Company: KODK
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0000950170-25-040256
Chunk: 267

Company: EASTMAN KODAK CO
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 267
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 as the sale of Kodak shares that are owned by its 5% shareholders. Future transactions, when combined with reported transactions within the testing period could aggregate to an ownership change during the testing period in excess of 50 percentage points.Kodak intends to repatriate its offshore earnings when prudent. Accordingly, it recorded deferred tax liabilities of $15 million and $16 million for potential taxes on undistributed earnings as of December 31, 2024 and 2023, respectively. These taxes are primarily attributable to foreign withholding taxes.Kodak’s valuation allowance as of December 31, 2024 was $671 million. Of this amount, $259 million was attributable to Kodak’s net deferred tax assets outside the U.S. of $251 million, and $412 million related to Kodak’s net deferred tax assets in the U.S. of $396 million, for which Kodak believes it is not more likely than not that the assets will be realized.Kodak’s valuation allowance as of December 31, 2023 was $778 million. Of this amount, $290 million was attributable to Kodak’s net deferred tax assets outside the U.S. of $279 million, and $488 million related to Kodak’s net deferred tax assets in the U.S. of $472 million, for which Kodak believes it is not more likely than not that the assets will be realized.Accounting for Uncertainty in Income TaxesA reconciliation of the beginning and ending amount of Kodak’s liability for income taxes associated with unrecognized tax benefits is as follows: 

        Year Ended December 31,

        (in millions)
         
        2024

        2023

        2022

        Balance as of January 1
         
        $
        2

        $
        3

        $
        4

        Tax positions related to the current year:

        Additions

        1

        —

        —

        Tax positions related to prior years:

        Additions

        1

        1

        1

        Reductions

        (2
        )

        (1
        )

        (2
        )

        Settlements with taxing jurisdictions

        —

        (1
        )

        —

        Balance as of December 31
         
        $
        2

        $
        2

        $
        3

       Kodak’s policy is to recognize interest and/or penalties related to income tax matters as a component of its provision