Kodak 2013 Annual Report Download - page 134

Table of Contents
NOTE 26: DISCONTINUED OPERATIONS
On the Effective Date, as a part of the Global Settlement and pursuant to the Amended SAPA, Kodak consummated the sale of certain assets of
the Business to the KPP Purchasing Parties for net cash consideration, in addition to the assumption by the KPP Purchasing Parties of certain
liabilities of the Business, of $325 million. Up to $35 million in aggregate of the purchase price is subject to repayment to KPP if the Business
does not achieve certain annual adjusted EBITDA targets over the four-year period ending December 31, 2018. Certain assets and liabilities of
the Business in certain jurisdictions were not transferred at the initial closing, which took place on the Effective Date, but are being transferred
at a series of deferred closings in accordance with the Amended SAPA. Kodak is operating the Business related to the deferred closing
jurisdictions, subject to certain covenants, until the applicable deferred closing occurs, and delivers to (or receives from) a KPP subsidiary at
each deferred closing a true-up payment reflecting the actual economic benefit (or detriment) to the Business in the applicable deferred closing
jurisdiction(s) from the time of the initial closing through the time of the applicable deferred closing. Up to the time of the deferred closing, the
results of the operations of the Business are being reported as Earnings (loss) from discontinued operations, net of income taxes in the
Consolidated Statement of Operations and the assets and liabilities of the Business are being categorized as Assets held for sale or Liabilities
held for sale in the Consolidated Statement of Financial Position, as appropriate.
Kodak recognized a pre-tax loss on the sale of the Business of approximately $163 million during the third quarter 2013 predecessor period.
The pre-tax loss excluded recognition of $64 million of non-refundable consideration related to the delayed closings, which non-refundable
consideration was received on the Effective Date, and $35 million of contingent consideration, subject to repayment to KPP which was also
received by Kodak on the Effective Date. The pre-
tax loss includes the recognition of approximately $1.5 billion of unamortized pension losses
previously reported in accumulated other comprehensive income.
On March 17, 2014 the KPP Purchasing Parties agreed to pay Kodak $20 million of incremental consideration ($13 million in March of 2014
and the remainder within one year of March 2014) in lieu of working capital adjustments contemplated by the Amended SAPA.
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Successor
Predecessor
December 31,
2013
December 31,
2012
December 31,
2011
(in millions)
Property, plant and equipment, net located in:
The United States
$
378
$
395
$
519
Europe, Middle East and Africa
$
91
$
85
$
112
Asia Pacific
83
96
134
Canada and Latin America
132
31
31
Non U.S. countries total (1)
$
306
$
212
$
277
Consolidated total
$
684
$
607
$
796
(1) Of the total non U.S. property, plant and equipment in 2013, $113 million are located in Brazil and in 2011; $94 million are located in
China. No other non U.S. country had greater than 10% of property, plant and equipment in 2013, 2012 or 2011.