Kodak 2005 Annual Report Download - page 7

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Digital earnings and Digital revenue growth represent non-GAAP fi nancial measures. The reconciliations of those measures to the respective most
directly comparable GAAP measures follow below:
2005 Fourth Quarter Digital Earnings (in millions)
Digital earnings, as presented $ 158
Traditional and New technologies (loss)
earnings, net (9)
Restructuring costs (295)
Legal settlement costs (21)
Total consolidated loss from operations
before interest, other income (charges),
net and income taxes (GAAP basis) $ (167)
2005 Digital Revenue Growth
Digital Revenue Growth, as presented 40 %
Traditional Revenue Decline (18) %
New Technologies Revenue Growth 17 %
Total Company Revenue Growth
( G A A P b a s i s ) 6 %
Certain statements in this report may be forward-looking in nature, or “forward-looking statements” as defi ned in the United States Private Securities
Litigation Reform Act of 1995. For example, references to expectations for the Company’s earnings, earnings growth, revenue, revenue growth, new
products, restructuring programs, margins, cash and seasonality of sales are forward-looking statements.
Actual results may differ from those expressed or implied in forward-looking statements. In addition, any forward-looking statements represent the
Company’s estimates only as of the date they are made, and should not be relied upon as representing the Company’s estimates as of any subsequent
date. While the Company may elect to update forward-looking statements at some point in the future, the Company specifi cally disclaims any
obligation to do so, even if its estimates change. The forward-looking statements contained in this report are subject to a number of factors and
uncertainties, including, but not limited to, the successful: execution of the digital growth and profi tability strategies, business model and cash plan;
implementation of a changed segment structure; implementation of the cost reduction program, including asset rationalization and monetization,
reduction in selling, general and administrative costs and personnel reductions; transition of certain fi nancial processes and administrative functions
to a global shared services model and the outsourcing of certain functions to third parties; implementation of, and performance under, the debt
management program, including compliance with our debt covenants; implementation of product strategies (including category expansion, digitization,
organic light emitting diode (OLED) displays and digital products) and go-to-market strategies; protection and enforcement of our intellectual property;
implementation of intellectual property licensing and other strategies; development and implementation of e-commerce strategies; completion of
information systems upgrades, including SAP, our enterprise system software; completion of various portfolio actions; reduction of inventories;
integration of newly acquired businesses; improvement in manufacturing productivity and techniques; improvement in receivables performance;
improvement in supply chain effi ciency and management of third-party sourcing relationships; implementation of the strategies designed to address
the decline in the Company’s traditional businesses; and performance of the Company’s business in emerging markets like China, India, Brazil, Mexico
and Russia. The forward-looking statements contained in this report are subject to the following additional risk factors: inherent unpredictability of
currency fl uctuations and raw material costs; competitive actions, including pricing; changes in the Company’s debt credit ratings and its ability to
access capital markets; the nature and pace of technology evolution, including the traditional-to-digital transformation; continuing customer
consolidation and buying power; current and future proposed changes to accounting rules and tax laws, as well as other factors which could adversely
impact the Company’s effective tax rate in the future; general economic, business, geo-political, regulatory and public health conditions; market
growth predictions; continued effectiveness of internal controls; and other factors and uncertainties disclosed from time to time in the Company’s
fi lings with the Securities and Exchange Commission.
Any forward-looking statements in this report should be evaluated in light of these important factors and uncertainties.
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