Kodak 2002 Annual Report Download - page 75

Financials
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NOTE 22: SEGMENT INFORMATION
Beginning in the fourth quarter of 2001, the Company changed its
operating structure, which was previously comprised of seven
business units, to be centered around strategic product groups.
The strategic product groups from existing businesses and
geographies have been integrated into segments that share
common technology, manufacturing and product platforms and
customer sets. In accordance with the change in the operating
structure, certain of the Company’s product groups were realigned
to reflect how senior management now reviews the business,
makes investing and resource allocation decisions and assesses
operating performance. The realignment of certain of the
Company’s strategic product groups resulted in changes to the
composition of the reportable segments.
As a result of the change in composition of the reportable
segments, the accompanying 2000 segment information has been
presented in accordance with the new structure and to conform
to the 2002 and 2001 presentation. The Company has three
reportable segments, including Photography, Health Imaging and
Commercial Imaging, and All Other.
The Photography segment derives revenues from consumer
film products, sales of origination and print film to the
entertainment industry, sales of professional film products,
traditional and inkjet photo paper, chemicals, traditional and digital
cameras, photoprocessing equipment and services, and digitization
services, including online services. The Health Imaging segment
derives revenues from the sale of digital products, including laser
imagers, media, computed and direct radiography equipment and
picture archiving and communications systems, as well as
traditional medical products, including analog film, equipment,
chemistry, services and specialty products for the mammography,
oncology and dental fields. The Commercial Imaging segment
derives revenues from microfilm equipment and media, printers,
scanners, other business equipment, media sold to commercial and
government customers, and from graphics film products sold to the
Kodak Polychrome Graphics joint venture. The All Other group
derives revenues from the sale of OLED displays, imaging sensor
solutions and optical products to other manufacturers.
Transactions between segments, which are immaterial, are
made on a basis intended to reflect the market value of the
products, recognizing prevailing market prices and distributor
discounts. Differences between the reportable segments’ operating
results and net assets, and the Company’s consolidated financial
statements relate primarily to items held at the corporate level,
and to other items excluded from segment operating
measurements.
Segment financial information is shown below:
(in millions) 2002 2001 2000
Net sales from continuing operations
Photography $ 9,002 $ 9,403 $ 10,231
Health Imaging 2,274 2,262 2,220
Commercial Imaging 1,456 1,454 1,417
All Other 103 110 126
Consolidated total $12,835 $ 13,229 $ 13,994
Earnings from continuing operations
before interest, other (charges)
income, and income taxes
Photography $ 771 $ 787 $ 1,430
Health Imaging 431 323 518
Commercial Imaging 192 172 233
All Other (28) (60) (11)
Total of segments 1,366 1,222 2,170
Venture investment impairments
and other asset write-offs (32) (12) —
Restructuring costs and credits
and asset impairments (114) (720) 44
Wolf charge —(77) —
Environmental reserve —(41) —
Kmart charge —(20) —
Consolidated total $ 1,220 $ 352 $ 2,214
Consolidated total