Kodak 2008 Annual Report Download - page 24

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The following table shows the share repurchase activity for each of the three months in the quarter ended December 31, 2008:
(in millions, except average price paid per share)
Period
Total Number of
Shares
Purchased
Average Price
Paid per Share
Total Number of
Shares Purchased
as Part of Publicly
Announced
Programs
Approximate Dollar
Value of Shares That
May Yet Be Purchased
under the Program
October 1, 2008 to October 31, 2008 5.6 $ 14.00 5.6 $ 702
November 1, 2008 to November 30, 2008 0.3 $ 9.61 0.3 $ 699
December 1, 2008 to December 31, 2008 - - $ 699
Total 5.9 $ 13.77 5.9
ITEM 6. SELECTED FINANCIAL DATA
Refer to Summary of Operating Data on page 103.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS (“MD&A”) OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help
the reader understand the results of operations and financial condition of Kodak for the three years ended December 31, 2008. All
references to Notes relate to Notes to the Financial Statements in Item 8. “Financial Statements and Supplementary Data.”
Overview
Kodak is the world’s foremost imaging innovator and generates revenue and profits from the sale of products, technology, solutions
and services to consumers, businesses and creative professionals. The Company’s portfolio is broad, including image capture and
output devices, consumables and systems and solutions for consumer, business, and commercial printing applications. Kodak has
three reportable business segments, which are more fully described later in this discussion in “Kodak Operating Model and
Reporting Structure.” The three business segments are: Consumer Digital Imaging Group (“CDG”), Film, Photofinishing and
Entertainment Group (“FPEG”) and Graphic Communications Group (“GCG”).
During 2008, the Company established the following strategic objectives for the year:
• Cash generation before dividends
• Growth in revenue from the Consumer Digital Imaging Group and the Graphic Communications Group
• Growth in earnings from operations
All of the Company’s key operating metrics noted above were negatively impacted in 2008 by a dramatic decline in demand as a
result of the global economic slowdown, which accelerated late in the year. The demand for the Company’s consumer products is
largely discretionary in nature, and sales and earnings of the Company’s consumer businesses are linked to the timing of holidays,
vacations, and other leisure or gifting seasons. The fourth quarter of 2008 was marked by weak consumer holiday spending, the
impacts of which were significant in the Company’s digital camera and devices businesses in the CDG segment. In the GCG
segment, tightening credit availability, combined with the weak economy, resulted in a reduction of capital spending, negatively
impacting equipment sales as well. In addition, the reduction of global print demand had a negative impact on GCG consumables
sales, and increased costs for aluminum impacted gross margins. FPEG was also impacted by the weak economy, which
accelerated the decline of Film Capture and Traditional Photofinishing in the fourth quarter, and increased silver and petroleum-
based raw material costs impacted gross margins.
Critical Accounting Policies and Estimates
The accompanying consolidated financial statements and notes to consolidated financial statements contain information that is
pertinent to management’s discussion and analysis of the financial condition and results of operations. The preparation of financial
statements in conformity with accounting principles generally accepted in the United States of America requires management to
make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the related
disclosure of contingent assets and liabilities.