Kodak 2007 Annual Report Download - page 9

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Research and Development
Through the years, the Company has engaged in extensive and productive efforts in research and development.
Research and development expenditures for the Company’s three reportable segments and All Other were as follows:
For the Year Ended December 31,
(in millions) 2007 2006 2005
Consumer Digital Imaging Group $ 248 $ 281 $ 300
Film Products Group 29 33 63
Graphic Communications Group 205 200 281
All Other 53 64 95
Total $ 535 $ 578 $ 739
Research and development is headquartered in Rochester, New York. Other U.S. groups are located in Boston, Massachusetts; New Haven, Connecti-
cut; and San Jose, Emeryville, and San Diego, California. Outside the U.S., groups are located in England, France, Israel, Germany, Japan, China, and
Singapore. These groups work in close cooperation with manufacturing units and marketing organizations to develop new products and applications to
serve both existing and new markets.
It has been the Company’s general practice to protect its investment in research and development and its freedom to use its inventions by obtaining
patents. The ownership of these patents contributes to the Company’s ability to provide leadership products and to generate revenue from licensing. The
Company holds portfolios of patents in several areas important to its business, including digital cameras and image sensors; network photo sharing and
fulfillment; flexographic and lithographic printing plates and systems; digital printing workflow and color management proofing systems; color and black
and white electrophotographic printing systems; wide-format, continuous, and consumer inkjet printers; inkjet inks and media; thermal dye transfer and
dye sublimation printing systems; digital cinema; color negative films, processing and papers; and organic light-emitting diodes. Each of these areas is
important to existing and emerging business opportunities that bear directly on the Company’s overall business performance.
The Company’s major products are not dependent upon one single, material patent. Rather, the technologies that underlie the Company’s products are
supported by an aggregation of patents having various remaining lives and expiration dates. There is no individual patent or group of patents the expira-
tion of which is expected to have a material impact on the Company’s results of operations.
Environmental Protection
The Company is subject to various laws and governmental regulations concerning environmental matters. The U.S. federal environmental legislation and
state regulatory programs having an impact on the Company include the Toxic Substances Control Act, the Resource Conservation and Recovery Act, the
Clean Air Act, the Clean Water Act, the NY State Chemical Bulk Storage Regulations and the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended (the Superfund Law).
It is the Company’s policy to carry out its business activities in a manner consistent with sound health, safety and environmental management practices,
and to comply with applicable health, safety and environmental laws and regulations. The Company continues to engage in programs for environmental,
health and safety protection and control.
Based upon information presently available, future costs associated with environmental compliance are not expected to have a material effect on the
Company’s capital expenditures, earnings or competitive position. However, such costs could be material to results of operations in a particular future
quarter or year.
Environmental protection is further discussed in Note 11, “Commitments and Contingencies,” in the Notes to Financial Statements.
Employment
At the end of 2007, the Company employed the full time equivalent of approximately 26,900 people, of whom approximately 14,200 were employed in the
U.S. The actual number of employees may be greater because some individuals work part time.
Available Information
The Company files many reports with the Securities and Exchange Commission (SEC), including annual reports on Form 10-K, quarterly reports on
Form 10-Q and current reports on Form 8-K. These reports, and amendments to these reports, are made available free of charge as soon as reasonably
practicable after being electronically filed with or furnished to the SEC. They are available through the Company’s website at www.Kodak.com. To reach
the SEC filings, follow the links to Investor Center, and then SEC Filings. The Company also makes available its annual report to shareholders and proxy
statement free of charge through its website.