Kodak 2005 Annual Report Download - page 10

8
ITEM 1. BUSINESS
Eastman Kodak Company (the Company or Kodak) is the world’s foremost imaging innovator, providing leading products and services to the
photographic, graphic communications and healthcare markets. With sales of $14.3 billion in 2005, the Company is committed to a digitally oriented
growth strategy focused on helping people better use meaningful images and information in their life and work. Consumers use Kodak’s system of
digital and traditional image capture products and services to take, print, store and share their pictures anytime, anywhere; businesses effectively
communicate with customers worldwide using Kodak solutions for prepress, conventional and digital printing and document imaging; creative
professionals rely on Kodak technology to uniquely tell their story through moving or still images; and leading healthcare organizations rely on Kodak’s
innovative products, services and customized workfl ow solutions to help improve patient care and maximize effi ciency and information sharing within
and across their enterprises.
Reportable Segments
As of and for the year ended December 31, 2005, the Company reported fi nancial information for three reportable segments (Digital & Film
Imaging Systems (D&FIS), Health Group, and Graphic Communications Group). 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. However, in September of 2005, the Company announced
that effective January 1, 2006, the Digital & Film Imaging Systems segment will be reported as two distinct segments, the Consumer Digital Imaging
Group segment and the Film and Photofi nishing Systems Group segment, thereby changing the reportable segments beginning with the fi rst quarter
of 2006. In connection with the realignment, the Company’s new reporting structure will be implemented beginning in the fi rst quarter of 2006 as
outlined below:
Consumer Digital Imaging Group Segment: The Consumer Digital Imaging Group segment encompasses digital capture, kiosks, home printing
systems, business development, inkjet systems, digital imaging services and imaging sensors. This segment provides consumers, professionals and
cinematographers with digital products and services.
Film and Photofi nishing Systems Group Segment: The Film and Photofi nishing Systems Group segment encompasses consumer and professional
fi lm, photographic paper and photofi nishing, aerial and industrial fi lm, and entertainment products and services. This segment provides consumers,
professionals and cinematographers with traditional products and services.
Health Group Segment: There are no changes to the Health Group segment. The Health Group segment provides digital medical imaging and
information products, and systems and solutions, which are key components of sales and earnings growth. These include laser imagers, digital
print fi lms, computed and digital radiography systems, dental radiographic imaging systems, dental practice management software, advanced
picture-archiving and communications systems (PACS), and healthcare information systems (HCIS). Products of the Health Group segment also
include traditional analog medical fi lms, chemicals, and processing equipment. Kodak’s history in traditional analog imaging has made it a leader in
this area and has served as the foundation for building its important digital imaging business. The Health Group segment serves the general radiology
market and specialty health markets, including dental, mammography, orthopedics and oncology. The segment also provides molecular imaging for
the biotechnology research market.
Graphic Communications Group Segment: As of January 1, 2006, the Graphic Communications Group segment consists of Kodak Polychrome
Graphics LLC (KPG), a leader in the graphic communications industry; Creo Inc., a premier supplier of prepress and workfl ow systems used by
commercial printers worldwide; NexPress Solutions, Inc., a producer of digital color and black and white printing solutions; Kodak Versamark, Inc., a
provider of continuous inkjet technology; and Encad, Inc., a maker of wide-format inkjet printers, inks and media. Kodak’s Document Products and
Services organization, which includes market-leading production and desktop document scanners, microfi lm, worldwide service and support and
business process services operations, is also part of this segment.
The Graphic Communications Group segment serves a variety of customers in the creative, in-plant, data center, commercial printing, packaging,
newspaper and digital service bureau market segments with a range of software, media and hardware products that provide customers with a variety
of solutions for prepress equipment, workfl ow software, digital and traditional printing, document scanning and multi-vendor IT services.
On April 1, 2005, the Company became the sole owner of KPG through the redemption of Sun Chemical Corporation’s 50 percent interest in the KPG
joint venture. This transaction further established the Company as a leader in the graphic communications industry and complements the Company’s
existing business in this market.
On June 15, 2005, the Company completed the acquisition of Creo Inc. (Creo), a premier supplier of prepress and workfl ow systems used by
commercial printers around the world. The acquisition of Creo uniquely positions the Company to be the preferred partner for its customers, helping
them improve effi ciency, expand their offerings and grow their businesses.
PART I