Kodak 2013 Annual Report Download - page 48

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Table of Contents
Off-Balance Sheet Arrangements
Kodak guarantees debt and other obligations of certain customers. The debt and other obligations are primarily due to banks and leasing
companies in connection with financing of customers’ purchases of equipment and product from Kodak. At December 31, 2013, the maximum
potential amount of future payments (undiscounted) that Kodak could be required to make under these customer-related guarantees was $14
million and the carrying amount of the liability related to these customer guarantees was not material.
The customer financing agreements and related guarantees, which mature between 2014 and 2017, typically have a term of 90 days for product
and short-term equipment financing arrangements, and up to five years for long-term equipment financing arrangements. These guarantees
would require payment from Kodak only in the event of default on payment by the respective debtor. In some cases, particularly for guarantees
related to equipment financing, Kodak has collateral or recourse provisions to recover and sell the equipment to reduce any losses that might be
incurred in connection with the guarantees. However, any proceeds received from the liquidation of these assets may not cover the maximum
potential loss under these guarantees.
EKC also guarantees obligations to third parties for some of its consolidated subsidiaries. The maximum amount guaranteed, and the
outstanding amount for those guarantees, is $79 million.
Kodak issues indemnifications in certain instances when it sells businesses and real estate, and in the ordinary course of business with its
customers, suppliers, service providers and business partners. Further, the Company indemnifies its directors and officers who are, or were,
serving at the Company’s request in such capacities. Historically, costs incurred to settle claims related to these indemnifications have not been
material to Kodak’s financial position, results of operations or cash flows. Additionally, the fair value of the indemnifications that Kodak
issued during the year ended December 31, 2013 was not material to Kodak’s financial position, results of operations or cash flows.
2012
Cash Flow Activity
PAGE 45
As of December 31,
(in millions)
Predecessor
2012
Predecessor
2011
Cash and cash equivalents
$
1,135
$
861
(in millions)
Predecessor
Predecessor
Year Ended
December 31,
2012
Year Ended
December 31,
2011
Change
Cash flows from operating activities:
Net cash used in operating activities
$
(289
)
$
(1,025
)
$
736
Cash flows from investing activities:
Net cash provided by investing activities
52
2
50
Cash flows from financing activities:
Net cash provided by financing activities
508
246
262
Effect of exchange rate changes on cash
3
14
(11
)
Net increase (decrease) in cash and cash equivalents
$
274
$
(763
)
$
1,037