Kodak 2012 Annual Report Download - page 6

Table of Contents
certain other professionals to provide services and advice in the ordinary course of business. From time to time, the Debtors may seek
Bankruptcy Court approval to retain additional professionals.
The U.S. Trustee for the Southern District of New York (the “U.S. Trustee”) has appointed an official committee of unsecured creditors (the
“UCC”) as well as an official committee of retired employees (“Retiree Committee”). The UCC, the Retiree Committee and their legal
representatives have a right to be heard on all matters affecting the Debtors that come before the Bankruptcy Court. There can be no assurance
that the UCC will support the Debtors’ positions on matters to be presented to the Bankruptcy Court in the future or on any reorganization plan,
once proposed.
Reorganization Plan
In order for the Debtors to emerge successfully from chapter 11, the Debtors must obtain the Bankruptcy Court’s approval of a reorganization
plan, which will enable the Debtors to emerge from chapter 11 as a reorganized entity operating in the ordinary course of business outside of
bankruptcy. In connection with a reorganization plan, the Company also may require new credit facilities, or “exit financing.” The Company’s
ability to obtain such approval and exit financing will depend on, among other things, the timing and outcome of various ongoing matters related
to the Bankruptcy Filing. A reorganization plan determines the rights and satisfaction of claims of various creditors and security holders, and is
subject to the ultimate outcome of negotiations, events and Bankruptcy Court decisions ongoing through the date on which the reorganization
plan is confirmed.
On February 22, 2013, the Bankruptcy Court entered an order extending the period of time that the Debtors have the exclusive right to file a plan
of reorganization and disclosure statement with the Bankruptcy Court through and including April 18, 2013. The extension concerns only the
length of time in which the Debtors have the sole right to file a plan of reorganization, not the duration of the case. The Debtors expect to emerge
from bankruptcy in mid-2013.
The Debtor-In-Possession Credit Agreement (“DIP Credit Agreement” or “DIP”) stipulates that a draft of an acceptable reorganization plan and
disclosure statement is to be provided to the DIP agent on or prior to January 15, 2013 and filed with the court on or prior to February 15, 2013.
On January 15, 2013, the Company provided to the DIP agent a draft reorganization plan and disclosure statement. On February 6, 2013, the
Company entered into an amendment of the DIP Credit Agreement to extend the requirement to file a plan of reorganization and disclosure
statement with the Bankruptcy Court to April 30, 2013.
Under section 1125 of the Bankruptcy Code, the disclosure statement must be approved by the Bankruptcy Court before the Debtors may solicit
acceptance of the proposed reorganization plan. To be approved by the Bankruptcy Court, the disclosure statement must contain “adequate
information” that would enable a hypothetical holder to make an informed judgment about the plan. Once the disclosure statement is approved,
the Debtors may send the proposed reorganization plan, the disclosure statement and ballots to all creditors entitled to vote. There can be no
assurance that the Debtors will be able to secure approval for the Debtors’ proposed reorganization plan from creditors or confirmation from the
Bankruptcy Court. In the event the Debtors do not secure approval or confirmation of the reorganization plan, any outstanding DIP Credit
Agreement principal and interest could become immediately due and payable.
REPORTABLE SEGMENTS
Effective September 30, 2012, Kodak changed its segment reporting structure to three reportable segments: the Graphics, Entertainment and
Commercial Films Segment, the Digital Printing and Enterprise Segment, and the Personalized and Document Imaging Segment. Prior period
segment results have been revised to conform to the current period segment reporting structure. All the information provided herein reflects this
change.
Kodak’s sales, earnings and assets by reportable segment for each of the past three years are shown in Note 26, “Segment Information,” in the
Notes to Financial Statements.
GRAPHICS, ENTERTAINMENT AND COMMERCIAL FILMS (“GECF”) SEGMENT
Around the world, GECF provides digital and traditional product and service offerings to a variety of commercial industries, including;
commercial print, direct mail, book publishing, newspapers and magazines, packaging, motion picture entertainment, printed electronics, and the
aerial and industrial markets.
Graphics: The Kodak Graphics business encompasses Kodak’s full prepress portfolio, which includes; output equipment, plates, plate
chemistry, media, print workflow software, digital controllers and related services. Kodak is the only supplier in the industry that develops and
manufactures a fully-optimized portfolio for the global print market.
Net sales for Graphics accounted for 33%, 31%, and 27% of total consolidated revenue for the years ended December 31, 2012, 2011, and 2010,
respectively.
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