Company: KODK
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0000950170-25-040256
Chunk: 139

Company: EASTMAN KODAK CO
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1B
Chunk 139
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 to six years after the original warranty period. Kodak provides repair services and routine maintenance under these arrangements. Kodak has not separated the extended warranty costs from the routine maintenance service costs, as it is not practicable to do so. Therefore, these costs have been aggregated in the discussion that follows. The change in Kodak's deferred revenue balance in relation to these extended warranty and maintenance arrangements, which is reflected in Other current liabilities in the accompanying Consolidated Statement of Financial Position, was as follows: 

        (in millions)

        Deferred revenue on extended warranties as of December 31, 2022
         
        $
        19

        New extended warranty and maintenance arrangements

        87

        Recognition of extended warranty and maintenance arrangement revenue

        (89
        )

        Deferred revenue on extended warranties as of December 31, 2023

        17

        New extended warranty and maintenance arrangements

        69

        Recognition of extended warranty and maintenance arrangement revenue

        (74
        )

        Deferred revenue on extended warranties as of December 31, 2024
         
        $
        12

      Costs incurred under these extended warranty and maintenance arrangements for the years ended December 31, 2024, 2023 and 2022 amounted to $59 million, $77 million and $78 million, respectively.

NOTE 13: FINANCIAL INSTRUMENTSKodak, as a result of its global operating and financing activities, is exposed to changes in foreign currency exchange rates and interest rates, which may adversely affect its results of operations and financial position. Kodak manages such exposures, in part, with derivative financial instruments. Foreign currency forward contracts are used to mitigate currency risk related to foreign currency denominated assets and liabilities, as well as forecasted foreign currency denominated intercompany assets.Kodak’s exposure to changes in interest rates results from its investing and borrowing activities used to meet its liquidity needs. Kodak does not utilize financial instruments for trading or other speculative purposes.Kodak’s foreign currency forward contracts are not designated as hedges and are marked to market through net income at the same time that the exposed assets and liabilities are re-measured through net income (both in Other (income) charges, net in the Consolidated Statement of Operations). The notional amount of such contracts open at December 31, 2024 and 2023 was approximately $251 million and $279 million, respectively. The majority of the contracts of this type held by Kodak at December