Kodak 2005 Annual Report Download - page 26

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PART II
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES
Eastman Kodak Company common stock is principally traded on the New York Stock Exchange under the symbol “EK.” There are 76,539
shareholders of record of common stock as of January 31, 2006.
Market Price Data
2005 2004
Price per share: High Low High Low
1st Quarter $ 35.19 $ 30.87 $ 31.55 $ 24.25
2nd Quarter 33.10 24.63 27.44 24.55
3rd Quarter 29.24 23.97 33.50 24.75
4th Quarter 25.14 20.77 34.74 28.93
Dividend Information
The Company has a dividend policy whereby it makes semi-annual payments of dividends, when declared, on the Company’s 10th business day each
July and December to shareholders of record on the close of the fi rst business day of the preceding month.
On May 11, 2005, the Board of Directors declared a semi-annual cash dividend of $.25 per share payable to shareholders of record at the close of
business on June 1, 2005. This dividend was paid on July 15, 2005. On October 18, 2005, the Board of Directors declared a semi-annual cash
dividend of $.25 per share payable to shareholders of record at the close of business on November 1, 2005. This dividend was paid on
December 14, 2005. The total dividends paid for the year ended December 31, 2005 was $144 million.
On May 12, 2004, the Board of Directors declared a semi-annual cash dividend of $.25 per share payable to shareholders of record at the close of
business on June 1, 2004. This dividend was paid on July 15, 2004. On October 19, 2004, the Board of Directors declared a semi-annual cash
dividend of $.25 per share payable to shareholders of record at the close of business on November 1, 2004. This dividend was paid on
December 14, 2004. The total dividends paid for the year ended December 31, 2004 was $143 million.
ITEM 6. SELECTED FINANCIAL DATA
Refer to Summary of Operating Data on page 130.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Critical Accounting Policies and Estimates
The accompanying consolidated fi nancial statements and notes to consolidated fi nancial statements contain information that is pertinent to
management’s discussion and analysis of the fi nancial condition and results of operations. The preparation of fi nancial statements in conformity with
accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and liabilities.
The Company believes that the critical accounting policies and estimates discussed below involve the most complex management judgments due to
the sensitivity of the methods and assumptions necessary in determining the related asset, liability, revenue and expense amounts.
Revenue Recognition
Kodak recognizes revenue when it is realized or realizable and earned. For the sale of multiple-element arrangements whereby equipment is
combined with services, including maintenance and training, and other elements, including software and products, the Company allocates to, and
recognizes revenue from, the various elements based on their fair value. For full service solutions sales, which consist of the sale of equipment
and software which may or may not require signifi cant production, modifi cation or customization, there are two acceptable methods of accounting:
percentage of completion accounting and completed contract accounting. For certain of the Company’s full service solutions, the completed contract
method of accounting is being followed by the Company. This is due to insuffi cient historical experience resulting in the inability to provide reasonably