Kodak 2003 Annual Report Download - page 76

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Financials
76
(in millions) 2003 2002 2001
Depreciation expense from continuing
operations
Photography $ 646 $ 634 $ 599
Health Imaging 105 107 96
Commercial Imaging 69 74 69
All Other 10 31
Consolidated total $ 830 $ 818 $ 765
Goodwill amortization expense from
continuing operations
Photography $ — $ — $ 110
Health Imaging ——28
Commercial Imaging ——15
All Other ———
Consolidated total $ — $ — $ 153
Capital additions from continuing
operations
Photography $ 377 $ 408 $ 555
Health Imaging 81 81 128
Commercial Imaging 39 83 56
All Other 954
Consolidated total $ 506 $ 577 $ 743
Net sales to external customers attributed to(1):
The United States $ 5,858 $ 6,008 $ 6,419
Europe, Middle East and Africa 3,794 3,363 3,275
Asia Pacific 2,347 2,242 2,215
Canada and Latin America 1,318 1,222 1,320
Consolidated total $13,317 $12,835 $13,229
(1) Sales are reported in the geographic area in which they originate.
Property, plant and equipment, net located in:
The United States $ 3,217 $ 3,501 $ 3,738
Europe, Middle East and Africa 734 769 672
Asia Pacific 920 943 977
Canada and Latin America 223 207 272
Consolidated total $ 5,094 $ 5,420 $ 5,659
New Kodak Operating Model and Change in
Reporting Structure
As of and for the year ended December 31, 2003, the Company reported
financial information for three reportable segments (Photography, Health
Imaging and Commercial Imaging) and All Other. However, in August of
2003, the Company announced the realignment of its operations to accel-
erate growth in the commercial and consumer digital imaging markets. In
connection with the realignment, the Company’s new reporting structure
will be implemented beginning in the first quarter of 2004 as outlined
below:
• Digital and Film Imaging Systems Segment: The Digital and Film
Imaging Systems segment comprises the same products and services
as the current Photography segment without change.
• Health Imaging Segment: There were no changes to the Health Imaging
segment.
• Commercial Imaging Segment: Subsequent to the realignment, the
Commercial Imaging segment is composed of document imaging prod-
ucts and services, commercial and government systems products and
services, and optics. Prior to the realignment, optics was included in All
Other. Beginning in the first quarter of 2004, this segment will exclude
the results of Remote Sensing Systems and Research Systems, Inc.,
which were part of the commercial and government systems products
and services, as a result of the sale of these businesses to ITT
Industries, Inc. that was announced in February 2004.
• Commercial Printing Segment: As of January 1, 2004, the Commercial
Printing segment is composed of the Company’s equity investments in
NexPress (Kodak’s 50/50 joint venture with Heidelberg) and Kodak
Polychrome Graphics (Kodak’s 50/50 joint venture with Sun Chemical),
and the graphics and wide-format inkjet businesses. All of the above
were formerly included in the Commercial Imaging segment prior to the
realignment. This segment will also include the results of Scitex Digital
Printing, which was acquired in January 2004 and has since been
renamed Kodak Versamark, and the results of Heidelberg Digital LLC
and Heidelberg’s 50% share of NexPress upon the closing of this acqui-
sition, which is expected to occur in May 2004.
• All Other: All Other is composed of Kodak’s display and components
business for organic light emitting diode (OLED) displays, sensors and
other small, miscellaneous businesses.