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Note 17 - Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information

NOTE 17: SEGMENT INFORMATION

Kodak has three reportable segments: Print, Advanced Materials and Chemicals and Brand. Kodak’s reportable segments are based on a combination of factors that the chief operating decision maker (“CODM”) uses to evaluate and manage the business operations, including but not limited to, Kodak’s organizational structure, customer base, markets, products and services and related technologies. Kodak does not aggregate operating segments. A description of Kodak’s reportable segments follows.

Print: The Print segment is comprised of four lines of business: the Prepress Solutions business, the PROSPER business, the Software business and the Electrophotographic Printing Solutions business.

Advanced Materials and Chemicals: The Advanced Materials and Chemicals segment is comprised of four lines of business: the Industrial Film and Chemicals business, the Motion Picture business, the Advanced Materials and Functional Printing business and the IP Licensing and Analytical Services business.

Brand: The Brand segment contains the brand licensing business.

The balance of Kodak’s continuing operations, which do not meet the criteria of a reportable segment, are reported in All Other revenues and All Other Operational EBITDA, and primarily represent the operations of the Eastman Business Park.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 included in the 2024 Form 10-K. There are no intersegment sales between the segments.

Kodak’s CODM is the Executive Chairman and Chief Executive Officer. Kodak’s segment measure of profit and loss is an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”). Operational EBITDA represents the earnings (loss) from operations excluding the provision for income taxes; non-service cost components of pension and other postemployment benefits (“OPEB”) income; depreciation and amortization expense; restructuring costs and other; stock-based compensation expense; consulting and other costs; interest expense; other operating income, net and other (charges) income, net.

The CODM uses Operational EBITDA in assessing segment performance and deciding how to allocate resources for each segment predominantly through the annual budget and forecasting process. The CODM evaluates Operational EBITDA budget-to-actual variances, changes in Operational EBITDA from prior periods and when comparing the results of each segment with one another.

Segment financial information is shown below. Asset information by reportable segment is not disclosed below as this information is not regularly provided to or used by the CODM in assessing performance and allocating resources.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Revenues, Operational EBITDA and Consolidated Earnings (Loss) from Continuing Operations Before Income Taxes

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

2025

 

 

2024

 

 

2025

 

 

2024

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

Print:

 

 

 

 

 

 

 

 

 

 

 

    Revenues from external customers

$

177

 

 

$

182

 

 

$

520

 

 

$

550

 

    Cost of revenues

 

138

 

 

 

154

 

 

 

422

 

 

 

446

 

    Selling, general and administrative expenses

 

28

 

 

 

32

 

 

 

92

 

 

 

99

 

    Research and development expenses

 

3

 

 

 

5

 

 

 

11

 

 

 

14

 

        Operational EBITDA

 

8

 

 

 

(9

)

 

 

(5

)

 

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Materials and Chemicals:

 

 

 

 

 

 

 

 

 

 

 

    Revenues from external customers

 

82

 

 

 

71

 

 

 

231

 

 

 

203

 

    Cost of revenues

 

55

 

 

 

53

 

 

 

166

 

 

 

154

 

    Selling, general and administrative expenses

 

8

 

 

 

9

 

 

 

25

 

 

 

25

 

    Research and development expenses

 

3

 

 

 

3

 

 

 

9

 

 

 

9

 

        Operational EBITDA

 

16

 

 

 

6

 

 

 

31

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand:

 

 

 

 

 

 

 

 

 

 

 

    Revenues from external customers

 

6

 

 

 

5

 

 

 

16

 

 

 

13

 

    Selling, general and administrative expenses

 

1

 

 

 

1

 

 

 

2

 

 

 

2

 

        Operational EBITDA

 

5

 

 

 

4

 

 

 

14

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operational EBITDA for Reportable Segments

 

29

 

 

 

1

 

 

 

40

 

 

 

17

 

    All Other Operational EBITDA

 

1

 

 

 

1

 

 

 

1

 

 

 

2

 

    Depreciation and amortization

 

(7

)

 

 

(8

)

 

 

(21

)

 

 

(21

)

    Restructuring costs and other

 

(1

)

 

 

(1

)

 

 

(12

)

 

 

(6

)

    Stock-based compensation

 

(1

)

 

 

(1

)

 

 

(4

)

 

 

(5

)

    Consulting and other costs (1)

 

(1

)

 

 

—

 

 

 

—

 

 

 

(1

)

    Idle costs (2)

 

(1

)

 

 

—

 

 

 

(3

)

 

 

(1

)

    Other operating income, net (3)

 

—

 

 

 

—

 

 

 

—

 

 

 

16

 

    Interest expense (3)

 

(18

)

 

 

(14

)

 

 

(47

)

 

 

(44

)

    Pension income excluding service cost component (3)

 

16

 

 

 

42

 

 

 

54

 

 

 

124

 

    Other (charges) income, net (3)

 

(1

)

 

 

1

 

 

 

(21

)

 

 

2

 

Consolidated earnings (loss) from continuing operations before
   income taxes

$

16

 

 

$

21

 

 

$

(13

)

 

$

83

 

 

(1)
Consulting and other costs are professional services and internal costs associated with corporate strategic initiatives and litigation. Consulting and other costs included $1 million of income in the nine months ended September 30, 2025 representing insurance reimbursement of legal costs previously paid by the Company associated with investigations and litigation matters.
(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)
As reported in the Consolidated Statement of Operations.

A reconciliation of reportable segment revenues to consolidated revenues follows:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(in millions)

2025

 

 

2024

 

 

2025

 

 

2024

 

Total Reportable Segment Revenues

$

265

 

 

$

258

 

 

$

767

 

 

$

766

 

All Other Revenues

 

4

 

 

 

3

 

 

 

12

 

 

 

11

 

    Total Consolidated Revenues

$

269

 

 

$

261

 

 

$

779

 

 

$

777

 

Kodak decreased employee benefit reserves by approximately $1 million in the three months ended September 30, 2025 due to a decrease in workers' compensation reserves driven by changes in discount rates. The decrease in reserves in the three months ended September 30, 2025 impacted gross profit by approximately $1 million. There was no change in employee benefit reserves for the nine months ended September 30, 2025.

 

Kodak increased employee benefit reserves by approximately $2 million and $1 million in the three and nine months ended September 30, 2024, respectively. The increase in employee benefits reserves in the three months ended September 30, 2024 was primarily due to an increase in workers' compensation reserves driven by changes in discount rates. The increase in reserves in the three months ended September 30, 2024 impacted gross profit and selling, general and administrative expenses ("SG&A") by approximately $1 million each. The increase in reserves in the nine months ended September 30, 2024 did not have a significant impact on gross profit, R&D or SG&A.

 

Amortization and depreciation expense by segment are not included in the segment measure of profit and loss but are regularly provided to the CODM.

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in millions)

September 30,

 

 

September 30,

 

Intangible asset amortization expense from continuing
   operations:

2025

 

 

2024

 

 

2025

 

 

2024

 

Print

$

1

 

 

$

1

 

 

$

3

 

 

$

3

 

Total

$

1

 

 

$

1

 

 

$

3

 

 

$

3

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in millions)

September 30,

 

 

September 30,

 

Depreciation expense from continuing operations:

2025

 

 

2024

 

 

2025

 

 

2024

 

Print

$

3

 

 

$

4

 

 

$

11

 

 

$

12

 

Advanced Materials and Chemicals

 

2

 

 

 

2

 

 

 

6

 

 

 

5

 

All Other

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

Total

$

6

 

 

$

7

 

 

$

18

 

 

$

18

 

 

(in millions)

September 30,

 

 

December 31,

 

Long-lived assets located in: (1)

2025

 

 

2024

 

The United States

$

147

 

 

$

143

 

Europe, Middle East and Africa

 

5

 

 

 

5

 

Asia Pacific

 

4

 

 

 

5

 

Canada and Latin America

 

42

 

 

 

36

 

Non-U.S. countries total (2)

 

51

 

 

 

46

 

Total

$

198

 

 

$

189

 

 

(1) Long-lived assets are comprised of property, plant and equipment, net.

 

(2) Of the total non-U.S. property, plant and equipment as of September 30, 2025, $40 million was located in Brazil. Of the total

non-U.S. property, plant and equipment as of December 31, 2024, $35 million was located in Brazil.