Kodak 2006 Annual Report Download - page 123

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NOTE 23: SEGMENT INFORMATION
Current Segment Reporting Structure
As of and for the year ended December 31, 2006, the Company had four reportable segments aligned based on aggregation of similar products and
services: Consumer Digital Imaging Group (CDG); Film and Photofinishing Systems Group (FPG); Graphic Communications Group (GCG); and Health
Group (KHG). 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. A description of the segments is as follows:
Consumer Digital Imaging Group Segment (CDG): The Consumer Digital Imaging Group segment encompasses digital capture, kiosks, home print-
ing systems, digital imaging services and imaging sensors. This segment provides consumers and professionals with digital products and services,
and includes the licensing activities related to the Company’s intellectual property in this product category.
Film and Photofinishing Systems Group Segment (FPG): The Film and Photofinishing Systems Group segment encompasses consumer and
professional film, photographic paper and photofinishing, aerial and industrial film, and entertainment products and services. This segment provides
consumers, professionals and cinematographers with traditional products and services.
Graphic Communications Group Segment (GCG): 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, workflow software, digital and traditional printing, docu-
ment scanning and multi-vendor IT services. Products include digital and traditional prepress consumables, including plates, chemistry, and media;
workflow and proofing software; color and black and white electrophotographic equipment and consumables; high-speed, high-volume continuous
inkjet printing systems; wide-format inkjet printers; high-speed production document scanners; micrographic peripherals; and media (including micro-
graphic films). The Company also provides maintenance and professional services for Kodak and other manufacturers’ products, as well as providing
imaging services to customers.
Health Group Segment (KHG): 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 films, computed and digital radiography systems,
dental radiographic imaging systems, dental practice management software (DPMS), advanced picture-archiving and communications systems
(PACS), and healthcare information solutions (HCIS). Products of the Health Group segment also include traditional analog medical and dental films,
chemicals, and processing equipment and related services. The Company’s history in traditional analog imaging has made it a worldwide 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.
All Other: All Other is composed of the Company’s display business, business development and other small, miscellaneous businesses. The develop-
ment initiatives in consumer inkjet technologies continue to be reported in All Other through the end of 2006.
Transactions between segments, which are immaterial, are made on a basis intended to reflect the market value of the products, recognizing prevail-
ing market prices and distributor discounts. Differences between the reportable segments’ operating results and assets and the Company’s consoli-
dated financial statements relate primarily to items held at the corporate level, and to other items excluded from segment operating measurements.
No single customer represented 10% or more of the Company’s total net sales in any period presented.
Effective January 1, 2006, the Company changed its cost allocation methodologies related to distribution costs, indirect selling, general and adminis-
trative expenses, and corporate research and development costs.