Kodak 2011 Annual Report Download - page 70

Diluted earnings per share calculations could also reflect shares related to the assumed conversion of approximately $315 million of convertible senior
notes due 2017, if dilutive. The Company’s diluted (loss) earnings per share excludes the effect of these convertible securities, as they were anti-
dilutive for all periods presented. Refer to Note 9, “Short-Term Borrowings and Long-Term Debt.”
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
In December 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2010-28, “When to Perform Step 2
of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts,” which amends Accounting Standards Codification (ASC)
Topic 350, “Intangibles – Goodwill and Other.” ASU No. 2010-28 amends the ASC to require entities that have a reporting unit with a zero or negative
carrying value to assess whether qualitative factors indicate that it is more likely than not that an impairment of goodwill exists, and if an entity concludes
that it is more likely than not that an impairment exists, the entity must measure the goodwill impairment. The changes to the ASC as a result of this update
were effective for annual and interim reporting periods beginning after December 15, 2010 (January 1, 2011 for the Company). The adoption of this
guidance did not impact the Company’s Consolidated Financial Statements.
In October 2009, the FASB issued ASU No. 2009-13, “Multiple-Deliverable Revenue Arrangements,” which amends ASC Topic 605, “Revenue
Recognition.” ASU No. 2009-13 amends the ASC to eliminate the residual method of allocation for multiple-deliverable revenue arrangements, and
requires that arrangement consideration be allocated at the inception of an arrangement to all deliverables using the relative selling price method. The
ASU also establishes a selling price hierarchy for determining the selling price of a deliverable, which includes: (1) vendor-specific objective evidence if
available, (2) third-party evidence if vendor-specific objective evidence is not available, and (3) estimated selling price if neither vendor-specific nor
third-party evidence is available. Additionally, ASU No. 2009-13 expands the disclosure requirements related to a vendor's multiple-deliverable revenue
arrangements. The changes to the ASC as a result of this update were effective prospectively for revenue arrangements entered into or materially
modified in fiscal years beginning on or after June 15, 2010 (January 1, 2011 for the Company). The adoption of this guidance did not have a material
impact on the Company’s Consolidated Financial Statements.
In October 2009, the FASB issued ASU No. 2009-14, “Certain Revenue Arrangements That Include Software Elements,” which amends ASC Topic
985, “Software.” ASU No. 2009-14 amends the ASC to change the accounting model for revenue arrangements that include both tangible products and
software elements, such that tangible products containing both software and non-software components that function together to deliver the tangible
product's essential functionality are no longer within the scope of software revenue guidance. The changes to the ASC as a result of this update were
effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010 (January 1, 2011
for the Company). The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In December 2011, the FASB issued ASU No. 2011-10, “Derecognition of in Substance Real Estate – a Scope Clarification,” which amends ASC Topic
360, “Property, Plant and Equipment.” ASU No. 2011-10 states that when an investor ceases to have a controlling financial interest in an entity that is in-
substance real estate as a result of a default on the entity’s nonrecourse debt, the investor should apply the guidance under ASC Subtopic 360-20, Property,
Plant and Equipment – Real Estate Sales (formerly FAS 66) to determine whether to derecognize the entity’s assets (including real estate) and liabilities
(including the nonrecourse debt). The changes to the ASC as a result of this update are effective prospectively for deconsolidation events occurring during
fiscal years, and interim periods within those years, beginning on or after June, 15, 2012 (January 1, 2013 for the Company). Adoption of this guidance will
not impact the Company’s Consolidated Financial Statements.
In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (ASC Topic 210): Disclosures about Offsetting Assets and Liabilities.” ASU
No. 2011
-11 creates new disclosure requirements about the nature of an entity’s rights of setoff and related arrangements
(in millions of shares)
For the Year Ended December 31,
2011
2010
2009
Employee stock options
13.6
18.0
23.5
Detachable warrants to purchase common shares
40.0
40.0
40.0
Total
53.6
58.0
63.5
68