Kodak 2009 Annual Report Download - page 30

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Environmental Commitments
Environmental liabilities are accrued based on undiscounted estimates of known environmental remediation responsibilities. The
liabilities include accruals for sites owned or leased by the Company, sites formerly owned or leased by the Company, and other
third party sites where the Company was designated as a potentially responsible party (“PRP”). The amounts accrued for such sites
are based on these estimates, which are determined using the ASTM Standard E 2137-06, “Standard Guide for Estimating Monetary
Costs and Liabilities for Environmental Matters.” The overall method includes the use of a probabilistic model that forecasts a range
of cost estimates for the remediation required at individual sites. The Company’s estimate includes equipment and operating costs
for investigations, remediation and long-term monitoring of the sites. Such estimates may be affected by changing determinations of
what constitutes an environmental liability or an acceptable level of remediation. The Company’s estimate of its environmental
liabilities may also change if the proposals to regulatory agencies for desired methods and outcomes of remediation are viewed as
not acceptable, or additional exposures are identified. The Company has an ongoing monitoring and identification process to assess
how activities, with respect to the known exposures, are progressing against the accrued cost estimates, as well as to identify other
potential remediation issues that are presently unknown.
Additionally, in many of the countries in which the Company operates, environmental regulations exist that require the Company to
handle and dispose of asbestos in a special manner if a building undergoes major renovations or is demolished. The Company
records a liability equal to the estimated fair value of its obligation to perform asset retirement activities related to the asbestos,
computed using an expected present value technique, when sufficient information exists to calculate the fair value.
Recently Issued Accounting Pronouncements
See Note 1, “Significant Accounting Policies,” in the Notes to Financial Statements in Item 8.
Kodak Operating Model and Reporting Structure
For 2009, the Company had three reportable segments: Consumer Digital Imaging Group (“CDG”), Film, Photofinishing and
Entertainment Group (“FPEG”), and Graphic Communications Group (“GCG”). Within each of the Company’s reportable segments
are various components, or Strategic Product Groups (“SPGs”). Throughout the remainder of this document, references to the
segments’ SPGs are indicated in italics. The balance of the Company's continuing operations, which individually and in the
aggregate do not meet the criteria of a reportable segment, are reported in All Other. A description of the segments is as follows:
Consumer Digital Imaging Group Segment (“CDG”): CDG encompasses digital still and video cameras, digital devices such as
picture frames, kiosks and related media, APEX drylab systems, consumer inkjet printing systems, Kodak Gallery products and
services, and imaging sensors. CDG also includes the licensing activities related to the Company's intellectual property in digital
imaging products.
Film, Photofinishing and Entertainment Group Segment (“FPEG”): FPEG encompasses consumer and professional film, one-
time-use cameras, graphic arts film, aerial and industrial film, and entertainment imaging products and services. In addition, this
segment also includes paper and output systems, and photofinishing services. This segment provides consumers, professionals,
cinematographers, and other entertainment imaging customers with film-related products and services. As previously announced,
the Company closed its Qualex central lab operations in the U.S. and Canada at the end of March 2009.
Graphic Communications Group Segment (“GCG”): GCG serves a variety of customers in the creative, in-plant, data center,
commercial printing, packaging, newspaper and digital service bureau market segments with a range of software, media and
hardware products that provide customers with a variety of solutions for prepress equipment, workflow software, analog and digital
printing, and document scanning. Products and related services include workflow software and digital controllers; digital printing,
which includes commercial inkjet and electrophotographic products, including equipment, consumables and service; prepress
consumables; prepress equipment; and document scanners.
All Other: All Other is composed of the Company’s display business and other small, miscellaneous businesses. In December
2009, the Company sold assets of its display business called OLED.