilities as of September 30, 2024 included $17 million and $24 million of cash payments received during the three and nine months ended September 30, 2024, respectively.  Contract liabilities as of  September 30, 2023 included $74 million and $85 million of cash payments received and amounts recorded in accounts receivable during the three and nine months ended September 30, 2023, respectively, including $49 million recorded in accounts receivable for long-term brand licensing agreements executed in the third quarter of 2023.

 

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, 2024, there was approximately $93 million of unrecognized revenue from unsatisfied performance obligations. Approximately 5% of the revenue from unsatisfied performance obligations is expected to be recognized in the remainder of 2024, 15% in 2025, 12% in each of 2026 and 2027 and 56% thereafter.