Kodak 2006 Annual Report Download - page 124

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
The changes in cost allocation methodologies referred to above increased (decreased) segment earnings (losses) from continuing operations before
interest, other income (charges), net and income taxes for the years ended December 31, 2005 and 2004 as follows:
Year Ended December 31,
(in millions) 2005 2004
Consumer Digital Imaging Group $ (15) $ (133)
Film and Photofinishing Systems Group 93 220
Graphic Communications Group (41) (51)
Health Group 21 34
All Other (58) (70)
Consolidated impact $ — $ —
Further, as described in Note 3, “Inventories, Net,” on January 1, 2006, the Company elected to change its method of costing its U.S. inventories from
the LIFO method to the average cost method. This change increased cost of goods sold for the years ended December 31, 2005 and 2004 for each of
the segments as follows:
Year Ended December 31,
(in millions) 2005 2004
Consumer Digital Imaging Group $ 14 $ 3
Film and Photofinishing Systems Group 12 12
Graphic Communications Group 1 1
Health Group 5 2
All Other 1 1
Consolidated impact $ 33 $ 19
Prior period results have been adjusted to reflect the changes in segment reporting structure, the changes in cost allocation methodologies outlined
above, and the change in inventory costing method.