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Table of Contents
Reorganization Items, Net
For details, refer to Note 4, “Reorganization Items, Net.”
Income Tax Provision (Benefit)
Current Year
The change in Kodak’
s effective tax rate from continuing operations for 2013 as compared to 2012 is primarily attributable to: (1) a decrease as
a result of income generated in the U.S., for which no provision was recognized, partially offset by an increase as a result of losses in certain
jurisdictions outside the U.S. for which no benefit was recognized due to management
’s conclusion that it was more likely than not that the tax
benefits would not be realized, (2) a benefit as a result of Kodak reaching a settlement with a taxing authority in a location outside the U.S. in
the twelve months ended December 31, 2012, (3) an increase as a result of the establishment of a deferred tax asset valuation allowance in
certain jurisdictions outside the U.S., (4) a benefit associated with the tax impact of the impairment of goodwill and intangibles recognized in
the twelve months ended December 31, 2013, (5) a decrease as a result of a legislative tax rate change in a jurisdiction outside the U.S., (6) a
provision as a result of withholding taxes on foreign dividends in the twelve months ended December 31, 2013, (7) an increase as a result of tax
accounting impacts related to items reported in Accumulated other comprehensive loss in the Consolidated Statement of Financial Position,
(8) a provision as a result of withholding taxes on the sale of intellectual property in the twelve months ended December 31, 2013, (9) a
decrease associated with foreign withholding taxes on undistributed earnings, and (10) a benefit as a result of Kodak reaching a settlement with
taxing authorities outside the U.S. in the twelve months ended December 31, 2012.
Prior Year
The change in Kodak’s effective tax rate from continuing operations for 2012 as compared with 2011 is primarily attributable to: (1) a benefit
as a result of tax accounting impacts related to items reported in Accumulated other comprehensive loss in the Consolidated Statement of
Financial Position as of December 31, 2012, (2) a benefit as a result of Kodak reaching a settlement with a taxing authority in a location outside
the U.S. during the year ended December 31, 2012, (3) a benefit as a result of the U.S Internal Revenue Service federal audit settlement for
calendar years 2001 through 2005 during the year ended December 31, 2011, (4) a decrease as a result of foreign withholding taxes on
undistributed earnings, (5) an increase as a result of Kodak reaching a settlement with taxing authorities outside the U.S., (6) an increase as a
result of losses generated in the U.S. and certain jurisdictions outside the U.S. for which no benefit was recognized due to management’s
conclusion that it was more likely than not that the tax benefits would not be realized, (7) a decrease as a result of the establishment of a
deferred tax asset valuation allowance in certain jurisdictions outside the U.S., and (8) a benefit as a result of the release of a deferred tax asset
valuation allowance in a certain jurisdiction outside the U.S. during the year ended December 31, 2011.
PAGE 35
(in millions)
Successor
Predecessor
Four Months Ended
December 31, 2013
Eight Months
Ended August 31, 2013
Year Ended
December 31, 2012
Year Ended
December 31, 2011
(Loss) earnings from
continuing
operations before
income taxes
$
(74
)
$
2,356
$
(1,610
)
$
(757
)
Provision (benefit) for
income taxes
8
155
(273
)
(18
)
Effective tax rate
(11
%)
7
%
17
%
2
%
(Benefit) provision)
for income taxes @
35%
(26
)
825
(564
)
(265
)
Difference between
tax @ effective vs
statutory rate
34
(670
)
291
247
Year Ended December 31,
(in millions)
(Combined Amount)
2013
2012
2011
Earnings (loss) from continuing operations before income
taxes
$
2,282
$
(1,610
)
$
(757
)
Provision (benefit) for income taxes
163
(273
)
(18
)
Effective tax rate
7
%
17
%
2
%
Provision (benefit) for income taxes @ 35%
799
(564
)
(265
)
Difference between tax @ effective vs statutory rate
(636
)
291
247