Note 17 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Earnings (Loss) before Income Tax, Domestic and Foreign

The components of earnings (loss) from continuing operations before income taxes and the related provision for U.S. and other income taxes were as follows (in millions):

	Year Ended December 31,
	2021			2020			2019
Earnings (Loss) earnings from continuing operations before income taxes:
U.S.	$	(12	)	$	(388	)	$	(68	)
Outside the U.S.		40			12			8
Total	$	28		$	(376	)	$	(60	)
U.S. income taxes:
Current benefit	$	—		$	—		$	—
Deferred (benefit) provision		(1	)		2			—
Income taxes outside the U.S.:
Current provision (benefit)		4			(3	)		7
Deferred provision		1			169			24
Total provision	$	4		$	168		$	31

Schedule of Effective Income Tax Rate Reconciliation

The differences between income taxes computed using the U.S. federal income tax rate and the provision for income taxes for continuing operations were as follows (in millions):

	Year Ended December 31,
	2021			2020			2019
Amount computed using the statutory rate	$	6		$	(79	)	$	(13	)
Increase (reduction) in taxes resulting from:
Unremitted foreign earnings		(1	)		2			(1	)
Operations outside the U.S.		8			3			22
Legislative tax law and rate changes		(28	)		(11	)		1
Valuation allowance		20			220			11
Tax settlements and adjustments, including interest		(1	)		(43	)		2
Embedded derivative liability		(1	)		81			9
Other, net		1			(5	)		—
Provision from income taxes	$	4		$	168		$	31

Schedule of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities were as follows (in millions):

	As of December 31,
	2021			2020
Deferred tax assets
Pension and postretirement obligations	$	—		$	25
Restructuring programs		1			2
Leasing		3			4
Foreign tax credit		358			358
Inventories		10			9
Investment tax credit		33			42
Employee deferred compensation		26			26
Depreciation		37			36
Research and development costs		42			40
Tax loss carryforwards		499			480
Other deferred revenue		2			2
Other		85			89
Total deferred tax assets before valuation allowances	$	1,096		$	1,113
Valuation allowances		(934	)		(1,112	)
Total net deferred tax assets	$	162		$	1

Deferred tax liabilities
Pension and postretirement obligations	$	(162	)	$	—
Goodwill/intangibles		(9	)		(10	)
Unremitted foreign earnings		(20	)		(22	)
Total deferred tax liabilities		(191	)		(32	)
Net deferred tax liabilities	$	(29	)	$	(31	)

Schedule of Component of Income Tax Expense (Benefit)

Deferred tax liabilities are reported in the following component within the Consolidated Statement of Financial Position (in millions):

	As of December 31,
	2021			2020
Other long-term liabilities		(29	)		(31	)
Net deferred tax liabilities	$	(29	)	$	(31	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of Kodak’s liability for income taxes associated with unrecognized tax benefits is as follows

(in millions):

	Year Ended December 31,
	2021			2020			2019
Balance as of January 1	$	8		$	54		$	57
Tax positions related to the current year:
Additions		—			—			—
Tax positions related to prior years:
Additions		—			2			1
Reductions		(1	)		(42	)		(1	)
Settlements with taxing jurisdictions		(3	)		(6	)		(3	)
Balance as of December 31	$	4		$	8		$	54