Kodak 2014 Annual Report Download - page 78

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NOTE 12: OTHER OPERATING EXPENSE (INCOME), NET
NOTE 13: OTHER (CHARGES) INCOME, NET
Successor
Predecessor
(in millions)
Year Ended
December 31,
2014
Four Months
Ended
December 31,
2013
Eight Months
Ended
August 31,
2013
Year Ended
December 31,
2012
Expense (income) :
Gain on sale of digital imaging patent portfolio
(1)
$
-
$
-
$
(535
)
$
-
Goodwill and intangible impairments
(2) (3) (4)
9
8
77
-
Supply arrangement termination payment
(6)
-
-
-
(35
)
Gains related to the sales of assets and businesses
(5) (7)
(3
)
(6
)
(34
)
(50
)
Other
3
-
(3
)
-
Total
$
9
$
2
$
(495
)
$
(85
)
(1)
Refer to Note 24,
“
Emergence from Voluntary Reorganization under Chapter 11 Proceedings.
(2)
In the fourth quarter of 2014, Kodak recorded an impairment charge of $9 million related to in-process research and development. Refer to Note 5, “
Goodwill and
Other Intangible Assets.
”
(3)
In the fourth quarter of 2013, Kodak recorded an impairment charge of $8 million related to the Kodak trade name. Refer to Note 5, “
Goodwill and Other Intangible
Assets.
”
(4)
In the first quarter of 2013, Kodak recorded an impairment charge of $77 million related to the Intellectual Property and Brand Licensing reporting unit. Refer to Note
5,
“
Goodwill and Other Intangible Assets.
”
(5)
In March 2012, Kodak sold a property in Mexico for approximately $41 million and leased back the property for a one-year term. The pre-
tax gain on the property sale
of approximately $34 million was deferred due to Kodak’
s continuing involvement in the property for the remainder of the lease term. In March 2013, the deferred gain
was recognized as the lease term expired.
(6)
In the fourth quarter of 2012, Kodak received cash proceeds of approximately $35 million associated with the termination of a supply arrangement.
(7)
In December 2003, Kodak sold a property in France for approximately $65 million, net of direct selling costs, and then leased back a portion of this property for a nine
-
year term. The entire gain on the property sale was deferred due to Kodak's significant continuing involvement in the property. In the fourth quarter of 2012, the lease
term expired and Kodak
’
s continuing involvement in the property ended. As a result, Kodak recognized a gain of approximately $50 million.
Successor
Predecessor
(in millions)
Year Ended
December 31,
2014
Four Months
Ended
December 31,
2013
Eight Months
Ended
August 31,
2013
Year Ended
December 31,
2012
Income (charges):
Interest income
$
6
$
3
$
3
$
10
Gain on sale of investment
-
-
-
23
Loss on foreign exchange transactions
(1)
(22
)
(5
)
(7
)
(14
)
Other
(5
)
12
(9
)
2
Total
$
(21
)
$
10
$
(13
)
$
21
(1)
In the fourth quarter of 2014, Kodak recorded a charge of $16 million from the remeasurement of its Venezuelan subsidiary’s monetary assets. Refer to Note 1, “Basis
of Presentation and Significant Accounting Policies
”
,
“
Foreign Currency
”
section.
75