Kodak 2015 Annual Report Download - page 69

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The net gain on reorganization adjustments has been included in Reorganization items, net in the Consolidated Statement of Operations.
Fresh Start adjustments
(21) An adjustment of $67 million was recorded to increase the net book value of inventories to their estimated fair value, which was determined as follows:
• Fair value of finished goods inventory were determined based on the estimated selling price less costs to sell, including disposal and holding period
costs, and a reasonable profit margin on the selling and disposal effort.
• Fair value of work-in-process was determined based on the estimated selling price once completed less total costs to complete the manufacturing
effort, costs to sell, including disposal and holding period costs, and a reasonable profit on the remaining manufacturing, selling and disposal effort.
• Fair value of raw materials was determined based on current replacement costs.
The following table summarizes the components of inventory as of August 31, 2013, and the fair value at September 1, 2013:
Successor Predecessor
(in millions)
As of September 1,
2013
As of August 31,
2013
Finished goods $ 280 $ 235
Work in process 120 99
Raw materials 102 101
Total $ 502 $ 435
(22) Represents fair value adjustment to the assets and liabilities of the Company’s Personalized Imaging and Document Imaging businesses in delayed close
countries.
(23) Represents the net decrease in tax assets and tax liabilities associated with adjustments for fresh start accounting.
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