Kodak 2015 Annual Report Download - page 20

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beginning after December 15, 2015 (January 1, 2016 for Kodak). Early adoption is permitted, including adoption in an interim period. A reporting entity may apply
the amendments in this ASU either retrospectively or use a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the
beginning of the fiscal year of adoption. Kodak does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements.
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 supersedes the revenue recognition
requirements in Topic 605, “Revenue Recognition” and most industry-specific guidance. The core principle of ASU 2014-09 is that a company will recognize
revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in
exchange for those goods or services. In July 2015, the FASB deferred the effective date of ASU 2014-09. The new revenue standard is effective for fiscal years,
and interim periods within those years, beginning after December 15, 2017 (January 1, 2018 for Kodak) and allows either a full retrospective adoption to all periods
presented or a modified retrospective adoption approach with the cumulative effect of initial application of the revised guidance recognized at the date of initial
application. Kodak is currently evaluating the adoption alternatives and impact of this ASU.
NOTE 2: RECEIVABLES, NET
As of December 31,
(in millions) 2015 2014
Trade receivables $ 318 $ 361
Miscellaneous receivables 47 53
Total (net of allowances of $10 and $11 as of December 31, 2015 and December 31, 2014,
respectively) $ 365 $ 414
Approximately $28 million and $31 million of the total trade receivable amounts as of December 31, 2015 and 2014, respectively, will potentially be settled
through customer deductions in lieu of cash payments. Such deductions represent rebates owed to customers and are included in Other current liabilities in the
accompanying Consolidated Statement of Financial Position.
NOTE 3: INVENTORIES, NET
As of December 31,
(in millions) 2015 2014
Finished goods $ 177 $ 204
Work in process 65 73
Raw materials 72 72
Total $ 314 $ 349
NOTE 4: PROPERTY, PLANT AND EQUIPMENT, NET AND EQUIPMENT SUBJECT TO OPERATING LEASES, NET
As of December 31,
(in millions) 2015 2014
Land $ 74 $ 100
Buildings and building improvements 171 176
Machinery and equipment 483 432
Construction in progress 28 47
756 755
Accumulated depreciation (330) (231)
Property, plant and equipment, net $ 426 $ 524
Depreciation expense was $120 million, $174 million, $67 million and $87 million for the years ended December 31, 2015 and December 31, 2014, four months
ended December 31, 2013, and eight months ended August 31, 2013, respectively, of which approximately $8 million, $2 million, $0 million and $4 million,
respectively, represented accelerated depreciation in connection with restructuring actions.
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