Item 11 - EXECUTIVE COMPENSATION
Item 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Item 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
Item 14 - PRINCIPAL ACCOUNTING FEES AND SERVICES
2
Eastman Kodak Company
Form 10-K
December 31, 2010
Table of Contents
Page
.
Business
4
Risk Factors
9
Unresolved Staff Comments
16
Properties
Legal Proceedings
Executive Officers of the Registrant
18
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
22
Selected Financial Data
23
Management's Discussion and Analysis of Financial Condition and Results of Operations
24
Liquidity and Capital Resources
43
Quantitative and Qualitative Disclosures About Market Risk
50
Financial Statements and Supplementary Data
51
Consolidated Statement of Operations
52
Consolidated Statement of Financial Position
53
Consolidated Statement of Equity (Deficit)
54
Consolidated Statement of Cash Flows
57
Notes to Financial Statements
59
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
114
Controls and Procedures
Other Information
115
Directors, Executive Officers and Corporate Governance
Executive Compensation
.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
116
Certain Relationships and Related Transactions, and Director Independence
117
Principal Accounting Fees and Services
Exhibits, Financial Statement Schedules
118
119
120
121
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Eastman Kodak Company (the “Company” or “Kodak”) helps consumers, businesses, and creative professionals unleash the power of pictures and printing to enrich their lives. When used in this report, unless otherwise indicated, “we,” “our,” “us,” the “Company” and “Kodak” refer to Eastman Kodak Company. The Company’s products and services span:
·
Digital still and video cameras and related accessories
Consumer inkjet printers and media
Digital picture frames
Retail printing kiosks, APEX drylab systems, and related media and services
KODAK Gallery online imaging services
Imaging sensors
Prepress equipment and consumables
Workflow software and services
Electrophotographic printing equipment, consumables, and service
Commercial inkjet printing equipment, consumables, and service
Document scanners
Business process services
Origination and print films and special effects services for the entertainment industry
Consumer and professional photographic film
Photographic paper and processing chemicals
Industrial materials such as film for the production of printed circuit boards, and specialty chemicals
Kodak was founded by George Eastman in 1880 and incorporated in 1901 in the State of New Jersey. The Company is headquartered in Rochester, New York.
In 2010, competitive pricing and rising commodity costs negatively impacted results in Kodak’s more mature product lines, including Prepress Solutions, Digital Capture and Devices, and Entertainment Imaging. The Company continued its investment in its four growth initiatives – consumer inkjet, commercial inkjet, workflow software and services, and packaging solutions – and these product lines continue to gain scale and acceptance in the market. The Company continues to execute its intellectual property strategy and entered into three significant intellectual property arrangements during the year, recognizing revenue of $838 million.
The Company’s key goals for 2011 are:
Increase revenue from our digital growth initiative businesses –consumer inkjet, commercial inkjet, workflow software and services, and packaging solutions
Drive positive cash generation before restructuring payments, which is equal to net cash (used in)/provided by operating activities, as determined under Generally Accepted Accounting Principles in the United States of America (U.S. GAAP), minus capital expenditures, plus proceeds from the sale of assets and certain businesses and other settlements/agreements not otherwise included in U.S. GAAP cash (used in)/provided by operating activities, plus net cash flow generated by divested businesses through the date of divestiture to the extent such business divestitures would be categorized as discontinued operations, minus cash flow from the operations of significant acquisitions or strategic alliances completed during the year, plus cash restructuring payments
REPORTABLE SEGMENTS
The Company reports financial information for three reportable segments: Consumer Digital Imaging Group (“CDG”), Graphic Communications Group (“GCG”), and Film, Photofinishing and Entertainment Group (“FPEG”). The balance of the Company's operations, which individually and in the aggregate do not meet the criteria of a reportable segment, are reported in All Other.
The Company's sales, earnings and assets by reportable segment for these three reportable segments and All Other for each of the past three years are shown in Note 24, “Segment Information,” in the Notes to Financial Statements.
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CONSUMER DIGITAL IMAGING GROUP (“CDG”) SEGMENT
CDG's mission is to enhance people’s lives and social interactions through the capabilities of digital imaging and printing technology. This focus has led to a full range of product and service offerings to the consumer. CDG’s strategy is to drive profitable revenue growth by leveraging a powerful brand, a deep knowledge of the consumer, and extensive digital imaging and materials science intellectual property.
Digital Capture and Devices: Digital capture and devices includes digital still and pocket video cameras, digital picture frames, accessories, and branded licensed products. These products are sold directly to retailers or distributors, and are also available to customers through the Internet at the KODAK Store (www.kodak.com) and other online providers. Digital Capture and Devices also includes charged coupled devices (CCD) imaging sensors, and licensing activities related to the Company’s intellectual property in digital imaging products.
Net sales of Digital Capture and Devices accounted for 28%, 23%, and 24% of total consolidated revenue for the years ended December 31, 2010, 2009, and 2008, respectively.
Net revenues from licensing and royalties within the CDG segment accounted for 12%, 6%, and 5% of total consolidated revenue for the years ended December 31, 2010, 2009, and 2008, respectively.
Retail Systems Solutions: Retail Systems Solutions’ product and service offerings to retailers include kiosks and consumables, Adaptive Picture Exchange (“APEX”) drylab systems and consumables, and after sale service and support. Consumers can create a wide variety of photo gifts including photo books, personal greeting cards, prints, posters, and collages. Kodak has the largest installed base of retail photo kiosks in the world.
Consumer Inkjet Systems: Consumer Inkjet Systems encompasses Kodak All-in-One desktop inkjet printers, ink cartridges, and media. These products are sold directly to retailers or distributors, and are also available to customers through the Internet at the KODAK Store (www.kodak.com) and other online providers. Consumer Inkjet Systems is one of Kodak’s four digital growth initiative businesses, and in 2010, printer unit shipments grew 45% year-on-year. Also in 2010 the Company launched a new and low-cost platform of printers.