Kodak 2011 Annual Report Download - page 42

Selling, General and Administrative Expenses
The decrease in SG&A expenses from 2010 to 2011 and the increase in SG&A expenses from 2009 to 2010 were primarily attributable to advertising
campaigns run in 2010.
Research and Development Costs
The decrease in R&D costs from 2010 to 2011 was primarily due to rationalization of investments.
GRAPHIC COMMUNICATIONS GROUP
Revenues
The increase in GCG net sales from 2010 to 2011 was driven by volume increases in Prepress Solutions (+2%) and the impact of favorable foreign
exchange (+3) across the segment. The volume growth in Prepress Solutions was largely due to continued increased print demand in emerging
markets and continued growth in Flexcel NX packaging solutions. Partially offsetting these increases was unfavorable price/mix in Prepress
Solutions (-3%), largely due to continued pricing pressures within the industry.
(dollars in millions)
For the Year Ended
December 31,
2011
% of Sales
% Change
2010
% of Sales
% Change
2009
% of Sales
Total net sales
$
2,736
2
%
$
2,674
-
2
%
$
2,718
Cost of sales
2,226
9
%
2,043
-
3
%
2,105
Gross profit
510
19
%
-
19
%
631
24
%
3
%
613
23
%
Selling, general and
administrative expenses
554
20
%
-
2
%
567
21
%
4
%
547
20
%
Research and development
costs
147
5
%
-
8
%
159
6
%
-
8
%
173
6
%
Loss from continuing
operations before interest
expense, other income
(charges), net and income
taxes
$
(191
) -
7
%
-
101
%
$
(95
) -
4
%
11
%
$
(107
) -
4
%
For the Year Ended
December 31,
Change vs. 2010
2011 Amount
Change vs.
2010
Volume
Price/Mix
Foreign
Exchange
Manufacturing
and Other
Costs
Total net sales
$
2,736
2
%
2
%
-
3
%
3
%
n/a
Gross profit margin
19
%
-
5pp
n/a
-
1pp
0pp
-
4pp
For the Year Ended
December 31, Change vs. 2009
2010 Amount
Change vs.
2009
Volume
Price/Mix
Foreign
Exchange
Manufacturing
and Other
Costs
Total net sales
$
2,674
-
2
%
3
%
-
5
%
0
%
n/a
Gross profit margin
24
%
1pp
n/a
-
3pp
0pp
4pp
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