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Note 10 - Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases

NOTE 10: LEASES

Kodak as lessee

The table below presents the lease-related assets and liabilities on the Consolidated Statement of Financial Position:

 

 

 

Classification in the

 

December 31,

 

(in millions)

 

Consolidated Statement of Financial Position

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

 

 

Operating lease assets

 

Operating lease right-of-use assets

 

$

27

 

 

$

30

 

Finance lease assets

 

Property, plant and equipment, net

 

 

1

 

 

 

1

 

Total lease assets

 

 

 

$

28

 

 

$

31

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

Operating lease liabilities

 

Current portion of operating leases

 

$

11

 

 

$

13

 

Noncurrent

 

 

 

 

 

 

 

 

Operating lease liabilities

 

Operating leases, net of current portion

 

 

21

 

 

 

24

 

Finance lease liabilities

 

Long-term debt, net of current portion

 

 

1

 

 

 

1

 

Total lease liabilities

 

 

 

$

33

 

 

$

38

 

 

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)

 

2024

 

 

2023

 

 

2022

 

Finance lease expense

 

 

 

 

 

 

 

 

 

Amortization of leased assets

 

$

1

 

 

$

1

 

 

$

1

 

Interest on lease liabilities

 

 

—

 

 

 

—

 

 

 

—

 

Operating lease expense

 

 

16

 

 

 

16

 

 

 

17

 

Variable lease expense (1)

 

 

7

 

 

 

7

 

 

 

7

 

Total lease expense

 

$

24

 

 

$

24

 

 

$

25

 

 

(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 (Decrease) increase 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)

 

2024

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement
   of lease liabilities

 

 

 

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

15

 

 

$

20

 

 

$

19

 

Operating cash flow for finance leases

 

 

—

 

 

 

—

 

 

 

—

 

Financing cash flow for finance leases

 

 

1

 

 

 

1

 

 

 

1

 

Total

 

$

16

 

 

$

21

 

 

$

20

 

 

 

 

 

 

 

 

 

 

 

Noncash transaction:

 

 

 

 

 

 

 

 

 

   Right-of-use asset obtained in exchange for new operating
        lease liabilities

 

$

7

 

 

$

2

 

 

$

4

 

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease term (in years)

 

 

 

 

 

 

 

 

 

Operating

 

 

4

 

 

 

5

 

 

 

5

 

Finance

 

 

3

 

 

 

3

 

 

 

3

 

Weighted-average discount rate

 

 

 

 

 

 

 

 

 

Operating

 

 

13.50

%

 

 

13.22

%

 

 

12.17

%

Finance

 

 

8.42

%

 

 

6.42

%

 

 

5.18

%

 

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 Consolidated Statement of Financial Position.

 

Undiscounted future cash flows:

 

 

 

 

 

 

(in millions)

 

Operating Leases

 

 

Finance Leases

 

2025

 

$

14

 

 

$

—

 

2026

 

 

8

 

 

 

1

 

2027

 

 

6

 

 

 

—

 

2028

 

 

5

 

 

 

—

 

2029

 

 

4

 

 

 

—

 

Thereafter

 

 

9

 

 

 

—

 

Total minimum lease payments

 

 

46

 

 

 

1

 

Less: amount of lease payments representing interest

 

 

(14

)

 

 

—

 

Present value of future minimum lease payments

 

 

32

 

 

 

1

 

Less: current obligations under leases

 

 

11

 

 

 

—

 

Long-term lease obligations

 

$

21

 

 

$

1

 

At December 31, 2024, Kodak had approximately $6 million of lease arrangements that were legally binding but had not yet commenced. These lease arrangements will commence in 2025 and are not included in the undiscounted future cash flows above.

Kodak as Lessor

Kodak’s net investment in sales-type leases as of both December 31, 2024 and 2023 was $3 million. 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 to the net investment in sales-type leases recorded in the Consolidated Statement of Financial Position:

 

(in millions)

 

 

 

2025

 

$

1

 

2026

 

 

1

 

2027 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)

 

 

 

2025

 

$

9

 

2026

 

 

7

 

2027

 

 

3

 

2028

 

 

3

 

2029

 

 

1

 

Thereafter

 

 

16

 

Total minimum lease payments

 

$

39

 

 

Income recognized on lease arrangements for the years ended December 31, 2024, 2023 and 2022 is presented below:

 

 

 

Year Ended December 31,

 

(in millions)

 

2024

 

 

2023

 

 

2022

 

Lease income - sales-type leases

 

$

2

 

 

$

1

 

 

$

1

 

Lease income - operating leases

 

 

9

 

 

 

9

 

 

 

8

 

Variable lease income (1)

 

 

6

 

 

 

5

 

 

 

5

 

Total lease income

 

$

17

 

 

$

15

 

 

$

14

 

(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)

 

2024

 

 

2023

 

Equipment subject to operating leases

 

$

24

 

 

$

26

 

Accumulated depreciation

 

 

(17

)

 

 

(18

)

Equipment subject to operating leases, net

 

$

7

 

 

$

8

 

 

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