Kodak 2009 Annual Report Download - page 10

8
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:
(in millions)
For the Year Ended December 31,
2009 2008 2007
Consumer Digital Imaging Group $ 146 $ 205 $ 242
Film, Photofinishing and Entertainment Group 33 49 60
Graphic Communications Group 171 221 207
All Other 6 3 16
Total $ 356 $ 478 $ 525
Research and development is headquartered in Rochester, New York. Other U.S. groups are located in Boston, Massachusetts;
New Haven, Connecticut; Dayton, Ohio; and San Jose, Emeryville, and San Diego, California. Outside the U.S., groups are located
in Canada, England, 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; commercial, and consumer inkjet printers; inkjet inks and media; thermal dye transfer and dye sublimation printing
systems; digital cinema; and color negative films, processing and papers. 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 expiration or group of patents expirations which are 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, results of operations 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 10, "Commitments and Contingencies," in the Notes to Financial Statements.
Employment
At the end of 2009, the Company employed the full time equivalent of approximately 20,250 people, of whom approximately 10,630
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.