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Eastman Kodak (KODK)

Document And Entity Information

Document And Entity Information - shares9 Months Ended
Sep. 30, 2020Nov. 02, 2020
Cover [Abstract]
Entity Registrant NameEastman Kodak Co
Entity Central Index Key0000031235
Trading SymbolKODK
Current Fiscal Year End Date--12-31
Entity Filer CategoryNon-accelerated Filer
Entity Current Reporting StatusYes
Entity Common Stock, Shares Outstanding77,163,326
Document Type10-Q
Document Period End DateSep. 30,
2020
Document Fiscal Year Focus2020
Document Fiscal Period FocusQ3
Amendment Flagfalse
Entity Small Businesstrue
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity File Number1-00087
Entity Tax Identification Number16-0417150
Entity Address, Address Line One343 STATE STREET
Entity Address, City or TownROCHESTER
Entity Address, State or ProvinceNY
Entity Address, Postal Zip Code14650
City Area Code585
Local Phone Number724-4000
Entity Interactive Data CurrentYes
Title of 12(b) SecurityCommon stock, par value $0.01 per share
Security Exchange NameNYSE
Entity Incorporation, State or Country CodeNJ
Document Quarterly Reporttrue
Document Transition Reportfalse

Consolidated Statement of Opera

Consolidated Statement of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Total revenues[1] $ 252 $ 315 $ 732 $ 913
Total cost of revenues221 262 644 778
Gross profit31 53 88 135
Selling, general and administrative expenses56 48 138 161
Research and development costs8 11 25 33
Restructuring costs and other1 3 9 7
Other operating (income) expense, net(1)10 (11)10
Loss from continuing operations before interest expense, pension income excluding service cost component, loss on early extinguishment of debt, other charges, net and income taxes(33)(19)(73)(76)
Interest expense3 4 11 12
Pension income excluding service cost component(26)(26)(79)(79)
Loss on early extinguishment of debt2 2
Other charges, net432 6 387 7
Loss from continuing operations before income taxes(444)(3)(394)(16)
Provision for income taxes1 7 167 12
Loss from continuing operations(445)(10)(561)(28)
Income from discontinued operations, net of income taxes5 206
Net (loss) income $ (445) $ (5) $ (561) $ 178
Basic and diluted loss per share attributable to Eastman Kodak Company common shareholders:
Continuing operations $ (6.94) $ (0.35) $ (11.34) $ (1)
Discontinued operations0.124.79
Total $ (6.94) $ (0.23) $ (11.34) $ 3.79
Number of common shares used in basic and diluted net loss per share64.8 43 50.8 43
Product [Member]
Total revenues $ 195 $ 249 $ 568 $ 713
Total cost of revenues183 216 533 639
Service [Member]
Total revenues57 66 164 200
Total cost of revenues $ 38 $ 46 $ 111 $ 139
[1]Sales are reported in the geographic area in which they originate.

Consolidated Statement of Compr

Consolidated Statement of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
NET (LOSS) INCOME $ (445) $ (5) $ (561) $ 178
Other comprehensive income (loss), net of tax:
Currency translation adjustments(1)(2)(17)2
Pension and other postretirement benefit plan obligation activity, net of tax3 (1)15 (2)
Other comprehensive income (loss), net of tax2 (3)(2)
COMPREHENSIVE (LOSS) INCOME, NET OF TAX $ (443) $ (8) $ (563) $ 178

Consolidated Statement of Finan

Consolidated Statement of Financial Position (Unaudited) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
ASSETS
Cash and cash equivalents $ 193 $ 233
Trade receivables, net of allowances of $11 and $8, respectively153 208
Inventories, net232 215
Restricted cash - current portion7 12
Other current assets35 36
Current assets held for sale2 2
Total current assets622 706
Property, plant and equipment, net of accumulated depreciation of $424 and $423, respectively150 181
Goodwill12 12
Intangible assets, net40 47
Operating lease right-of-use assets50 49
Restricted cash41 45
Deferred income taxes147
Other long-term assets305 228
TOTAL ASSETS1,220 1,415
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY
Accounts payable, trade118 153
Short-term borrowings and current portion of long-term debt2 2
Current portion of operating leases12 12
Other current liabilities163 201
Total current liabilities295 368
Long-term debt, net of current portion17 109
Pension and other postretirement liabilities376 378
Operating leases, net of current portion49 48
Other long-term liabilities206 231
Total liabilities943 1,134
Commitments and Contingencies (Note 11)
Equity (Deficit)
Common stock, $0.01 par value
Additional paid in capital1,156 604
Treasury stock, at cost(9)(9)
Accumulated deficit(640)(79)
Accumulated other comprehensive loss(419)(417)
Total shareholders’ equity88 99
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY1,220 1,415
Convertible Series A Preferred Stock [Member]
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY
Redeemable, convertible Series A preferred stock, no par value, $100 per share liquidation preference $ 189 $ 182

Consolidated Statement of Fin_2

Consolidated Statement of Financial Position (Unaudited) (Parentheticals) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Allowance for trade receivables $ 11 $ 8
Property, plant and equipment, accumulated depreciation $ 424 $ 423
Common stock, par value $ 0.01 $ 0.01
Convertible Series A Preferred Stock [Member]
Preferred stock, no par value0 0
Preferred stock, liquidation preference per share $ 100 $ 100

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Cash flows from operating activities:
Net (loss) income $ (561) $ 178
Adjustments to reconcile to net cash used in operating activities:
Depreciation and amortization29 43
Pension income(65)(72)
Change in fair value of embedded derivatives in the Series A Preferred Stock and Convertible Notes[1]382 3
Loss on early extinguishment of debt2
Net gain on sales of assets(9)(202)
Asset impairments[2]3
Stock based compensation18 6
Non-cash changes in workers' compensation reserves9 2
Provision for deferred income taxes160 6
Decrease in trade receivables53 30
Increase in inventories(19)(18)
(Decrease) increase in trade payables(33)13
Decrease in liabilities excluding borrowings and trade payables(24)(5)
Other items, net7 12
Total adjustments513 (182)
Net cash used in operating activities(48)(4)
Cash flows from investing activities:
Additions to properties(13)(11)
Net proceeds from sales of assets/businesses2 326
Net proceeds from return on equity investment2
Net cash (used in) provided by investing activities(9)315
Cash flows from financing activities:
Proceeds from stock option exercises29
Repayment of Term Credit Agreement(395)
Proceeds from Convertible Notes98
Proceeds from borrowings14
Repayment of finance leases(2)
Preferred stock dividend payments(19)
Payment of contingent consideration related to the sale of a business(10)
Net cash provided by (used in) financing activities10 (295)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(2)(4)
Net (decrease) increase in cash, cash equivalents, restricted cash and cash in assets held for sale(49)12
Cash, cash equivalents, restricted cash and cash in assets held for sale, beginning of period290 267
Cash, cash equivalents and restricted cash, end of period $ 241 $ 279
[1]Refer to Note 25, “Financial Instruments”.
[2]Refer to Note 5, “Goodwill and Other Intangible Assets”.

Consolidated Statement of Equit

Consolidated Statement of Equity (Deficit) (Unaudited) - USD ($) $ in MillionsTotalASU 2016-02 [Member]Additional Paid-in Capital [Member]Accumulated Deficit [Member]Accumulated Deficit [Member]ASU 2016-02 [Member]AOCI Attributable to Parent [Member]Treasury Stock [Member]Series A Redeemable Convertible Preferred Stock [Member]
Equity (deficit) at Dec. 31, 2018 $ (3) $ 617 $ (200) $ (411) $ (9)
Equity (deficit) at Dec. 31, 2018 $ 173
Net (loss) income(18)(18)
Currency translation adjustments3 3
Pension and other postretirement liability adjustments(1)(1)
Series A preferred stock cash dividends(3)(3)
Series A preferred stock deemed dividends(2)(2)
Redeemable series A preferred stock deemed dividends(2)
Stock-based compensation3 3
Equity (deficit) at Mar. 31, 2019(16) $ 5 615 (213) $ 5 (409)(9)
Accounting Standards Update [Extensible List]us-gaap:AccountingStandardsUpdate201602Memberus-gaap:AccountingStandardsUpdate201602Member
Equity (deficit) at Mar. 31, 2019175
Equity (deficit) at Dec. 31, 2018(3)617 (200)(411)(9)
Equity (deficit) at Dec. 31, 2018173
Net (loss) income178
Series A preferred stock cash dividends(8)
Series A preferred stock deemed dividends(7)
Equity (deficit) at Sep. 30, 2019171 608 (17)(411)(9)
Equity (deficit) at Sep. 30, 2019180
Equity (deficit) at Mar. 31, 2019(16) $ 5 615 (213) $ 5 (409)(9)
Equity (deficit) at Mar. 31, 2019175
Net (loss) income201 201
Currency translation adjustments1 1
Series A preferred stock cash dividends(3)(3)
Series A preferred stock deemed dividends(2)(2)
Redeemable series A preferred stock deemed dividends(2)
Stock-based compensation2 2
Equity (deficit) at Jun. 30, 2019183 612 (12)(408)(9)
Equity (deficit) at Jun. 30, 2019177
Net (loss) income(5)(5)
Currency translation adjustments(2)(2)
Pension and other postretirement liability adjustments(1)(1)
Series A preferred stock cash dividends(2)(2)
Series A preferred stock deemed dividends(3)(3)
Redeemable series A preferred stock deemed dividends(3)
Stock-based compensation1 1
Equity (deficit) at Sep. 30, 2019171 608 (17)(411)(9)
Equity (deficit) at Sep. 30, 2019180
Equity (deficit) at Dec. 31, 201999 604 (79)(417)(9)
Equity (deficit) at Dec. 31, 2019182
Net (loss) income(111)(111)
Currency translation adjustments(12)(12)
Pension and other postretirement liability adjustments3 3
Series A preferred stock cash dividends(3)(3)
Series A preferred stock deemed dividends(2)(2)
Redeemable series A preferred stock deemed dividends(2)
Stock-based compensation1 1
Equity (deficit) at Mar. 31, 2020(25)600 (190)(426)(9)
Equity (deficit) at Mar. 31, 2020184
Equity (deficit) at Dec. 31, 201999 604 (79)(417)(9)
Equity (deficit) at Dec. 31, 2019182
Net (loss) income(561)
Series A preferred stock cash dividends(8)
Series A preferred stock deemed dividends(7)
Equity (deficit) at Sep. 30, 202088 1,156 (640)(419)(9)
Equity (deficit) at Sep. 30, 2020189
Equity (deficit) at Mar. 31, 2020(25)600 (190)(426)(9)
Equity (deficit) at Mar. 31, 2020184
Net (loss) income(5)(5)
Currency translation adjustments(4)(4)
Pension and other postretirement liability adjustments9 9
Series A preferred stock cash dividends(3)(3)
Series A preferred stock deemed dividends(2)(2)
Redeemable series A preferred stock deemed dividends(2)
Equity (deficit) at Jun. 30, 2020(30)595 (195)(421)(9)
Equity (deficit) at Jun. 30, 2020186
Net (loss) income(445)(445)
Currency translation adjustments(1)(1)
Pension and other postretirement liability adjustments3 3
Series A preferred stock cash dividends(2)(2)
Series A preferred stock deemed dividends(3)(3)
Redeemable series A preferred stock deemed dividends(3)
Conversion of Convertible Notes520 520
Stock options exercised29 29
Stock-based compensation17 17
Equity (deficit) at Sep. 30, 2020 $ 88 $ 1,156 $ (640) $ (419) $ (9)
Equity (deficit) at Sep. 30, 2020 $ 189

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation and Recent Accounting Pronouncements9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation and Recent Accounting PoliciesNOTE 1: BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS BASIS OF PRESENTATION The consolidated interim financial statements are unaudited, and certain information and footnote disclosures related thereto normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results of operations, financial position and cash flows of Eastman Kodak Company (“EKC” or the “Company”) and all companies directly or indirectly controlled, either through majority ownership or otherwise (collectively, “Kodak”). The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. These consolidated interim statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). GOING CONCERN The consolidated interim financial statements have been prepared on the going concern basis of accounting, which assumes Kodak will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of September 30, 2020 and December 31, 2019, Kodak had approximately $193 million and $233 million, respectively, of cash and cash equivalents. $108 million and $72 million were held in the United States (“U.S.”) as of September 30, 2020 and December 31, 2019, respectively, and $85 million and $161 million were held outside the U.S. Cash balances held outside the U.S. are generally required to support local country operations and may have high tax costs or other limitations that delay the ability to repatriate, and therefore may not be readily available for transfer to other jurisdictions. Outstanding inter-company loans to the U.S. as of September 30, 2020 and December 31, 2019 were $436 million and $408 million, respectively, which includes short-term intercompany loans from Kodak’s international finance center of $138 million and $110 million as of September 30, 2020 and December 31, 2019, respectively. In China, where approximately $23 million and $89 million of cash and cash equivalents was held as of September 30, 2020 and December 31, 2019, respectively, there are limitations related to net asset balances that may impact the ability to make cash available to other jurisdictions in the world. On May 12, 2020, a Chinese subsidiary of Kodak transferred approximately $70 million to a U.S. subsidiary of Kodak that was used in an inter-company transaction. Kodak had a net decrease in cash, cash equivalents, restricted cash and cash in assets held for sale of $49 million for the nine months ended September 30, 2020, and a net increase in cash, cash equivalents, restricted cash and cash in assets held for sale of $12 million and $23 million for the nine months ended September 30, 2019 and the year ended December 31, 2019, respectively. Kodak used cash of $48 million and $4 million in operating activities for the nine months ended September 30, 2020 and 2019, respectively, and generated cash from operating activities for the year ended December 31, 2019 of $12 million. Cash flow from operations in 2019 benefitted from working capital improvements and individual transactions that occurred during the year. U.S. GAAP requires an evaluation of whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. Initially, this evaluation does not consider the potential mitigating effect of management’s plans that have not been fully implemented. When substantial doubt exists, management evaluates the mitigating effect of its plans if it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued or prior to the conditions or events that create the going concern risk. Kodak is facing liquidity challenges due to operating losses, low or negative cash flow from operations and collateral needs. Kodak has $87 million of letters of credit issued under the Amended and Restated Credit Agreement (the “ABL Credit Agreement”) which matures on May 26, 2021. The Company’s 5.50% Series A Convertible Preferred Stock (the “Series A Preferred Stock”) must be redeemed on November 15, 2021 if not converted prior to then. Additionally, Kodak has significant cash requirements to fund ongoing operations, restructuring programs, pension and other postretirement obligations, and other obligations. Kodak’s plans to return to sustainable positive cash flow include growing revenues profitably, reducing operating expenses, continuing to simplify the organizational structure, generating cash from selling and leasing underutilized assets and paring investment in new technology by eliminating or delaying product development programs as needed. Additionally, the Company looks to implement ways to reduce collateral needs in the U.S. Kodak’s products are sold and serviced in numerous countries across the globe with more than half of sales generated outside the United States. Current global economic conditions are highly volatile due to the COVID-19 pandemic. The economic uncertainties surrounding the COVID-19 pandemic are adding complexity to Kodak’s plans to return to sustainable positive cash flow. To mitigate the economic impacts of the pandemic Kodak is employing temporary furloughs and pay reductions and modifying manufacturing volumes as expectations of demand change. The recent history of negative operating cash flow, maturity of the ABL Credit Agreement in 2021, redemption date in 2021 for the Series A Preferred Stock, increased challenges in managing cash during the COVID-19 pandemic and general lack of certainty regarding the return to positive cash flow raise substantial doubt about Kodak’s ability to continue as a going concern . RECLASSIFICATIONS Certain amounts for prior periods have been reclassified to conform to the current period classification due to Kodak’s new organization structure as of January 2020. Refer to Note 23, “Segment Information” for additional information. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In November 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This guidance amended Topic 808 and Topic 606 to clarify that transactions in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a distinct good or service (i.e., unit of account). The amendments preclude an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. The new standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 (January 1, 2020 for Kodak). The amendments should be applied retrospectively to the date of initial application of Topic 606. In September 2018 the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which amends the disclosure requirements in Topic 820 by adding, changing, or removing certain disclosures about recurring or nonrecurring fair value measurements. The additional and/or modified disclosures relate primarily to Level 3 fair value measurements while removing certain disclosures related to transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU is effective retrospectively, for fiscal years beginning after December 15, 2019 (January 1, 2020 for Kodak) and interim periods within those fiscal years. Entities are permitted to early adopt any removed or modified disclosures but can delay adoption of the new disclosures until their effective date. Kodak retrospectively early adopted the provisions of the ASU that removed or modified disclosures in the fourth quarter of 2018 and prospectively adopted the provisions related to new disclosures January 1, 2020. The standard addresses disclosures only and did not have an impact on Kodak’s consolidated financial statements. In September 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which amends the disclosure requirements in ASC 715-20 by adding, clarifying, or removing certain disclosures. ASU 2018-14 requires all entities to disclose (1) the weighted average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The ASU also clarifies certain disclosure requirements for entities with two or more defined benefit pension plans when aggregate disclosures are presented. The ASU removes other disclosures from the existing guidance, such as the requirement to disclose the effects of a one-percentage-point change in the assumed health care cost trend rates. The ASU is effective retrospectively for fiscal years ending after December 15, 2020 (the year ended December 31, 2020 for Kodak). Kodak adopted this ASU on January 1, 2020. The standard addresses disclosures only and did not have an impact on Kodak’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which addresses how a customer should account for the costs of implementing a cloud computing service arrangement (also referred to as a “hosting arrangement”). Under ASU 2018-15, entities should account for costs associated with implementing a cloud computing arrangement that is considered a service contract in the same way as implementation costs associated with a software license; implementation costs incurred in the application development stage, such as costs for the cloud computing arrangement’s integration with on-premise software, coding, and configuration or customization, should be capitalized and amortized over the term of the cloud computing arrangement, including periods covered by certain renewal options. The ASU is effective in fiscal years beginning after December 15, 2019 (January 1, 2020 for Kodak) including interim periods within those fiscal years. The ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Kodak adopted this ASU prospectively on January 1, 2020, and it did not have any impact on Kodak’s consolidated financial statements. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments. More convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted EPS calculation in certain circumstances. The ASU is effective for smaller reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, (January 1, 2024 for Kodak). Early adoption is permitted for all entities for fiscal years beginning after December 15, 2020. The ASU allows entities to use either a modified retrospective or full retrospective transition method. Kodak is currently evaluating the impact of this ASU. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional relief through specific exceptions and practical expedients for transitioning away from reference rates that are expected to be discontinued. The relief generally applies to eligible modifications of contractual terms that change (or have the potential to change) the amount or timing of contractual cash flows related to replacement of a reference rate. The relief allows such modifications to be accounted for as continuations of existing contracts without additional analysis. The optional relief is available from March 2020 through December 31, 2022. Kodak is currently evaluating the impact of this ASU. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions related to intra-period tax allocations and deferred tax accounting on outside basis differences in foreign subsidiaries and equity method investments. Additionally, it provides other simplifying measures for the accounting for income taxes. The new standard is effective for fiscal years beginning after December 15, 2021 (January 1, 2022 for Kodak) with early adoption permitted. Kodak is currently evaluating the impact of this ASU. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 (as amended by ASUs 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-02 and 2020-03) requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. In addition, the ASU requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The ASU is effective for smaller reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, (January 1, 2023 for Kodak). Early adoption is permitted. is currently evaluating the impact of this ASU.

Note 2 - Cash, Cash Equivalents

Note 2 - Cash, Cash Equivalents and Restricted Cash9 Months Ended
Sep. 30, 2020
Cash And Cash Equivalents [Abstract]
Cash, Cash Equivalents and Restricted CashNOTE 2: CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Financial Position that sums to the total of such amounts shown in the Statement of Cash Flows:
September 30,
December 31,
(in millions)
2020
2019
Cash and cash equivalents
$
193
$
233
Restricted cash - current portion
7
12
Restricted cash
41
45
Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows
$
241
$
290
Restricted cash - current portion on the Consolidated Statement of Financial Position primarily represents amounts that support hedging activities. In addition, as of December 31, 2019, it also contained collateral for a guaranty provided to MIR Bidco, SA (the “Purchaser”) who purchased Kodak’s Flexographic Packaging business (“FPD”). As of September 30, 2020 and December 31, 2019, the cash collateral supporting Kodak’s guaranty was $0 million and $4 million, respectively. Restricted cash includes $21 million and $22 million as of September 30, 2020 and December 31, 2019, respectively, supporting compliance with the Excess Availability threshold under the ABL Credit Agreement, as defined therein (Refer to Note 8, “Debt and Finance Leases” for information on the Restricted cash supporting the Excess Availability threshold). In addition, Restricted cash as of both September 30, 2020 and December 31, 2019 includes an escrow of $14 million in China to secure various ongoing obligations under the agreements for the strategic relationship with Lucky HuaGuang Graphics Co. Ltd. Restricted cash also included $3 million and $5 million of security posted related to Brazilian legal contingencies as of September 30, 2020 and December 31, 2019, respectively.

Note 3 - Inventories, Net

Note 3 - Inventories, Net6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]
Inventories, NetNOTE 3: INVENTORIES, NET
September 30,
December 31,
(in millions)
2020
2019
Finished goods
$
115
$
105
Work in process
57
54
Raw materials
60
56
Total
$
232
$
215

Note 4 - Other Long-term Assets

Note 4 - Other Long-term Assets9 Months Ended
Sep. 30, 2020
Other Assets Noncurrent Disclosure [Abstract]
Other Long-term AssetsNOTE 4: OTHER LONG-TERM ASSETS
September 30,
December 31,
(in millions)
2020
2019
Pension assets
$
252
$
173
Estimated workers' compensation recoveries
18
18
Long-term receivables, net of reserve of $4 and $4, respectively
11
11
Other
24
26
Total
$
305
$
228
The Other component above consists of other miscellaneous long-term assets that, individually, were less than 5% of the total assets component within the Consolidated Statement of Financial Position as of the end of the preceding year, and therefore have been aggregated in accordance with Regulation S-X.

Note 5 - Goodwill and Other Int

Note 5 - Goodwill and Other Intangible Assets9 Months Ended
Sep. 30, 2020
Disclosure Text Block [Abstract]
Goodwill and Other Intangible AssetsNOTE 5: GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents the carrying value of goodwill by reportable segment.
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
Total
As of December 31, 2019
Goodwill
$
56
$
6
$
14
$

$
76
Accumulated impairment losses
(56
)

(8
)

(64
)
Balance as of December 31, 2019

6
6

12
Goodwill reallocation


(6
)
6

Balance as of September 30, 2020
$

$
6
$

$
6
$
12
As a result of the change in segments that became effective as of January 1, 2020, Kodak’s goodwill reporting units changed. Refer to Note 22, “Segment Information” for additional information on the change to Kodak’s organizational structure. The Digital Printing segment has three goodwill reporting units: Electrophotographic Printing Solutions; Prosper and Versamark; and Software. The Advanced Materials and Chemicals segment has three goodwill reporting units: Motion Picture and Industrial Films and Chemicals; Advanced Materials and Functional Printing; and Kodak Services for Business. The segment and Brand segment each have one goodwill reporting unit. As of December 31, 2019, the goodwill balance of $12 million under the prior year segment reporting structure was comprised of $6 million for the Brand, Film and Imaging segment and $6 million for the Kodak Software segment, which had only one reporting unit (Software). The goodwill in the Brand, Film and Imaging segment was reported in the Consumer Products reporting unit. The goodwill previously reported in the Consumer Products goodwill reporting unit was transferred to the Brand goodwill reporting unit using a relative fair value allocation to affected reporting units. Goodwill previously reported in the Software reporting unit was transferred to the Digital Printing segment where it continues to remain its own reporting unit . Kodak performed interim tests of impairment for goodwill as of June 30, 2020 due to the uncertainty regarding the negative impact of the COVID-19 pandemic on its operations, and as of March 31, 2020, due to the decline in market capitalization as of that date since the last goodwill impairment test (December 31, 2019) and the uncertainty regarding the negative impact of the COVID-19 pandemic at that time. Based on the results of the June 30, 2020 and March 31, 2020 analyses, no impairment of goodwill was indicated. As of June 30, 2020, the Brand reporting unit had negative carrying value. No interim impairment test for goodwill was deemed necessary as of September 30, 2020. The gross carrying amount and accumulated amortization by major intangible asset category as of September 30, 2020 and December 31, 2019 were as follows :
September 30, 2020
(in millions)
Gross Carrying Amount
Accumulated Amortization
Net
Weighted-Average Amortization Period
Technology-based
$
99
$
80
$
19
5 years
Kodak trade name
18

18
Indefinite life
Customer-related
11
8
3
3 years
Total
$
128
$
88
$
40
December 31, 2019
(in millions)
Gross Carrying Amount
Accumulated Amortization
Net
Weighted-Average Amortization Period
Technology-based
$
99
$
76
$
23
5 years
Kodak trade name
21

21
Indefinite life
Customer-related
11
8
3
4 years
Total
$
131
$
84
$
47
In the first quarter of 2020, due to the uncertainty regarding the negative impact of the COVID-19 pandemic at that time, Kodak performed an interim test of impairment for the Kodak trade name. Based on the result of the interim impairment test, Kodak concluded the carrying value of the Kodak trade name exceeded its fair value. Pre-tax impairment charges of $3 million are included in Other operating income, net in the nine months ended September 30, 2020 in the Consolidated Statement of Operations. Kodak also performed an interim test of impairment for the Kodak trade name as of June 30, 2020 due to the uncertainty regarding the negative impact of the COVID-19 pandemic. The interim impairment tests of the Kodak trade name used the income approach, specifically the relief from royalty method. Based on the result of the interim impairment tests as of June 30, 2020, Kodak concluded the fair value of the Kodak trade name exceeded its’ carrying value resulting in no additional impairment. No interim impairment test for the Kodak tradename was deemed necessary as of September 30, 2020. Amortization expense related to intangible assets was $1 million for the three months ended September 30, 2020 and 2019 and $4 million for the nine months ended September 30, 2020 and 2019. Estimated future amortization expense related to intangible assets that are currently being amortized as of September 30, 2020 is as follows:
(in millions)
Q4 2020
$
1
2021
5
2022
5
2023
4
2024
4
2025 and thereafter
3
Total
$
22

Note 6 - Other Current Liabilit

Note 6 - Other Current Liabilities9 Months Ended
Sep. 30, 2020
Other Liabilities Current [Abstract]
Other Current LiabilitiesNOTE 6: OTHER CURRENT LIABILITIES
September 30,
December 31,
(in millions)
2020
2019
Deferred revenue
$
44
$
43
Employee related liabilities
42
38
Customer rebates (1)
18
23
Series A Preferred Stock dividends payable
3
14
Workers compensation
10
10
Restructuring liabilities
6
12
Deferred consideration on disposed businesses (2)

14
Transition services agreement prepayment

3
Other (3)
40
44
Total
$
163
$
201
(1)
The customer rebate amounts will potentially be settled through customer deductions applied to outstanding trade receivables in lieu of cash payments.
(2)
On September 3, 2013, Kodak consummated the sale of certain assets and the assumption of certain liabilities of the Personalized Imaging and Document Imaging Businesses (“PI/DI Businesses”) to the trustee of the U.K. pension plan (and/or its subsidiaries) for net cash consideration of $325 million. Up to $35 million in aggregate of the purchase price was subject to repayment if the PI/DI Business did not achieve certain annual adjusted EBITDA targets over the four-year period ending December 31, 2018. The PI/DI Business did not achieve the adjusted annual EBITDA target for any year in the four-year period. The amounts owed for 2015, 2016 and 2017 were paid in 2016, 2017 and 2019, respectively. The maximum potential payment related to the year ending December 31, 2018 of $14 million was accrued at the time of the divestiture of the business. The Company did not consider the procedural requirements giving rise to the obligation to pay the amount relating to the year ended December 31, 2018 to have been met. The PI/DI Businesses (operating as Kodak Alaris) filed suit against the Company alleging breach of contract based on the failure to pay the $14 million amount with respect to 2018. The Company filed counterclaims seeking contractual penalties related to late payments for goods and services provided by Kodak under various separate agreements. The Company and Kodak Alaris reached a settlement in June 2020 dismissing the actions and all claims and counterclaims asserted against each other and also amended existing supply agreements. As a part of the settlement agreement, $11 million of the deferred consideration on disposed businesses was offset against receivables of $11 million for goods and services owed to the Company by Kodak Alaris. Income of $3 million from the release of the remaining deferred consideration on disposed businesses will be recognized as revenue over the term of the amended supply agreements.
(3)
The Other component above consists of other miscellaneous current liabilities that, individually, were less than 5% of the current liabilities component within the Consolidated Statement of Financial Position as of the end of the preceding year, and therefore have been aggregated in accordance with Regulation S-X.

Note 7 - Other Long-term Liabil

Note 7 - Other Long-term Liabilities9 Months Ended
Sep. 30, 2020
Other Liabilities Noncurrent [Abstract]
Other Long-term LiabilitiesNOTE 7: OTHER LONG-TERM LIABILITIES
September 30,
December 31,
(in millions)
2020
2019
Workers compensation
$
89
$
84
Asset retirement obligations
41
48
Deferred brand licensing revenue
16
18
Deferred taxes
30
13
Environmental liabilities
9
10
Convertible Notes embedded conversion option derivative liability

52
Preferred stock embedded conversion option derivative liability
9

Other
12
6
Total
$
206
$
231
The Other component above consists of other miscellaneous long-term liabilities that, individually, were less than 5% of the total liabilities component within the Consolidated Statement of Financial Position as of the end of the preceding year, and therefore have been aggregated in accordance with Regulation S-X.

Note 8 - Debt And Finance Lease

Note 8 - Debt And Finance Leases9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]
Debt and Finance LeasesNOTE 8: DEBT AND FINANCE LEASES
(in millions)
Type
Maturity
Weighted-Average Effective Interest Rate
September 30, 2020
December 31, 2019
Current portion:
RED-Rochester, LLC
2033
11.46%
$
1
$
1
Finance leases
Various
Various
1
1
2
2
Non-current portion:
Convertible debt
2021
11.72%

91
RED-Rochester, LLC
2033
11.46%
12
13
Finance leases
Various
Various
3
4
Other debt
Various
Various
2
1
17
109
$
19
$
111
Convertible Notes On May 20, 2019, the Company and Longleaf Partners Small Cap Fund, C2W Partners Master Fund Limited and Deseret Mutual Pension Trust, which are investment funds managed by Southeastern Asset Management, Inc. (the “Notes Purchasers”), entered into a Notes Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company agreed to issue and sell to the Notes Purchasers, and the Notes Purchasers agreed to purchase from the Company, $100 million aggregate principal amount of the Company’s 5.00% Secured Convertible Notes due 2021 (the “Notes”). The transaction closed on May 24, 2019. The proceeds were used to repay the remaining first lien term loans outstanding ($83 million) under the Senior Secured First Lien Term Credit Agreement (the “Term Credit Agreement”), which was terminated with the repayment. The remaining proceeds were used for general corporate purposes. The Notes Purchasers also hold all outstanding shares of the Series A Preferred Stock, which vote with the shares of common stock on an as-converted basis, and one of the Note Purchasers is a holder of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). The Notes bore interest at a rate of 5.00% per annum, which was payable in cash on their maturity date and, at the option of the Company, in either cash or additional shares of Common Stock on any conversion date. The maturity date of the Notes was November 1, 2021. On July 29, 2020, the Company received conversion notices from holders of the Notes exercising their rights to convert an aggregate of $95 million of principal amount of the Notes (the “Initial Converted Notes”) into shares of the Company’s common stock, par value $.01 per share (“Common Stock”). Under the terms of the Notes, the conversion date of the Initial Converted Notes is July 29, 2020 (the “Initial Conversion Date”) and the Company was obligated to deliver an aggregate of 29,922,956 shares of Common Stock (the “Initial Conversion Shares”) to the holders of the Initial Converted Notes within five trading days after the Initial Conversion Date. The Company issued the Initial Conversion Shares on August 3, 2020 and paid the $5.6 million of accumulated interest on the Initial Converted Notes in cash. As a result, the Company’s obligations under the Initial Converted Notes were fully discharged and the remaining outstanding principal amount of the Notes was $5 million. On September 30, 2020, the Company announced its election to mandatorily convert the remaining $5 million outstanding principal amount of the Notes (the “Mandatory Converted Notes”) into shares of Common Stock. The conversion of the Mandatory Converted Notes was effective on September 30, 2020 (the “Mandatory Conversion Date”). The Company issued 1,574,892 shares of Common Stock to the holder of the Mandatory Converted Notes on September 30, 2020 (the “Mandatory Conversion Shares”). The Company paid the accrued interest on the Mandatory Converted Notes in the form of cash and interest ceased to accrue on the Mandatory Converted Notes on the Mandatory Conversion Date. As a result of the conversion of all the Notes, the lien granted by the Company on certain of its assets to secure the Notes was released. Embedded Derivatives Kodak allocated $14 million of the net proceeds received to a derivative liability based on the aggregate fair value of the embedded features and term extension on the date of issuance which reduced the net carrying value of the Notes (refer to Note 25, “Financial Instruments”). The carrying value of the Notes at the time of issuance, $84 million ($100 million aggregate gross proceeds less $14 million allocated to the derivative liability and $2 million in transaction costs), was being accreted to the face amount using the effective interest method from the date of issuance through the maturity date. Loss on Early Extinguishment The calculation of the loss on early extinguishment of debt is shown below:
(in millions)
Fair value of Initial Conversion Shares
$
506
Fair value of Mandatory Conversion Shares
13
Carrying value of Notes
(92
)
Fair value of pro-rata share of embedded derivative at Initial Conversion
(416
)
Fair value of pro-rata share of embedded derivative at Mandatory Conversion
(9
)
Total
$
2
The fair value of the Conversion Shares is reported in Additional paid in capital in the Consolidated Statement of Financial Position. Amended and Restated Credit Agreement On January 27, 2020 Kodak exercised its right under the ABL Credit Agreement On March 27, 2020, the Company and the subsidiaries of the Company that are guarantors (the “Subsidiary Guarantors”) entered into Amendment No. 3 to the ABL Credit Agreement (the “Amendment”) with the lenders party thereto (the “Lenders”), Bank of America, N.A., as administrative and collateral agent, and Bank of America, N.A. and each of the parties to the ABL Credit Agreement as lenders. Each of the capitalized but undefined terms used in the context of describing the ABL Credit Agreement and the Amendment has the meaning ascribed to such term in the ABL Credit Agreement and the Amendment. The Amendment decreased the available asset-based revolving loans (the “ABL Loans”) and letters of credit from an aggregate amount of up to $120 million to $110 million, subject to the Borrowing Base. As a result of the additional reduction in lender commitments, the minimum Excess Availability decreased to $13.75 million from the previous amount of $15 million. The Amendment also changed Equipment Availability from (i) the lesser of 75% of Net Orderly Liquidation Value of Eligible Equipment or $6 million to (ii) the lesser of 70% of Net Orderly Liquidation Value of Eligible Equipment or $14.75 million as of March 31, 2020. The $14.75 million amount decreases by $1 million per quarter starting on July 1, 2020 until maturity or the amount is decreased to $0, whichever comes first. Equipment Availability was $13.75 million as of September 30, 2020. The changes effected by the Amendment to the Excess Availability and Equipment Availability combined with increases in Available Accounts Receivable and Inventory allowed the Company to decrease Eligible Cash, at the time of the amendment, by $13 million without causing Excess Availability to fall below 12.5 % of lender commitments. The Company had issued approximately $87 million and $80 million of letters of credit under the ABL Credit Agreement as of September 30, 2020 In addition to the changes discussed above, the Amendment increased the interest rate charged on the ABL Loans. The interest rate on the ABL Loans (which is based on Excess Availability) increased to LIBOR plus 3.50% - 4.00% per annum from LIBOR plus 2.25% - 2.75% per annum or the Base Rate plus 2.50% - 3.00% per annum from the Base Rate plus 1.25% - 1.75% per annum.

Note 9 - Redeemable, Convertibl

Note 9 - Redeemable, Convertible Series A Preferred Stock9 Months Ended
Sep. 30, 2020
Temporary Equity Disclosure [Abstract]
Redeemable, Convertible Series A Preferred StockNOTE 9: REDEEMABLE, CONVERTIBLE SERIES A PREFERRED STOCK On November 15, 2016, the Company issued 2,000,000 shares of Series A Preferred Stock for an aggregate purchase price of $200 million, or $100 per share, pursuant to a Series A Preferred Stock Purchase Agreement with Southeastern Asset Management, Inc. (“Southeastern”) and Longleaf Partners Small-Cap Fund, C2W Partners Master Fund Limited and Deseret Mutual Pension Trust, which are investment funds managed by Southeastern (such investment funds, collectively, the “Purchasers”), dated November 7, 2016. The Company has classified the Series A Preferred Stock as temporary equity in the Consolidated Statement of Financial Position. Kodak allocated $43 million of the net proceeds received to a derivative liability based on the aggregate fair value of the embedded conversion features on the date of issuance, which reduced the net carrying value of the Series A Preferred Stock (see Note 25, “Financial Instruments”). The carrying value of the Series A Preferred Stock at the time of issuance, $155 million ($200 million aggregate gross proceeds less $43 million allocated to the derivative liability and $2 million in transaction costs), is being accreted to the mandatory redemption amount using the effective interest method to Additional paid in capital in the Consolidated Statement of Financial Position as a deemed dividend from the date of issuance through the mandatory redemption date, November 15, 2021. The holders of Series A Preferred Stock are entitled to cumulative dividends payable quarterly in cash at a rate of 5.50% per annum. Until the third quarter of 2018 all dividends owed on the Series A Preferred Stock were declared and paid when due. No quarterly dividend was declared in the third or fourth quarters of 2018 or the first and second quarters of 2019. The Company declared quarterly cash dividends in the third and fourth quarters of 2019 and the first and second quarters of 2020 that were paid when due. In July 2020, the Company declared and paid the four quarterly dividends that were in arrears. The total amount of dividends in arrears was $11 million. The Company declared the third quarter 2020 quarterly cash dividend in September 2020 and it was paid in October 2020. The Purchasers have the right to nominate members to the Company’s board of directors proportional to their ownership on an as converted basis, which initially allowed the Purchasers to nominate two members to the board. If dividends on any Series A Preferred Stock are in arrears for six or more consecutive or non-consecutive dividend periods, the holders of Series A Preferred Stock, voting with holders of all other preferred stock of the Company whose voting rights are then exercisable, will be entitled to vote for the election of two additional directors in the next annual meeting and all subsequent meetings until all accumulated dividends on such Series A Preferred Stock and other voting preferred stock have been paid or set aside. The nomination right of the Purchasers will be reduced by two nominees at any time the holders of Series A Preferred Stock have the right to elect, or participate in the election of, two additional directors. Two of the directors on the Company’s current board of directors were nominated by the Purchasers although the holders of the Series A Preferred Stock currently have the contractual right to nominate only one director based on the results of the ownership formula. As of September 30, 2020, the Series A Preferred Stock has not been converted and none of the anti-dilution provisions have been triggered. Any shares of Series A Preferred Stock not converted prior to the fifth anniversary of the initial issuance of the Series A Preferred Stock are required to be redeemed at $100 per share plus the amount of accrued and unpaid dividends.

Note 10 - Leases

Note 10 - Leases9 Months Ended
Sep. 30, 2020
Leases [Abstract]
LeasesNOTE 10: LEASES Income recognized on operating lease arrangements for the three and nine months ended September 30, 2020 and 2019 is presented below (income recognized for sales-type lease arrangements is $0 million for all periods):
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Lease income - operating leases:
Lease income
$
2
$
3
$
6
$
7
Sublease income

1
2
5
Variable lease income
1
1
3
3
Total lease income
$
3
$
5
$
11
$
15

Note 11 - Commitments and Conti

Note 11 - Commitments and Contingencies9 Months Ended
Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and ContingenciesNOTE 11: COMMITMENTS AND CONTINGENCIES As of September 30, 2020, the Company had outstanding letters of credit of $87 million issued under the ABL Credit Agreement, as well as bank guarantees and letters of credit of $2 million, surety bonds in the amount of $29 million, and restricted cash of $48 million, primarily to address the payment of possible casualty and workers’ compensation claims, support legal contingencies, hedging activities, compliance with the Excess Availability threshold under the ABL Credit Agreement, environmental liabilities, rental payments and to support various customs, tax and trade activities. Kodak’s Brazilian operations are involved in various litigation matters in Brazil and have received or been the subject of numerous governmental assessments related to indirect and other taxes in various stages of litigation, as well as civil litigation and disputes associated with former employees and contract labor. The tax matters, which comprise the majority of the litigation matters, are primarily related to federal and state value-added taxes. Kodak’s Brazilian operations are disputing these matters and intend to vigorously defend its position. Kodak routinely assesses all these matters as to the probability of ultimately incurring a liability in its Brazilian operations and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. As of September 30, 2020, the unreserved portion of these contingencies, inclusive of any related interest and penalties, for which there was at least a reasonable possibility that a loss may be incurred, amounted to approximately $5 million. In connection with assessments in Brazil, local regulations may require Kodak’s Brazilian operations to post security for a portion of the amounts in dispute. As of September 30, 2020, Kodak’s Brazilian operations have posted security composed of $3 million of pledged cash reported within Restricted cash in the Consolidated Statement of Financial Position and liens on certain Brazilian assets with a net book value of approximately $40 million. Generally, any encumbrances on the Brazilian assets would be removed to the extent the matter is resolved in Kodak's favor. Kodak is involved in various lawsuits, claims, investigations, remediations and proceedings, including, from time to time, commercial, customs, employment, environmental, tort and health and safety matters, which are being handled and defended in the ordinary course of business. Kodak is also subject, from time to time, to various assertions, claims, proceedings and requests for indemnification concerning intellectual property, including patent infringement suits involving technologies that are incorporated in a broad spectrum of Kodak’s products and claims arising out of Kodak’s licensing its brand. These matters are in various stages of investigation and litigation and are being vigorously defended. Based on information currently available, Kodak does not believe that it is probable that the outcomes in any of these matters, individually or collectively, will have a material adverse effect on its financial condition or results of operations. Litigation is inherently unpredictable, and judgments could be rendered or settlements entered that could adversely affect Kodak’s operating results or cash flows in a particular period. Kodak routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable.

Note 12 - Guarantees

Note 12 - Guarantees9 Months Ended
Sep. 30, 2020
Guarantees [Abstract]
GuaranteesNOTE 12: GUARANTEES In connection with the settlement of certain of the Company’s historical environmental liabilities at Eastman Business Park, a more than 1,200-acre technology center and industrial complex in Rochester, New York, in the event the historical liabilities exceed $99 million, the Company will become liable for 50% of the portion above $99 million with no limitation to the maximum potential future payments. There is no liability recorded for this guarantee. Extended Warranty Arrangements Kodak offers its customers extended warranty arrangements that are generally one year, but may range from three months to six years after the original warranty period. The change in Kodak’s deferred revenue balance in relation to these extended warranty and maintenance arrangements from December 31, 2019 to September 30, 2020, which is reflected in Other current liabilities in the accompanying Consolidated Statement of Financial Position, was as follows:
(in millions)
Deferred revenue on extended warranties as of December 31, 2019
$
21
Extended warranty and maintenance arrangements deferred in 2020
68
Recognition of extended warranty and maintenance arrangement revenue in 2020
(70
)
Deferred revenue on extended warranties as of September 30, 2020
$
19

Note 13 - Revenue

Note 13 - Revenue9 Months Ended
Sep. 30, 2020
Revenue From Contract With Customer [Abstract]
RevenueNOTE 13: REVENUE Disaggregation of Revenue The following tables present revenue disaggregated by major product, portfolio summary and geography.
Three Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Plates, inks and other consumables
$
114
$
15
$
1
$

$

$
130
Ongoing service arrangements (1)
20
33



53
Total annuities
134
48
1


183
Equipment & software
12
8



20
Film and chemicals


39


39
Other (2)


4
3
3
10
Total
$
146
$
56
$
44
$
3
$
3
$
252
Nine Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Plates, inks and other consumables
$
330
$
45
$
4
$

$

$
379
Ongoing service arrangements (1)
60
97



157
Total annuities
390
142
4


536
Equipment & software
29
31



60
Film and chemicals


112


112
Other (2)

8
8
8
24
Total
$
419
$
173
$
124
$
8
$
8
$
732
Three Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Plates, inks and other consumables
$
138
$
20
$
3
$

$

$
161
Ongoing service arrangements (1)
22
38
1


61
Total annuities
160
58
4


222
Equipment & software
14
12



26
Film and chemicals


44


44
Other (2)
13

5
3
2
23
Total
$
187
$
70
$
53
$
3
$
2
$
315
Nine Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Plates, inks and other consumables
$
421
$
61
$
9
$

$

$
491
Ongoing service arrangements (1)
65
117
2


184
Total annuities
486
178
11


675
Equipment & software
35
33



68
Film and chemicals


125


125
Other (2)
13

17
8
7
45
Total
$
534
$
211
$
153
$
8
$
7
$
913
(1)
Service revenue in the Consolidated Statement of Operations includes the ongoing service revenue shown above as well as revenue from project-based document management and managed print services businesses, which is included in Other above.
(2)
Other includes revenue from professional services, non-recurring engineering services, print and managed media services, tenant rent and related property management services and licensing. Product Portfolio Summary:
Three Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Growth engines (1)
$
41
$
32
$
1
$
3
$

$
77
Strategic other businesses (2)
105
12
42

3
162
Planned declining businesses (3)

12
1


13
Total
$
146
$
56
$
44
$
3
$
3
$
252
Nine Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Growth engines (1)
$
112
$
98
$
2
$
8
$

$
220
Strategic other businesses (2)
307
37
115

8
467
Planned declining businesses (3)

38
7


45
Total
$
419
$
173
$
124
$
8
$
8
$
732
Three Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Growth engines (1)
$
44
$
32
$

$
3
$

$
79
Strategic other businesses (2)
143
20
47

2
212
Planned declining businesses (3)

18
6


24
Total
$
187
$
70
$
53
$
3
$
2
$
315
Nine Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Growth engines (1)
$
128
$
99
$
2
$
8
$

$
237
Strategic other businesses (2)
406
56
130

7
599
Planned declining businesses (3)

56
21


77
Total
$
534
$
211
$
153
$
8
$
7
$
913
(1)
Growth engines consist of Sonora in the Traditional Printing segment, PROSPER and Software in the Digital Printing segment, brand licensing and Advanced Materials and Functional Printing in the Advanced Materials and Chemicals segment, excluding intellectual property (IP) licensing.
(2)
Strategic other businesses include plates in the Traditional Printing segment; Computer to Plate (“CTP”) equipment and related service and Nexpress and related toner business in the Digital Printing segment and Motion Picture and Industrial Film and Chemicals (including external inks) and IP licensing in the Advanced Materials and Chemicals segment.
(3)
Planned declining businesses are product lines where the decision has been made to stop new product development and manage an orderly expected decline in the installed product and annuity base or are otherwise not strategic to Kodak. These product families consist of Consumer Inkjet, Kodak Services for Business and Kodakit in the Advanced Materials and Chemicals segment and Versamark and Digimaster in the Digital Printing segment. Geography (1):
Three Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
United States
$
29
$
25
$
30
$
3
$
3
$
90
Canada
5
3



8
North America
34
28
30
3
3
98
Europe, Middle East and Africa
64
19
4


87
Asia Pacific
41
8
10


59
Latin America
7
1



8
Total
$
146
$
56
$
44
$
3
$
3
$
252
Nine Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
United States
$
90
$
77
$
85
$
8
$
8
$
268
Canada
11
6
1


18
North America
101
83
86
8
8
286
Europe, Middle East and Africa
181
61
9


251
Asia Pacific
116
26
29


171
Latin America
21
3



24
Total
$
419
$
173
$
124
$
8
$
8
$
732
Three Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
United States
$
48
$
36
$
33
$
3
$
2
$
122
Canada
4
2
1


7
North America
52
38
34
3
2
129
Europe, Middle East and Africa
71
21
6


98
Asia Pacific
53
10
13


76
Latin America
11
1



12
Total
$
187
$
70
$
53
$
3
$
2
$
315
Nine Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
United States
$
125
$
107
$
95
$
8
$
7
$
342
Canada
9
6
2


17
North America
134
113
97
8
7
359
Europe, Middle East and Africa
218
64
16


298
Asia Pacific
149
29
39


217
Latin America
33
5
1


39
Total
$
534
$
211
$
153
$
8
$
7
$
913
(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 amounts recorded for contract assets at September 30, 2020 and December 31, 2019 were $2 million and $4 million, respectively, and are reported in Other current assets in the Consolidated Statement of Financial Position. The contract liabilities primarily relate to prepaid service contracts, upfront payments for certain equipment purchases or prepaid royalties on intellectual property arrangements. The amounts recorded for contract liabilities at September 30, 2020 and December 31, 2019 were $60 million and $61 million, respectively, of which $44 million and $43 million are reported in Other current liabilities, respectively, and $16 million and $18 million, respectively, are reported in Other long-term liabilities in the Consolidated Statement of Financial Position. Revenue recognized for the three and nine months ended September 30, 2020 and 2019 that was included in the contract liability balance at the beginning of the year was $4 million and $35 million in 2020, respectively, and $4 million and $34 million in 2019, respectively, and primarily represented revenue from prepaid service contracts and equipment revenue recognition. Contract liabilities as of September 30, 2020 included $21 million and $31 million of cash payments received during the three and nine months ended September 30, 2020, respectively. Contract liabilities as of September 30, 2019 included $26 million and $43 million of cash payments received during the three and nine months ended September 30, 2019, respectively. 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, 2020, there was approximately $70 million of unrecognized revenue from unsatisfied performance obligations. Approximately 10% of the revenue from unsatisfied performance obligations is expected to be recognized in the rest of 2020, 30% in 2021, 20% in 2022 and 40% thereafter.

Note 14 - Other Operating (Inco

Note 14 - Other Operating (Income) Expense, Net9 Months Ended
Sep. 30, 2020
Other Operating Expense Income Net [Abstract]
Other Operating (Income) Expense, NetNOTE 14: OTHER OPERATING (INCOME) EXPENSE, NET
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Expense (income):
(Gain) loss on sale of assets (1)
$

$
12
$
(9
)
$
13
Asset impairments (2)


3

Transition services agreement income
(1
)
(2
)
(5
)
(4
)
Other



1
Total
$
(1
)
$
10
$
(11
)
$
10
(1)
In March 2020 Kodak sold a property in the U.S.
(2)
Refer to Note 5, “Goodwill and Other Intangible Assets”.

Note 15 - Other Charges, Net

Note 15 - Other Charges, Net9 Months Ended
Sep. 30, 2020
Other Income And Expenses [Abstract]
Other Charges, NetNOTE 15: OTHER CHARGES, NET
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Change in fair value of embedded conversion features derivative liability (1)
$
431
$
4
$
382
$
3
Loss on foreign exchange transactions
1
3
6
4
Other

(1
)
(1
)

Total
$
432
$
6
$
387
$
7
(1)

Note 16 - Income Taxes

Note 16 - Income Taxes9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income TaxesNOTE 16: INCOME TAXES Kodak’s income tax provision and effective tax rate were as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Loss from continuing operations before income taxes
$
(444
)
$
(3
)
$
(394
)
$
(16
)
Effective tax rate
(0.2
)%
(233.3
)%
(42.4
)%
(75.0
)%
Provision for income taxes
1
7
167
12
(Benefit) for income taxes at U.S. statutory tax rate
(93
)
(1
)
(83
)
(3
)
Difference between tax at effective vs. statutory rate
$
94
$
8
$
250
$
15
For the three months ended September 30, 2020, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% is primarily attributable to: (1) the impact related to existing valuation allowances associated with changes in net deferred tax assets from current earnings and (2) the results from operations in jurisdictions outside the U.S. For the nine months ended September 30, 2020, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% is primarily attributable to: (1) a provision of $167 million associated with the establishment of valuation allowances in certain outside U.S. jurisdictions, (2) the impact related to existing valuation allowances associated with changes in net deferred tax assets from current earnings and losses, (3) the results from operations in jurisdictions outside the U.S, (4) a provision associated with foreign withholding taxes on undistributed earnings and (5) changes in audit reserves. Kodak establishes valuation allowances for deferred income tax assets in accordance with U.S. GAAP, which provides that such valuation allowances shall be established unless realization of the income tax benefits is more likely than not. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. At each reporting period, Kodak considers the scheduled reversal of deferred tax liabilities and assets, available taxes in carryback periods, tax planning strategies and projected future taxable income in making this assessment. As of December 31, 2019, Kodak’s deferred tax asset valuation allowance was $821 million. Of this amount, $168 million was attributable to the Company’s net deferred tax assets outside the U.S. of $322 million, and $653 million related to the Company’s net deferred tax assets in the U.S. of $633 million, for which Kodak believed it was more likely than not that the assets would not be realized. As of March 31, 2020, Kodak determined that it was more likely than not that deferred tax assets outside the U.S. which were not offset with valuation allowances as of March 31, 2020 would not be realized due to reductions in estimates of future profitability as a result of the COVID-19 pandemic in locations outside the U.S. Accordingly, Kodak recorded a provision of $167 million associated with the establishment of a valuation allowance on those deferred tax assets. On February 21, 2020, Kodak agreed to terms with the IRS and settled the federal audit for calendar years 2013 and 2014. For these years, Kodak originally recorded a federal unrecognized tax position totaling $41 million, which was fully offset by tax attributes. This settlement resulted in an increase in net deferred tax assets and was fully offset by a corresponding increase in Kodak’s U.S. valuation allowance, resulting in no net tax benefit. For the three months ended September 30, 2019, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% is primarily attributable to: (1) the impact related to existing valuation allowances associated with changes in net deferred tax assets from current earnings and losses, (2) the results from operations in jurisdictions outside the U.S., (3) a provision associated with the establishment of a deferred tax asset valuation allowance outside the U.S. and (4) a benefit associated with foreign withholding taxes on undistributed earnings. For the nine months ended September 30, 2019, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% is primarily attributable to: (1) the impact related to existing valuation allowances associated with changes in net deferred tax assets from current earnings and losses, (2) the results from operations in jurisdictions outside the U.S., (3) a provision associated with the establishment of a deferred tax asset valuation allowance outside the U.S. and (4) changes in audit reserves.

Note 17 - Restructuring Liabili

Note 17 - Restructuring Liabilities9 Months Ended
Sep. 30, 2020
Restructuring And Related Activities [Abstract]
Restructuring LiabilitiesNOTE 17: RESTRUCTURING LIABILITIES Charges for restructuring activities are recorded in the period in which Kodak commits to a formalized restructuring plan, or executes the specific actions contemplated by the plan, and all criteria for liability recognition under the applicable accounting guidance have been met. Restructuring actions taken in the first nine months of 2020 were initiated to reduce Kodak’s cost structure as part of its commitment to drive sustainable profitability and included various targeted reductions in manufacturing, service, sales and other administrative functions. Restructuring Reserve Activity The activity in the accrued balances and the non-cash charges and credits incurred in relation to restructuring activities for the nine months ended September 30, 2020 were as follows:
(in millions)
Severance Reserve (1)
Exit Costs Reserve (1)
Long-lived Asset Impairments and Inventory Write-downs (1)
Total
Balance as of December 31, 2019
$
11
$
1
$

$
12
Q1 charges
6
1

7
Q1 utilization/cash payments
(7
)


(7
)
Q1 other adjustments and reclasses (2)
(1
)
(1
)

(2
)
Balance as of March 31, 2020
$
9
$
1
$

$
10
Q2 charges
$
1
$

$

$
1
Q2 utilization/cash payments
(3
)


(3
)
Balance as of June 30, 2020
$
7
$
1
$

$
8
Q3 charges
$
1
$

$

$
1
Q3 utilization/cash payments
(3
)


(3
)
Balance as of September 30, 2020
$
5
$
1
$

$
6
(1)
The severance and exit costs reserves require the outlay of cash, while long-lived asset impairments and inventory write-downs represent non-cash items.
(2)
Includes $(1) million of severance charges funded from pension plan assets, which were reclassified to Pension and other postretirement liabilities and $(1) million of currency translation impacts. The $1 million and $9 million of charges for the three and nine months ended September 30, 2020, respectively, were reported as Restructuring costs and other in the Consolidated Statement of Operations. The severance costs for the 3 months ended September 30, 2020 related to the elimination of approximately 40 positions including approximately 5 manufacturing/service positions and 35 administrative positions. The geographic composition of these positions includes approximately 35 in the U.S. and Canada and 5 throughout the rest of the world. The severance costs for the nine months ended September 30, 2020 related to the elimination of approximately 130 positions including approximately 25 manufacturing/service positions, and 105 administrative and sales positions. The geographic composition of these positions includes approximately 75 in the U.S. and Canada and 55 throughout the rest of the world. As a result of these initiatives, the majority of the severance will be paid during periods through the end of the year.

Note 18 - Retirement Plans and

Note 18 - Retirement Plans and Other Postretirement Benefits9 Months Ended
Sep. 30, 2020
Compensation And Retirement Disclosure [Abstract]
Retirement Plans and Other Postretirement BenefitsNOTE 18: RETIREMENT PLANS AND OTHER POSTRETIREMENT BENEFITS Components of the net periodic benefit cost for all major U.S. and non-U.S. defined benefit plans are as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
(in millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Major defined benefit plans:
Service cost
$
2
$
1
$
3
$

$
8
$
3
$
8
$
2
Interest cost
21
2
30
3
64
6
91
9
Expected return on plan assets
(48
)
(5
)
(53
)
(6
)
(146
)
(14
)
(160
)
(17
)
Amortization of:
Prior service credit
(2
)

(2
)

(5
)

(5
)

Actuarial loss
4
2

2
11
5

4
Net pension income before special termination benefits
(23
)

(22
)
(1
)
(68
)

(66
)
(2
)
Special termination benefits
1



2

2

Curtailment gain






(2
)

Net pension income from major plans
(22
)

(22
)
(1
)
(66
)

(66
)
(2
)
Other plans





1

(4
)
Total net pension (income) expense
$
(22
)
$

$
(22
)
$
(1
)
$
(66
)
$
1
$
(66
)
$
(6
) For the three and nine months ended September 30, 2020 and 2019 the special termination benefits charges were incurred as a result of Kodak’s restructuring actions and have been included in Restructuring costs and other in the Consolidated Statement of Operations for those periods.

Note 19 - Earnings Per Share

Note 19 - Earnings Per Share9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]
Earnings Per ShareNOTE 19: EARNINGS PER SHARE Basic earnings per share computations are based on the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share include any dilutive effect of potential common shares. In periods with a net loss from continuing operations available to common shareholders, diluted earnings per share are calculated using weighted-average basic shares for that period, as utilizing diluted shares would be anti-dilutive to loss per share. A reconciliation of the amounts used to calculate basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019 follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Loss from continuing operations
$
(445
)
$
(10
)
$
(561
)
$
(28
)
Less: Series A convertible preferred stock cash dividend
(2
)
(2
)
(8
)
(8
)
Less: Series A convertible preferred stock deemed dividend
(3
)
(3
)
(7
)
(7
)
Loss from continuing operations available to common shareholders - basic and diluted
$
(450
)
$
(15
)
$
(576
)
$
(43
)
Net (loss) income
$
(445
)
$
(5
)
$
(561
)
$
178
Less: Series A convertible preferred stock cash dividend
(2
)
(2
)
(8
)
(8
)
Less: Series A convertible preferred stock deemed dividend
(3
)
(3
)
(7
)
(7
)
Net (loss) income available to common shareholders - basic and diluted
$
(450
)
$
(10
)
$
(576
)
$
163
(in millions of shares)
Weighted average shares — basic and diluted
64.8
43.0
50.8
43.0
As a result of the net loss from continuing operations available to common shareholders for the three and nine months ended September 30, 2020 and 2019, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding. If Kodak reported earnings from continuing operations available to common shareholders for the three and nine months ended September 30, 2020 and 2019, the calculation of diluted earnings per share would have included the assumed conversion of 0.6 million and 0.5 million unvested restricted stock units for the three and nine months ended September 30, 2020, respectively and 0.6 million unvested restricted stock units for the both periods in 2019. The calculation of diluted earnings per share would have also included the assumed conversion of 1.2 million outstanding employee stock options. The computation of diluted earnings per share for the three and nine months ended September 30, 2020 and 2019 also excluded the impact of (1) the assumed conversion of 2.0 million shares of Series A Preferred Stock, (2) the assumed conversion of outstanding employee stock options of 3.1 million and 3.6 million for three and nine months ended September 30, 2020, respectively and 8.9 million and 9.0 million for the three and nine months ended 2019, respectively and the (3) for the three and nine months ended September 30, 2019 the assumed conversion of $100 million of Notes because the effects would have been anti-dilutive.

Note 20 - Stock-based Compensat

Note 20 - Stock-based Compensation9 Months Ended
Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based CompensationNOTE 20: STOCK-BASED COMPENSATION Kodak’s stock incentive plan is the 2013 Omnibus Incentive Plan (the “2013 Plan”). The 2013 Plan is administered by the Compensation Nominating and Governance Committee of the Board of Directors. Officers, directors and employees of the Company and its consolidated subsidiaries are eligible to receive awards. Stock options are generally non-qualified, are at exercise prices equal to or greater than the closing price of Kodak’s stock on the date of grant and expire seven years after the grant date. Stock-based compensation awards granted under Kodak’s stock incentive plan are generally subject to a three-year vesting period from the date of grant, or a later date as determined by the Compensation Nominating and Governance Committee. Awards are subject to settlement in newly-issued shares of common stock. Unless sooner terminated by the Compensation Nominating and Governance Committee, no awards may be granted under the 2013 Plan after May 20, 2030. The maximum number of shares of common stock subject to awards under the 2013 Plan is 8.0 million. In addition, under the 2013 Plan, the maximum number of shares available for the grant of incentive stock options is 2.0 million shares. The maximum number of shares as to which stock options or stock appreciation rights may be granted to any one person under the 2013 Plan in any calendar year is 2.5 million shares. The maximum number of awards that may be granted to any non-employee director under the 2013 Plan in any calendar year may not exceed a number of awards with a grant date fair value of $450,000, computed as of the grant date. Compensation expense is recognized on a straight-line basis over the service or performance period for each separately vesting tranche of the award and is adjusted for actual forfeitures before vesting. Kodak assesses the likelihood that performance-based shares will be earned based on the probability of meeting the performance criteria. For those performance-based awards that are deemed probable of achievement, expense is recorded, and for those awards that are deemed not probable of achievement, no expense is recorded. Kodak assesses the probability of achievement each quarter. Restricted Stock Units Restricted stock units are payable in shares of the Company common stock upon vesting. The fair value is based on the closing market price of the Company’s stock on the grant date. Compensation cost related to restricted stock units was $1 million and $2 million for the nine months ended September 30, 2020 and 2019, respectively. The weighted average grant date fair value of restricted stock unit awards granted for the nine months ended September 30, 2020 and 2019 was $2.91 and $2.85, respectively. The total fair value of restricted stock units that vested was $2 million for both the nine months ended September 30, 2020 and 2019. As of September 30, 2020 , there was $0.4 million of unrecognized compensation cost related to restricted stock units. The cost is expected to be recognized over a weighted average period of 0.3 years. The following table summarizes information about restricted stock unit activity for the nine months ended September 30, 2020:
Number of Restricted Stock Units
Weighted-Average Grant Date Fair Values
Outstanding on December 31, 2019
721,801
$
3.25
Granted
351,909
$
2.91
Vested
692,751
$
3.05
Outstanding on September 30, 2020
380,959
$
3.31
Stock Options The following table summarizes information about stock option activity for the nine months ended September 30, 2020:
Shares Under Option
Weighted Exercise Price Per Share
Weighted Remaining Contractual Life (Years)
Aggregate Intrinsic Value ($ millions)
Outstanding on December 31, 2019
6,843,079
$
10.96
Granted
2,917,464
$
5.86
Exercised
2,019,187
$
14.51
Forfeited
27,075
$
12.50
Outstanding on September 30, 2020
7,714,281
$
8.09
5.09
$
23
Exercisable on September 30, 2020
6,858,431
$
8.49
4.91
$
19
Expected to vest September 30, 2020
855,850
$
4.91
6.52
$
4
The aggregate intrinsic value represents the total pretax intrinsic value that option holders would have received had all option holders exercised their options on the last trading day of the period. The aggregate intrinsic value is the difference between the Kodak closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options. The Company issued stock-based compensation grants for 2.4 million stock options on July 27, 2020. The terms of 1.8 million of the options awarded on July 27, 2020 provided for immediate vesting or vesting upon conversion of the Notes. As 100% of the Notes were converted during the three months ended September 30, 2020, the 1.8 million options with accelerated vesting terms vested in that same period. The remaining 0.6 million options provide for vesting terms of between two and three years. The valuation of the stock options granted on July 27, 2020 resulted in approximately $11.8 million of compensation expense being recognized in the three months ended September 30, 2020, which was reported in Selling, general and administrative expenses in the Consolidated Statement of Operations. There were approximately 2.0 million options exercised in the nine months ended September 30, 2020. The options exercised in 2020 included 0.3 million options exercised by ex-employees of Kodak that had previously been forfeited. The Company issued shares to the ex-employees in exchange for proceeds based on the exercise prices of the forfeited options. The Company is accounting for the exercise of the forfeited options as a modification of the original awards. The Company recognized compensation expense of approximately $5.1 million in the three months ended September 30, 2020, related to the 0.3 million previously forfeited options representing the fair value of the shares issued to the ex-employees less the exercise proceeds received from the ex-employees, which is reported in Selling, general and administrative expenses in the Consolidated Statement of Operations. The Company is seeking to recover the fair value of the shares at the time of the sale of the shares by the ex-employees less the exercise proceeds and withholding (approximately $ 3.9 The weighted average grant date fair value of options granted for the nine months ended September 30, 2020 and 2019 was $8.91 and $2.47, respectively. The total fair value of options that vested during the nine months ended September 30, 2020 and 2019 was $13 million and $7 million, respectively. Compensation cost related to stock options for the nine months ended September 30, 2020 and 2019 was $18 million and $4 million, respectively. As of September 30, 2020, there was $3.9 million of unrecognized compensation cost related to stock options. The cost is expected to be recognized over a weighted average period of 1.7 years. Other than for the awards granted on July 27, 2020, Kodak utilizes the Black-Scholes option valuation model to estimate the fair value of stock options. The expected term of options granted is the period of time the options are expected to be outstanding and is calculated using a simplified method based on the option’s vesting period and original contractual term. The Company used only the historical volatility of the Company’s stock to estimate expected volatility. The risk-free rate was based on the yield on U.S. Treasury notes with a term equal to the option’s expected term. The following inputs were used in the Black-Scholes valuation of option grants issued in each period:
Nine Months Ended
September 30,
2020
2019
Weighted-average fair value of options granted
$
1.50
$
1.73
Risk-free interest rate
2.43%
2.47%
Expected option lives
3.7 years
4.5 years
Expected volatility
98%
90%
Expected dividend yield
0.00%
0.00%
Given the recent volatility of the Company’s stock price, the Company utilized a lattice-based valuation model to value the time-based vesting awards granted July 27, 2020 and a Monte Carlo simulation valuation model to value the options granted on July 27, 2020 which vested upon conversion of the Notes. The following inputs were used in the lattice-based valuation of the July 27, 2020 option grants:
July 27, 2020
Option Awards
Weighted-average fair value of options granted
$
6.57
Range of risk-free interest rates
0.11% -0.30%
Weighted-average term
5.57 years
Weighted-average volatility
98%
Weighted-average expected dividend yield
0.00%

Note 21 - Shareholders' Equity

Note 21 - Shareholders' Equity9 Months Ended
Sep. 30, 2020
Equity [Abstract]
Stockholders' EquityNOTE 21: SHAREHOLDERS’ EQUITY The Company has 560 million shares of authorized stock, consisting of: (i) 500 million shares of common stock, par value $0.01 per share and (ii) 60 million shares of preferred stock, no par value, issuable in one or more series. As of September 30, 2020 and December 31, 2019, there were 77.3 million and 43.2 million shares of common stock outstanding, respectively, and 2.0 million shares of Series A Preferred Stock issued and outstanding. In the three months ended September 30, 2020 the Company issued a total of 31.5 million shares for the conversion of the Notes and 2.0 million shares with the exercise of stock options. Treasury stock consisted of approximately 0.7 million shares as of both September 30, 2020 and December 31, 2019.

Note 22 - Other Comprehensive (

Note 22 - Other Comprehensive (Loss) Income9 Months Ended
Sep. 30, 2020
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]
Other Comprehensive (Loss) IncomeNOTE 22: OTHER COMPREHENSIVE (LOSS) INCOME The changes in Other comprehensive (loss) income, by component, were as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Currency translation adjustments
$
(1
)
$
(2
)
$
(17
)
$
2
Pension and other postretirement benefit plan changes
Newly established net actuarial gain


6
5
Tax Provision



(2
)
Newly established net actuarial gain, net of tax


6
3
Reclassification adjustments:
Amortization of prior service credit (a)
(2
)
(2
)
(6
)
(6
)
Amortization of actuarial losses (a)
5
1
15
3
Recognition of losses (gains) due to curtailments and settlements


1
(2
)
Total reclassification adjustments
3
(1
)
10
(5
)
Tax provision


(1
)

Reclassification adjustments, net of tax
3
(1
)
9
(5
)
Pension and other postretirement benefit plan changes, net of tax
3
(1
)
15
(2
)
Other comprehensive income (loss)
$
2
$
(3
)
$
(2
)
$

(a)

Note 23 - Segment Information

Note 23 - Segment Information9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]
Segment InformationNOTE 23: SEGMENT INFORMATION Change in Segments Effective January 1, 2020 Kodak changed its organizational structure. Prepress Solutions, formerly part of the Print Systems segment, operates as a separate segment named the Traditional Printing segment. Electrophotographic Printing Solutions, formerly part of the Print Systems segment, was combined with the Enterprise Inkjet Systems segment and Kodak Software segment to form the Digital Printing segment. The Brand, Film and Imaging segment, except for the licensing of the Kodak brand to third parties, was combined with the Advanced Materials and 3D Printing segment to form the Advanced Materials and Chemicals segment. The licensing of the Kodak brand to third parties operates as a separate segment named the Brand segment. The Eastman Business Park segment is no longer a reportable segment. A description of Kodak’s reportable segments follows. Traditional Printing : The Traditional Printing segment is comprised of Prepress Solutions. Digital Printing : The Digital Printing segment is comprised of four lines of business: the Electrophotographic Printing Solutions business, the Prosper business, the Versamark business and the Kodak Software business. Advanced Materials and Chemicals: The Advanced Materials and Chemicals segment is comprised of five lines of business: Industrial Film and Chemicals, Motion Picture, Advanced Materials and Functional Printing Technology and Kodak Services for Business. Brand : The Brand segment contains the brand licensing business. All Other : All Other is comprised of the operations of the Eastman Business Park, a more than 1,200-acre technology center and industrial complex Segment financial information is shown below: Segment Revenues
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Traditional Printing
$
146
$
187
$
419
$
534
Digital Printing
56
70
173
211
Advanced Materials and Chemicals
44
53
124
153
Brand
3
3
8
8
All Other
3
2
8
7
Consolidated total
$
252
$
315
$
732
$
913
Segment Operational EBITDA and Consolidated Loss from Continuing Operations Before Income Taxes
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Traditional Printing
$
5
$
21
$
7
$
36
Digital Printing
(3
)
(3
)
(8
)
(9
)
Advanced Materials and Chemicals
(6
)
(6
)
(22
)
(24
)
Brand
3
2
7
5
Total of reportable segments
(1
)
14
(16
)
8
All Other



(1
)
Depreciation and amortization
(9
)
(14
)
(29
)
(43
)
Restructuring costs and other
(1
)
(3
)
(9
)
(7
)
Stock based compensation
(17
)
(1
)
(18
)
(6
)
Consulting and other costs (1)
(4
)
(2
)
(5
)
(7
)
Idle costs (2)
(1
)
(1
)
(2
)
(4
)
Former CEO separation agreement compensation



(2
)
Other operating (loss) income, net, excluding income from transition services agreement (3)

(12
)
6
(14
)
Interest expense (4)
(3
)
(4
)
(11
)
(12
)
Pension income excluding service cost component (4)
26
26
79
79
Loss on early extinguishment of debt (4)
(2
)

(2
)

Other charges, net (4)
(432
)
(6
)
(387
)
(7
)
Consolidated loss from continuing operations before income taxes
$
(444
)
$
(3
)
$
(394
)
$
(16
) Kodak increased workers’ compensation reserves by approximately $9 million and $2 million in the third quarters of 2020 and 2019, respectively, driven by changes in discount rates. The increase in reserves in the third quarter of 2020 impacted gross profit by approximately $6 million, SG&A by approximately $2 million and R&D by approximately $1 million. The increase in reserves in the third quarter of 2019 impacted gross profit by approximately $1 million and SG&A by approximately $1 million.
(1)
Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives and investigations.
(2)
Consists of 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)
$1 million and $2 million of income from the transition services agreement with the Purchaser was recognized in the three months ended September 30, 2020 and 2019 Transition services income of $5 million and $4 million was recognized in the nine months ended September 30, 2020 and 2019, respectively. The income was reported in Other operating (income) expense, net in the Consolidated Statement of Operations. Other operating (income) expense, net is typically excluded from the segment measure. However, the income from the transition services agreement was included in the segment measure.
(4)
As reported in the Consolidated Statement of Operations. Segment Measure of Profit and Loss Kodak’s segment measure of profit and loss is an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”). As demonstrated in the above table, Operational EBITDA represents the earnings (loss) from continuing operations excluding the provision for income taxes; non-service cost components of pension and OPEB income; depreciation and amortization expense; restructuring costs; stock-based compensation expense; consulting and other costs; idle costs; former Chief Executive Officer (“CEO”) separation agreement compensation; other operating (loss) income, net (unless otherwise indicated); interest expense; loss on early extinguishment of debt and other charges, net. Kodak’s segments are measured using Operational EBITDA both before and after allocation of corporate selling, general and administrative expenses (“SG&A”). The segment earnings measure reported is after allocation of corporate SG&A as this most closely aligns with U.S. GAAP. Research and Development activities not directly related to the other segments are reported within the Advanced Materials and Chemicals segment.

Note 24 - Discontinued Operatio

Note 24 - Discontinued Operations9 Months Ended
Sep. 30, 2020
Discontinued Operations And Disposal Groups [Abstract]
Discontinued OperationsNOTE 24: DISCONTINUED OPERATIONS Discontinued operations of Kodak include the former Flexographic Packaging segment comprised of Kodak’s Flexographic Packaging Business (“FPD”). Kodak consummated the sale of certain assets of FPD to the Purchaser on April 8, 2019 for net cash consideration at closing, in addition to the assumption by Purchaser of certain liabilities of FPD, of $320 million, pursuant to the Stock and Asset Purchase Agreement (“SAPA”) signed in November 2018 and amended in March 2019. Assets and liabilities of FPD in China were transferred at a deferred closing on July 1, 2019 for net cash consideration of $5.9 million at closing and a promissory note for $1.4 million in addition to the assumption by Purchaser of certain liabilities of FPD, in accordance with the SAPA. Kodak operated FPD in China, subject to certain covenants, until the deferred closing occurred. The promissory note was reduced by a true-up payment of $0.2 million owed by Kodak to the Purchaser which reflected the actual economic benefit attributable to the operation of FPD in China from the time of the initial closing through the time of the deferred closing. Kodak recognized an after- tax gain on the sale of FPD of $212 million in the nine months ended September 30, 2019 and the year ended December 31, 2019. The results of operations of FPD are classified as discontinued operations in the Consolidated Statement of Operations for all periods presented. 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. The results of operations of FPD are presented below:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Revenues
$

$

$

$
44
Cost of revenues



28
Selling, general and administrative expenses



10
Research and development costs



2
Interest expense



7
Gain on divestiture

(4
)

(214
)
Income from discontinued operations before taxes

4

211
Provision for income taxes

(1
)

5
Income from discontinued operations
$

$
5
$

$
206
After the initial closing, Kodak was required to use a portion of the proceeds from the sale of FPD to repay $312 million of the loans under the Term Credit Agreement. Interest expense on debt that was required to be repaid as a result of the sale was allocated to discontinued operations.

Note 25 - Financial Instruments

Note 25 - Financial Instruments9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]
Financial InstrumentsNOTE 25: FINANCIAL INSTRUMENTS Kodak, as a result of its global operating and financing activities, is exposed to changes in foreign currency exchange rates and interest rates, which may adversely affect its results of operations and financial position. Kodak manages such exposures, in part, with derivative financial instruments. Foreign currency forward contracts are used to mitigate currency risk related to foreign currency denominated assets and liabilities. Kodak’s exposure to changes in interest rates results from its investing and borrowing activities used to meet its liquidity needs. Kodak does not utilize financial instruments for trading or other speculative purposes. Kodak’s foreign currency forward contracts are not designated as hedges and are marked to market through net (loss) earnings at the same time that the exposed assets and liabilities are remeasured through net (loss) earnings (both in Other (income) charges, net in the Consolidated Statement of Operations). The notional amount of such contracts open at September 30, 2020 and December 31, 2019 was approximately $350 million and $332 million, respectively. The majority of the contracts of this type held by Kodak as of September 30, 2020 and December 31, 2019 are denominated in euros, Japanese yen, Chinese renminbi and Swiss francs. The net effect of foreign currency forward contracts in the results of operations is shown in the following table:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Net (gain) loss from derivatives not designated as hedging instruments
$
(4
)
$
1
$
(6
)
$
(2
) Kodak had no derivatives designated as hedging instruments for the three and nine months ended September 30, 2020 and 2019. In the event of a default under the ABL Credit Agreement, or a default under any derivative contract or similar obligation of Kodak, subject to certain minimum thresholds, the derivative counterparties would have the right, although not the obligation, to require immediate settlement of some or all open derivative contracts at their then-current fair value, but with liability positions netted against asset positions with the same counterparty. As discussed in Note 8, “Debt and Finance Leases”, the Company concluded that the Notes were considered more akin to a debt-type instrument and that the economic characteristics and risks of the embedded conversion features and term extension option were not considered clearly and closely related to the Notes. The embedded conversion features not considered clearly and closely related are the conversion at the option of the holder (“Optional Conversion”) and the conversion in the event of a fundamental change or reorganization (“Fundamental Change or Reorganization Conversion”). Accordingly, these embedded conversion features and term extension option were bifurcated from the Notes and separately accounted for on a combined basis as a single derivative asset or liability. The embedded conversion features and term extension option were revalued as of August 3, 2020, when the Initial Conversion Shares were issued, resulting in the recognition of $407 million of expense for a pro-rata portion of the embedded conversion features and term extension option. The remaining embedded conversion features and term extension option were revalued again as of the Mandatory Conversion date, resulting in the recognition of $9 million of net expense. With the conversion of the Notes in the third quarter of 2020, the embedded conversion features and term extension option expired. The derivative was in a liability position at December 31, 2019 and was reported in Other long-term liabilities in the Consolidated Statement of Financial Position. The derivative was being accounted for at fair value with changes in fair value reported in Other charges, net in the Consolidated Statement of Operations. As discussed in Note 9, “Redeemable, Convertible, Series A Preferred Stock”, the Company concluded that the Series A Preferred Stock is considered more akin to a debt-type instrument and that the economic characteristics and risks of the embedded conversion features, except where the conversion price was increased to the liquidation preference, were not considered clearly and closely related to the Series A Preferred Stock. The embedded conversion features not considered clearly and closely related are the conversion at the option of the holder (“Optional Conversion”); the ability of Kodak to automatically convert the stock after the second anniversary of issuance (“Mandatory Conversion”) and the conversion in the event of a fundamental change or reorganization (“Fundamental Change or Reorganization Conversion”). Accordingly, these embedded conversion features were bifurcated from the Series A Preferred Stock and separately accounted for on a combined basis as a single derivative asset or liability. The derivative was in a liability position at September 30, 2020 and December 31, 2019 and was reported in Other long-term liabilities in the Consolidated Statement of Financial Position. The derivative is being accounted for at fair value with changes in fair value being reported in Other charges, net in the Consolidated Statement of Operations. Fair Value Fair values of Kodak’s foreign currency forward contracts are determined using observable inputs (Level 2 fair value measurements) and are based on the present value of expected future cash flows (an income approach valuation technique) considering the risks involved and using discount rates appropriate for the duration of the contracts. The gross fair value of foreign currency forward contracts in an asset position are reported in Other current assets and the gross fair value of foreign currency forward contracts in a liability position are reported in Other current liabilities in the Consolidated Statement of Financial Position. The gross fair value of forward contracts in an asset position as of September 30, 2020 and December 31, 2019 was $2 million and $1 million, respectively. The gross fair value of foreign currency forward contracts in a liability position as of both September 30, 2020 and December 31, 2019 was $0 million. Transfers between levels of the fair value hierarchy are recognized based on the actual date of the event or change in circumstances that caused the transfer. There were no transfers between levels of the fair value hierarchy during the three and nine months ended September 30, 2020. The fair value of the embedded conversion features and term extension option for the Notes were revalued as of August 3, 2020, and again at September 30, 2020. The fair value of the embedded derivative at each conversion date was calculated based on the fair value of the shares issued less the fair value of debt. The fair value of shares issued is based on the weighted average stock price on the time of day the shares were transferred for August 3, 2020, and the closing stock price as of September 30, 2020. The fair value of debt is based on pricing models based on the value of related cash flows discounted at current market interest rates. The following table presents the key inputs in the determination of fair value for the embedded conversion features and termination option derivatives at each conversion date:
Valuation Date
September 30,
August 3,
2020
2020
Total value of embedded derivative liability immediately prior to any extinguishment ($ millions)
$
9
$
429
Value of embedded derivative that expired ($ million)
$
9
$
416
Value of remaining embedded derivative liability ($ million)
$

$
13
Kodak's stock price (1)
$
8.82
$
16.91
Risk free rate
0.12
%
0.12
%
Yield on the Notes
8.93
%
9.47
%
(1)
The closing stock price was used for the September 30, 2020 valuation. The weighted average stock price based on the time of day the shares were transferred was used for the August 3, 2020 valuation. Except as discussed above for the fair value determined at the time of conversion, the fair value of the embedded conversion features and term extension option derivatives were calculated using unobservable inputs (Level 3 fair measurements). The value of the Optional Conversion associated with both the Notes and Series A Preferred Stock was calculated using a binomial lattice model. The value of the term extension option reflected the probability weighted average value of the Notes using the original maturity date and a hypothetical extended maturity date, with all other contractual terms unchanged. The following tables present the key inputs in the determination of fair value for the embedded conversion features and termination option derivatives: Notes:
Valuation Date
December 31,
2019
Value of embedded derivative liability ($ million)
$
51
Kodak's closing stock price
$
4.65
Expected stock price volatility
104.61
%
Risk free rate
1.58
%
Yield on the Notes
11.52
% Series A Preferred Stock:
Valuation Date
September 30,
December 31,
2020
2019
Total value of embedded derivative liability ($ millions)
$
9
$
1
Kodak's closing stock price
$
8.82
$
4.65
Expected stock price volatility
146.96
%
104.61
%
Risk free rate
0.12
%
1.58
%
Yield on the preferred stock
13.13
%
16.27
% The Fundamental Change and Reorganization Conversion values at issuance were calculated as the difference between the total value of the Notes or Series A Preferred Stock, as applicable, and the sum of the net present value of the cash flows if the Notes are repaid at their initial maturity date or Series A Preferred Stock is redeemed on its fifth anniversary and the values of the other embedded derivatives. The Fundamental Change and Reorganization Conversion values reduce the value of the embedded conversion features and term extension option derivative liability. Other than events that alter the likelihood of a fundamental change or reorganization event, the value of the Fundamental Change and Reorganization Conversion reflects the value as of the issuance date, amortized for the passage of time. The fair values of long-term debt (Level 2 fair value measurements) are determined by reference to quoted market prices of similar instruments, if available, or by pricing models based on the value of related cash flows discounted at current market interest rates. The fair values of long-term borrowings were $17 million and $111 million at September 30, 2020 and December 31, 2019, respectively. The carrying values of cash and cash equivalents, restricted cash and the current portion of long-term debt approximate their fair values at both September 30, 2020 and December 31, 2019.

Basis of Presentation and Recen

Basis of Presentation and Recent Accounting Pronouncements (Policies)9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]
Basis of PresentationBASIS OF PRESENTATION The consolidated interim financial statements are unaudited, and certain information and footnote disclosures related thereto normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results of operations, financial position and cash flows of Eastman Kodak Company (“EKC” or the “Company”) and all companies directly or indirectly controlled, either through majority ownership or otherwise (collectively, “Kodak”). The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. These consolidated interim statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”).
Going ConcernGOING CONCERN The consolidated interim financial statements have been prepared on the going concern basis of accounting, which assumes Kodak will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of September 30, 2020 and December 31, 2019, Kodak had approximately $193 million and $233 million, respectively, of cash and cash equivalents. $108 million and $72 million were held in the United States (“U.S.”) as of September 30, 2020 and December 31, 2019, respectively, and $85 million and $161 million were held outside the U.S. Cash balances held outside the U.S. are generally required to support local country operations and may have high tax costs or other limitations that delay the ability to repatriate, and therefore may not be readily available for transfer to other jurisdictions. Outstanding inter-company loans to the U.S. as of September 30, 2020 and December 31, 2019 were $436 million and $408 million, respectively, which includes short-term intercompany loans from Kodak’s international finance center of $138 million and $110 million as of September 30, 2020 and December 31, 2019, respectively. In China, where approximately $23 million and $89 million of cash and cash equivalents was held as of September 30, 2020 and December 31, 2019, respectively, there are limitations related to net asset balances that may impact the ability to make cash available to other jurisdictions in the world. On May 12, 2020, a Chinese subsidiary of Kodak transferred approximately $70 million to a U.S. subsidiary of Kodak that was used in an inter-company transaction. Kodak had a net decrease in cash, cash equivalents, restricted cash and cash in assets held for sale of $49 million for the nine months ended September 30, 2020, and a net increase in cash, cash equivalents, restricted cash and cash in assets held for sale of $12 million and $23 million for the nine months ended September 30, 2019 and the year ended December 31, 2019, respectively. Kodak used cash of $48 million and $4 million in operating activities for the nine months ended September 30, 2020 and 2019, respectively, and generated cash from operating activities for the year ended December 31, 2019 of $12 million. Cash flow from operations in 2019 benefitted from working capital improvements and individual transactions that occurred during the year. U.S. GAAP requires an evaluation of whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. Initially, this evaluation does not consider the potential mitigating effect of management’s plans that have not been fully implemented. When substantial doubt exists, management evaluates the mitigating effect of its plans if it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued or prior to the conditions or events that create the going concern risk. Kodak is facing liquidity challenges due to operating losses, low or negative cash flow from operations and collateral needs. Kodak has $87 million of letters of credit issued under the Amended and Restated Credit Agreement (the “ABL Credit Agreement”) which matures on May 26, 2021. The Company’s 5.50% Series A Convertible Preferred Stock (the “Series A Preferred Stock”) must be redeemed on November 15, 2021 if not converted prior to then. Additionally, Kodak has significant cash requirements to fund ongoing operations, restructuring programs, pension and other postretirement obligations, and other obligations. Kodak’s plans to return to sustainable positive cash flow include growing revenues profitably, reducing operating expenses, continuing to simplify the organizational structure, generating cash from selling and leasing underutilized assets and paring investment in new technology by eliminating or delaying product development programs as needed. Additionally, the Company looks to implement ways to reduce collateral needs in the U.S. Kodak’s products are sold and serviced in numerous countries across the globe with more than half of sales generated outside the United States. Current global economic conditions are highly volatile due to the COVID-19 pandemic. The economic uncertainties surrounding the COVID-19 pandemic are adding complexity to Kodak’s plans to return to sustainable positive cash flow. To mitigate the economic impacts of the pandemic Kodak is employing temporary furloughs and pay reductions and modifying manufacturing volumes as expectations of demand change. The recent history of negative operating cash flow, maturity of the ABL Credit Agreement in 2021, redemption date in 2021 for the Series A Preferred Stock, increased challenges in managing cash during the COVID-19 pandemic and general lack of certainty regarding the return to positive cash flow raise substantial doubt about Kodak’s ability to continue as a going concern .
ReclassificationsRECLASSIFICATIONS Certain amounts for prior periods have been reclassified to conform to the current period classification due to Kodak’s new organization structure as of January 2020. Refer to Note 23, “Segment Information” for additional information.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting PronouncementsRECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In November 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This guidance amended Topic 808 and Topic 606 to clarify that transactions in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a distinct good or service (i.e., unit of account). The amendments preclude an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. The new standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 (January 1, 2020 for Kodak). The amendments should be applied retrospectively to the date of initial application of Topic 606. In September 2018 the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which amends the disclosure requirements in Topic 820 by adding, changing, or removing certain disclosures about recurring or nonrecurring fair value measurements. The additional and/or modified disclosures relate primarily to Level 3 fair value measurements while removing certain disclosures related to transfers between Level 1 and Level 2 of the fair value hierarchy. The ASU is effective retrospectively, for fiscal years beginning after December 15, 2019 (January 1, 2020 for Kodak) and interim periods within those fiscal years. Entities are permitted to early adopt any removed or modified disclosures but can delay adoption of the new disclosures until their effective date. Kodak retrospectively early adopted the provisions of the ASU that removed or modified disclosures in the fourth quarter of 2018 and prospectively adopted the provisions related to new disclosures January 1, 2020. The standard addresses disclosures only and did not have an impact on Kodak’s consolidated financial statements. In September 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which amends the disclosure requirements in ASC 715-20 by adding, clarifying, or removing certain disclosures. ASU 2018-14 requires all entities to disclose (1) the weighted average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The ASU also clarifies certain disclosure requirements for entities with two or more defined benefit pension plans when aggregate disclosures are presented. The ASU removes other disclosures from the existing guidance, such as the requirement to disclose the effects of a one-percentage-point change in the assumed health care cost trend rates. The ASU is effective retrospectively for fiscal years ending after December 15, 2020 (the year ended December 31, 2020 for Kodak). Kodak adopted this ASU on January 1, 2020. The standard addresses disclosures only and did not have an impact on Kodak’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which addresses how a customer should account for the costs of implementing a cloud computing service arrangement (also referred to as a “hosting arrangement”). Under ASU 2018-15, entities should account for costs associated with implementing a cloud computing arrangement that is considered a service contract in the same way as implementation costs associated with a software license; implementation costs incurred in the application development stage, such as costs for the cloud computing arrangement’s integration with on-premise software, coding, and configuration or customization, should be capitalized and amortized over the term of the cloud computing arrangement, including periods covered by certain renewal options. The ASU is effective in fiscal years beginning after December 15, 2019 (January 1, 2020 for Kodak) including interim periods within those fiscal years. The ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Kodak adopted this ASU prospectively on January 1, 2020, and it did not have any impact on Kodak’s consolidated financial statements. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments. More convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted EPS calculation in certain circumstances. The ASU is effective for smaller reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, (January 1, 2024 for Kodak). Early adoption is permitted for all entities for fiscal years beginning after December 15, 2020. The ASU allows entities to use either a modified retrospective or full retrospective transition method. Kodak is currently evaluating the impact of this ASU. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional relief through specific exceptions and practical expedients for transitioning away from reference rates that are expected to be discontinued. The relief generally applies to eligible modifications of contractual terms that change (or have the potential to change) the amount or timing of contractual cash flows related to replacement of a reference rate. The relief allows such modifications to be accounted for as continuations of existing contracts without additional analysis. The optional relief is available from March 2020 through December 31, 2022. Kodak is currently evaluating the impact of this ASU. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions related to intra-period tax allocations and deferred tax accounting on outside basis differences in foreign subsidiaries and equity method investments. Additionally, it provides other simplifying measures for the accounting for income taxes. The new standard is effective for fiscal years beginning after December 15, 2021 (January 1, 2022 for Kodak) with early adoption permitted. Kodak is currently evaluating the impact of this ASU. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 (as amended by ASUs 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-02 and 2020-03) requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. In addition, the ASU requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The ASU is effective for smaller reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, (January 1, 2023 for Kodak). Early adoption is permitted. is currently evaluating the impact of this ASU.

Note 2 - Cash, Cash Equivalen_2

Note 2 - Cash, Cash Equivalents and Restricted Cash (Tables)9 Months Ended
Sep. 30, 2020
Cash And Cash Equivalents [Abstract]
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted CashThe following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Financial Position that sums to the total of such amounts shown in the Statement of Cash Flows:
September 30,
December 31,
(in millions)
2020
2019
Cash and cash equivalents
$
193
$
233
Restricted cash - current portion
7
12
Restricted cash
41
45
Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows
$
241
$
290

Note 3 - Inventories, Net (Tabl

Note 3 - Inventories, Net (Tables)6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]
InventoriesSeptember 30,
December 31,
(in millions)
2020
2019
Finished goods
$
115
$
105
Work in process
57
54
Raw materials
60
56
Total
$
232
$
215

Note 4 - Other Long-term Asse_2

Note 4 - Other Long-term Assets (Tables)9 Months Ended
Sep. 30, 2020
Other Assets Noncurrent Disclosure [Abstract]
Schedule of Other Long-Term AssetsSeptember 30,
December 31,
(in millions)
2020
2019
Pension assets
$
252
$
173
Estimated workers' compensation recoveries
18
18
Long-term receivables, net of reserve of $4 and $4, respectively
11
11
Other
24
26
Total
$
305
$
228

Note 5 - Goodwill and Other I_2

Note 5 - Goodwill and Other Intangible Assets (Tables)9 Months Ended
Sep. 30, 2020
Table [Text Block]
Carrying Value of Goodwill by Reportable SegmentsThe following table presents the carrying value of goodwill by reportable segment.
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
Total
As of December 31, 2019
Goodwill
$
56
$
6
$
14
$

$
76
Accumulated impairment losses
(56
)

(8
)

(64
)
Balance as of December 31, 2019

6
6

12
Goodwill reallocation


(6
)
6

Balance as of September 30, 2020
$

$
6
$

$
6
$
12
Gross Carrying Amount and Accumulated Amortization by Major Intangible Asset CategoryThe gross carrying amount and accumulated amortization by major intangible asset category as of September 30, 2020 and December 31, 2019 were as follows :
September 30, 2020
(in millions)
Gross Carrying Amount
Accumulated Amortization
Net
Weighted-Average Amortization Period
Technology-based
$
99
$
80
$
19
5 years
Kodak trade name
18

18
Indefinite life
Customer-related
11
8
3
3 years
Total
$
128
$
88
$
40
December 31, 2019
(in millions)
Gross Carrying Amount
Accumulated Amortization
Net
Weighted-Average Amortization Period
Technology-based
$
99
$
76
$
23
5 years
Kodak trade name
21

21
Indefinite life
Customer-related
11
8
3
4 years
Total
$
131
$
84
$
47
Estimated Future Amortization Expense Related to Intangible AssetsEstimated future amortization expense related to intangible assets that are currently being amortized as of September 30, 2020 is as follows:
(in millions)
Q4 2020
$
1
2021
5
2022
5
2023
4
2024
4
2025 and thereafter
3
Total
$
22

Note 6 - Other Current Liabil_2

Note 6 - Other Current Liabilities (Tables)9 Months Ended
Sep. 30, 2020
Other Liabilities Current [Abstract]
Summary of Other Current LiabilitiesSeptember 30,
December 31,
(in millions)
2020
2019
Deferred revenue
$
44
$
43
Employee related liabilities
42
38
Customer rebates (1)
18
23
Series A Preferred Stock dividends payable
3
14
Workers compensation
10
10
Restructuring liabilities
6
12
Deferred consideration on disposed businesses (2)

14
Transition services agreement prepayment

3
Other (3)
40
44
Total
$
163
$
201
(1)
The customer rebate amounts will potentially be settled through customer deductions applied to outstanding trade receivables in lieu of cash payments.
(2)
On September 3, 2013, Kodak consummated the sale of certain assets and the assumption of certain liabilities of the Personalized Imaging and Document Imaging Businesses (“PI/DI Businesses”) to the trustee of the U.K. pension plan (and/or its subsidiaries) for net cash consideration of $325 million. Up to $35 million in aggregate of the purchase price was subject to repayment if the PI/DI Business did not achieve certain annual adjusted EBITDA targets over the four-year period ending December 31, 2018. The PI/DI Business did not achieve the adjusted annual EBITDA target for any year in the four-year period. The amounts owed for 2015, 2016 and 2017 were paid in 2016, 2017 and 2019, respectively. The maximum potential payment related to the year ending December 31, 2018 of $14 million was accrued at the time of the divestiture of the business. The Company did not consider the procedural requirements giving rise to the obligation to pay the amount relating to the year ended December 31, 2018 to have been met. The PI/DI Businesses (operating as Kodak Alaris) filed suit against the Company alleging breach of contract based on the failure to pay the $14 million amount with respect to 2018. The Company filed counterclaims seeking contractual penalties related to late payments for goods and services provided by Kodak under various separate agreements. The Company and Kodak Alaris reached a settlement in June 2020 dismissing the actions and all claims and counterclaims asserted against each other and also amended existing supply agreements. As a part of the settlement agreement, $11 million of the deferred consideration on disposed businesses was offset against receivables of $11 million for goods and services owed to the Company by Kodak Alaris. Income of $3 million from the release of the remaining deferred consideration on disposed businesses will be recognized as revenue over the term of the amended supply agreements.
(3)
The Other component above consists of other miscellaneous current liabilities that, individually, were less than 5% of the current liabilities component within the Consolidated Statement of Financial Position as of the end of the preceding year, and therefore have been aggregated in accordance with Regulation S-X.

Note 7 - Other Long-term Liab_2

Note 7 - Other Long-term Liabilities (Tables)9 Months Ended
Sep. 30, 2020
Other Liabilities Noncurrent [Abstract]
Summary of Other Long-term LiabilitiesSeptember 30,
December 31,
(in millions)
2020
2019
Workers compensation
$
89
$
84
Asset retirement obligations
41
48
Deferred brand licensing revenue
16
18
Deferred taxes
30
13
Environmental liabilities
9
10
Convertible Notes embedded conversion option derivative liability

52
Preferred stock embedded conversion option derivative liability
9

Other
12
6
Total
$
206
$
231

Note 8 - Debt And Finance Lea_2

Note 8 - Debt And Finance Leases (Tables)9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]
Debt and Finance Leases and Related Maturities and Interest Rates(in millions)
Type
Maturity
Weighted-Average Effective Interest Rate
September 30, 2020
December 31, 2019
Current portion:
RED-Rochester, LLC
2033
11.46%
$
1
$
1
Finance leases
Various
Various
1
1
2
2
Non-current portion:
Convertible debt
2021
11.72%

91
RED-Rochester, LLC
2033
11.46%
12
13
Finance leases
Various
Various
3
4
Other debt
Various
Various
2
1
17
109
$
19
$
111
Loss on Early Extinguishment of DebtThe calculation of the loss on early extinguishment of debt is shown below:
(in millions)
Fair value of Initial Conversion Shares
$
506
Fair value of Mandatory Conversion Shares
13
Carrying value of Notes
(92
)
Fair value of pro-rata share of embedded derivative at Initial Conversion
(416
)
Fair value of pro-rata share of embedded derivative at Mandatory Conversion
(9
)
Total
$
2

Note 10 - Leases (Tables)

Note 10 - Leases (Tables)9 Months Ended
Sep. 30, 2020
Leases [Abstract]
Summary of Income Recognized on Lease ArrangementsIncome recognized on operating lease arrangements for the three and nine months ended September 30, 2020 and 2019 is presented below (income recognized for sales-type lease arrangements is $0 million for all periods):
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Lease income - operating leases:
Lease income
$
2
$
3
$
6
$
7
Sublease income

1
2
5
Variable lease income
1
1
3
3
Total lease income
$
3
$
5
$
11
$
15

Note 12 - Guarantees (Tables)

Note 12 - Guarantees (Tables)9 Months Ended
Sep. 30, 2020
Guarantees [Abstract]
Deferred Revenue, by Arrangement(in millions)
Deferred revenue on extended warranties as of December 31, 2019
$
21
Extended warranty and maintenance arrangements deferred in 2020
68
Recognition of extended warranty and maintenance arrangement revenue in 2020
(70
)
Deferred revenue on extended warranties as of September 30, 2020
$
19

Note 13 - Revenue (Tables)

Note 13 - Revenue (Tables)9 Months Ended
Sep. 30, 2020
Revenue From Contract With Customer [Abstract]
Disaggregated Revenue by Major Product, Product Portfolio Summary and GeographyThe following tables present revenue disaggregated by major product, portfolio summary and geography.
Three Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Plates, inks and other consumables
$
114
$
15
$
1
$

$

$
130
Ongoing service arrangements (1)
20
33



53
Total annuities
134
48
1


183
Equipment & software
12
8



20
Film and chemicals


39


39
Other (2)


4
3
3
10
Total
$
146
$
56
$
44
$
3
$
3
$
252
Nine Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Plates, inks and other consumables
$
330
$
45
$
4
$

$

$
379
Ongoing service arrangements (1)
60
97



157
Total annuities
390
142
4


536
Equipment & software
29
31



60
Film and chemicals


112


112
Other (2)

8
8
8
24
Total
$
419
$
173
$
124
$
8
$
8
$
732
Three Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Plates, inks and other consumables
$
138
$
20
$
3
$

$

$
161
Ongoing service arrangements (1)
22
38
1


61
Total annuities
160
58
4


222
Equipment & software
14
12



26
Film and chemicals


44


44
Other (2)
13

5
3
2
23
Total
$
187
$
70
$
53
$
3
$
2
$
315
Nine Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Plates, inks and other consumables
$
421
$
61
$
9
$

$

$
491
Ongoing service arrangements (1)
65
117
2


184
Total annuities
486
178
11


675
Equipment & software
35
33



68
Film and chemicals


125


125
Other (2)
13

17
8
7
45
Total
$
534
$
211
$
153
$
8
$
7
$
913
(1)
Service revenue in the Consolidated Statement of Operations includes the ongoing service revenue shown above as well as revenue from project-based document management and managed print services businesses, which is included in Other above.
(2)
Other includes revenue from professional services, non-recurring engineering services, print and managed media services, tenant rent and related property management services and licensing. Product Portfolio Summary:
Three Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Growth engines (1)
$
41
$
32
$
1
$
3
$

$
77
Strategic other businesses (2)
105
12
42

3
162
Planned declining businesses (3)

12
1


13
Total
$
146
$
56
$
44
$
3
$
3
$
252
Nine Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Growth engines (1)
$
112
$
98
$
2
$
8
$

$
220
Strategic other businesses (2)
307
37
115

8
467
Planned declining businesses (3)

38
7


45
Total
$
419
$
173
$
124
$
8
$
8
$
732
Three Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Growth engines (1)
$
44
$
32
$

$
3
$

$
79
Strategic other businesses (2)
143
20
47

2
212
Planned declining businesses (3)

18
6


24
Total
$
187
$
70
$
53
$
3
$
2
$
315
Nine Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
Growth engines (1)
$
128
$
99
$
2
$
8
$

$
237
Strategic other businesses (2)
406
56
130

7
599
Planned declining businesses (3)

56
21


77
Total
$
534
$
211
$
153
$
8
$
7
$
913
(1)
Growth engines consist of Sonora in the Traditional Printing segment, PROSPER and Software in the Digital Printing segment, brand licensing and Advanced Materials and Functional Printing in the Advanced Materials and Chemicals segment, excluding intellectual property (IP) licensing.
(2)
Strategic other businesses include plates in the Traditional Printing segment; Computer to Plate (“CTP”) equipment and related service and Nexpress and related toner business in the Digital Printing segment and Motion Picture and Industrial Film and Chemicals (including external inks) and IP licensing in the Advanced Materials and Chemicals segment.
(3)
Planned declining businesses are product lines where the decision has been made to stop new product development and manage an orderly expected decline in the installed product and annuity base or are otherwise not strategic to Kodak. These product families consist of Consumer Inkjet, Kodak Services for Business and Kodakit in the Advanced Materials and Chemicals segment and Versamark and Digimaster in the Digital Printing segment. Geography (1):
Three Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
United States
$
29
$
25
$
30
$
3
$
3
$
90
Canada
5
3



8
North America
34
28
30
3
3
98
Europe, Middle East and Africa
64
19
4


87
Asia Pacific
41
8
10


59
Latin America
7
1



8
Total
$
146
$
56
$
44
$
3
$
3
$
252
Nine Months Ended
September 30, 2020
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
United States
$
90
$
77
$
85
$
8
$
8
$
268
Canada
11
6
1


18
North America
101
83
86
8
8
286
Europe, Middle East and Africa
181
61
9


251
Asia Pacific
116
26
29


171
Latin America
21
3



24
Total
$
419
$
173
$
124
$
8
$
8
$
732
Three Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
United States
$
48
$
36
$
33
$
3
$
2
$
122
Canada
4
2
1


7
North America
52
38
34
3
2
129
Europe, Middle East and Africa
71
21
6


98
Asia Pacific
53
10
13


76
Latin America
11
1



12
Total
$
187
$
70
$
53
$
3
$
2
$
315
Nine Months Ended
September 30, 2019
(in millions)
Traditional Printing
Digital Printing
Advanced Materials and Chemicals
Brand
All Other
Total
United States
$
125
$
107
$
95
$
8
$
7
$
342
Canada
9
6
2


17
North America
134
113
97
8
7
359
Europe, Middle East and Africa
218
64
16


298
Asia Pacific
149
29
39


217
Latin America
33
5
1


39
Total
$
534
$
211
$
153
$
8
$
7
$
913
(1)
Sales are reported in the geographic area in which they originate.

Note 14 - Other Operating (In_2

Note 14 - Other Operating (Income) Expense, Net (Tables)9 Months Ended
Sep. 30, 2020
Other Operating Expense Income Net [Abstract]
Summary of Other Operating (Income) Expense, by ComponentThree Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Expense (income):
(Gain) loss on sale of assets (1)
$

$
12
$
(9
)
$
13
Asset impairments (2)


3

Transition services agreement income
(1
)
(2
)
(5
)
(4
)
Other



1
Total
$
(1
)
$
10
$
(11
)
$
10
(1)
In March 2020 Kodak sold a property in the U.S.
(2)
Refer to Note 5, “Goodwill and Other Intangible Assets”.

Note 15 - Other Charges, Net (T

Note 15 - Other Charges, Net (Tables)9 Months Ended
Sep. 30, 2020
Other Income And Expenses [Abstract]
Schedule of Other Charges, NetThree Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Change in fair value of embedded conversion features derivative liability (1)
$
431
$
4
$
382
$
3
Loss on foreign exchange transactions
1
3
6
4
Other

(1
)
(1
)

Total
$
432
$
6
$
387
$
7
(1)

Note 16 - Income Taxes (Tables)

Note 16 - Income Taxes (Tables)9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of Income Tax Provision and Effective Tax RateKodak’s income tax provision and effective tax rate were as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Loss from continuing operations before income taxes
$
(444
)
$
(3
)
$
(394
)
$
(16
)
Effective tax rate
(0.2
)%
(233.3
)%
(42.4
)%
(75.0
)%
Provision for income taxes
1
7
167
12
(Benefit) for income taxes at U.S. statutory tax rate
(93
)
(1
)
(83
)
(3
)
Difference between tax at effective vs. statutory rate
$
94
$
8
$
250
$
15

Note 17 - Restructuring Liabi_2

Note 17 - Restructuring Liabilities (Tables)9 Months Ended
Sep. 30, 2020
Restructuring And Related Activities [Abstract]
Restructuring Reserve ActivityThe activity in the accrued balances and the non-cash charges and credits incurred in relation to restructuring activities for the nine months ended September 30, 2020 were as follows:
(in millions)
Severance Reserve (1)
Exit Costs Reserve (1)
Long-lived Asset Impairments and Inventory Write-downs (1)
Total
Balance as of December 31, 2019
$
11
$
1
$

$
12
Q1 charges
6
1

7
Q1 utilization/cash payments
(7
)


(7
)
Q1 other adjustments and reclasses (2)
(1
)
(1
)

(2
)
Balance as of March 31, 2020
$
9
$
1
$

$
10
Q2 charges
$
1
$

$

$
1
Q2 utilization/cash payments
(3
)


(3
)
Balance as of June 30, 2020
$
7
$
1
$

$
8
Q3 charges
$
1
$

$

$
1
Q3 utilization/cash payments
(3
)


(3
)
Balance as of September 30, 2020
$
5
$
1
$

$
6
(1)
The severance and exit costs reserves require the outlay of cash, while long-lived asset impairments and inventory write-downs represent non-cash items.
(2)
Includes $(1) million of severance charges funded from pension plan assets, which were reclassified to Pension and other postretirement liabilities and $(1) million of currency translation impacts.

Note 18 - Retirement Plans an_2

Note 18 - Retirement Plans and Other Postretirement Benefits (Tables)9 Months Ended
Sep. 30, 2020
Compensation And Retirement Disclosure [Abstract]
Component of the Net Periodic benefit CostComponents of the net periodic benefit cost for all major U.S. and non-U.S. defined benefit plans are as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
(in millions)
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Major defined benefit plans:
Service cost
$
2
$
1
$
3
$

$
8
$
3
$
8
$
2
Interest cost
21
2
30
3
64
6
91
9
Expected return on plan assets
(48
)
(5
)
(53
)
(6
)
(146
)
(14
)
(160
)
(17
)
Amortization of:
Prior service credit
(2
)

(2
)

(5
)

(5
)

Actuarial loss
4
2

2
11
5

4
Net pension income before special termination benefits
(23
)

(22
)
(1
)
(68
)

(66
)
(2
)
Special termination benefits
1



2

2

Curtailment gain






(2
)

Net pension income from major plans
(22
)

(22
)
(1
)
(66
)

(66
)
(2
)
Other plans





1

(4
)
Total net pension (income) expense
$
(22
)
$

$
(22
)
$
(1
)
$
(66
)
$
1
$
(66
)
$
(6
)

Note 19 - Earnings Per Share (T

Note 19 - Earnings Per Share (Tables)9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]
Summary of Reconciliation of Basic and Diluted Earnings Per ShareA reconciliation of the amounts used to calculate basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019 follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Loss from continuing operations
$
(445
)
$
(10
)
$
(561
)
$
(28
)
Less: Series A convertible preferred stock cash dividend
(2
)
(2
)
(8
)
(8
)
Less: Series A convertible preferred stock deemed dividend
(3
)
(3
)
(7
)
(7
)
Loss from continuing operations available to common shareholders - basic and diluted
$
(450
)
$
(15
)
$
(576
)
$
(43
)
Net (loss) income
$
(445
)
$
(5
)
$
(561
)
$
178
Less: Series A convertible preferred stock cash dividend
(2
)
(2
)
(8
)
(8
)
Less: Series A convertible preferred stock deemed dividend
(3
)
(3
)
(7
)
(7
)
Net (loss) income available to common shareholders - basic and diluted
$
(450
)
$
(10
)
$
(576
)
$
163
(in millions of shares)
Weighted average shares — basic and diluted
64.8
43.0
50.8
43.0

Note 20 - Stock-based Compens_2

Note 20 - Stock-based Compensation (Tables)9 Months Ended
Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Restricted Stock Unit ActivityThe following table summarizes information about restricted stock unit activity for the nine months ended September 30, 2020:
Number of Restricted Stock Units
Weighted-Average Grant Date Fair Values
Outstanding on December 31, 2019
721,801
$
3.25
Granted
351,909
$
2.91
Vested
692,751
$
3.05
Outstanding on September 30, 2020
380,959
$
3.31
Stock Option ActivityThe following table summarizes information about stock option activity for the nine months ended September 30, 2020:
Shares Under Option
Weighted Exercise Price Per Share
Weighted Remaining Contractual Life (Years)
Aggregate Intrinsic Value ($ millions)
Outstanding on December 31, 2019
6,843,079
$
10.96
Granted
2,917,464
$
5.86
Exercised
2,019,187
$
14.51
Forfeited
27,075
$
12.50
Outstanding on September 30, 2020
7,714,281
$
8.09
5.09
$
23
Exercisable on September 30, 2020
6,858,431
$
8.49
4.91
$
19
Expected to vest September 30, 2020
855,850
$
4.91
6.52
$
4
Valuation of Option GrantsThe following inputs were used in the Black-Scholes valuation of option grants issued in each period:
Nine Months Ended
September 30,
2020
2019
Weighted-average fair value of options granted
$
1.50
$
1.73
Risk-free interest rate
2.43%
2.47%
Expected option lives
3.7 years
4.5 years
Expected volatility
98%
90%
Expected dividend yield
0.00%
0.00%
The following inputs were used in the lattice-based valuation of the July 27, 2020 option grants:
July 27, 2020
Option Awards
Weighted-average fair value of options granted
$
6.57
Range of risk-free interest rates
0.11% -0.30%
Weighted-average term
5.57 years
Weighted-average volatility
98%
Weighted-average expected dividend yield
0.00%

Note 22 - Other Comprehensive_2

Note 22 - Other Comprehensive (Loss) Income (Tables)9 Months Ended
Sep. 30, 2020
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]
Changes in Other Comprehensive (Loss) Income, by ComponentThe changes in Other comprehensive (loss) income, by component, were as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Currency translation adjustments
$
(1
)
$
(2
)
$
(17
)
$
2
Pension and other postretirement benefit plan changes
Newly established net actuarial gain


6
5
Tax Provision



(2
)
Newly established net actuarial gain, net of tax


6
3
Reclassification adjustments:
Amortization of prior service credit (a)
(2
)
(2
)
(6
)
(6
)
Amortization of actuarial losses (a)
5
1
15
3
Recognition of losses (gains) due to curtailments and settlements


1
(2
)
Total reclassification adjustments
3
(1
)
10
(5
)
Tax provision


(1
)

Reclassification adjustments, net of tax
3
(1
)
9
(5
)
Pension and other postretirement benefit plan changes, net of tax
3
(1
)
15
(2
)
Other comprehensive income (loss)
$
2
$
(3
)
$
(2
)
$

(a)

Note 23 - Segment Information (

Note 23 - Segment Information (Tables)9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by SegmentThree Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Traditional Printing
$
146
$
187
$
419
$
534
Digital Printing
56
70
173
211
Advanced Materials and Chemicals
44
53
124
153
Brand
3
3
8
8
All Other
3
2
8
7
Consolidated total
$
252
$
315
$
732
$
913
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Traditional Printing
$
5
$
21
$
7
$
36
Digital Printing
(3
)
(3
)
(8
)
(9
)
Advanced Materials and Chemicals
(6
)
(6
)
(22
)
(24
)
Brand
3
2
7
5
Total of reportable segments
(1
)
14
(16
)
8
All Other



(1
)
Depreciation and amortization
(9
)
(14
)
(29
)
(43
)
Restructuring costs and other
(1
)
(3
)
(9
)
(7
)
Stock based compensation
(17
)
(1
)
(18
)
(6
)
Consulting and other costs (1)
(4
)
(2
)
(5
)
(7
)
Idle costs (2)
(1
)
(1
)
(2
)
(4
)
Former CEO separation agreement compensation



(2
)
Other operating (loss) income, net, excluding income from transition services agreement (3)

(12
)
6
(14
)
Interest expense (4)
(3
)
(4
)
(11
)
(12
)
Pension income excluding service cost component (4)
26
26
79
79
Loss on early extinguishment of debt (4)
(2
)

(2
)

Other charges, net (4)
(432
)
(6
)
(387
)
(7
)
Consolidated loss from continuing operations before income taxes
$
(444
)
$
(3
)
$
(394
)
$
(16
) Kodak increased workers’ compensation reserves by approximately $9 million and $2 million in the third quarters of 2020 and 2019, respectively, driven by changes in discount rates. The increase in reserves in the third quarter of 2020 impacted gross profit by approximately $6 million, SG&A by approximately $2 million and R&D by approximately $1 million. The increase in reserves in the third quarter of 2019 impacted gross profit by approximately $1 million and SG&A by approximately $1 million.
(1)
Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives and investigations.
(2)
Consists of 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)
$1 million and $2 million of income from the transition services agreement with the Purchaser was recognized in the three months ended September 30, 2020 and 2019 Transition services income of $5 million and $4 million was recognized in the nine months ended September 30, 2020 and 2019, respectively. The income was reported in Other operating (income) expense, net in the Consolidated Statement of Operations. Other operating (income) expense, net is typically excluded from the segment measure. However, the income from the transition services agreement was included in the segment measure.
(4)
As reported in the Consolidated Statement of Operations.

Note 24 - Discontinued Operat_2

Note 24 - Discontinued Operations (Tables)9 Months Ended
Sep. 30, 2020
Flexographic Packaging Segment [Member]
Discontinued Operations for Flexographic Packaging SegmentThe results of operations of FPD are presented below:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Revenues
$

$

$

$
44
Cost of revenues



28
Selling, general and administrative expenses



10
Research and development costs



2
Interest expense



7
Gain on divestiture

(4
)

(214
)
Income from discontinued operations before taxes

4

211
Provision for income taxes

(1
)

5
Income from discontinued operations
$

$
5
$

$
206

Note 25 - Financial Instrumen_2

Note 25 - Financial Instruments (Tables)9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]
Derivatives Not Designated as Hedging InstrumentsThe net effect of foreign currency forward contracts in the results of operations is shown in the following table:
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2020
2019
2020
2019
Net (gain) loss from derivatives not designated as hedging instruments
$
(4
)
$
1
$
(6
)
$
(2
)
Derivative Liability Key Inputs in Determination of Fair Value for Embedded Conversion Features and Termination OptionThe following table presents the key inputs in the determination of fair value for the embedded conversion features and termination option derivatives at each conversion date:
Valuation Date
September 30,
August 3,
2020
2020
Total value of embedded derivative liability immediately prior to any extinguishment ($ millions)
$
9
$
429
Value of embedded derivative that expired ($ million)
$
9
$
416
Value of remaining embedded derivative liability ($ million)
$

$
13
Kodak's stock price (1)
$
8.82
$
16.91
Risk free rate
0.12
%
0.12
%
Yield on the Notes
8.93
%
9.47
% The following tables present the key inputs in the determination of fair value for the embedded conversion features and termination option derivatives: Notes:
Valuation Date
December 31,
2019
Value of embedded derivative liability ($ million)
$
51
Kodak's closing stock price
$
4.65
Expected stock price volatility
104.61
%
Risk free rate
1.58
%
Yield on the Notes
11.52
% Series A Preferred Stock:
Valuation Date
September 30,
December 31,
2020
2019
Total value of embedded derivative liability ($ millions)
$
9
$
1
Kodak's closing stock price
$
8.82
$
4.65
Expected stock price volatility
146.96
%
104.61
%
Risk free rate
0.12
%
1.58
%
Yield on the preferred stock
13.13
%
16.27
%

Note 1 - Basis of Presentatio_2

Note 1 - Basis of Presentation and Recent Accounting Pronouncements (Details Textual) - USD ($) $ in MillionsMay 12, 2020Sep. 30, 2020Sep. 30, 2019Dec. 31, 2019
Basis Of Presentation And Recent Accounting Pronouncements [Line Items]
Cash And Cash Equivalents $ 193 $ 233
Outstanding inter-company loans436 408
Short-Term Intercompany Loans138 110
Net increase (decrease) in cash, cash equivalents, restricted cash and cash in assets held for sale(49) $ 12 23
Net cash (used in) provided by operating activities(48) $ (4)12
Inter-company transactions amount transferred $ 70
ABL Credit Agreement [Member]
Basis Of Presentation And Recent Accounting Pronouncements [Line Items]
Long-term line of credit $ 87 80
Debt instrument, maturity dateMay 26,
2021
5.50% Series A Convertible Preferred Stock [Member]
Basis Of Presentation And Recent Accounting Pronouncements [Line Items]
Secured convertible notes, interest rate5.50%
United States [Member]
Basis Of Presentation And Recent Accounting Pronouncements [Line Items]
Cash And Cash Equivalents $ 108 72
Outside US [Member]
Basis Of Presentation And Recent Accounting Pronouncements [Line Items]
Cash And Cash Equivalents85 161
China [Member]
Basis Of Presentation And Recent Accounting Pronouncements [Line Items]
Cash And Cash Equivalents $ 23 $ 89

Note 2 - Schedule of Reconcilia

Note 2 - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019Sep. 30, 2019Dec. 31, 2018
Cash And Cash Equivalents [Abstract]
Cash and cash equivalents $ 193 $ 233
Restricted cash - current portion7 12
Restricted cash41 45
Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows $ 241 $ 290 $ 279 $ 267

Note 2 - Cash, Cash Equivalen_3

Note 2 - Cash, Cash Equivalents and Restricted Cash (Details Textual) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
MIR Bidco, SA [Member] | Flexographic Packaging Segment [Member]
Restricted Cash And Cash Equivalents Items [Line Items]
Cash collateral for guaranty $ 0 $ 4
ABL Credit Agreement [Member]
Restricted Cash And Cash Equivalents Items [Line Items]
Restricted cash21 22
China [Member] | Lucky HuaGuang Graphics Co Ltd [Member]
Restricted Cash And Cash Equivalents Items [Line Items]
Escrow deposit14 14
Brazil [Member]
Restricted Cash And Cash Equivalents Items [Line Items]
Restricted cash $ 3 $ 5

Note 3 - Inventories (Details)

Note 3 - Inventories (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods $ 115 $ 105
Work in process57 54
Raw materials60 56
Total $ 232 $ 215

Note 4 - Schedule of Other Long

Note 4 - Schedule of Other Long-Term Assets (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Other Assets Noncurrent Disclosure [Abstract]
Pension assets $ 252 $ 173
Estimated workers' compensation recoveries18 18
Long-term receivables, net of reserve of $4 and $4, respectively11 11
Other24 26
Total $ 305 $ 228

Note 4 - Schedule of Other Lo_2

Note 4 - Schedule of Other Long-Term Assets (Details) (Parentheticals) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Other Assets Noncurrent Disclosure [Abstract]
Reserve for long-term receivables $ 4 $ 4

Note 4 - Other Long-term Asse_3

Note 4 - Other Long-term Assets (Details Textual)Sep. 30, 2020
Maximum [Member]
Other Long-term Assets [Line Items]
Percentage of other long-term assets5.00%

Note 5 - Carrying Value of Good

Note 5 - Carrying Value of Goodwill by Reportable Segments (Details) $ in Millions9 Months Ended
Sep. 30, 2020USD ($)
Goodwill [Line Items]
Goodwill $ 76
Accumulated impairment losses(64)
Balance12
Balance12
Traditional Printing [Member]
Goodwill [Line Items]
Goodwill56
Accumulated impairment losses(56)
Digital Printing [Member]
Goodwill [Line Items]
Goodwill6
Balance6
Balance6
Advanced Materials and Chemicals [Member]
Goodwill [Line Items]
Goodwill14
Accumulated impairment losses(8)
Balance6
Goodwill reallocation(6)
Brand [Member]
Goodwill [Line Items]
Goodwill reallocation6
Balance $ 6

Note 5 - Goodwill and Other I_3

Note 5 - Goodwill and Other Intangible Assets (Details Textual)3 Months Ended6 Months Ended9 Months Ended12 Months Ended
Sep. 30, 2020USD ($)Mar. 31, 2020USD ($)Sep. 30, 2019USD ($)Jun. 30, 2020USD ($)Sep. 30, 2020USD ($)Sep. 30, 2019USD ($)Dec. 31, 2019USD ($)
Goodwill And Other Intangible Assets [Line Items]
Goodwill $ 12,000,000 $ 12,000,000 $ 12,000,000
Goodwill, Impairment Loss $ 0 $ 0
Interim impairment test0
Amortization of Intangible Assets1,000,000 $ 1,000,000 4,000,000 $ 4,000,000
Other Operating Expense [Member] | Trade Names [Member]
Goodwill And Other Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) $ 3,000,000
Digital Printing [Member]
Goodwill And Other Intangible Assets [Line Items]
Number of Reporting Units3
Goodwill6,000,000 $ 6,000,000 6,000,000
Advanced Materials and Chemicals [Member]
Goodwill And Other Intangible Assets [Line Items]
Number of Reporting Units3
Goodwill6,000,000
Traditional Printing [Member]
Goodwill And Other Intangible Assets [Line Items]
Number of Reporting Units1
Brand [Member]
Goodwill And Other Intangible Assets [Line Items]
Number of Reporting Units1
Goodwill $ 6,000,000 $ 6,000,000
Brand, Film and Imaging [Member]
Goodwill And Other Intangible Assets [Line Items]
Goodwill $ 6,000,000
Kodak Software [Member]
Goodwill And Other Intangible Assets [Line Items]
Number of Reporting Units1
Goodwill $ 6,000,000

Note 5 - Gross Carrying Amount

Note 5 - Gross Carrying Amount and Accumulated Amortization by Major Intangible Asset Category (Details) - USD ($) $ in Millions9 Months Ended12 Months Ended
Sep. 30, 2020Dec. 31, 2019
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Accumulated Amortization $ 88 $ 84
Intangible Assets Net22
Intangible assets gross128 131
Intangible assets net40 47
Trade Names [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount18 21
Technology-Based Intangible Assets [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount99 99
Accumulated Amortization80 76
Intangible Assets Net $ 19 $ 23
Weighted-Average Amortization Period5 years5 years
Customer-Related Intangible Assets [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount $ 11 $ 11
Accumulated Amortization8 8
Intangible Assets Net $ 3 $ 3
Weighted-Average Amortization Period3 years4 years

Note 5 - Estimated Future Amort

Note 5 - Estimated Future Amortization Expense Related to Intangible Assets (Details) $ in MillionsSep. 30, 2020USD ($)
Intangible Assets Gross Excluding Goodwill [Abstract]
Q4 2020 $ 1
20215
20225
20234
20244
2025 and thereafter3
Intangible Assets Net $ 22

Note 6 - Other Current Liabil_3

Note 6 - Other Current Liabilities (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Other Current Liabilities [Abstract]
Deferred revenue $ 44 $ 43
Employee related liabilities42 38
Customer rebates[1]18 23
Series A Preferred Stock dividends payable3 14
Workers compensation10 10
Restructuring liabilities6 12
Deferred consideration on disposed businesses[2]14
Transition services agreement prepayment3
Other[3]40 44
Total $ 163 $ 201
[1]The customer rebate amounts will potentially be settled through customer deductions applied to outstanding trade receivables in lieu of cash payments.
[2]On September 3, 2013, Kodak consummated the sale of certain assets and the assumption of certain liabilities of the Personalized Imaging and Document Imaging Businesses (“PI/DI Businesses”) to the trustee of the U.K. pension plan (and/or its subsidiaries) for net cash consideration of $325 million. Up to $35 million in aggregate of the purchase price was subject to repayment if the PI/DI Business did not achieve certain annual adjusted EBITDA targets over the four-year period ending December 31, 2018. The PI/DI Business did not achieve the adjusted annual EBITDA target for any year in the four-year period. The amounts owed for 2015, 2016 and 2017 were paid in 2016, 2017 and 2019, respectively. The maximum potential payment related to the year ending December 31, 2018 of $14 million was accrued at the time of the divestiture of the business. The Company did not consider the procedural requirements giving rise to the obligation to pay the amount relating to the year ended December 31, 2018 to have been met. The PI/DI Businesses (operating as Kodak Alaris) filed suit against the Company alleging breach of contract based on the failure to pay the $14 million amount with respect to 2018.  The Company filed counterclaims seeking contractual penalties related to late payments for goods and services provided by Kodak under various separate agreements. The Company and Kodak Alaris reached a settlement in June 2020 dismissing the actions and all claims and counterclaims asserted against each other and also amended existing supply agreements. As a part of the settlement agreement, $11 million of the deferred consideration on disposed businesses was offset against receivables of $11 million for goods and services owed to the Company by Kodak Alaris. Income of $3 million from the release of the remaining deferred consideration on disposed businesses will be recognized as revenue over the term of the amended supply agreements.
[3]The Other component above consists of other miscellaneous current liabilities that, individually, were less than 5% of the current liabilities component within the Consolidated Statement of Financial Position as of the end of the preceding year, and therefore have been aggregated in accordance with Regulation S-X.

Note 6 - Other Current Liabil_4

Note 6 - Other Current Liabilities (Details) (Parentheticals) - USD ($) $ in Millions1 Months Ended3 Months Ended9 Months Ended
Jun. 30, 2020Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019Dec. 31, 2019Dec. 31, 2018Sep. 03, 2013
Other Current Liabilities [Line Items]
Disposal group including discontinued operation consideration $ 325
Discontinued operation contingent consideration $ 35
Maximum potential payment related to deferred consideration on disposed businesses $ 14
Deferred consideration on disposed businesses offset against receivables $ 11
Goods and services owed to the Company $ 221 $ 262 $ 644 $ 778
Revenue from contract with customer60 60 $ 61
Kodak Alaris [Member]
Other Current Liabilities [Line Items]
Goods and services owed to the Company $ 11
Revenue from contract with customer $ 3 $ 3
Maximum [Member]
Other Current Liabilities [Line Items]
Percentage of current liabilities5.00%5.00%

Note 7 - Summary of Other Long-

Note 7 - Summary of Other Long-term Liabilities (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Other Long-term Liabilities [Line Items]
Workers compensation $ 89 $ 84
Asset retirement obligations41 48
Deferred brand licensing revenue16 18
Deferred taxes30 13
Environmental liabilities9 10
Other12 6
Total206 231
Convertible Notes [Member]
Other Long-term Liabilities [Line Items]
Embedded conversion option derivative liability $ 52
Preferred Stock [Member]
Other Long-term Liabilities [Line Items]
Embedded conversion option derivative liability $ 9

Note 7 - Other Long-term Liab_3

Note 7 - Other Long-term Liabilities (Details Textual)Sep. 30, 2020
Maximum [Member]
Other Long-term Liabilities [Line Items]
Percentage of other long-tern Liabilities5.00%

Note 8 - Debt and Finance Lea_3

Note 8 - Debt and Finance Leases and Related Maturities and Interest Rates (Details) - USD ($) $ in Millions9 Months Ended
Sep. 30, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Carrying Value $ 19 $ 111
Current Portion, Long-term Debt [Member]
Debt Instrument [Line Items]
Carrying Value2 2
Long-term Debt [Member]
Debt Instrument [Line Items]
Carrying Value $ 17 109
RED-Rochester, LLC [Member] | Current Portion, Long-term Debt [Member]
Debt Instrument [Line Items]
Maturity2033
Weighted-Average Effective Interest Rate11.46%
Carrying Value $ 1 1
RED-Rochester, LLC [Member] | Long-term Debt [Member]
Debt Instrument [Line Items]
Maturity2033
Weighted-Average Effective Interest Rate11.46%
Carrying Value $ 12 13
Finance leases [Member] | Current Portion, Long-term Debt [Member]
Debt Instrument [Line Items]
Carrying Value1 1
Finance leases [Member] | Long-term Debt [Member]
Debt Instrument [Line Items]
Carrying Value $ 3 4
Convertible Debt [Member] | Long-term Debt [Member]
Debt Instrument [Line Items]
Maturity2021
Weighted-Average Effective Interest Rate11.72%
Carrying Value91
Other Debt [Member] | Long-term Debt [Member]
Debt Instrument [Line Items]
Carrying Value $ 2 $ 1

Note 8 - Debt and Finance Lea_4

Note 8 - Debt and Finance Leases (Details Textual)Aug. 03, 2020USD ($)Jul. 29, 2020USD ($)d$ / sharessharesMar. 27, 2020USD ($)Mar. 26, 2020May 24, 2019USD ($)May 20, 2019USD ($)$ / sharesSep. 30, 2020USD ($)$ / sharessharesSep. 30, 2020USD ($)$ / sharesSep. 30, 2019USD ($)Mar. 31, 2020USD ($)Jan. 27, 2020USD ($)Jan. 26, 2020USD ($)Dec. 31, 2019USD ($)$ / shares
Debt And Capital Leases [Line Items]
Common stock, par value | $ / shares $ 0.01 $ 0.01 $ 0.01 $ 0.01
Proceeds from borrowings $ 14,000,000
ABL Credit Agreement [Member]
Debt And Capital Leases [Line Items]
Debt instrument, maturity dateMay 26,
2021
Line of credit facility, maximum borrowing capacity $ 110,000,000 $ 120,000,000 $ 150,000,000
Lender commitments, threshold trigger, excess availability amount13,750,000 $ 13,750,000 $ 13,750,000 $ 15,000,000 $ 18,750,000 $ 18,750,000
Excess availability and equipment availability combined with increases in available accounts receivable and inventory allowed to decrease eligible cash $ 13,000,000
Excess availability percentage of lender commitments threshold triggering cash dominion control12.50%12.50%12.50%
Long-term line of credit $ 87,000,000 $ 87,000,000 $ 80,000,000
Excess availability below which fixed charge coverage ratio is triggered12.50%12.50%
Excess availability amount $ 20,000,000 $ 20,000,000 22,000,000
ABL Credit Agreement [Member] | Restricted Cash [Member]
Debt And Capital Leases [Line Items]
Eligible cash21,000,000 21,000,000 $ 22,000,000
Amended Credit Facility [Member]
Debt And Capital Leases [Line Items]
Excess availability, calculation, percentage of eligible equipment70.00%75.00%
Excess availability, net orderly liquidation equipment amount $ 6,000,000 13,750,000 13,750,000 $ 14,750,000
Decrease in excess availability net orderly liquidation equipment amount1,000,000 $ 1,000,000
Debt instrument, amendment descriptionThe $14.75 million amount decreases by $1 million per quarter starting on July 1, 2020 until maturity or the amount is decreased to $0, whichever comes first.
Amended Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt And Capital Leases [Line Items]
Debt instrument, basis spread on variable rate3.50%2.25%
Amended Credit Facility [Member] | Minimum [Member] | Base Rate [Member]
Debt And Capital Leases [Line Items]
Debt instrument, basis spread on variable rate2.50%1.25%
Amended Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt And Capital Leases [Line Items]
Debt instrument, basis spread on variable rate4.00%2.75%
Amended Credit Facility [Member] | Maximum [Member] | Base Rate [Member]
Debt And Capital Leases [Line Items]
Debt instrument, basis spread on variable rate3.00%1.75%
Term Credit Agreement [Member]
Debt And Capital Leases [Line Items]
Prepayment of principal amount $ 83,000,000
5.00% Secured Convertible Notes Due 2021 [Member]
Debt And Capital Leases [Line Items]
Secured convertible notes $ 95,000,000 $ 100,000,000 5,000,000 $ 5,000,000
Secured convertible notes, interest rate5.00%
Secured convertible notes, due2021
Common stock, par value | $ / shares $ 0.01
Debt instrument, maturity dateNov. 1,
2021
Converted notes, conversion dateJul. 29,
2020
Debt instrument convertible trading days | d5
Conversion shares, issuance dateAug. 3,
2020
Accumulated interest on initial converted notes $ 5,600,000
Net proceeds received to derivative liability $ 14,000,000
Carrying value of stock at issuance84,000,000
Proceeds from borrowings $ 100,000,000
Fair value of derivative liability14,000,000
Transaction costs $ 2,000,000
5.00% Secured Convertible Notes Due 2021 [Member] | Common Stock [Member]
Debt And Capital Leases [Line Items]
Conversion of notes, shares issued | shares29,922,956
Mandatory Converted Notes [Member]
Debt And Capital Leases [Line Items]
Secured convertible notes $ 5,000,000 $ 5,000,000
Converted notes, conversion dateSep. 30,
2020
Mandatory Converted Notes [Member] | Common Stock [Member]
Debt And Capital Leases [Line Items]
Conversion of notes, shares issued | shares1,574,892

Note 8 - Loss on Early Extingui

Note 8 - Loss on Early Extinguishment of Debt (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2020
Extinguishment Of Debt Disclosures [Abstract]
Fair value of Initial Conversion Shares $ 506
Fair value of Mandatory Conversion Shares13
Carrying value of Notes(92)
Fair value of pro-rata share of embedded derivative at Initial Conversion(416)
Fair value of pro-rata share of embedded derivative at Mandatory Conversion(9)
Total $ 2 $ 2

Note 9 - Redeemable, Converti_2

Note 9 - Redeemable, Convertible Series A Preferred Stock (Details Textual)Nov. 15, 2016USD ($)MemberDirector$ / sharessharesJul. 31, 2020USD ($)Jun. 30, 2019USD ($)Mar. 31, 2019USD ($)Dec. 31, 2018USD ($)Sep. 30, 2018USD ($)Sep. 30, 2020Director$ / sharesshares
Temporary Equity [Line Items]
Expected number of members to nominate on conversion basis | Member2
Series A Redeemable Preferred Stock [Member] | Purchase Agreement [Member]
Temporary Equity [Line Items]
Preferred stock, number of shares issued | shares2,000,000
Gross proceeds from issuance of shares $ 200,000,000
Preferred stock, liquidation preference per share | $ / shares $ 100
Purchase agreement dateNov. 7,
2016
Series A Preferred Stock [Member]
Temporary Equity [Line Items]
Net proceeds received to derivative liability $ 43,000,000
Carrying value of Series A preferred stock at issuance155,000,000
Gross proceeds from preferred stock200,000,000
Fair value of derivative liability43,000,000
Transaction costs $ 2,000,000
Preferred stock, redemption dateNov. 15,
2021
Percentage of cash dividend payable on preferred stock5.50%
Number of additional directors to elect if dividends in arrears | Director2
Number of directors nominated by purchasers | Director2
Number of directors to nominate by preferred shareholders | Director1
Number of shares redeemed | shares0
Preferred stock, redemption price per share | $ / shares $ 100
Preferred stock conversion descriptionAs of September 30, 2020, the Series A Preferred Stock has not been converted and none of the anti-dilution provisions have been triggered. Any shares of Series A Preferred Stock not converted prior to the fifth anniversary of the initial issuance of the Series A Preferred Stock are required to be redeemed at $100 per share plus the amount of accrued and unpaid dividends
Dividend Declared [Member]
Temporary Equity [Line Items]
Dividends $ 11,000,000 $ 0 $ 0 $ 0 $ 0

Note 10 - Leases (Details Textu

Note 10 - Leases (Details Textual) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Leases [Abstract]
Income recognized for sales-type lease arrangements $ 0 $ 0 $ 0 $ 0

Note 10 - Summary of Income Rec

Note 10 - Summary of Income Recognized on Operating Lease Arrangements (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Lease income - operating leases:
Lease income $ 2 $ 3 $ 6 $ 7
Sublease income1 2 5
Variable lease income1 1 3 3
Total lease income $ 3 $ 5 $ 11 $ 15

Note 11 - Commitments and Con_2

Note 11 - Commitments and Contingencies (Details Textual) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Commitments And Contingencies [Line Items]
Restricted cash $ 48
BRAZIL
Commitments And Contingencies [Line Items]
Restricted Cash3 $ 5
Federal and State Value added Taxes Litigations and Civil Litigation and Disputes with Former Employees [Member] | BRAZIL
Commitments And Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss5
Threat of Expropriation of Assets [Member] | BRAZIL
Commitments And Contingencies [Line Items]
Restricted Cash3
Assets, Noncurrent40
ABL Credit Agreement [Member]
Commitments And Contingencies [Line Items]
Long-term line of credit87 80
Restricted Cash21 $ 22
Bank Guarantees and Letters of Credit [Member]
Commitments And Contingencies [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted2
Surety Bond [Member]
Commitments And Contingencies [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted $ 29

Note 12 - Guarantees (Details T

Note 12 - Guarantees (Details Textual)9 Months Ended
Sep. 30, 2020USD ($)a
Warranty Arrangements Period [Member]
Guarantee Obligations [Line Items]
Extended Warranty Period1 year
Amended Eastman Business Park Settlement Agreement [Member]
Guarantee Obligations [Line Items]
Accrual for Environmental Loss Contingencies $ 0
Maximum [Member]
Guarantee Obligations [Line Items]
Environmental Settlement Historical Liabilities Trigger Amount $ 99,000,000
Percentage of Liability Above 99 Million50.00%
Extended Warranty Period6 years
Minimum [Member]
Guarantee Obligations [Line Items]
Extended Warranty Period3 months
Eastman Business Park [Member] | Minimum [Member]
Guarantee Obligations [Line Items]
Area of Real Estate Property | a1,200

Note 12 - Guarantees (Details)

Note 12 - Guarantees (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Guarantee Obligations [Line Items]
Deferred revenue on extended warranties as of December 31, 2019 $ 61
Recognition of extended warranty and maintenance arrangement revenue in 2020 $ (4) $ (4)(35) $ (34)
Deferred revenue on extended warranties as of September 30, 202060 60
Extended Warranty Arrangements [Member]
Guarantee Obligations [Line Items]
Deferred revenue on extended warranties as of December 31, 201921
Extended warranty and maintenance arrangements deferred in 202068
Recognition of extended warranty and maintenance arrangement revenue in 2020(70)
Deferred revenue on extended warranties as of September 30, 2020 $ 19 $ 19

Note 13 - Disaggregated Revenue

Note 13 - Disaggregated Revenue - Major Product (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Total[1] $ 252 $ 315 $ 732 $ 913
Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]146 187 419 534
Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]56 70 173 211
Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[1]44 53 124 153
Brand [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 3 8 8
All Other [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 2 8 7
Plates, Inks And Other Consumables [Member]
Disaggregation Of Revenue [Line Items]
Total130 161 379 491
Plates, Inks And Other Consumables [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total114 138 330 421
Plates, Inks And Other Consumables [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total15 20 45 61
Plates, Inks And Other Consumables [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total1 3 4 9
Ongoing service arrangements [Member]
Disaggregation Of Revenue [Line Items]
Total[2]53 61 157 184
Ongoing service arrangements [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[2]20 22 60 65
Ongoing service arrangements [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[2]33 38 97 117
Ongoing service arrangements [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[2]1 2
Total Annuities [Member]
Disaggregation Of Revenue [Line Items]
Total183 222 536 675
Total Annuities [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total134 160 390 486
Total Annuities [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total48 58 142 178
Total Annuities [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total1 4 4 11
Equipment And Software [Member]
Disaggregation Of Revenue [Line Items]
Total20 26 60 68
Equipment And Software [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total12 14 29 35
Equipment And Software [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total8 12 31 33
Film And Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total39 44 112 125
Film And Chemicals [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total39 44 112 125
Other [Member]
Disaggregation Of Revenue [Line Items]
Total[3]10 23 24 45
Other [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[3]13 13
Other [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[3]4 5 8 17
Other [Member] | Brand [Member]
Disaggregation Of Revenue [Line Items]
Total[3]3 3 8 8
Other [Member] | All Other [Member]
Disaggregation Of Revenue [Line Items]
Total[3] $ 3 $ 2 $ 8 $ 7
[1]Sales are reported in the geographic area in which they originate.
[2]Service revenue in the Consolidated Statement of Operations includes the ongoing service revenue shown above as well as revenue from project-based document management and managed print services businesses, which is included in Other above.
[3]Other includes revenue from professional services, non-recurring engineering services, print and managed media services, tenant rent and related property management services and licensing.

Note 13 - Disaggregated Reven_2

Note 13 - Disaggregated Revenue - Product Portfolio Summary (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Total[1] $ 252 $ 315 $ 732 $ 913
Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]146 187 419 534
Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]56 70 173 211
Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[1]44 53 124 153
Brand [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 3 8 8
All Other [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 2 8 7
Growth Engines [Member]
Disaggregation Of Revenue [Line Items]
Total[2]77 79 220 237
Growth Engines [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[2]41 44 112 128
Growth Engines [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[2]32 32 98 99
Growth Engines [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[2]1 2 2
Growth Engines [Member] | Brand [Member]
Disaggregation Of Revenue [Line Items]
Total[2]3 3 8 8
Strategic Other Businesses [Member]
Disaggregation Of Revenue [Line Items]
Total[3]162 212 467 599
Strategic Other Businesses [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[3]105 143 307 406
Strategic Other Businesses [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[3]12 20 37 56
Strategic Other Businesses [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[3]42 47 115 130
Strategic Other Businesses [Member] | All Other [Member]
Disaggregation Of Revenue [Line Items]
Total[3]3 2 8 7
Planned Declining Businesses [Member]
Disaggregation Of Revenue [Line Items]
Total[4]13 24 45 77
Planned Declining Businesses [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[4]12 18 38 56
Planned Declining Businesses [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[4] $ 1 $ 6 $ 7 $ 21
[1]Sales are reported in the geographic area in which they originate.
[2]Growth engines consist of Sonora in the Traditional Printing segment, PROSPER and Software in the Digital Printing segment, brand licensing and Advanced Materials and Functional Printing in the Advanced Materials and Chemicals segment, excluding intellectual property (IP) licensing.
[3]Strategic other businesses include plates in the Traditional Printing segment; Computer to Plate (“CTP”) equipment and related service and Nexpress and related toner business in the Digital Printing segment and Motion Picture and Industrial Film and Chemicals (including external inks) and IP licensing in the Advanced Materials and Chemicals segment.
[4]Planned declining businesses are product lines where the decision has been made to stop new product development and manage an orderly expected decline in the installed product and annuity base or are otherwise not strategic to Kodak. These product families consist of Consumer Inkjet, Kodak Services for Business and Kodakit in the Advanced Materials and Chemicals segment and Versamark and Digimaster in the Digital Printing segment.

Note 13 - Disaggregated Reven_3

Note 13 - Disaggregated Revenue - Geography (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Total[1] $ 252 $ 315 $ 732 $ 913
Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]146 187 419 534
Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]56 70 173 211
Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[1]44 53 124 153
Brand [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 3 8 8
All Other [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 2 8 7
United States [Member]
Disaggregation Of Revenue [Line Items]
Total[1]90 122 268 342
United States [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]29 48 90 125
United States [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]25 36 77 107
United States [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[1]30 33 85 95
United States [Member] | Brand [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 3 8 8
United States [Member] | All Other [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 2 8 7
Canada [Member]
Disaggregation Of Revenue [Line Items]
Total[1]8 7 18 17
Canada [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]5 4 11 9
Canada [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 2 6 6
Canada [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[1]1 1 2
North America [Member]
Disaggregation Of Revenue [Line Items]
Total[1]98 129 286 359
North America [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]34 52 101 134
North America [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]28 38 83 113
North America [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[1]30 34 86 97
North America [Member] | Brand [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 3 8 8
North America [Member] | All Other [Member]
Disaggregation Of Revenue [Line Items]
Total[1]3 2 8 7
Europe, Middle East and Africa [Member]
Disaggregation Of Revenue [Line Items]
Total[1]87 98 251 298
Europe, Middle East and Africa [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]64 71 181 218
Europe, Middle East and Africa [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]19 21 61 64
Europe, Middle East and Africa [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[1]4 6 9 16
Asia Pacific [Member]
Disaggregation Of Revenue [Line Items]
Total[1]59 76 171 217
Asia Pacific [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]41 53 116 149
Asia Pacific [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]8 10 26 29
Asia Pacific [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[1]10 13 29 39
Latin America [Member]
Disaggregation Of Revenue [Line Items]
Total[1]8 12 24 39
Latin America [Member] | Traditional Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1]7 11 21 33
Latin America [Member] | Digital Printing [Member]
Disaggregation Of Revenue [Line Items]
Total[1] $ 1 $ 1 $ 3 5
Latin America [Member] | Advanced Materials and Chemicals [Member]
Disaggregation Of Revenue [Line Items]
Total[1] $ 1
[1]Sales are reported in the geographic area in which they originate.

Note 13 - Revenue (Details Text

Note 13 - Revenue (Details Textual) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019Dec. 31, 2019
Disaggregation Of Revenue [Line Items]
Contract liabilities $ 60 $ 60 $ 61
Contract liabilities, current44 44 43
Revenue recognized, contract liabilities4 $ 4 35 $ 34
Contract with customer, cash payments received for liabilities that have been deferred21 $ 26 31 $ 43
Other Current Assets [Member]
Disaggregation Of Revenue [Line Items]
Contract assets2 2 4
Other Current Liabilities [Member]
Disaggregation Of Revenue [Line Items]
Contract liabilities, current44 44 43
Other Long-Term Liabilities [Member]
Disaggregation Of Revenue [Line Items]
Contract liabilities, non-current $ 16 $ 16 $ 18

Note 13 - Revenue (Details Te_2

Note 13 - Revenue (Details Textual 1) $ in MillionsSep. 30, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01
Disaggregation Of Revenue [Line Items]
Unrecognized revenue from unsatisfied performance obligations $ 70
Unsatisfied performance obligations, expected to be recognized10.00%
Unsatisfied performance obligations, expected timing of satisfaction3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01
Disaggregation Of Revenue [Line Items]
Unsatisfied performance obligations, expected to be recognized30.00%
Unsatisfied performance obligations, expected timing of satisfaction1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01
Disaggregation Of Revenue [Line Items]
Unsatisfied performance obligations, expected to be recognized20.00%
Unsatisfied performance obligations, expected timing of satisfaction1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01
Disaggregation Of Revenue [Line Items]
Unsatisfied performance obligations, expected to be recognized40.00%
Unsatisfied performance obligations, expected timing of satisfaction

Note 14 - Summary of Other Oper

Note 14 - Summary of Other Operating (Income) Expense, Net (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Expense (income):
(Gain) loss on sale of assets[1] $ 12 $ (9) $ 13
Asset impairments[2]3
Transition services agreement income $ (1)(2)(5)(4)
Other1
Total $ (1) $ 10 $ (11) $ 10
[1]In March 2020 Kodak sold a property in the U.S.
[2]Refer to Note 5, “Goodwill and Other Intangible Assets”.

Note 15 - Other Charges, Net (D

Note 15 - Other Charges, Net (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Other Income And Expenses [Abstract]
Change in fair value of embedded conversion features derivative liability[1] $ 431 $ 4 $ 382 $ 3
Loss on foreign exchange transactions1 3 6 4
Other(1)(1)
Total $ 432 $ 6 $ 387 $ 7
[1]Refer to Note 25, “Financial Instruments”.

Note 16 - Income Taxes - Schedu

Note 16 - Income Taxes - Schedule of Income Tax Provision and Effective Tax Rate (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Income Tax Disclosure [Abstract]
Loss from continuing operations before income taxes $ (444) $ (3) $ (394) $ (16)
Effective tax rate(0.20%)(233.30%)(42.40%)(75.00%)
Provision for income taxes $ 1 $ 7 $ 167 $ 12
(Benefit) for income taxes at U.S. statutory tax rate(93)(1)(83)(3)
Difference between tax at effective vs. statutory rate $ 94 $ 8 $ 250 $ 15

Note 16 - Income Taxes (Details

Note 16 - Income Taxes (Details Textual) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Mar. 31, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019Feb. 21, 2020Dec. 31, 2019
Schedule Of Income Taxes [Line Items]
U.S. corporate income tax rate21.00%21.00%21.00%21.00%
Deferred Tax Assets, Valuation Allowance $ 821
Foreign Tax Authority [Member]
Schedule Of Income Taxes [Line Items]
Deferred Tax Assets, Valuation Allowance168
Deferred Tax Assets, Net of Valuation Allowance322
Domestic Tax Authority [Member]
Schedule Of Income Taxes [Line Items]
Deferred Tax Assets, Valuation Allowance653
Deferred Tax Assets, Net of Valuation Allowance $ 633
Domestic Tax Authority [Member] | IRS [Member]
Schedule Of Income Taxes [Line Items]
Liability for Uncertain Tax Positions, Current $ 41
Valuation Allowance of Deferred Tax Assets [Member]
Schedule Of Income Taxes [Line Items]
Provision associated with establishment of valuation allowance on deferred tax assets $ 167 $ 167

Note 17 - Restructuring Liabi_3

Note 17 - Restructuring Liabilities - Restructuring Reserve Activity (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Sep. 30, 2020
Restructuring Cost And Reserve [Line Items]
Beginning Balance $ 8 $ 10 $ 12 $ 12
Charges1 1 7
Utilization/cash payments(3)(3)(7)
Other adjustments and reclasses[1](2)
Ending Balance6 8 10 6
Severance Reserve [Member]
Restructuring Cost And Reserve [Line Items]
Beginning Balance[2]7 9 11 11
Charges[2]1 1 6
Utilization/cash payments[2](3)(3)(7)
Other adjustments and reclasses[1],[2](1)
Ending Balance[2]5 7 9 5
Exit Costs Reserve [Member]
Restructuring Cost And Reserve [Line Items]
Beginning Balance[2]1 1 1 1
Charges[2]1
Other adjustments and reclasses[1],[2](1)
Ending Balance[2] $ 1 $ 1 $ 1 $ 1
[1]Includes $(1) million of severance charges funded from pension plan assets, which were reclassified to Pension and other postretirement liabilities and $(1) million of currency translation impacts.
[2]The severance and exit costs reserves require the outlay of cash, while long-lived asset impairments and inventory write-downs represent non-cash items.

Note 17 - Restructuring Liabi_4

Note 17 - Restructuring Liabilities - Restructuring Reserve Activity (Details) (Parenthetical) $ in Millions3 Months Ended
Mar. 31, 2020USD ($)
Restructuring And Related Activities [Abstract]
Severance Costs $ (1)
Currency translation impacts $ (1)

Note 17 - Restructuring Liabi_5

Note 17 - Restructuring Liabilities (Details Textual) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020USD ($)PositionJun. 30, 2020USD ($)Mar. 31, 2020USD ($)Sep. 30, 2020USD ($)Position
Restructuring Cost And Reserve [Line Items]
Restructuring Costs | $ $ 1 $ 1 $ 7
Restructuring and Related Cost, Number of Positions Eliminated40 130
US and Canada [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring and Related Cost, Number of Positions Eliminated35 75
World Excluding US and Canada [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring and Related Cost, Number of Positions Eliminated5 55
Manufacturing Service Positions [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring and Related Cost, Number of Positions Eliminated5 25
Administrative and Sales Positions [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring and Related Cost, Number of Positions Eliminated35 105
Restructuring costs and other [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring Costs | $ $ 1 $ 9

Note 18 - Component of the Net

Note 18 - Component of the Net Periodic benefit Cost - (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Pension Income Expense From Continuing And Discontinued Operations For Major Defined Benefit Plans [Line Items]
Total net pension (income) expense $ (65) $ (72)
Defined Benefit Plans [Member] | U.S. [Member]
Pension Income Expense From Continuing And Discontinued Operations For Major Defined Benefit Plans [Line Items]
Service cost $ 2 $ 3 8 8
Interest cost21 30 64 91
Expected return on plan assets(48)(53)(146)(160)
Prior service credit(2)(2)(5)(5)
Actuarial loss4 11
Net pension income before special termination benefits(23)(22)(68)(66)
Special termination benefits1 2 2
Curtailment gain(2)
Net pension income from major plans(22)(22)(66)(66)
Total net pension (income) expense(22)(22)(66)(66)
Defined Benefit Plans [Member] | Non-US [Member]
Pension Income Expense From Continuing And Discontinued Operations For Major Defined Benefit Plans [Line Items]
Service cost1 3 2
Interest cost2 3 6 9
Expected return on plan assets(5)(6)(14)(17)
Actuarial loss $ 2 2 5 4
Net pension income before special termination benefits(1)(2)
Net pension income from major plans(1)(2)
Other plans1 (4)
Total net pension (income) expense $ (1) $ 1 $ (6)

Note 19 - Summary of Reconcilia

Note 19 - Summary of Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Sep. 30, 2020Sep. 30, 2019
Earnings Per Share [Abstract]
Loss from continuing operations $ (445) $ (10) $ (561) $ (28)
Less: Series A convertible preferred stock cash dividend(2) $ (3) $ (3)(2) $ (3) $ (3)(8)(8)
Less: Series A convertible preferred stock deemed dividend(3) $ (2) $ (2)(3) $ (2) $ (2)(7)(7)
Loss from continuing operations available to common shareholders - basic and diluted(450)(15)(576)(43)
Net (loss) income(445)(5)(561)178
Net (loss) income available to common shareholders - basic and diluted $ (450) $ (10) $ (576) $ 163
Weighted average shares — basic and diluted64.8 43 50.8 43

Note 19 - Earnings Per Share (D

Note 19 - Earnings Per Share (Details Textual) - USD ($) shares in Millions, $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Convertible Notes [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount, value $ 100 $ 100
Series A Preferred Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount2 2 2 2
Restricted Stock Units [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities included to the computation of earnings per share, amount0.6 0.6 0.5 0.6
Employee Stock Option [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities included to the computation of earnings per share, amount1.2 1.2 1.2 1.2
Antidilutive securities excluded from computation of earnings per share, amount3.1 8.9 3.6 9

Note 20 - Stock-based Compens_3

Note 20 - Stock-based Compensation (Details Textual) - USD ($)Jul. 27, 2020Sep. 30, 2020Sep. 30, 2020Sep. 30, 2019
Stock Based Compensation [Line Items]
Share-based compensation arrangement by share-based payment award, stock options, grants2,917,464
Options exercised2,000,000 2,019,187
Stock Options [Member]
Stock Based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period7 years
Allocated Share-based Compensation Expense $ 18,000,000 $ 4,000,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 3,900,000 $ 3,900,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition1 year 8 months 12 days
Share-based compensation arrangement by share-based payment award, stock options, grants2,400,000
Share-based compensation arrangement by share-based payment award, award vesting, percentage100.00%
Share-based compensation arrangement by share-based payment award, accelerated vesting, number1,800,000
Options exercised2,000,000
Stock issued during period shares stock options exercised during period previously been forfeited300,000 300,000
Compensation expense associated with stock options exercised by ex-employees been forfeited $ 5,100,000
Proceeds from sale of shares $ 3,900,000
Refund of withholding taxes on behalf of ex-employees3,000,000 $ 3,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) $ 8.91 $ 2.47
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value $ 13,000,000 $ 7,000,000
Stock Options [Member] | Selling, General and Administrative Expenses [Member] | Awarded on July 27, 2020 [Member]
Stock Based Compensation [Line Items]
Allocated Share-based Compensation Expense $ 11,800,000
Stock Options [Member] | Share-based Payment Arrangement, Tranche One [Member]
Stock Based Compensation [Line Items]
Share-based compensation arrangement by share-based payment award, stock options, grants1,800,000
Restricted Stock Units (RSUs) [Member]
Stock Based Compensation [Line Items]
Weighted average grant date fair value $ 2.91 $ 2.85
Fair value of restricted stock units vested $ 2,000,000 $ 2,000,000
Omnibus Incentive Plan 2013 [Member]
Stock Based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period3 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)8,000,000 8,000,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Maximum Fair Value of Awards Per Non-Employee Director $ 450,000 $ 450,000
Omnibus Incentive Plan 2013 [Member] | Incentive Stock Options [Member] | Maximum [Member]
Stock Based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)2,000,000 2,000,000
Omnibus Incentive Plan 2013 [Member] | Stock Options and Stock Appreciation Rights [Member]
Stock Based Compensation [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee (in Shares)2,500,000
Omnibus Incentive Plan 2013 [Member] | Unvested Restricted Stock Awards [Member]
Stock Based Compensation [Line Items]
Allocated Share-based Compensation Expense $ 1,000,000 $ 2,000,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 400,000 $ 400,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition3 months 18 days

Note 20 - Restricted Stock Unit

Note 20 - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Restricted Stock Unit Activity [Line Items]
Number of Restricted Units, Outstanding721,801
Number of Restricted Units, Granted351,909
Number of Restricted Units, Vested692,751
Number of Restricted Units, Outstanding380,959
Weighted-Average Grant Date Fair Values, Outstanding $ 3.25
Weighted-Average Grant Date Fair Values, Granted2.91 $ 2.85
Weighted-Average Grant Date Fair Values, Vested3.05
Weighted-Average Grant Date Fair Values, Outstanding $ 3.31

Note 20 - Stock Option Activity

Note 20 - Stock Option Activity (Details) $ / shares in Units, $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020USD ($)$ / sharessharesSep. 30, 2020USD ($)$ / sharesshares
Stock Option Activity [Abstract]
Shares Under Option, Outstanding | shares6,843,079
Shares Under Option, Granted | shares2,917,464
Shares Under Option, Exercised | shares2,000,000 2,019,187
Shares Under Option, Forfeited | shares27,075
Shares Under Option, Outstanding | shares7,714,281 7,714,281
Shares Under Option, Exercisable | shares6,858,431 6,858,431
Shares Under Option, Expected to vest | shares855,850 855,850
Weighted Average Exercise Price Per Share, Outstanding | $ / shares $ 10.96
Weighted Average Exercise Price Per Share, Granted | $ / shares5.86
Weighted Average Exercise Price Per Share, Exercised | $ / shares14.51
Weighted Average Exercise Price Per Share, Forfeited | $ / shares12.50
Weighted Average Exercise Price Per Share, Outstanding | $ / shares $ 8.09 8.09
Weighted Average Exercise Price Per Share, Exercisable | $ / shares8.498.49
Weighted Average Exercise Price Per Share, Expected to vest | $ / shares $ 4.91 $ 4.91
Weighted Average Remaining Contractual Life, Outstanding5 years 1 month 2 days
Weighted Average Remaining Contractual Life, Exercisable4 years 10 months 28 days
Weighted Average Remaining Contractual Life, Expected to vest6 years 6 months 7 days
Aggregate Intrinsic Value, Outstanding | $ $ 23 $ 23
Aggregate Intrinsic Value, Exercisable | $19 19
Aggregate Intrinsic Value, Expected to vest | $ $ 4 $ 4

Note 20 - Black-Scholes Valuati

Note 20 - Black-Scholes Valuation of Option Grants (Details) - Black-Scholes Valuation [Member] - $ / shares9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average fair value of options granted $ 1.50 $ 1.73
Risk-free interest rate2.43%2.47%
Expected option lives3 years 8 months 12 days4 years 6 months
Expected volatility98.00%90.00%
Expected dividend yield0.00%0.00%

Note 20 - Lattice-based Valuati

Note 20 - Lattice-based Valuation of Option Grants (Details) - Lattice-based Valuation [Member] - Stock Options [Member]Jul. 27, 2020$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average fair value of options granted $ 6.57
Range of risk-free interest rates0.11%
Range of risk-free interest rates0.30%
Weighted-average term5 years 6 months 25 days
Weighted-average volatility98.00%
Weighted-average expected dividend yield0.00%

Note 21 - Shareholders' Equity

Note 21 - Shareholders' Equity (Details Textual) - $ / shares3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2020Dec. 31, 2019May 20, 2019
Shareholders Equity [Line Items]
Stock Authorized560,000,000 560,000,000
Common Stock, Shares Authorized500,000,000 500,000,000
Common Stock, Par or Stated Value Per Share $ 0.01 $ 0.01 $ 0.01 $ 0.01
Preferred Stock, Shares Authorized60,000,000 60,000,000
Preferred Stock, No Par Value $ 0 $ 0
Common Stock, Shares, Outstanding77,300,000 77,300,000 43,200,000
Conversion of notes, shares issued31,500,000
Options exercised2,000,000 2,019,187
Treasury Stock, Shares700,000 700,000 700,000
Series A Preferred Stock [Member]
Shareholders Equity [Line Items]
Preferred Stock, Shares Outstanding2,000,000 2,000,000 2,000,000
Preferred Stock, Shares Issued2,000,000 2,000,000 2,000,000

Note 22 - Changes in Other Comp

Note 22 - Changes in Other Comprehensive (Loss) Income, by Component (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract]
Currency translation adjustments $ (1) $ (2) $ (17) $ 2
Newly established net actuarial gain6 5
Tax Provision(2)
Newly established net actuarial gain, net of tax6 3
Amortization of prior service credit[1](2)(2)(6)(6)
Amortization of actuarial losses[1]5 1 15 3
Recognition of losses (gains) due to curtailments and settlements1 (2)
Total reclassification adjustments3 (1)10 (5)
Tax provision(1)
Reclassification adjustments, net of tax3 (1)9 (5)
Pension and other postretirement benefit plan changes, net of tax3 (1)15 $ (2)
Other comprehensive income (loss), net of tax $ 2 $ (3) $ (2)
[1]Reclassified to Total Net Periodic Benefit Cost - refer to Note 18, "Retirement Plans and Other Postretirement Benefits".

Note 23 - Segment Information_2

Note 23 - Segment Information (Details Textual) $ in Millions3 Months Ended
Sep. 30, 2020USD ($)aSep. 30, 2019USD ($)
Segment Reporting Information [Line Items]
Increase (Reduction) in reserves impacted $ 9 $ 2
Gross Profit [Member]
Segment Reporting Information [Line Items]
Increase (Reduction) in reserves impacted6 1
Selling, General and Administrative Expenses [Member]
Segment Reporting Information [Line Items]
Increase (Reduction) in reserves impacted2 $ 1
R&D [Member]
Segment Reporting Information [Line Items]
Increase (Reduction) in reserves impacted $ 1
Eastman Business Park [Member] | Minimum [Member]
Segment Reporting Information [Line Items]
Area of Real Estate Property | a1,200

Note 23 - Revenues and Loss fro

Note 23 - Revenues and Loss from Continuing Operations (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Segment Reporting Information [Line Items]
Revenues[1] $ 252 $ 315 $ 732 $ 913
Depreciation and amortization(29)(43)
Restructuring costs and other(1)(3)(9)(7)
Interest expense(3)(4)(11)(12)
Pension income excluding service cost component26 26 79 79
Loss on early extinguishment of debt(2)(2)
Other charges, net(432)(6)(387)(7)
Loss from continuing operations before income taxes(444)(3)(394)(16)
Continuing Operations [Member]
Segment Reporting Information [Line Items]
Revenues252 315 732 913
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization(1)14 (16)8
Depreciation and amortization(9)(14)(29)(43)
Restructuring costs and other(1)(3)(9)(7)
Stock based compensation(17)(1)(18)(6)
Consulting and other costs[2](4)(2)(5)(7)
Idle costs[3](1)(1)(2)(4)
Former CEO separation agreement compensation(2)
Other operating (loss) income, net, excluding income from transition services agreement[4](12)6 (14)
Interest expense[5](3)(4)(11)(12)
Pension income excluding service cost component[5]26 26 79 79
Loss on early extinguishment of debt[5](2)(2)
Other charges, net[5](432)(6)(387)(7)
Loss from continuing operations before income taxes(444)(3)(394)(16)
Continuing Operations [Member] | Traditional Printing [Member] | Operating Segments
Segment Reporting Information [Line Items]
Revenues146 187 419 534
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization5 21 7 36
Continuing Operations [Member] | Digital Printing [Member] | Operating Segments
Segment Reporting Information [Line Items]
Revenues56 70 173 211
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization(3)(3)(8)(9)
Continuing Operations [Member] | Advanced Materials and Chemicals [Member] | Operating Segments
Segment Reporting Information [Line Items]
Revenues44 53 124 153
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization(6)(6)(22)(24)
Continuing Operations [Member] | Brand [Member] | Operating Segments
Segment Reporting Information [Line Items]
Revenues3 3 8 8
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization3 2 7 5
Continuing Operations [Member] | All Other [Member] | Operating Segments
Segment Reporting Information [Line Items]
Revenues $ 3 $ 2 $ 8 7
Earnings (losses) Before Interest, Taxes, Depreciation, and Amortization $ (1)
[1]Sales are reported in the geographic area in which they originate.
[2]Consulting and other costs are primarily professional services and internal costs associated with certain corporate strategic initiatives and investigations.
[3]Consists of 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.
[4]$1 million and $2 million of income from the transition services agreement with the Purchaser was recognized in the three months ended September 30, 2020 and 2019 Transition services income of $5 million and $4 million was recognized in the nine months ended September 30, 2020 and 2019, respectively. The income was reported in Other operating (income) expense, net in the Consolidated Statement of Operations. Other operating (income) expense, net is typically excluded from the segment measure. However, the income from the transition services agreement was included in the segment measure.
[5]As reported in the Consolidated Statement of Operations.

Note 23 - Revenues and Loss f_2

Note 23 - Revenues and Loss from Continuing Operations (Parenthetical) (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Continuing Operations [Member] | MIR Bidco, SA [Member] | Other Operating (Expense) Income, Net [Member]
Segment Reporting Information [Line Items]
Income from transition services agreement with purchaser $ 1 $ 2 $ 5 $ 4

Note 24 - Discontinued Operat_3

Note 24 - Discontinued Operations (Details Textual) - USD ($) $ in MillionsJul. 01, 2019Apr. 08, 2019Sep. 30, 2019Dec. 31, 2019Sep. 03, 2013
Discontinued Operations [Line Items]
Disposal group including discontinued operation consideration $ 325
Flexographic Packaging Segment [Member] | Term Credit Agreement [Member]
Discontinued Operations [Line Items]
Repayment of loans using proceeds from sale of business $ 312
Flexographic Packaging Segment [Member] | MIR Bidco, SA [Member] | Stock and Asset Purchase Agreement (SAPA) [Member]
Discontinued Operations [Line Items]
Disposal group including discontinued operation consideration $ 320
Discontinued operation consideration payment for deferred closing $ 5.9
Disposal group including discontinued operation promissory notes1.4
Disposal group including discontinued operation economic benefit from operation in china $ 0.2
Gain recognized after-tax on divestiture $ 212 $ 212

Note 24 - Discontinued Operat_4

Note 24 - Discontinued Operations for Flexographic Packaging Segment (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Discontinued Operations [Line Items]
Revenues[1] $ 252 $ 315 $ 732 $ 913
Cost of revenues221 262 644 778
Selling, general and administrative expenses56 48 138 161
Research and development costs8 11 25 33
Interest expense3 4 11 12
Provision for income taxes $ 1 7 $ 167 12
Income from discontinued operations5 206
Flexographic Packaging Segment [Member]
Discontinued Operations [Line Items]
Revenues44
Cost of revenues28
Selling, general and administrative expenses10
Research and development costs2
Interest expense7
Gain on divestiture(4)(214)
Income from discontinued operations before taxes4 211
Provision for income taxes(1)5
Income from discontinued operations $ 5 $ 206
[1]Sales are reported in the geographic area in which they originate.

Note 25 - Financial Instrumen_3

Note 25 - Financial Instruments (Details Textual) - USD ($) $ in MillionsAug. 03, 2020Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019Dec. 31, 2019
Embedded conversion features and term extension option expense $ 407
Remaining embedded conversion features and term extension option net expense $ 9
Fair Value, Inputs, Level 2 [Member]
Long-term Debt, Fair Value $ 17 $ 17 $ 111
Forward Contracts [Member]
Gross fair value of foreign currency in an asset position2 2 1
Gross fair value of foreign currency in a liability position0 0 0
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member]
Derivative Asset, Notional Amount350 350 $ 332
Designated as Hedging Instrument [Member]
Derivatives Hedging Instruments $ 0 $ 0 $ 0 $ 0

Note 25 - Derivatives Not Desig

Note 25 - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Financial Instruments Owned At Fair Value [Abstract]
Net (gain) loss from derivatives not designated as hedging instruments $ (4) $ 1 $ (6) $ (2)

Note 25 - Derivative Liability

Note 25 - Derivative Liability Key Inputs in Determination of Fair Value for Embedded Conversion Features and Termination Option (Details) - Fair Value, Inputs, Level 3 [Member] $ / shares in Units, $ in MillionsSep. 30, 2020USD ($)$ / sharesAug. 03, 2020USD ($)$ / sharesDec. 31, 2019USD ($)$ / shares
Series A Preferred Stock [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Total value of embedded derivative liability immediately prior to any extinguishment ($ millions) $ 9 $ 1
Kodak's stock price | $ / shares $ 8.82 $ 4.65
Total value of embedded derivative liability immediately prior to any extinguishment ($ millions) $ (9) $ (1)
Risk Free Rate [Member] | Series A Preferred Stock [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Alternate measurement input percentage0.121.58
Measurement Input, Expected Dividend Rate | Series A Preferred Stock [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Alternate measurement input percentage13.1316.27
Expected stock price volatility [Member] | Series A Preferred Stock [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Alternate measurement input percentage146.96104.61
Notes [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Total value of embedded derivative liability immediately prior to any extinguishment ($ millions) $ 9 $ 429
Value of embedded derivative that expired ($ million) $ 9 416
Value of remaining embedded derivative liability ($ million) $ 13
Kodak's stock price | $ / shares $ 8.82 [1] $ 16.91 [1] $ 4.65
Total value of embedded derivative liability immediately prior to any extinguishment ($ millions) $ (9) $ (429)
Value of embedded derivative liability ($ million) $ 51
Notes [Member] | Risk Free Rate [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Alternate measurement input percentage0.120.121.58
Notes [Member] | Measurement Input, Expected Dividend Rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Alternate measurement input percentage8.939.4711.52
Notes [Member] | Expected stock price volatility [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Alternate measurement input percentage104.61
[1]The closing stock price was used for the September 30, 2020 valuation. The weighted average stock price based on the time of day the shares were transferred was used for the August 3, 2020 valuation.