Kodak 2012 Annual Report Download - page 72

Table of Contents
If Kodak had reported earnings from continuing operations for the years ended December 31, 2012, 2011, and 2010, the following potential
shares of Kodak’s common stock would have been dilutive in the computation of diluted earnings per share:
The computation of diluted earnings per share for the years ended December 31, 2012, 2011, and 2010 also excluded the assumed conversion of
outstanding employee stock options and detachable warrants to purchase common shares, because the effects would be anti-dilutive. The
following table sets forth the total amount of outstanding employee stock options and detachable warrants to purchase common shares as of
December 31 for each reporting period:
Diluted earnings per share calculations could also reflect shares related to the assumed conversion of approximately $400 million of convertible
senior notes due 2017, if dilutive. Kodak’s diluted (loss) earnings per share excludes the effect of these convertible securities, as they were anti-
dilutive for all periods presented. Refer to Note 11, “Short-Term Borrowings and Long-Term Debt.”
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08, “Intangibles-
Goodwill and Other (Accounting Standards Codification (ASC) Topic 350) – Testing Goodwill for Impairment.” ASU No. 2011-08 amends the
impairment test for goodwill by allowing companies to first assess qualitative factors to determine if it is more likely than not that goodwill
might be impaired and whether it is necessary to perform the current two-step goodwill impairment test. The changes to the ASC as a result of
this update were effective prospectively for interim and annual periods beginning after December 15, 2011 (January 1, 2012 for Kodak). The
adoption of this guidance did not impact Kodak’s Consolidated Financial Statements.
In June 2011, the FASB issued ASU No. 2011-05, “Comprehensive Income (ASC Topic 220)—Presentation of Comprehensive Income.” ASU
No. 2011
-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity and requires an
entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in
a single continuous statement of comprehensive income or in two separate but consecutive statements. Subsequently, the FASB issued ASU
No. 2011
-12, “Comprehensive Income (ASC Topic 220) – Deferral of the Effective Date for Amendments to the Presentation of
Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05.” ASU 2011-12
deferred the provision within ASU 2011-05 requiring entities to present reclassification adjustments out of accumulated other comprehensive
income by component in both the income statement and the statement in which other comprehensive income is presented. ASU 2011-
12 does not
change the other provisions instituted within ASU 2011-05. The amendments of both ASUs were effective retrospectively for fiscal years, and
interim periods within those years, beginning after December 15, 2011 (January 1, 2012 for Kodak). The adoption of this guidance required
changes in presentation only and did not have an impact on Kodak’s Consolidated Financial Statements.
In May 2011, the FASB issued ASU No. 2011-04, “Fair Value Measurement (ASC Topic 820)—Amendments to Achieve Common Fair Value
Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” ASU No. 2011-04 amends current fair value measurement and
disclosure guidance to include increased transparency around valuation inputs and investment categorization. The changes to the ASC as a result
of this update were effective prospectively for interim and annual periods beginning after December 15, 2011 (January 1, 2012 for Kodak). The
adoption of this guidance did not have a significant impact on Kodak’s Consolidated Financial Statements.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive
Income.” ASU No. 2013-02 requires presentation of reclassification adjustments from each component of accumulated other comprehensive
income either in a single note or parenthetically on the face of the financial statements, for those amounts required to be reclassified into Net
income in their entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety in the same reporting
period, cross-reference to other disclosures is required. This update is effective for Kodak beginning
68
For the Year Ended December 31,
(in millions of shares)
2012
2011
2010
Unvested share-based awards
0.0
0.4
2.7
For the Year Ended December 31,
(in millions of shares)
2012
2011
2010
Employee stock options
7.9
13.6
18.0
Detachable warrants to purchase common shares
40.0
40.0
40.0
Total
47.9
53.6
58.0