Eastman Kodak Co. Files 2023 Annual Report on Form 10-K
Ticker: KODK · Form: 10-K · Filed: Mar 14, 2024 · CIK: 31235
Sentiment: neutral
Topics: 10-K, Eastman Kodak, Licensing Agreements, Deferred Revenue, Financial Reporting
TL;DR
<b>Eastman Kodak Co. filed its 2023 10-K, detailing financial performance and significant licensing agreements that generated $57 million in deferred revenue.</b>
AI Summary
EASTMAN KODAK CO (KODK) filed a Annual Report (10-K) with the SEC on March 14, 2024. Eastman Kodak Co. filed its 2023 Form 10-K on March 14, 2024, reporting on its fiscal year ended December 31, 2023. The company's business address is 343 State St, Rochester, NY 14650-0910, with a phone number of 5857244000. No single non-U.S. country accounted for more than 10% of net sales in 2023, 2022, or 2021. In Q3 2023, Kodak entered into long-term brand licensing arrangements, recording approximately $57 million in deferred revenue. Of the $57 million in deferred revenue, $54 million is classified as Other long-term liabilities and $3 million as Other current liabilities.
Why It Matters
For investors and stakeholders tracking EASTMAN KODAK CO, this filing contains several important signals. The significant deferred revenue from licensing arrangements indicates potential future revenue streams, but also a long-term recognition period (5-20 years) which impacts immediate financial reporting. The company's diversified sales geographically, with no single country exceeding 10% of net sales, suggests a degree of resilience against country-specific economic downturns.
Risk Assessment
Risk Level: medium — EASTMAN KODAK CO shows moderate risk based on this filing. The company's reliance on long-term licensing agreements for significant revenue recognition ($57 million deferred) introduces a medium-term risk due to the extended period (5-20 years) over which this revenue will be recognized, potentially masking current operational performance.
Analyst Insight
Monitor the ratable recognition of the $57 million deferred revenue over the next 5-20 years to assess its impact on future financial statements and profitability.
Executive Compensation
| Name | Title | Total Compensation |
|---|---|---|
| David E. Bullwinkle | Chief Financial Officer and Senior Vice President | 518289 |
| Roger W. Byrd | Secretary and Senior Vice President | 135201 |
Key Numbers
- 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
- 20240314 — Filing Date (FILED AS OF DATE)
- 57000000 — Deferred Revenue (from licensing arrangements in Q3 2023)
- 54000000 — Other long-term liabilities (portion of deferred revenue)
- 3000000 — Other current liabilities (portion of deferred revenue)
- 8000000 — Cash proceeds (related to licensing arrangements in Q3 2023)
- 44000000 — Trade Receivables, net (offset from licensing arrangements)
- 5000000 — Other long-term assets (offset from licensing arrangements)
Key Players & Entities
- EASTMAN KODAK CO (company) — FILER
- 0000031235 (company) — CENTRAL INDEX KEY
- 343 STATE ST (company) — BUSINESS ADDRESS STREET 1
- ROCHESTER (company) — BUSINESS ADDRESS CITY
- NY (company) — BUSINESS ADDRESS STATE
- 14650-0910 (company) — BUSINESS ADDRESS ZIP
- 5857244000 (company) — BUSINESS PHONE
- David E. Bullwinkle (person) — Chief Financial Officer and Senior Vice President
FAQ
When did EASTMAN KODAK CO file this 10-K?
EASTMAN KODAK CO filed this Annual Report (10-K) with the SEC on March 14, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by EASTMAN KODAK CO (KODK).
Where can I read the original 10-K filing from EASTMAN KODAK CO?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by EASTMAN KODAK CO.
What are the key takeaways from EASTMAN KODAK CO's 10-K?
EASTMAN KODAK CO filed this 10-K on March 14, 2024. Key takeaways: Eastman Kodak Co. filed its 2023 Form 10-K on March 14, 2024, reporting on its fiscal year ended December 31, 2023.. The company's business address is 343 State St, Rochester, NY 14650-0910, with a phone number of 5857244000.. No single non-U.S. country accounted for more than 10% of net sales in 2023, 2022, or 2021..
Is EASTMAN KODAK CO a risky investment based on this filing?
Based on this 10-K, EASTMAN KODAK CO presents a moderate-risk profile. The company's reliance on long-term licensing agreements for significant revenue recognition ($57 million deferred) introduces a medium-term risk due to the extended period (5-20 years) over which this revenue will be recognized, potentially masking current operational performance.
What should investors do after reading EASTMAN KODAK CO's 10-K?
Monitor the ratable recognition of the $57 million deferred revenue over the next 5-20 years to assess its impact on future financial statements and profitability. The overall sentiment from this filing is neutral.
Risk Factors
- Deferred Revenue Recognition [medium — financial]: The company recognized approximately $57 million in deferred revenue from long-term brand licensing arrangements, to be recognized ratably over 5 to 20 years.
Filing Stats: 4,339 words · 17 min read · ~14 pages · Grade level 14.7 · Accepted 2024-03-14 16:15:02
Key Financial Figures
- $0.01 — ch registered Common stock, par value $0.01 per share KODK New York Stock Excha
Filing Documents
- ekc20231231_10k.htm (10-K) — 4727KB
- ex_632155.htm (EX-10.19) — 30KB
- ex_632136.htm (EX-10.20) — 131KB
- ex_598598.htm (EX-21) — 42KB
- ex_598599.htm (EX-23.1) — 9KB
- ex_598600.htm (EX-31.1) — 12KB
- ex_598601.htm (EX-31.2) — 12KB
- ex_598602.htm (EX-32.1) — 6KB
- ex_598603.htm (EX-32.2) — 6KB
- ex_634069.htm (EX-97) — 20KB
- compgraph01.jpg (GRAPHIC) — 38KB
- 0001437749-24-007849.txt ( ) — 24509KB
- kodk-20231231.xsd (EX-101.SCH) — 189KB
- kodk-20231231_cal.xml (EX-101.CAL) — 131KB
- kodk-20231231_def.xml (EX-101.DEF) — 1203KB
- kodk-20231231_lab.xml (EX-101.LAB) — 972KB
- kodk-20231231_pre.xml (EX-101.PRE) — 1287KB
- ekc20231231_10k_htm.xml (XML) — 5766KB
Business
Business 3 Item 1A.
Risk Factors
Risk Factors 8 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 28 Item 2.
Properties
Properties 29 Item 3.
Legal Proceedings
Legal Proceedings 29 Item 4. Mine Safety Disclosures 29 Information About Our Executive Officers 30 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32 Item 6. Reserved 33 Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Liquidity and Capital Resources 43 Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 54 Item 8.
Financial Statements and Supplementary Data
Financial Statements and Supplementary Data 54 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 129 Item 9A.
Controls and Procedures
Controls and Procedures 129 Item 9B. Other Information 130 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 130 Part III Item 10. Directors, Executive Officers and Corporate Governance 131 Item 11.
Executive Compensation
Executive Compensation 131 Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 131 Item 13. Certain Relationships and Related Transactions, and Director Independence 132 Item 14. Principal Accounting Fees and Services 132 Part IV Item 15. Financial Statement Schedules, Exhibits 133 Index to Exhibits 134 Item 16. Form 10-K Summary. 138
Signatures
Signatures 139 2 Table of Contents PART I ITEM 1.
BUSINESS
BUSINESS When used in this report, unless otherwise indicated, "we," "our," "us," the "Company" and "Kodak" refer to the consolidated company on the basis of consolidation described in Note 1 to the consolidated financial statements in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K Report. Kodak is a global manufacturer focused on commercial print and advanced materials and chemicals. With 79,000 patents earned over 130 years of research and development ("R&D"), Kodak believes in the power of technology and science to enhance what the world sees and creates. Kodak's innovative, award-winning products, combined with its customer-first approach, make us the partner of choice for commercial printers worldwide. Kodak is committed to environmental stewardship, including industry leadership in developing sustainable solutions for print. The Company was founded by George Eastman in 1880 and incorporated in 1901 in the State of New Jersey. Kodak is headquartered in Rochester, New York. DESCRIPTION OF THE BUSINESS Kodak's operations are classified into three reportable segments: Print, Advanced Materials and Chemicals, and Brand. The balance of Kodak's continuing operations, which do not meet the criteria of a reportable segment, are reported in All Other and primarily represent the Eastman Business Park ("EBP") operations. Print The Print segment is comprised of five lines of business: the Prepress Solutions business, the PROSPER business, the Software business, the Electrophotographic Printing Solutions business and the Versamark business. Print segment products include digital offset plate offerings and computer-to-plate ("CTP") imaging solutions, high-quality digital printing solutions using electrically charged toner-based technology, production press systems, consumables (primarily ink), inkjet components, software and services. The Print segment serves a variety of commercial industries, including commercial print, direct ma
RISK FACTORS
ITEM 1A. RISK FACTORS Kodak operates in rapidly changing economic and technological environments which present numerous risks and uncertainties. The risk factors described below, if realized, could have a material adverse effect on Kodak's business, financial condition, and results of operations and make an investment in our securities risky. You should carefully consider these risks and uncertainties in addition to other information contained in this Annual Report on Form 10-K, including the Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") section and the consolidated financial statements and related notes. Summary of Risk Factors The following is a summary of the risk factors Kodak faces. The list is not exhaustive, and investors should read this "Risk Factors" section in full. Some of the risks Kodak faces include: 8 Table of Contents Summary of Risks Related to Kodak ' s Business and Operations Kodak ' s business, financial condition and results of operations have been and may continue to be adversely affected by global economic and geopolitical conditions, including wars and other hostilities, medical epidemics, inflation, rising interest rates, and slowdowns in customer demand. The ability to generate positive operating cash flows will be necessary for Kodak to continue to operate our business. If Kodak is unable to continue successful development, funding, and commercialization of products in businesses upon which we are focused or do so within an acceptable timeframe, Kodak ' s financial performance could be adversely affected. If Kodak is unable to successfully or timely implement cost structure reductions, Kodak ' s business, financial condition and results of operations could be negatively affected. The loss of one or more of Kodak ' s key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business. If Kodak cannot effectively ant