EASTMAN KODAK CO

Previous wording

Forward–looking statements include statements concerning Kodak’s plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, liquidity, investments, financing needs and business trends and other information that is not historical information. When used in this document, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “predicts,” “forecasts,” “strategy,” “continues,” “goals,” “targets” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and similar words and expressions, as well as statements that do not relate strictly to historical or current facts, are intended to identify forward–looking statements. All forward–looking statements, including management’s examination of historical operating trends and data, are based upon Kodak’s current expectations and assumptions. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or those expressed in or implied by such forward-looking statements. Important factors that could cause actual events or results to differ materially from the forward-looking statements include, among others, the risks and uncertainties described in more detail in the Company’s Annual Report on Form 10–K for the year ended December 31, 2023 under the headings “Business,” “Risk Factors,” “Legal Proceedings,” and/or “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Liquidity and Capital Resources,” in the corresponding sections of this report on Form 10-Q and in other filings the Company makes with the SEC from time to time, as well as the following:

Current wording

Forward–looking statements include statements concerning Kodak’s plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, liquidity, investments, financing needs and business trends and other information that is not historical information. When used in this document, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “predicts,” “forecasts,” “strategy,” “continues,” “goals,” “targets” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and similar words and expressions, as well as statements that do not relate strictly to historical or current facts, are intended to identify forward–looking statements. All forward–looking statements, including management’s examination of historical operating trends and data, are based upon Kodak’s current expectations and assumptions. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or those expressed in or implied by such forward-looking statements. Important factors that could cause actual events or results to differ materially from the forward-looking statements include, among others, the risks and uncertainties described in more detail in the Company’s Annual Report on Form 10–K for the year ended December 31, 2023 under the headings “Business,” “Risk Factors,” “Legal Proceedings,” and/or “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Liquidity and Capital Resources,” in the corresponding sections of this report on Form 10-Q and the Company’s quarterly report on Form 10‐Q for the quarter ended March 31, 2024, and in other filings the Company makes with the SEC from time to time, as well as the following:

Previous wording

Consolidated revenues in the three months ended March 31, 2024 were $ 249 million, a decrease of $ 29 million ( 10%) when compared to the three months ended March 31, 2023. Currency had no impact on revenues in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Current wording

Consolidated revenues in the three and six months ended June 30, 2024 were $267 million and $516 million, respectively, decreases of $ 28 million ( 9%) and $57 million (10%) when compared to the three and six months ended June 30, 2023. Currency had an unfavorable impact on revenues in the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 ($4 million each period).

Previous wording

Kodak's products are sold and serviced in numerous countries across the globe with more than half of sales generated outside the U.S. Current global economic conditions remain highly volatile due to the uncertain and unpredictable macroeconomic environment, heightened levels of inflation, the war in Ukraine, the conflicts involving Israel, and other global events which impacted Kodak’s operations. Kodak is experiencing increased manufacturing costs due to volume declines for certain businesses and increased labor, material and distribution costs, as well as supply chain disruptions and shortages in materials and labor.

Current wording

Kodak's products are sold and serviced in numerous countries across the globe with more than half of sales generated outside the U.S. Current global economic conditions remain highly volatile due to the uncertain and unpredictable macroeconomic environment, heightened levels of inflation, the war in Ukraine, the conflicts involving Israel, and other global events which impacted Kodak’s operations. Kodak is experiencing revenue declines and increased manufacturing costs for certain businesses due to lower volumes and increases in labor, material and distribution costs, as well as supply chain disruptions and shortages in materials and labor.

Previous wording

The Print segment is experiencing a slowdown in customer demand for plates that negatively impacted volume due to current global economic conditions and the impact of pricing actions. In addition to the pricing actions and customer-focused initiatives described above, Kodak has implemented supply chain and workforce optimization, productivity improvements and other cost savings activities. The combined actions have largely mitigated the impact of increased manufacturing costs. However, the potential worsening of economic conditions, continued increases in manufacturing costs due to volume declines and other costs without further price increases, could unfavorably impact this segment's operating results.

Current wording

The Print segment is experiencing a slowdown in customer demand for plates that negatively impacted volume due to current global economic conditions and the impact of pricing actions. In addition to the pricing actions and customer-focused initiatives described above, Kodak has implemented supply chain and workforce optimization, productivity improvements and other cost savings activities. The combined actions have largely mitigated the impact of lower volumes and increased manufacturing costs. However, the potential worsening of economic conditions, continued decreases in volume and increases in manufacturing and other costs without further price increases, productivity improvements or other cost savings measures, could unfavorably impact this segment's operating results.

Previous wording

Following the cessation of U.S. plate manufacturing operations by Kodak’s key competitors, Kodak has faced increasing competition in the U.S. from low-priced plates imported from China and Japan. On September 28, 2023, Kodak filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission requesting relief from unfairly traded imports of plates from China and Japan in the form of the imposition of anti-dumping and/or countervailing duties on such imported plates. On November 15, 2023 the U.S. International Trade Commission determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of aluminum lithographic printing plates from China and Japan that are allegedly sold in the U.S. at less than fair value and subsidized by the government of China. The U.S. Department of Commerce has commenced investigations to determine dumping and subsidy margins against imports of plates manufactured in China and Japan. On February 27, 2024, the Commerce Department announced the preliminary findings in its countervailing duty investigation on imports of plates manufactured in China and imposed a provisional duty of 38.50% on practically all such plates. On April 26, 2024, the Commerce Department announced the preliminary findings in its anti-dumping duty investigation on imports of plates manufactured in China and Japan. As a result of the investigation provisional duties will be imposed on U.S. imports of plates as follows: (i) 38.56% on such plates manufactured in China by Fuji and 107.61% on such plates manufactured in China by other entities, and (ii) 87.81% on such plates manufactured in Japan. The final duty determinations are due to be announced by the Commerce Department in the third quarter of 2024, and the final injury determination is due to be made by the U.S. International Trade Commission in the fourth quarter of 2024. There can be no assurance that the provisional countervailing duties will become final or that Kodak will otherwise obtain the relief sought or, if relief is obtained, that the final rates of duties that may be imposed on such imported plates will provide effective relief.

Current wording

Following the cessation of U.S. plate manufacturing operations by Kodak’s key competitors, Kodak has faced increasing competition in the U.S. from low-priced plates imported from China and Japan. On September 28, 2023, Kodak filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission requesting relief from unfairly traded imports of plates from China and Japan in the form of the imposition of anti-dumping and/or countervailing duties on such imported plates. On November 15, 2023 the U.S. International Trade Commission determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of aluminum lithographic printing plates from China and Japan that are allegedly sold in the U.S. at less than fair value and subsidized by the government of China. The U.S. Department of Commerce has commenced investigations to determine dumping and subsidy margins against imports of plates manufactured in China and Japan. On February 27, 2024, the Commerce Department announced the preliminary findings in its countervailing duty investigation on imports of plates manufactured in China and imposed a provisional duty of 38.50% on practically all such plates. The Commerce Department announced preliminary findings in its anti-dumping duty investigations on imports of plates manufactured in China and Japan on April 26, 2024 and issued amended preliminary findings in connection with its anti-dumping investigation on plates from China on May 28, 2024. As a result of the Commerce Department’s preliminary determinations, provisional anti-dumping duties are being imposed on U.S. imports of plates as follows: (i) 164.30% on such plates manufactured in China by Fuji and 477.59% on such plates manufactured in China by other entities, and (ii) 87.81% on such plates manufactured in Japan. The final duty determinations are due to be announced by the Commerce Department in the third quarter of 2024, and the final injury determination is due to be made by the U.S. International Trade Commission in the fourth quarter of 2024. There can be no assurance that the provisional duties will become final or that Kodak will otherwise obtain the relief sought or, if relief is obtained, that the final rates of duties that may be imposed on such imported plates will provide effective relief.

Previous wording

For the three months ended March 31, 2024 revenues declined $29 million compared with the same period in 2023, driven by lower volume as well as price and product mix declines in Print ($24 million and $3 million, respectively) and lower volume in Advanced Materials and Chemicals ($5 million) partially offset by improved pricing and product mix within Advanced Materials and Chemicals ($2 million). See segment discussions for additional details.

Current wording

For the six months ended June 30, 2024 revenues declined $57 million compared with the same period in 2023, primarily driven by lower volume as well as price and product mix declines in Print ($47 million and $4 million, respectively), lower volume in Advanced Materials and Chemicals ($3 million) and unfavorable foreign currency ($4 million) partially offset by improved pricing and product mix within Advanced Materials and Chemicals ($2 million). See segment discussions for additional details.

Previous wording

Gross profit for the three months ended March 31, 2024 was $1 million lower than the same period in 2023, primarily due to lower volumes and less favorable pricing and product mix in Print ($2 million each) and lower volumes for Advanced Materials and Chemicals ($3 million) partially offset by improved pricing and product mix within Advanced Materials and Chemicals ($1 million), lower costs for aluminum ($2 million) and by the net change in employee benefit and workers' compensation reserves ($2 million). See segment discussions for additional details.

Current wording

Gross profit for the six months ended June 30, 2024 was $6 million lower than the same period in 2023, primarily due to lower volumes and less favorable pricing and product mix in Print (each $3 million), lower volumes for Advanced Materials and Chemicals ($4 million) and increased manufacturing costs ($2 million) partially offset by improved pricing and product mix within Advanced Materials and Chemicals ($2 million) and lower costs for aluminum ($4 million). See segment discussions for additional details.

Previous wording

Consolidated selling and general administrative expenses ("SG&A") increased $11 million in the three months ended March 31, 2024 compared to the prior year period primarily due to $10 million of income in the prior year representing insurance reimbursement of legal costs previously paid by the Company associated with investigations and litigation. In addition, selling and administrative costs increased ($2 million) and equity compensation costs declined ($1 million) in the current period.

Current wording

Consolidated selling and general administrative expenses ("SG&A") increased $7 million in the three months ended June 30, 2024 compared to the prior year period primarily due to $1 million of income in the prior year quarter representing insurance reimbursement of legal costs previously paid by the Company associated with investigations and litigation and an increase in selling and administrative costs ($6 million) related to investments in information technology systems and organizational structure to drive further operational efficiencies, as well as costs associated with the drupa trade show and certain litigation matters.

Previous wording

Consolidated research and development ("R&D") expenses in the three months ended March 31, 2024 remained flat.

Current wording

Consolidated research and development ("R&D") expenses in the three and six months ended June 30, 2024 remained relatively flat.

Previous wording

Pension income excluding service cost component increased $1 million in the three months ended March 31, 2024. Refer to Note 12, "Retirement Plans and Other Postretirement Benefits".

Current wording

Pension income excluding service cost component remained relatively flat in the three and six months ended June 30, 2024. Refer to Note 12, "Retirement Plans and Other Postretirement Benefits".

Previous wording

For details, refer to Note 10, "Other Income, Net".

Current wording

For details, refer to Note 10, "Other Expense (Income), Net".

Previous wording

Kodak decreased employee benefit reserves by approximately $1 million in the three months ended March 31, 2024 due to a decrease in workers' compensation reserves driven by changes in discount rates. The decrease in reserves in the three months ended March 31, 2024 impacted gross profit by approximately $1 million.

Current wording

Kodak decreased employee benefit reserves by approximately $1 million in the six months ended June 30, 2024 due to a decrease in workers' compensation reserves driven by changes in discount rates. The decrease in reserves in the six months ended June 30, 2024 impacted gross profit by approximately $1 million. There was no change to employee benefit reserves in the three months ended June 30, 2024.

Previous wording

Kodak increased employee benefit reserves by approximately $1 million in the three months ended March 31, 2023 composed of an increase in workers' compensation reserves ($2 million) driven by changes in discount rates partially offset by a decrease in other employee benefit reserves ($1 million), primarily driven by a reduction in bonus accruals. The increase in reserves in the three months ended March 31, 2023 impacted gross profit by approximately $1 million.

Current wording

Kodak decreased employee benefit reserves by approximately $1 million in the three months ended June 30, 2023, driven by changes in discount rates. The change in employee benefit reserves in the six months ended June 30, 2023 was less than $1 million.

Previous wording

Kodak’s segment measure of profit and loss is an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”). Operational EBITDA represents the earnings from operations excluding the provision for income taxes; non-service cost components of pension and OPEB income; depreciation and amortization expense; restructuring costs and other; stock-based compensation expense; consulting and other costs; interest expense; other operating income (expense), net and other income, net.

Current wording

Kodak’s segment measure of profit and loss is an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”). Operational EBITDA represents the earnings from operations excluding the provision for income taxes; non-service cost components of pension and OPEB income; depreciation and amortization expense; restructuring costs and other; stock-based compensation expense; consulting and other costs; idle costs; interest expense; other operating (expense) income, net and other (expense) income, net.

Previous wording

The decrease in Print revenues for the three months ended March 31, 2024 of approximately $27 million reflected lower volumes in Prepress consumables and service ($13 million and $2 million, respectively), less favorable pricing in Prepress consumables ($3 million), less favorable pricing and product mix in Prepress equipment ($2 million), lower volumes in Electrophotographic Printing Solutions consumables and service and Electrophotographic Printing Solutions equipment ($5 million and $2 million, respectively) and lower volumes in PROSPER annuities ($2 million) partially offset by favorable pricing in Electrophotographic Printing Solutions consumables and service ($2 million).

Current wording

The decrease in Print revenues for the six months ended June 30, 2024 of approximately $56 million reflected lower volumes in Prepress consumables and Prepress service ($21 million and $4 million, respectively), less favorable pricing in Prepress consumables ($5 million), lower volumes in Electrophotographic Printing Solutions consumables and service and Electrophotographic Printing Solutions equipment ($10 million and $3 million, respectively), lower volumes in Versamark consumables and service ($3 million), less favorable pricing and product mix in Prepress equipment ($2 million), lower volumes in PROSPER annuities and PROSPER components (each $2 million) and unfavorable foreign currency ($4 million) partially offset by favorable pricing in Electrophotographic Printing Solutions consumables and service ($3 million).

Previous wording

Print Operational EBITDA for the three months ended March 31, 2024 declined $6 million reflecting less favorable pricing and lower volumes for Prepress consumables ($3 million and $2 million, respectively), less favorable product mix for Prepress equipment ($1 million) and higher selling and administrative costs ($2 million) and manufacturing costs ($1 million) partially offset by lower costs for aluminum ($2 million), favorable pricing in Electrophotographic Printing Solutions consumables and service ($2 million) and the net impact of changes in employee benefit and workers' compensation reserves ($1 million).

Current wording

Print Operational EBITDA for the six months ended June 30, 2024 declined $14 million primarily reflecting higher selling and administrative costs ($6 million), less favorable pricing and lower volumes for Prepress consumables ($5 million and $3 million, respectively), higher manufacturing costs ($3 million) and lower volumes for Prepress service ($2 million) partially offset by lower costs for aluminum ($4 million) and favorable pricing in Electrophotographic Printing Solutions consumables and service ($3 million).

Previous wording

Advanced Materials and Chemicals revenues for the three months ended March 31, 2024 declined $2 million primarily from lower volumes in Industrial Film and Chemicals ($4 million) partially offset by pricing and product mix improvements in Industrial Film and Chemicals ($2 million).

Current wording

Advanced Materials and Chemicals revenues for the six months ended June 30, 2024 declined $1 million mainly due to lower volumes in Industrial Film and Chemicals ($5 million) partially offset by pricing and product mix improvements in Industrial Film and Chemicals ($2 million) and volume increases for Motion Picture ($1 million).

Previous wording

Advanced Materials and Chemicals Operational EBITDA improved $1 million for the three months ended March 31, 2024 reflecting price and product mix improvements in Industrial Film and Chemicals ($1 million), lower manufacturing costs ($2 million) and the net impact of changes in employee benefit and workers' compensation reserves ($1 million) partially offset by lower volumes in Industrial Film and Chemicals ($3 million).

Current wording

Advanced Materials and Chemicals Operational EBITDA declined $2 million for the six months ended June 30, 2024 primarily driven by lower volumes in Industrial Film and Chemicals ($5 million) and higher selling and administrative costs ($2 million) partially offset by price and product mix improvements in Industrial Film and Chemicals ($3 million).

Previous wording

There were no material changes in Brand revenues or Operational EBITDA for the three months ended March 31, 2024 compared to the prior year period.

Current wording

There were no material changes in Brand revenues or Operational EBITDA for the three and six months ended June 30, 2024 compared to the prior year periods.

Previous wording

Kodak recorded charges of $5 million for the three months ended March 31, 2024, in Restructuring costs and other in the Consolidated Statement of Operations.

Current wording

Kodak recorded charges of $0 million and $5 million for the three and six months ended June 30, 2024, respectively, in Restructuring costs and other in the Consolidated Statement of Operations.

Previous wording

Kodak made cash payments related to restructuring of approximately $2 million during the three months ended March 31, 2024.

Current wording

Kodak made cash payments related to restructuring of approximately $2 million and $4 million during the three and six months ended June 30, 2024, respectively.

Previous wording

The restructuring actions implemented in the first three months of 2024 are expected to generate future annual cash savings of approximately $9 million, which are expected to reduce future annual SG&A expenses, Cost of revenues, and R&D costs by $4 million, $4 million, and $1 million, respectively. The majority of the annual savings are expected to be in effect by the end of the second quarter of 2024 as actions are completed.

Current wording

The restructuring actions implemented in the first six months of 2024 are expected to generate future annual cash savings of approximately $9 million, which are expected to reduce future annual SG&A expenses and Cost of revenues by $4 million and $5 million, respectively. The majority of the annual savings are expected to be in effect by the end of the third quarter of 2024 as actions are completed.

Previous wording

Kodak ended the quarter with a cash balance of $262 million, an increase of $7 million from December 31, 2023.

Current wording

Kodak ended the quarter with a cash balance of $251 million, a decrease of $4 million from December 31, 2023.

Previous wording

Available liquidity includes existing cash balances and cash flows from operating activities. The amount of available liquidity is subject to fluctuations and includes cash balances held by various entities worldwide. At March 31, 2024 and December 31, 2023 approximately $154 million and $167 million, respectively, of cash and cash equivalents were held within the U.S. and approximately $108 million and $88 million, respectively, of cash and cash equivalents were held outside the U.S. Cash balances held outside the U.S. are generally required to support local country operations and may have high tax costs or other limitations that delay the ability to repatriate, and therefore may not be readily available for transfer to other jurisdictions. Kodak utilizes cash balances outside the U.S. to fund needs in the U.S. through the use of inter-company loans.

Current wording

Available liquidity includes existing cash balances and cash flows from operating activities. The amount of available liquidity is subject to fluctuations and includes cash balances held by various entities worldwide. At June 30, 2024 and December 31, 2023 approximately $144 million and $167 million, respectively, of cash and cash equivalents were held within the U.S. and approximately $107 million and $88 million, respectively, of cash and cash equivalents were held outside the U.S. Cash balances held outside the U.S. are generally required to support local country operations and may have high tax costs or other limitations that delay the ability to repatriate, and therefore may not be readily available for transfer to other jurisdictions. Kodak utilizes cash balances outside the U.S. to fund needs in the U.S. through the use of inter-company loans.

Previous wording

As of March 31, 2024 and December 31, 2023, outstanding inter-company loans to the U.S. were $443 million and $460 million, respectively, which include short-term inter-company loans from Kodak’s international finance center of $158 million and $173 million, respectively**.**In China, where approximately $35 million and $29 million of cash and cash equivalents was held as of March 31, 2024 and December 31, 2023, respectively, there are limitations related to net asset balances that may impact the ability to make cash available to other jurisdictions in the world. Under the terms of the Amended and Restated Term Loan Credit Agreement, the Company is permitted to invest up to $60 million (or $75 million after the Deleveraging Milestone Date) in Restricted Subsidiaries that are not Loan Parties and in joint ventures or Unrestricted Subsidiaries that are not party to the Amended and Restated Term Loan Credit Agreement.

Current wording

As of June 30, 2024 and December 31, 2023, outstanding inter-company loans to the U.S. were $453 million and $460 million, respectively, which include short-term inter-company loans from Kodak’s international finance center of $178 million and $173 million, respectively**.**In China, where approximately $34 million and $29 million of cash and cash equivalents was held as of June 30, 2024 and December 31, 2023, respectively, there are limitations related to net asset balances that may impact the ability to make cash available to other jurisdictions in the world. Under the terms of the Amended and Restated Term Loan Credit Agreement, the Company is permitted to invest up to $60 million (or $75 million after the Deleveraging Milestone Date) in Restricted Subsidiaries that are not Loan Parties and in joint ventures or Unrestricted Subsidiaries that are not party to the Amended and Restated Term Loan Credit Agreement.

Previous wording

The Company’s Hong Kong subsidiary has an $73 million inter-company loan from one of the Company’s Chinese subsidiaries with a maturity date of November 16, 2024, the proceeds of which were in turn loaned to the Company. The inter-company loan terms provide for it to be repaid over two years in four equal $20 million installments, the first of which was due by November 16, 2023 with the remaining installments due in 2024. The Company paid $2 million in the first quarter of 2024 and $5 million in the second quarter of 2024 towards the first $20 million installment and is evaluating alternatives for the remaining installments which would allow Kodak and its subsidiaries to perform their obligations to each other while minimizing the impact on U.S. liquidity taking into account requirements imposed by Chinese regulators. Any amounts repaid to the Chinese subsidiary may not be able to be loaned, repatriated or otherwise moved back to the U.S., in which case the Company’s U.S. liquidity would be reduced. If the inter-company loan is not extended, refinanced or amended and the Hong Kong subsidiary does not pay any of the individual installments by the end of the 30-day grace period following notice by the Chinese subsidiary after a failure to pay on the due date of such installment, the Hong Kong subsidiary would default on the inter-company loan. The Chinese subsidiary has not issued notice to the Hong Kong subsidiary based on the failure to make the first full installment payment.

Current wording

The Company’s Hong Kong subsidiary has an inter-company loan from one of the Company’s Chinese subsidiaries with a maturity date of November 16, 2024, the proceeds of which were in turn loaned to the Company. The inter-company loan terms provide for it to be repaid over two years in four equal $20 million installments, the first of which was due by November 16, 2023 with the remaining installments due in 2024. The Company paid $2 million in the first quarter of 2024 and $10 million in the second quarter of 2024 towards the first $20 million installment. The outstanding amount of the intercompany loan as of June 30, 2024 was $68 million. The Company is evaluating alternatives for the remaining installments which would allow Kodak and its subsidiaries to perform their obligations to each other while minimizing the impact on U.S. liquidity taking into account requirements imposed by Chinese regulators. Any amounts repaid to the Chinese subsidiary may not be able to be loaned, repatriated or otherwise moved back to the U.S., in which case the Company’s U.S. liquidity would be reduced. If the inter-company loan is not extended, refinanced or amended and the Hong Kong subsidiary does not pay any of the individual installments by the end of the 30-day grace period following notice by the Chinese subsidiary after a failure to pay on the due date of such installment, the Hong Kong subsidiary would default on the inter-company loan. The Chinese subsidiary has not issued notice to the Hong Kong subsidiary based on the failure to make any installment payment that has come due.

Previous wording

Net cash from operating activities improved $3 million for the three months ended March 31, 2024 as compared with the corresponding period in 2023 reflecting a decrease in trade receivables primarily due to $40 million of cash proceeds related to brand licensing partially offset by a decline in proceeds from insurance reimbursements ($15 million) and a refund from a governmental authority ($9 million) both received in the prior year period, increased investment in inventory, an increase in miscellaneous receivables and an increase in liabilities excluding borrowings and trade payables.

Current wording

Net cash from operating activities declined $11 million for the six months ended June 30, 2024 as compared with the corresponding period in 2023 reflecting a decline in proceeds from insurance reimbursements ($16 million) and a refund from a governmental authority ($9 million), both received in the prior year period, a decrease in liabilities excluding borrowings and trade payables and increased investment in inventory partially offset by a decrease in trade receivables primarily due to $40 million of cash proceeds related to brand licensing received in the first quarter of 2024.

Previous wording

Net cash provided by investing activities for the three months ended March 31, 2024 increased $12 million compared to the corresponding period in 2023 due to proceeds from the sale of assets ($17 million) partially offset by an increase in additions to properties ($5 million).

Current wording

Net cash used in investing activities for the six months ended June 30, 2024 decreased $9 million compared to the corresponding period in 2023 due to proceeds from the sale of assets ($17 million) partially offset by an increase in additions to properties ($8 million).

Previous wording

Net cash used in financing activities for the three months ended March 31, 2024 increased $17 million compared to the corresponding period in 2023 driven by the $17 million Amended and Restated Term Loan prepayment in the three months ending March 31, 2024.

Current wording

Net cash used in financing activities for the six months ended June 30, 2024 increased $18 million compared to the corresponding period in 2023 driven by the $17 million Amended and Restated Term Loan prepayment in the three months ending March 31, 2024.

Previous wording

Kodak made net contributions (funded plans) or paid benefits (unfunded plans) totaling approximately $3 million to its defined benefit pension and postretirement benefit plans in the first three months of 2024. For the balance of 2024, the forecasted contribution (funded plans) and benefit payment (unfunded plans) requirements for its pension and postretirement plans are approximately $12 million.

Current wording

Kodak made net contributions (funded plans) or paid benefits (unfunded plans) totaling approximately $9 million to its defined benefit pension and postretirement benefit plans in the first six months of 2024. For the balance of 2024, the forecasted contribution (funded plans) and benefit payment (unfunded plans) requirements for its pension and postretirement plans are approximately $6 million.

Previous wording

Cash flow from investing activities included $10 million of capital expenditures for the three months ended March 31, 2024. Kodak expects approximately $40 million to $55 million of total capital expenditures for 2024.

Current wording

Cash flow from investing activities included $19 million of capital expenditures for the six months ended June 30, 2024. Kodak expects approximately $40 million to $55 million of total capital expenditures for 2024.

Previous wording

Preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The accounting policies most critical to the preparation of the consolidated financial statements and that require the most difficult, subjective or complex judgments are described in Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes in the Company's critical accounting policies or estimates since December 31, 2023.

Current wording

Preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The accounting policies most critical to the preparation of the consolidated financial statements and that require the most difficult, subjective or complex judgments are described in Management's Discussion and Analysis of Financial Condition and Results of Operations included in the 2023 Form 10-K. There have been no material changes in the Company's critical accounting policies or estimates since December 31, 2023.