Kodak 2010 Annual Report Download - page 10

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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, although costs could be material
to a particular quarter or year, with the possible exception of matters related to the Passaic River, which are described in Note 10,
"Commitments and Contingencies," in the Notes to Financial Statements.
Employment
At the end of 2010, the Company employed the full time equivalent of approximately 18,800 people, of whom approximately 9,600
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.
We have included the CEO and CFO certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 as exhibits to this
report. We have also included these certifications with the Form 10-K for the year ended December 31, 2009 filed on February 22,
2010. Additionally, we filed with the New York Stock Exchange (“NYSE”) the CEO certification, dated June 9, 2010, regarding our
compliance with the NYSE's corporate governance listing standards pursuant to Section 303A.12(a) of the listing standards, and
indicated that the CEO was not aware of any violations of the listing standards by the Company.
ITEM 1A. RISK FACTORS
The competitive pressures we face could harm our revenue, gross margins and market share.
The markets in which we do business are highly competitive with large, entrenched, and well financed industry participants. In
certain markets where Kodak is a relatively new entrant, we have not achieved the scale of distribution that our competitors have. In
addition, we encounter aggressive price competition for all our products and services from numerous companies globally. Over the
past several years, price competition in the market for digital products, film products and services has been particularly intense as
competitors have aggressively cut prices and lowered their profit margins for these products. Our results of operations and financial
condition may be adversely affected by these and other industry wide pricing pressures. If our products, services and pricing are not
sufficiently competitive with current and future competitors, we could also lose market share, adversely affecting our revenue and
gross margins.
If our commercialization and manufacturing processes fail to prevent product reliability and quality issues, our product
launch plans may be delayed, our financial results may be adversely impacted, and our reputation may be harmed.
In developing, commercializing and manufacturing our products and services, we must adequately address reliability and other
quality issues, including defects in our engineering, design and manufacturing processes, as well as defects in third-party
components included in our products. Because our products are becoming increasingly sophisticated and complicated to develop
and commercialize with rapid advances in technologies, the occurrence of defects may increase, particularly with the introduction of
new product lines. Unanticipated issues with product performance may delay product launch plans which could result in additional
expenses, lost revenue and earnings. Although we have established internal procedures to minimize risks that may arise from
product quality issues, there can be no assurance that we will be able to eliminate or mitigate occurrences of these issues and
associated liabilities. Product reliability and quality issues can impair our relationships with new or existing customers and adversely
affect our brand image, and our reputation as a producer of high quality products could suffer, which could adversely affect our
business as well as our financial results. Product quality issues can also result in recalls, warranty, or other service obligations and
litigation.