Part I [Business](index=4&type=section&id=Item%201.%20Business) Eastman Kodak Company is a global manufacturer specializing in commercial print, advanced materials, and chemicals, structured into four key segments - Kodak is a global manufacturer focused on commercial print and advanced materials and chemicals, operating through four reportable segments[18](index=18&type=chunk)[20](index=20&type=chunk) Revenue Contribution by Segment (2020-2022) | Segment | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Traditional Printing | 59% | 57% | 58% | | Digital Printing | 19% | 22% | 23% | | Industrial Film and Chemicals | 15% | 14% | 13% | - As of January 1, 2023, Kodak employed approximately **4,200** employees across **35** countries[49](index=49&type=chunk) - The company's business experiences seasonality, with printing equipment and plate unit sales typically higher in the fourth quarter[41](index=41&type=chunk) [Traditional Printing](index=4&type=section&id=Traditional%20Printing) The largest segment, Traditional Printing, focuses on Prepress Solutions, including digital offset plates and CTP imaging, generating recurring revenue - The Traditional Printing segment's core business is Prepress Solutions, including digital offset plates and CTP imaging solutions, generating recurring revenue from plate sales[21](index=21&type=chunk)[23](index=23&type=chunk) - A key product, KODAK SONORA Process Free Plates, offers environmental and efficiency benefits by eliminating chemical processing steps[25](index=25&type=chunk) - This segment faces challenges from higher raw material costs, digital substitution, and competitive pricing pressures[22](index=22&type=chunk) [Digital Printing](index=5&type=section&id=Digital%20Printing) The Digital Printing segment offers inkjet systems and workflow software, with a focus on recurring revenue from consumables, despite ceasing some printer manufacturing - The segment offers PROSPER inkjet presses, PRINERGY workflow software, and Electrophotographic Printing Solutions (NEXFINITY, ASCEND)[28](index=28&type=chunk)[29](index=29&type=chunk)[35](index=35&type=chunk) - Kodak ceased manufacturing NEXFINITY and ASCEND electrophotographic printers in December 2022 but continues to provide consumables and service for the installed base[35](index=35&type=chunk) - The business focuses on developing its next-generation inkjet platform, Ultrastream, for packaging and décor applications[29](index=29&type=chunk) [Advanced Materials and Chemicals](index=6&type=section&id=Advanced%20Materials%20and%20Chemicals) This segment encompasses Industrial Film and Chemicals, Motion Picture, and Advanced Materials, focusing on specialty chemicals and growth initiatives like EV battery materials - The segment's lines of business include Industrial Film and Chemicals, Motion Picture, and Advanced Materials and Functional Printing[32](index=32&type=chunk) - Kodak Alaris is a major customer, representing about **32%** of the segment's revenues in 2022[32](index=32&type=chunk) - Growth initiatives include producing KSMs for pharmaceuticals, specialty materials for EV batteries, light-blocking particles for textiles, and printed transparent antennas[39](index=39&type=chunk) [Brand](index=7&type=section&id=Brand) The Brand segment generates revenue by licensing the Kodak brand to third parties for various consumer products, aiming for ongoing royalty streams - This segment's revenue is derived from licensing the Kodak brand to third parties for use on a range of consumer products[39](index=39&type=chunk) [Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company identifies numerous risks across business operations, indebtedness, legal compliance, and common stock, which could materially affect its financial condition [Risks Related to Business and Operations](index=12&type=section&id=Risks%20Related%20to%20Kodak's%20Business%20and%20Operations) Kodak faces significant operational risks from global economic conditions, supply chain disruptions, cyber-attacks, and reliance on third-party suppliers, impacting cash flow and new product commercialization - Global economic conditions, including the COVID-19 pandemic, the war in Ukraine, inflation, and rising interest rates, adversely affect Kodak's business through increased costs and supply chain disruptions[59](index=59&type=chunk)[67](index=67&type=chunk)[70](index=70&type=chunk) - Generating positive operating cash flow is critical for business continuity, as recent operations have relied on financing and monetization transactions[59](index=59&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - Cyber-attacks and data security incidents pose significant risks, potentially disrupting operations, compromising confidential information, and leading to costly litigation[59](index=59&type=chunk)[89](index=89&type=chunk) - Kodak relies on third-party suppliers, facing risks of supply shortages, price increases, and logistical disruptions, especially for single-source components[64](index=64&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) [Risks Related to Indebtedness and Access to Capital Markets](index=22&type=section&id=Risks%20Related%20to%20Kodak's%20Indebtedness%20and%20Access%20to%20Capital%20Markets) Substantial debt obligations and a non-investment grade credit rating limit Kodak's capital access and investment capacity, with ABL availability tied to declining asset levels - The company has substantial obligations under its Term Loan, ABL Credit Agreement, and other facilities, requiring significant cash flow for servicing and potentially hindering operations funding[61](index=61&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - Borrowing availability under the ABL Credit Agreement is limited by eligible asset values, and declining asset levels could restrict access[61](index=61&type=chunk)[123](index=123&type=chunk)[125](index=125&type=chunk) - Kodak's non-investment grade credit rating may adversely impact commercial operations, increase liquidity requirements, and raise refinancing costs[61](index=61&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) [Legal, Regulatory and Compliance Risks](index=24&type=section&id=Legal%20Regulatory%20and%20Compliance%20Risks) Kodak faces significant legal and regulatory risks from DFC-related investigations, non-compliance with global laws, and potential future pension obligations - Legal proceedings and investigations related to the July 2020 DFC loan announcement could materially affect the company's reputation, financial condition, and stock price[62](index=62&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - Failure to comply with complex global laws, including anti-corruption, economic sanctions, and data privacy regulations, could result in significant penalties and reputational harm[62](index=62&type=chunk)[139](index=139&type=chunk)[142](index=142&type=chunk) - Future pension and postretirement benefit costs could be unfavorably impacted by changes in actuarial assumptions or market performance, potentially requiring significant cash contributions[68](index=68&type=chunk)[151](index=151&type=chunk) [Risks Related to the Company's Common Stock](index=27&type=section&id=Risks%20Related%20to%20the%20Company's%20Common%20Stock) Common stockholders face risks from potential dilution by convertible securities, significant voting power of preferred holders, and stock price volatility due to registered share resales - The conversion of outstanding Series B Preferred Stock, Series C Preferred Stock, and 2021 Convertible Notes may dilute the value and ownership percentage of current common stockholders[66](index=66&type=chunk)[155](index=155&type=chunk) - Holders of Series C Preferred Stock and 2021 Convertible Notes have significant voting power and board nomination rights, potentially influencing corporate actions[66](index=66&type=chunk)[158](index=158&type=chunk)[161](index=161&type=chunk) - The company has registered a large number of shares for resale, and their sale or perceived sale could cause the common stock price to decline[66](index=66&type=chunk)[163](index=163&type=chunk) - The company's stock price has been and may continue to be volatile, influenced by company announcements, operating results, and DFC-related investigations[66](index=66&type=chunk)[165](index=165&type=chunk) [Properties](index=29&type=section&id=Item%202.%20Properties) Kodak's global operations include 11 million square feet owned and 4 million square feet leased space, with headquarters in Rochester, New York, and key manufacturing sites worldwide - Kodak owns **11 million** square feet and leases **4 million** square feet of space worldwide, with headquarters at Eastman Business Park in Rochester, New York[167](index=167&type=chunk)[170](index=170&type=chunk) Principal Manufacturing Facilities by Segment | Digital Printing | Traditional Printing | Advanced Materials and Chemicals | | :--- | :--- | :--- | | Rochester, New York, USA | Rochester, New York, USA | Rochester, New York, USA | | Dayton, Ohio, USA | Columbus, Georgia, USA | Xiamen, China | | Vancouver, Canada | Osterode, Germany | Vancouver, Canada | | Shanghai, China | Gunma, Japan | | [Information About Our Executive Officers](index=30&type=section&id=Information%20About%20Our%20Executive%20Officers) This section provides biographical information for Kodak's executive officers, including the Executive Chairman and CEO, CFO, General Counsel, Chief Accounting Officer, and Chief Technical Officer Executive Officers | Name | Age | Positions Held | | :--- | :--- | :--- | | James V. Continenza | 60 | Executive Chairman and Chief Executive Officer | | David E. Bullwinkle | 48 | Chief Financial Officer, Senior Vice President and President of Eastman Business Park | | Roger W. Byrd | 57 | General Counsel, Secretary and Senior Vice President | | Richard T. Michaels | 49 | Chief Accounting Officer and Corporate Controller | | Terry R. Taber | 68 | Chief Technical Officer, Vice President, Senior Vice President Advanced Materials and Chemicals | Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Kodak's common stock trades on the NYSE under "KODK"; no dividends were paid in 2021-2022, with payments potentially restricted by credit agreements - Kodak's common stock is listed on the NYSE under the symbol **"KODK"**[192](index=192&type=chunk) - No dividends on common stock were declared or paid during 2022 or 2021, with payments potentially restricted by credit and preferred stock agreements[193](index=193&type=chunk)[194](index=194&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=33&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, consolidated revenues increased by **5%** to **$1.205 billion**, driven by pricing improvements despite currency impacts, as Kodak navigates economic volatility and focuses on strategic growth and liquidity management - Consolidated revenues for the year ended December 31, 2022, were **$1.205 billion**, a **5%** increase from 2021, despite a **$70 million** unfavorable currency impact[206](index=206&type=chunk) - The company's operations are impacted by global economic volatility, including supply chain disruptions, inflation, and the war in Ukraine, leading to increased costs and volume declines[208](index=208&type=chunk) - Kodak's strategy focuses on investing in print, advanced materials, and chemicals, growing revenues, promoting film use, and continuing cost reductions[218](index=218&type=chunk) - The company ended 2022 with a cash balance of **$217 million**, a decrease of **$145 million** from December 31, 2021[250](index=250&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) In 2022, Kodak's revenues increased by **$55 million** to **$1.205 billion**, with net earnings rising to **$26 million**, driven by pricing improvements and reduced SG&A expenses Consolidated Results of Operations (2021 vs. 2022) | (in millions) | 2022 | 2021 | $ Change | | :--- | :--- | :--- | :--- | | Revenues | $1,205 | $1,150 | $55 | | Gross profit | $170 | $164 | $6 | | Selling, general and administrative expenses | $153 | $177 | ($24) | | Earnings from continuing operations before income taxes | $31 | $28 | $3 | | NET EARNINGS | $26 | $24 | $2 | - SG&A expenses decreased by **$24 million** in 2022, primarily due to lower consulting and litigation costs, including a **$10 million** insurance reimbursement[226](index=226&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Kodak's liquidity, at **$217 million** cash in 2022, is managed through credit facilities, despite increased cash used in operations, with long-term funding dependent on refinancing and positive cash flow generation Cash Flow Summary (2021 vs. 2022) | (in millions) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($116) | ($47) | | Net cash used in investing activities | ($56) | ($20) | | Net cash provided by financing activities | $43 | $238 | | Net decrease in cash, cash equivalents and restricted cash | ($137) | $167 | - The company's cash balance decreased by **$145 million** to **$217 million** at year-end 2022, including proceeds from a **$50 million** term loan offset by a **$25 million** investment in Wildcat[250](index=250&type=chunk) - Kodak is required to maintain Minimum Liquidity of at least **$80 million** quarterly, with **$150 million** reported as of December 31, 2022[258](index=258&type=chunk) Contractual Obligations as of December 31, 2022 | (in millions) | Total | 2023 | 2024 | 2025 | 2026 | 2027 | 2028+ | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Long-term debt | $379 | $1 | $2 | $1 | $366 | $1 | $8 | | Interest payments on debt | $99 | $31 | $29 | $29 | $6 | $1 | $3 | | Operating lease obligations | $68 | $20 | $12 | $7 | $6 | $5 | $18 | | Purchase obligations | $50 | $25 | $19 | $4 | $1 | $1 | — | | Convertible preferred stock cash dividends | $13 | $4 | $4 | $4 | $1 | — | — | | **Total** | **$609** | **$81** | **$66** | **$45** | **$380** | **$8** | **$29** | [Critical Accounting Policies and Estimates](index=49&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's financial statements rely on critical accounting policies and estimates for revenue recognition, long-lived asset valuation, embedded derivatives, income taxes, and pension benefits - Goodwill impairment testing as of December 31, 2022, indicated fair value of reporting units substantially exceeded carrying values, resulting in no impairment[296](index=296&type=chunk) - The annual impairment test for the Kodak trade name resulted in a **$1 million** pre-tax impairment charge in 2022, driven by lower forecasted revenues[299](index=299&type=chunk) - As of December 31, 2022, Kodak maintained a valuation allowance of **$826 million** against net deferred tax assets of **$799 million**, primarily due to uncertainty about asset realization[306](index=306&type=chunk)[597](index=597&type=chunk) - Pension plan assumptions are critical, with a **25 basis point** decrease in discount rate estimated to increase 2023 U.S. plan pre-tax pension expense by **$6 million** and PBO by **$46 million**[325](index=325&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Kodak is exposed to market risks from foreign currency, commodity prices, and interest rates, with hedging strategies in place and limited interest rate risk due to fixed-rate debt - The company is exposed to market risk from foreign currency exchange rates, commodity prices, and interest rates[337](index=337&type=chunk) - A sensitivity analysis showed a **10%** strengthening of the U.S. dollar at December 31, 2022, would decrease the fair value of open foreign currency forward contracts by **$11 million**[339](index=339&type=chunk) [Financial Statements and Supplementary Data](index=56&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Kodak's audited consolidated financial statements for the three years ended December 31, 2022, including statements of operations, financial position, and cash flow, along with detailed notes Consolidated Statement of Operations Highlights (in millions) | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Total net revenues | $1,205 | $1,150 | $1,029 | | Gross profit | $170 | $164 | $135 | | Earnings (loss) from continuing operations | $26 | $24 | ($544) | | NET EARNINGS (LOSS) | $26 | $24 | ($541) | | Diluted earnings (loss) per share | $0.16 | $0.27 | ($9.77) | Consolidated Statement of Financial Position Highlights (in millions) | | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total current assets | $681 | $807 | | TOTAL ASSETS | $2,285 | $2,171 | | Total current liabilities | $293 | $309 | | Total liabilities | $1,041 | $1,194 | | Total equity | $1,041 | $781 | | TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY | $2,285 | $2,171 | Consolidated Statement of Cash Flow Highlights (in millions) | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | ($116) | ($47) | ($35) | | Net cash used in investing activities | ($56) | ($20) | ($13) | | Net cash provided by financing activities | $43 | $238 | $10 | | Net (decrease) increase in cash, cash equivalents and restricted cash | ($137) | $167 | ($34) | [Controls and Procedures](index=134&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022, confirmed by independent auditors - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[720](index=720&type=chunk) - Based on the COSO framework, management concluded that Kodak's internal control over financial reporting was effective as of December 31, 2022[724](index=724&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=135&type=section&id=Item%2010.%20Directors%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's definitive Proxy Statement - Required information regarding directors and corporate governance is incorporated by reference from the company's definitive Proxy Statement[729](index=729&type=chunk) [Executive Compensation](index=135&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation, including CEO pay ratio and pay versus performance, is incorporated by reference from the company's definitive Proxy Statement - Required information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement[731](index=731&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=136&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the Proxy Statement, detailing outstanding options and available securities under equity compensation plans Equity Compensation Plan Information as of December 31, 2022 | Plan Category | Number of Securities to be Issued Upon Exercise (a) | Weighted-Average Exercise Price of Outstanding Options (b) | Number of Securities Remaining Available for Future Issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 8,327,287 | $6.97 | 4,579,397 | [Certain Relationships and Related Transactions, and Director Independence](index=136&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the company's definitive Proxy Statement - Required information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement[734](index=734&type=chunk) [Principal Accounting Fees and Services](index=136&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information detailing fees paid to the principal accountant for audit and other services is incorporated by reference from the company's definitive Proxy Statement - Required information regarding principal accounting fees and services is incorporated by reference from the company's definitive Proxy Statement[735](index=735&type=chunk) Part IV [Financial Statement Schedules, Exhibits](index=137&type=section&id=Item%2015.%20Financial%20Statement%20Schedules%2C%20Exhibits) This section includes the financial statement schedule for Valuation and Qualifying Accounts (Schedule II) and a comprehensive index of all exhibits filed with the Form 10-K Valuation and Qualifying Accounts (in millions) | | Beginning Balance | Additions and Other | Deductions | Ending Balance | | :--- | :--- | :--- | :--- | :--- | | **Year ended Dec 31, 2022** | | | | | | Reserve for doubtful accounts | $7 | $2 | $2 | $7 | | Deferred tax valuation allowance | $934 | $18 | $126 | $826 | | **Year ended Dec 31, 2021** | | | | | | Reserve for doubtful accounts | $10 | $0 | $3 | $7 | | Deferred tax valuation allowance | $1,112 | $33 | $211 | $934 | | **Year ended Dec 31, 2020** | | | | | | Reserve for doubtful accounts | $8 | $7 | $5 | $10 | | Deferred tax valuation allowance | $821 | $344 | $53 | $1,112 |

Eastman Kodak Company (NYSE:KODK) Q3 2022 Earnings Conference Call November 7, 2022 5:00 PM ET Company Participants Paul Dils - Chief Tax Officer and Director of Investor Relations Jim Continenza - Chairman and CEO David Bullwinkle - CFO Conference Call Participants Operator Thank you for standing by and welcome to the Eastman Kodak Q3 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, today's call is being recorded. I would now like to turn the conferenc ...

Financial Performance - Q3 2022 - Consolidated revenue increased by $2 million, a 1% increase, reaching $289 million compared to Q3 2021[13] - Adjusted consolidated revenue, accounting for unfavorable foreign exchange impacts, increased by $24 million, an 8% increase, reaching $311 million[13] - Net income decreased by $6 million, resulting in $2 million[13] - Adjusted net loss was $3 million, a decrease of $8 million[13] - Operational EBITDA increased by $1 million, resulting in $7 million[13] - Adjusted Operational EBITDA, accounting for unfavorable foreign exchange impacts, increased by $3 million, resulting in $8 million[13] Financial Performance - Year-To-Date 2022 - Consolidated revenue increased by $57 million, reaching $900 million compared to YTD 2021[15] - Adjusted consolidated revenue, accounting for unfavorable foreign exchange impacts, increased by $108 million, reaching $951 million[15] - Net income decreased by $11 million, resulting in $19 million[15] - Adjusted net income decreased by $12 million, resulting in $5 million[15] - Operational EBITDA decreased by $8 million, resulting in $11 million[15] - Adjusted Operational EBITDA, accounting for unfavorable foreign exchange impacts, decreased by $7 million, resulting in $8 million[15] Business Strategy and Investments - The company exercised its right to draw an additional $50 million from the Term Loan Credit Agreement, partially used to fund an investment in Wildcat Discovery Technologies, Inc[9] - The company's long-term strategy continues to focus on core competencies in print and advanced materials and chemicals[11]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%E2%80%94Financial%20Information) This section presents the company's unaudited interim financial statements and management's analysis [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Eastman Kodak Company's unaudited consolidated interim financial statements, including key operational and financial position data [Consolidated Statement of Operations](index=3&type=section&id=Consolidated%20Statement%20of%20Operations%20%28Unaudited%29) Total revenues increased to **$900 million** for the nine months ended September 30, 2022, while net income decreased to **$19 million** Consolidated Statement of Operations Highlights (in millions) | Metric | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $900 | $843 | $289 | $287 | | **Gross Profit** | $127 | $131 | $43 | $43 | | **Loss from Operations** | $(25) | $(19) | $(7) | $(9) | | **Net Income** | $19 | $30 | $2 | $8 | | **Diluted EPS** | $0.11 | $0.39 | $(0.01) | $0.06 | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20%28Unaudited%29) Total assets increased to **$2.26 billion** as of September 30, 2022, while cash and cash equivalents decreased to **$216 million** Key Balance Sheet Items (in millions) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $216 | $362 | | **Inventories, net** | $273 | $219 | | **Total current assets** | $699 | $807 | | **Total Assets** | $2,259 | $2,171 | | **Total current liabilities** | $297 | $309 | | **Long-term debt, net** | $312 | $253 | | **Total Liabilities** | $1,157 | $1,194 | | **Total shareholders' equity** | $901 | $781 | [Consolidated Statement of Cash Flows](index=6&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%20%28Unaudited%29) Net cash used in operating activities significantly increased to **$130 million** for the nine months ended September 30, 2022 Cash Flow Summary (in millions) | Activity | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(130) | $(33) | | **Net cash used in investing activities** | $(44) | $(9) | | **Net cash provided by financing activities** | $45 | $240 | | **Net (decrease) increase in cash** | $(143) | $195 | | **Cash, cash equivalents and restricted cash, end of period** | $280 | $451 | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements%20%28Unaudited%29) The notes provide detailed explanations of financial statements, covering investments, debt, segment revenue, and legal contingencies - On July 13, 2022, Kodak invested **$25 million** to acquire a minority preferred equity interest in Wildcat Discovery Technologies, Inc., a private company developing new battery materials. Kodak will also provide coating and engineering services to Wildcat[26](index=26&type=chunk) - The company is involved in a consolidated securities class action lawsuit related to the 2020 DFC loan announcement. The lawsuit was dismissed with prejudice on September 28, 2022, but the plaintiffs filed a notice of appeal on October 27, 2022[59](index=59&type=chunk) - As of September 30, 2022, the company had approximately **$60 million** of unrecognized revenue from unsatisfied performance obligations, with about **30%** expected to be recognized in 2023[98](index=98&type=chunk) Revenue by Segment - Nine Months Ended Sep 30 (in millions) | Segment | 2022 Revenue | 2021 Revenue | | :--- | :--- | :--- | | Traditional Printing | $535 | $483 | | Digital Printing | $169 | $184 | | Advanced Materials and Chemicals | $173 | $155 | | Brand | $11 | $10 | | All Other | $12 | $11 | | **Consolidated Total** | **$900** | **$843** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting revenue growth, global economic challenges, strategic focus areas, and liquidity position [Executive Overview and Global Impacts](index=35&type=section&id=Executive%20Overview%20and%20Global%20Impacts) Consolidated revenues increased by **7%** to **$900 million** despite unfavorable currency impacts and global economic challenges - For the nine months ended Sep 30, 2022, revenues improved by **$57 million (7%)** year-over-year, but were unfavorably impacted by currency fluctuations of **$51 million**[150](index=150&type=chunk) - Kodak is experiencing supply chain disruptions, shortages in materials and labor, and increased costs. It has implemented mitigation measures like increasing safety stock and pricing actions[152](index=152&type=chunk)[153](index=153&type=chunk) - The war in Ukraine has disrupted the company's Russian subsidiary, which is being wound down. It has also caused worldwide supply constraints for aluminum and electronic components and increased energy and transportation costs[156](index=156&type=chunk)[157](index=157&type=chunk) [Company Strategy](index=36&type=section&id=Company%20Strategy) Kodak's strategy focuses on core print and advanced materials, aiming for revenue growth and expansion into new markets like EV battery materials - Strategic focus areas include: investing in print and advanced materials; growing revenue through customer focus and market share gains; promoting film use and expanding applications for film and chemicals; driving cost reductions through process streamlining[161](index=161&type=chunk) - New initiatives in Advanced Materials and Chemicals leverage expertise in coating and chemistry for applications in: EV/Energy Storage Battery Materials (in collaboration with Wildcat); Light-Blocking Technology for fabrics; Transparent Antennas using copper micro-wire technologies; Reagent Manufacturing for healthcare applications[163](index=163&type=chunk) [Reportable Segments Analysis](index=40&type=section&id=Reportable%20Segments%20Analysis) Traditional Printing revenue grew **11%** to **$535 million**, while Digital Printing revenue declined **8%** to **$169 million** for the nine months ended September 30, 2022 Segment Performance - Nine Months Ended Sep 30, 2022 vs 2021 (in millions) | Segment | Revenue 2022 | Revenue 2021 | Operational EBITDA 2022 | Operational EBITDA 2021 | | :--- | :--- | :--- | :--- | :--- | | **Traditional Printing** | $535 | $483 | $15 | $16 | | **Digital Printing** | $169 | $184 | $(15) | $(2) | | **Advanced Materials & Chemicals** | $173 | $155 | $1 | $(3) | | **Brand** | $11 | $10 | $10 | $8 | - Traditional Printing's performance was characterized by significant pricing improvements (**$113 million** YTD) being largely offset by higher aluminum costs (**$64 million** YTD) and other manufacturing cost increases (**$47 million** YTD)[185](index=185&type=chunk) - Digital Printing's Operational EBITDA declined by **$13 million** YTD, primarily due to increased manufacturing costs (**$9 million**), higher R&D spending (**$2 million**), and unfavorable foreign currency (**$4 million**)[190](index=190&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) Cash balance decreased to **$216 million** at Q3 2022, with **$130 million** net cash used in operations, while liquidity is deemed adequate for the next 12 months Cash Position (in millions) | Date | Cash and Cash Equivalents | Restricted Cash | Total | | :--- | :--- | :--- | :--- | | **Sep 30, 2022** | $216 | $64 | $280 | | **Dec 31, 2021** | $362 | $61 | $423 | - Net cash used in operating activities increased by **$97 million** year-over-year, primarily due to increased investment in inventory to ensure customer supply[218](index=218&type=chunk) - The company must maintain Minimum Liquidity of at least **$80 million** (was **$143 million** at Sep 30, 2022) and Excess Availability above **12.5%** of lender commitments under its ABL Credit Agreement (was **$30 million** at Sep 30, 2022)[207](index=207&type=chunk)[211](index=211&type=chunk) - The Amended ABL Credit Agreement matures on February 26, 2024. The company's ability to fund long-term requirements depends on amending, refinancing, or extending this agreement[212](index=212&type=chunk)[215](index=215&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, primarily from foreign currency exchange rate fluctuations due to its global operations - The company is exposed to market risk from fluctuations in foreign currency exchange rates due to its extensive international business operations[229](index=229&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal controls - Management concluded that as of September 30, 2022, the company's disclosure controls and procedures were effective[230](index=230&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[231](index=231&type=chunk) [Part II. Other Information](index=48&type=section&id=Part%20II.%20%E2%80%94Other%20Information) This section provides additional information, including legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the financial statements for details on the company's legal proceedings - For information on legal proceedings, the report refers to Note 8, "Commitments and Contingencies" in the financial statements[233](index=233&type=chunk) [Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the 2021 Form 10-K for a detailed discussion of the company's risk factors - The report refers to the Risk Factors section of the 2021 Form 10-K for a detailed discussion of risks affecting the company[234](index=234&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred in Q3 2022, though the company purchased **52,552** shares for tax withholding obligations - There were no sales of unregistered securities in Q3 2022[235](index=235&type=chunk) Issuer Purchases of Equity Securities (Q3 2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **July 2022** | 33,065 | $4.96 | | **August 2022** | 9,552 | $6.37 | | **September 2022** | 9,935 | $5.48 | | **Total** | **52,552** | **$5.31** | - Share purchases were made to satisfy tax withholding obligations for employee restricted stock units and not as part of a formal repurchase program[236](index=236&type=chunk)[237](index=237&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including certifications and XBRL data files - This section lists exhibits filed with the report, including certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1, 32.2) and XBRL data files[238](index=238&type=chunk)[240](index=240&type=chunk)

Eastman Kodak Company (NYSE:KODK) Q2 2022 Earnings Conference Call August 9, 2022 5:00 PM ET Company Participants Paul Dils - Chief Tax Officer and Director, Investor Relations Jim Continenza - Chief Executive Officer & Chairman David Bullwinkle - Chief Financial Officer Conference Call Participants Operator Thank you for standing by and welcome to the Eastman Kodak Q2 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference call is ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: June 30, 2022 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-00087 EASTMAN KODAK COMPANY (Exact name of registrant as specified in its charter) NEW JERSEY 16-0417150 (State or other jurisdiction of inco ...

| --- | --- | --- | |--------------------|-------|-------| | | | | | | | | | | | | | | | | | First Quarter 2022 | | | | Earnings Call | | | | May 10, 2022 | | | Cautionary Statement Regarding Forward-looking Statements Pursuant to Safe Harbor Provisions of The Private Securities Litigation Reform Act of 1995 Cautionary Statement Regarding Forward-Looking Statements This presentation includes "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995. Forw ...

Eastman Kodak Company (NYSE:KODK) Q1 2022 Earnings Conference Call May 10, 2022 5:00 PM ET Company Participants Paul Dils - Chief Tax Officer and Director, IR Jim Continenza - Executive Chairman and CEO David Bullwinkle - CFO Conference Call Participants Operator Good afternoon. Thank you for attending today's Eastman Kodak First Quarter 2022 Earnings Call. My name is Bethany, and I will be your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to our host, Pau ...

Eastman Kodak Company (NYSE:KODK) Q1 2022 Earnings Conference Call May 10, 2022 5:00 PM ET Company Participants Paul Dils - Chief Tax Officer and Director, IR Jim Continenza - Executive Chairman and CEO David Bullwinkle - CFO Conference Call Participants Operator Good afternoon. Thank you for attending today's Eastman Kodak First Quarter 2022 Earnings Call. My name is Bethany, and I will be your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to our host, Pau ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 2022 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-00087 EASTMAN KODAK COMPANY (Exact name of registrant as specified in its charter) NEW JERSEY 16-0417150 (State or other jurisdiction of inc ...