Kodak 2006 Annual Report Download - page 127

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(in millions) 2006 2005 2004
Property, plant and equipment, net located in:
The United States $ 1,730 $ 2,343 $ 2,838
Europe, Middle East and Africa $ 382 $ 564 $ 641
Asia Pacific 575 685 822
Canada and Latin America 155 186 211
Foreign countries total $ 1,112 $ 1,435 $ 1,674
Consolidated total $ 2,842 $ 3,778 $ 4,512
New Kodak Operating Model and Change in Reporting Structure
In December 2006, the Company announced that effective January 1, 2007 the Film and Photofinishing Systems Group would be called the Film Prod-
ucts Group, and that certain SPG’s previously included in FPG would become part of CDG. Also effective January 1, 2007, consumer inkjet systems,
formerly reported in All Other would become part of CDG. This change in structure is to align the Company’s reporting structure to the way in which
the Company manages its business effective January 1, 2007. The most significant change, the transfer of photographic paper and photofinishing ser-
vices to CDG from FPG, reflects the increasing manner in which images captured or generated by CDG products and services are printed and shared.
CDG will be the Company’s primary point of contact for the digital picture-taking consumer, providing a full range of products and services for captur-
ing, storing, printing and sharing images. Additionally, the new structure will concentrate FPG’s portfolio exclusively on film-related and entertainment
imaging businesses. The following indicates the changes from the old reporting structure to the new reporting structure that will be implemented
beginning in the first quarter of 2007:
Consumer Digital Imaging Group Segment (CDG): This segment will include photographic paper and photofinishing services, formerly part of FPG,
and consumer inkjet systems, formerly part of All Other.
Film Products Group Segment (FPG): The Film Products Group segment will no longer include photographic paper and photofinishing services, since
they will become part of CDG. Additionally, the non-destructive testing business, formerly included in the FPG segment, will be included in the Health
Group segment.
Graphic Communications Group Segment (GCG): There are no changes to the composition of the GCG segment from 2006. However, as the GCG
segment completes its integration process and further aligns the discrete businesses, starting in the first quarter of 2007, the GCG segment results
will be reported using its new organizational structure, as described in Item 7, “Management’s Discussion and Analysis of Financial Condition and
Report of Operations.”
Health Group Segment (KHG): The Company announced on January 10, 2007 that it has reached an agreement to sell the Health Group to Onex
Corporation for as much as $2.55 billion. The transaction is expected to close in the first half of 2007. As a result, the results of operations and assets,
net of liabilities, to be sold, inclusive of the non-destructive testing business formerly included in FPG, will be reported as a discontinued operation
beginning in the first quarter of 2007.
All Other: In February 2007, the Company announced its entry into the consumer inkjet business. Beginning with the first quarter of 2007, the results
of the consumer inkjet business, formerly included in All Other, will be reported within the CDG segment. There are no other changes to the composi-
tion of All Other.