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 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:

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 reports on Form 10‐Q for the quarters ended March 31, 2024 and June 30, 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 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).

Current wording

Consolidated revenues in the three and nine months ended September 30, 2024 were $261 million and $777 million, respectively, decreases of $ 8 million ( 3%) and $65 million (8%) when compared to the three and nine months ended September 30, 2023. Currency fluctuations had a favorable impact on revenues ($1 million) in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Currency fluctuations had an unfavorable impact on revenues ($3 million) in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.

Previous wording

Print revenuesin thethree and six months ended June 30, 2024 were $186 million and $368 million, respectively, decreases of $29 million (13%) and $56 million (13%), respectively, compared to the prior year quarter and year-to-date period. Print revenues accounted for 70% and 71% of Kodak’s total revenues for the three and six months ended June 30, 2024, respectively. Advanced Materials and Chemicals revenuesin thethree and six months ended June 30, 2024 were $73 million and $132 million, respectively, anincrease of $1 million (1%) compared to the prior year quarter and a decrease of $1 million (1%) compared to the prior year year-to-date period.

Current wording

Print revenuesin thethree and nine months ended September 30, 2024 were $182 million and $550 million, respectively, decreases of $14 million (7%) and $70 million (11%), respectively, compared to the prior year quarter and year-to-date period. Print revenues accounted for 70% and 71% of Kodak’s total revenues for the three and nine months ended September 30, 2024, respectively. Advanced Materials and Chemicals revenuesin thethree and nine months ended September 30, 2024 were $71 million and $203 million, respectively, anincrease of $7 million (11%) and $6 million (3%) compared to the prior year quarter and year-to-date periods, respectively.

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. 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.

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 (“Commerce Department”) and the U.S. International Trade Commission (“ITC”) 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. After making an affirmative preliminary determination on November 15, 2023, on October 22, 2024 the ITC made a final determination that a U.S. industry is materially injured by reason of imports of aluminum lithographic printing plates from China and Japan that the Commerce Department has determined are sold at less than fair value and subsidized by the government of China. The Commerce Department conducted investigations to determine dumping and subsidy margins against imports of plates manufactured in China and Japan. The Commerce Department announced preliminary findings in its countervailing duty investigation on imports of plates manufactured in China on February 27, 2024 and announced preliminary findings in its anti-dumping duty investigations on imports of plates manufactured in China and Japan on April 26, 2024, which were amended with respect to plates from China on May 28, 2024. The Commerce Department announced final findings in its anti-dumping duty investigations on imports of plates manufactured in China and Japan and its countervailing duty investigation on imports of plates manufactured in China on September 23, 2024. As a result of the determinations by the ITC and Commerce Department, duties are now being imposed on U.S. imports of plates as follows: (i) anti-dumping duties of 115.84% on such plates manufactured in China by Fuji and 317.43% on such plates manufactured in China by other entities (in each case, imposed on plates imported on or after May 1, 2024), (ii) countervailing duties of 35.66% on practically all such plates manufactured in China (imposed on plates imported on or after March 1, 2024), and (iii) anti-dumping duties of 91.83% on practically all such plates manufactured in Japan (imposed on plates imported on or after May 1, 2024). There can be no assurance that the duties imposed on imported plates will provide Kodak effective relief and will not be reduced or impaired by any appeal or other challenge.

Previous wording

Kodak is monitoring the events surrounding the conflicts involving Israel and the impact on the operations of its Israel subsidiary. A leased warehouse in Israel was destroyed in 2023; however, none of Kodak’s employees were injured. While the implications of this conflict are difficult to predict at this time, Kodak has been able to adapt its operations to avoid material disruption to its business. The direct operations of Kodak’s Israel subsidiary are less than 1% of total consolidated revenue and assets for 2023.

Current wording

Kodak is monitoring the events surrounding the conflicts involving Israel and the impact on the operations of its Israel subsidiary. A leased warehouse in Israel was destroyed in 2023; however, none of Kodak’s employees were injured. While the potential impact of future developments related to this conflict is difficult to predict at this time, Kodak has been able to adapt its operations to avoid material disruption to its business. The direct operations of Kodak’s Israel subsidiary are less than 1% of total consolidated revenue and assets as of September 30, 2024.

Previous wording

For the three months ended June 30, 2024 revenues declined $28 million compared with the same period in 2023, primarily driven by lower volume as well as price and product mix declines in Print ($23 million and $1 million, respectively) and unfavorable foreign currency ($4 million). See segment discussions for additional details.

Current wording

For the three months ended September 30, 2024 revenues declined $8 million compared with the same period in 2023, primarily driven by lower volume in Print ($15 million) partially offset by favorable volume and price and product mix in Advanced Materials and Chemicals ($4 million and $3 million, respectively). See segment discussions for additional details.

Previous 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.

Current wording

For the nine months ended September 30, 2024 revenues declined $65 million compared with the same period in 2023, primarily driven by lower volume as well as price and product mix declines in Print ($63 million and $4 million, respectively) and unfavorable foreign currency fluctuations ($3 million) partially offset by improved pricing and product mix within Advanced Materials and Chemicals ($5 million). See segment discussions for additional details.

Previous wording

Gross profit for the three months ended June 30, 2024 was $5 million lower than the same period in 2023, primarily due to increased manufacturing costs ($5 million) partially offset by lower costs for aluminum ($2 million). See segment discussions for additional details.

Current wording

Gross profit for the three months ended September 30, 2024 was $5 million lower than the same period in 2023, primarily due to the net change in employee benefit reserves ($3 million), current quarter inventory reserve adjustment in the EPS Business ($4 million) and higher aluminum costs ($5 million) partially offset by improved pricing and product mix and lower manufacturing costs in Advanced Materials and Chemicals ($2 million and $3 million, respectively) and higher restructuring and other costs in the prior year quarter ($2 million). See segment discussions for additional details.

Previous 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.

Current wording

Gross profit for the nine months ended September 30, 2024 was $11 million lower than the same period in 2023, primarily due to lower volumes for Advanced Materials and Chemicals ($4 million), lower volumes and less favorable pricing and product mix in Print (each $2 million), an inventory reserve adjustment in the EPS Business ($4 million), the net change in employee benefit reserves ($2 million), higher aluminum costs ($1 million) and higher manufacturing costs ($3 million) partially offset by improved pricing and product mix within Advanced Materials and Chemicals ($4 million), lower depreciation expense and higher restructuring and other costs in the prior year (each $2 million). See segment discussions for additional details.

Previous 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.

Current wording

Consolidated selling and general administrative expenses ("SG&A") increased $4 million in the three months ended September 30, 2024 compared to the prior year period primarily due to an increase in selling and administrative costs ($3 million) related to costs associated with certain litigation matters and $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.

Previous wording

Consolidated selling and general administrative expenses ("SG&A") increased $18 million in the six months ended June 30, 2024 compared to the prior year period due to $11 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 $9 million primarily 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. The costs increases were partially offset by a $1 million decline in equity compensation costs in the current year to date period.

Current wording

Consolidated SG&A increased $22 million in the nine months ended September 30, 2024 compared to the prior year period due to an increase of $12 million in selling and administrative costs primarily 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. In addition, the prior year period had $12 million of income representing insurance reimbursement of legal costs previously paid by the Company associated with investigations and litigation. The cost increases were partially offset by a $1 million decline in equity compensation costs in the current year to date period.

Previous wording

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

Current wording

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

Previous 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".

Current wording

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

Previous wording

For details, refer to Note 9, "Other Operating Expense (Income), Net".

Current wording

For details, refer to Note 9, "Other Operating (Income) Expense, Net".

Previous wording

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

Current wording

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

Previous 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.

Current wording

Kodak decreased employee benefit reserves by approximately $3 million in the three and nine months ended September 30, 2023, primarily related to workers’ compensation reserves, driven by changes in discount rates. The change in employee benefit reserves in the three months ended September 30, 2023 impacted gross profit by approximately $2 million and SG&A by approximately $1 million. The decrease in reserves in the nine months ended September 30, 2023 impacted gross profit by approximately $1 million and SG&A expenses by approximately $2 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; idle costs; interest expense; other operating (expense) income, net and other (expense) income, net.

Current wording

As demonstrated in the above table, Operational EBITDA represents consolidated earnings from operations excluding the provision for income taxes; non-service cost components of pension and other postemployment benefits (“OPEB”) income; depreciation and amortization expense; restructuring costs and other; stock-based compensation expense; consulting and other costs; idle costs; interest expense; other operating income, net; loss on extinguishment of debt and other income (charges), net.

Previous wording

The decrease in Print revenues for the three months ended June 30, 2024 of approximately $29 million reflected lower volumes in Prepress consumables and Prepress service ($8 million and $2 million, respectively), lower volumes in Electrophotographic Printing Solutions consumables and service ($6 million), lower volumes in PROSPER equipment ($3 million), less favorable pricing in Prepress consumables ($2 million) and unfavorable foreign currency ($4 million).

Current wording

The decrease in Print revenues for the three months ended September 30, 2024 of approximately $14 million reflected lower volumes and less favorable pricing in Prepress consumables ($8 million and $1 million, respectively), lower volumes in Electrophotographic Printing Solutions consumables and service and in Electrophotographic Printing Solutions equipment ($5 million and $1 million, respectively) and lower volumes in PROSPER equipment and VERSAMARK consumables and service (each $2 million). These unfavorable impacts were partially offset by higher volume in PROSPER components and Prepress equipment ($3 million and $1 million, respectively) and more favorable pricing in Electrophotographic Printing Solutions consumables and service ($2 million).

Previous 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).

Current wording

The decrease in Print revenues for the nine months ended September 30, 2024 of approximately $70 million reflected lower volumes in Prepress consumables and Prepress service ($29 million and $4 million, respectively), lower volumes in Electrophotographic Printing Solutions consumables and service and Electrophotographic Printing Solutions equipment ($15 million and $5 million, respectively), less favorable pricing in Prepress consumables ($6 million), lower volumes in Versamark consumables and service ($5 million), lower volumes in PROSPER annuities and PROSPER equipment ($3 million and $4 million, respectively), less favorable pricing and product mix in Prepress equipment ($3 million) and unfavorable foreign currency ($3 million). These unfavorable impacts were partially offset by favorable pricing in Electrophotographic Printing Solutions consumables and service ($5 million) and higher volume for PROSPER components ($1 million).

Previous wording

Print Operational EBITDA for the three months ended June 30, 2024 declined $8 million mainly reflecting higher selling and administrative costs ($4 million), higher manufacturing costs ($3 million) and less favorable pricing for Prepress consumables ($2 million) partially offset by lower costs for aluminum ($2 million) and favorable pricing in Electrophotographic Printing Solutions consumables and service ($2 million).

Current wording

Print Operational EBITDA for the three months ended September 30, 2024 declined $13 million primarily related to higher costs for aluminum ($5 million), inventory reserve adjustment in Electrophotographic Printing Solutions ($4 million), lower volumes and less favorable pricing for Prepress consumables (each $1 million), higher SG&A ($1 million) and the net change in employee benefit reserves ($3 million) partially offset by favorable pricing in Electrophotographic Printing Solutions consumables and service and higher volumes for PROSPER equipment (each $2 million).

Previous 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).

Current wording

Print Operational EBITDA for the nine months ended September 30, 2024 declined $27 million primarily related to higher SG&A costs ($7 million), less favorable pricing and lower volumes for Prepress consumables ($6 million and $5 million, respectively), inventory reserve adjustment in Electrophotographic Printing Solutions ($4 million), higher manufacturing costs ($6 million), lower volumes for PROSPER components and Prepress service (each $2 million), the net change in employee benefit reserves ($2 million), unfavorable product mix for Prepress equipment ($1 million) and higher costs for aluminum ($1 million) partially offset by favorable pricing in Electrophotographic Printing Solutions consumables and service ($6 million) and higher volumes for PROSPER equipment and Electrophotographic Printing Solutions equipment ($3 million and $1 million, respectively).

Previous wording

Advanced Materials and Chemicals revenues for the three months ended June 30, 2024 improved $1 million primarily from volume increases in Motion Picture ($2 million).

Current wording

Advanced Materials and Chemicals revenues for the three months ended September 30, 2024 improved $7 million primarily from volume increases and price and product mix improvements in Industrial Film and Chemicals ($5 million and $3 million, respectively).

Previous 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).

Current wording

Advanced Materials and Chemicals revenues for the nine months ended September 30, 2024 improved $6 million mainly due to pricing and product mix improvements in Industrial Film and Chemicals ($5 million).

Previous wording

Advanced Materials and Chemicals Operational EBITDA declined $3 million for the three months ended June 30, 2024 mainly reflecting higher selling and administrative costs ($2 million) and higher manufacturing costs ($2 million), partially offset by price and product mix improvements in Industrial Film and Chemicals ($2 million).

Current wording

Advanced Materials and Chemicals Operational EBITDA improved $2 million for the three months ended September 30, 2024 mainly due to lower manufacturing costs ($3 million) and price and product mix improvements in Industrial Film and Chemicals ($2 million) partially offset by changes in employee benefit reserves ($2 million).

Previous 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).

Current wording

Advanced Materials and Chemicals Operational EBITDA was flat for the nine months ended September 30, 2024 primarily driven by lower volumes in Industrial Film and Chemicals ($4 million), higher SG&A ($3 million) and the net change in employee benefit reserves ($1 million) offset by price and product mix improvements in Industrial Film and Chemicals ($5 million) and lower manufacturing costs ($3 million).

Previous 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.

Current wording

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

Previous 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.

Current wording

Kodak recorded charges of $1 million and $6 million for the three and nine months ended September 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 and $4 million during the three and six months ended June 30, 2024, respectively.

Current wording

Kodak made cash payments related to restructuring of approximately $2 million and $6 million during the three and nine months ended September 30, 2024, respectively.

Previous 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.

Current wording

The restructuring actions implemented in the first nine months of 2024 are expected to generate future annual cash savings of approximately $10 million, which are expected to reduce future annual SG&A expenses and Cost of revenues by $5 million each. The majority of the annual savings are expected to be in effect by the end of 2024 as actions are completed.

Previous wording

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

Current wording

Kodak ended the quarter with a cash balance of $214 million, a decrease of $41 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 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.

Current wording

Available liquidity includes existing cash balances. The amount of available liquidity is subject to fluctuations and includes cash balances held by various entities worldwide. At September 30, 2024 and December 31, 2023 approximately $116 million and $167 million, respectively, of cash and cash equivalents were held within the U.S. and approximately $98 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 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.

Current wording

As of September 30, 2024 and December 31, 2023, outstanding inter-company loans to the U.S. were $463 million and $460 million, respectively, which include short-term inter-company loans from Kodak’s international finance center of $188 million and $173 million, respectively**.**In China, where approximately $36 million and $29 million of cash and cash equivalents was held as of September 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

Kodak believes its liquidity position is adequate to fund its operating and investing needs and to provide the flexibility to respond as necessary to ordinary changes in the business and economic environment. Kodak’s ability to adequately fund its long‐term liquidity, debt servicing and capital requirements will be dependent on generating positive cash flows from operations, managing world‐wide cash through intercompany loans, distributions or other mechanisms, and the ability to convert, redeem or extend the existing Series B and Series C Preferred Stock past their current maturities of May 26, 2026.

Current wording

Kodak believes its liquidity position is adequate to fund its operating and investing needs and to provide the flexibility to respond as necessary to ordinary changes in the business and economic environment. Kodak’s ability to adequately fund its long‐term liquidity, debt servicing and capital requirements will be dependent on generating positive cash flows from operations, managing world‐wide cash through intercompany loans, distributions or other mechanisms, and the ability to convert, redeem or extend the existing Series B and Series C Preferred Stock past their current maturities of May 26, 2026. To the extent the Series B or Series C Preferred

Previous wording

Approximately $27 million and $31 million of letters of credit were issued under the Amended and Restated L/C Facility Agreement and L/C Facility Agreement as of June 30, 2024 and December 31, 2023, respectively. The letters of credit under the Amended and Restated L/C Facility Agreement are collateralized by cash collateral (the “L/C Cash Collateral”). The L/C Cash Collateral was $29 million and $32 million at June 30, 2024, and December 31, 2023, respectively, which was classified as Restricted Cash.

Current wording

Approximately $27 million and $31 million of letters of credit were issued under the Amended and Restated L/C Facility Agreement as of September 30, 2024 and December 31, 2023, respectively. The letters of credit under the Amended and Restated L/C Facility Agreement are collateralized by cash collateral (the “L/C Cash Collateral”). The L/C Cash Collateral was $29 million and $32 million at September 30, 2024, and December 31, 2023, respectively, which was classified as Restricted Cash.

Previous 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.

Current wording

Net cash from operating activities declined $32 million for the nine months ended September 30, 2024 as compared with the corresponding period in 2023 reflecting a decline in proceeds from insurance reimbursements ($17 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 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).

Current wording

Net cash used in investing activities for the nine months ended September 30, 2024 increased $7 million compared to the corresponding period in 2023 due to an increase in additions to properties ($24 million) partially offset by proceeds from the sale of assets ($17 million).

Previous 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.

Current wording

Net cash used in financing activities for the nine months ended September 30, 2024 increased $108 million compared to the corresponding period in 2023 driven by the net proceeds of $90 million received in the third quarter of 2023 from the July 21, 2023 financing transactions and 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 $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.

Current wording

Kodak made net contributions (funded plans) or paid benefits (unfunded plans) totaling approximately $12 million to its defined benefit pension and postretirement benefit plans in the first nine 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 $3 million.

Previous wording

Kodak, in conjunction with the Kodak Retirement Income Plan Committee (“KRIP Committee”), continues to implement various actions to preserve and maximize the value of KRIP’s over-funding by reducing investment risk and improving the overall liquidity of KRIP. During the first quarter of 2024, the KRIP Committee outsourced the investment management of the plan to NEPC, LLC. Effective April 1, 2024, the KRIP Committee approved an updated investment policy that modified the target asset allocations by allocating a greater portion of KRIP’s assets to lower risk investments as well as interest rate hedging investments which aim to manage the liability interest rate risk associated with KRIP. As contemplated by the updated investment policy, NEPC subsequently initiated the redemption of a substantial majority of KRIP’s hedge fund investments and expanded its interest rate hedging strategy with a portion of those proceeds. During the second quarter of 2024, NEPC engaged a third-party broker to explore strategic options, including the potential secondary sale of KRIP’s private equity and certain other illiquid investments.

Current wording

Kodak, in conjunction with the Kodak Retirement Income Plan Committee (“KRIP Committee”), continues to implement various actions to preserve and maximize the value of KRIP’s over-funding by reducing investment risk and improving the overall liquidity of KRIP. During the first quarter of 2024, the KRIP Committee outsourced the investment management of the plan to NEPC, LLC. Effective April 1, 2024, the KRIP Committee approved an updated investment policy that modified the target asset allocations by allocating a greater portion of KRIP’s assets to lower risk investments as well as interest rate hedging investments which aim to manage the liability interest rate risk associated with KRIP. As contemplated by the updated investment policy, NEPC subsequently initiated the redemption of a substantial majority of KRIP’s hedge fund investments and expanded its interest rate hedging strategy with a portion of those proceeds. During the second quarter of 2024, NEPC engaged a third-party broker to explore strategic options, including the potential secondary sale of KRIP’s private equity and certain other illiquid investments. During the third quarter of 2024, the third-party broker initiated a secondary sale process for KRIP’s private equity and certain other illiquid investments. Kodak and the KRIP Committee are currently in the process of analyzing the bids received from potential buyers.

Previous wording

There can be no assurances that Kodak will receive excess assets from KRIP or concerning the timing or amount of any such receipt. All liabilities of KRIP must be satisfied before any excess assets revert to Kodak, and any amounts that ultimately revert to Kodak will depend on the amount of KRIP’s liabilities and the future investment performance and value of its assets. Also, any amount received will be subject to material excise tax and other obligations. To the extent Kodak receives net proceeds from excess KRIP assets, Kodak must use such proceeds to pay down the Term Loans to defined levels pursuant to the Plan Reversion Proceeds provisions of the Amended and Restated Term Loan Credit Agreement before such proceeds would be available for other purposes.

Current wording

There can be no assurances that KRIP will enter into any sale transaction or that Kodak will receive excess assets from KRIP or concerning the timing or amount of any such receipt. All liabilities of KRIP must be satisfied before any excess assets revert to Kodak, and any amounts that ultimately revert to Kodak will depend on the amount of KRIP’s liabilities and the future investment performance and value of its assets. Also, any amount received will be subject to material excise tax and other obligations. To the extent Kodak receives net proceeds from excess KRIP assets, Kodak must use such proceeds to pay down the Term Loans to defined levels pursuant to the Plan Reversion Proceeds provisions of the Amended and Restated Term Loan Credit Agreement before such proceeds would be available for other purposes.