Note 18 - Discontinued Operations

9 Months Ended

Sep. 30, 2016

Disclosure Text Block [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 18: DISCONTINUED OPERATIONS

KODAK PROSPER Enterprise Inkjet Business

In March 2016 Kodak announced that it is in talks with prospective buyers about offers to purchase its Prosper Business.  The results of operations of the Prosper Business are classified as discontinued operations in the Consolidated Statement of Operations for all periods presented.  Additionally, the related assets and liabilities associated with the Prosper Business are classified as held for sale in the Consolidated Statement of Financial Position as of September 30, 2016 and December 31, 2015.  Kodak anticipates the sale will close in the first half of 2017.

The results of operations of the Prosper Business are presented in the following table:

	Three Months Ended						Nine Months Ended
(in millions)	September 30,						September 30,
	2016			2015			2016			2015
Revenues	$	29		$	21		$	68		$	61
Cost of sales		27			16			58			60
Selling, general and administrative expenses		6			7			20			16
Research and development expenses		5			4			16			15
Loss from discontinued operations, before income taxes		(9	)		(6	)		(26	)		(30	)
Provision for income taxes related to discontinued operations		1			1			1			2
Loss from discontinued operations, net of income taxes	$	(10	)	$	(7	)	$	(27	)	$	(32	)

The discontinued operations of the Personalized Imaging and Document Imaging Business also impacted the loss from discontinued operations in the Consolidated Statement of Operations.  For the three and nine months ended September 30, 2016, the impact was a loss of $0 million and $2 million, respectively.  For both the three and nine months ended September 30, 2015, the impact was a loss of $8 million.

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The following table presents the aggregate carrying amount of major assets and liabilities of the Prosper Business:

	September 30,		December 31,
(in millions)	2016		2015
ASSETS
Cash and cash equivalents	$	1	$	1
Receivables, net		18		15
Inventories, net		39		51
Property, plant and equipment, net		42		32
Intangible assets, net		37		38
Other assets		2		4
Assets of business held for sale	$	139	$	141
LIABILITIES
Accounts payable, trade	$	9	$	9
Current portion of long-term debt		-		1
Other current liabilities		17		12
Long-term debt, net of current portion		3		2
Other long-term liabilities		4		5
Liabilities of business held for sale	$	33	$	29

A dedicated entity of the Prosper Business had intercompany liabilities with Kodak of approximately $8 million as of September 30, 2016 that are part of the proposed transaction but are not reflected in the table above as these amounts have been eliminated in deriving the consolidated financial statements.  There were no intercompany amounts that are part of the proposed transaction as of December 31, 2015.   

In addition to the assets and liabilities reported for the Prosper Business, Current assets held for sale and Current liabilities held for sale as of September 30, 2016 in the Consolidated Statement of Financial Position included $4 million and $2 million, respectively, from assets and liabilities under contract for sale not associated with the Prosper Business.  Current assets held for sale as of December 31, 2015 also included $2 million from assets under contract for sale not associated with the Prosper Business.

The following table presents selected cash flow statement information associated with the Prosper Business:

	Nine Months Ended
(in millions)	September 30,
	2016		2015
Depreciation		2		5
Amortization		1		3
Capital expenditures		4		2

Depreciation and amortization of long-lived assets of the Prosper Business included in discontinued operations ceased on April 1, 2016.

Direct operating expenses of the discontinued operations are included in the results of discontinued operations. Indirect expenses that were historically allocated to the discontinued operations have been included in the results of continuing operations. Prior period results have been reclassified to conform to the current period presentation.