Kodak 2011 Annual Report Download - page 45

The decrease in FPEG gross profit margin from 2009 to 2010 was primarily driven by increased silver and other commodity costs.
Selling, General and Administrative Expenses
The declines in SG&A expenses were primarily attributable to focused cost reduction actions completed in 2009 and 2010 that continue to result in
lower SG&A expenses.
The decreases in R&D costs were due to the rationalization of investments in the segment.
LIQUIDITY AND CAPITAL RESOURCES
2011
Cash Flow Activity
Operating Activities
Net cash used in operating activities increased $779 million for the year ended December 31, 2011 as compared with the prior year. Cash received in 2011
related to non-recurring licensing agreements of $82 million was $515 million lower than cash received in 2010, related to non-recurring licensing
agreements, net of applicable withholding taxes, of $597 million. Additionally, the increase in cash used in operating activities was attributable to a greater
use of cash from working capital changes and use of cash for the settlement of other liabilities in the current year as compared with the prior year.
Investing Activities
Net cash used in investing activities decreased $87 million for the year ended December 31, 2011 as compared with 2010 due primarily to an increase
in proceeds received from sales of assets and businesses and lower capital expenditures. Partially offsetting this was cash used for the acquisition of a
business and to fund restricted cash and investments in trust ensuring payment of various obligations.
Research and Development Costs
As of December 31,
(in millions)
2011
2010
Cash and cash equivalents
$
861
$
1,624
For the Year Ended
(in millions) December 31,
2011
2010
Change
Cash flows from operating activities:
Net cash used in continuing operations
$
(988
)
$
(219
)
$
(769
)
Net cash used in discontinued operations
(10
)
-
(10
)
Net cash used in operating activities
(998
)
(219
)
(779
)
Cash flows from investing activities:
Net cash used in investing activities
(25
)
(112
)
87
Cash flows from financing activities:
Net cash provided by (used in) financing activities
246
(74
)
320
Effect of exchange rate changes on cash
14
5
9
Net decrease in cash and cash equivalents
$
(763
)
$
(400
)
$
(363
)
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