Company: KODK
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0000950170-25-040256
Chunk: 106

Company: EASTMAN KODAK CO
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1B
Chunk 106
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 included in Other (income) charges, net in the accompanying Consolidated Statement of Operations.The effects of foreign currency transactions, including related hedging activities, are included in Other (income) charges, net, in the accompanying Consolidated Statement of Operations.CASH EQUIVALENTSAll highly liquid investments with a remaining maturity of three months or less at date of purchase are considered to be cash equivalents.ALLOWANCE FOR CREDIT LOSSES Kodak records an allowance for credit losses against financial assets measured at amortized cost basis (primarily accounts receivable) for the current expected credit losses inherent in the asset over its expected life. The allowance for credit losses is maintained based on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. Kodak records a specific reserve for individual accounts when Kodak becomes aware of specific customer circumstances evidencing the customer's inability to pay, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. 

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INVENTORIESInventories are stated at the lower of cost or net realizable value. The cost of inventories is determined by the average cost method, which approximates current cost. Kodak provides inventory reserves for excess, obsolete or slow-moving inventory based on changes in customer demand, technology developments or other economic factors.PROPERTY, PLANT AND EQUIPMENTProperty, plant and equipment are recorded at cost, net of accumulated depreciation. Kodak capitalizes additions and improvements while maintenance and repairs are charged to expense as incurred. Upon sale or other disposition, the applicable amounts of asset cost and accumulated depreciation are removed from the accounts and the net amount, less proceeds from disposal, is charged or credited to Other operating (income) expense, net in the Consolidated Statement of Operations.Kodak calculates depreciation expense using the straight-line method over the assets’ estimated useful lives, which are as follows: 

          EstimatedUseful

          Lives

          Buildings and building improvements
           
          5-40

          Land improvements
           
          4-20

          Leasehold improvements
           
          3-20

          Equipment
           
          3-20

          Tooling
           
          1-3

          Furniture and fixtures
           
          5-10
         
         Kodak depreciates leasehold improvements over the shorter of the lease term or the assets’ estimated useful life.INTERNAL USE SOFTWAREExpenditures for software purchases and software developed for