Kodak 2012 Annual Report Download - page 8

Table of Contents
Net revenues for Intellectual Property accounted for (1)%, 2%, and 15% of total consolidated revenue for the years ended December 31, 2012,
2011, and 2010, respectively. On February 1, 2013, Kodak sold its digital imaging patents.
Personalized Imaging: Personalized Imaging includes retail systems solutions, paper and output systems, event imaging solutions and
consumer film.
Net sales for Personalized Imaging accounted for 28%, 25%, and 22% of total consolidated revenue for the years ended December 31, 2012,
2011, and 2010, respectively.
Document Imaging: Document Imaging includes document scanning products and services and related maintenance offerings.
On August 23, 2012, Kodak announced the decision to initiate sale processes for its Personalized Imaging and Document Imaging businesses.
Marketing and Competition: Personalized Imaging products are sold through a variety of retail channels and distributor networks.
Personalized Imaging faces competition from other major companies offering traditional and digital imaging products. Competition is generally
focused on product features, system connectivity, software, service support, pricing and brand reputation. Document Imaging sells through
channel partners and faces competition from other companies that offer scanning products, services and software. Competition is based on
technology, product features, technical support, service offerings and pricing.
DISCONTINUED OPERATIONS
Discontinued operations of Kodak include the digital capture and devices business, Kodak Gallery, and other miscellaneous businesses.
FINANCIAL INFORMATION BY GEOGRAPHIC AREA
Financial information by geographic area for the past three years is shown in Note 26, “Segment Information,” in the Notes to Financial
Statements.
RAW MATERIALS
The raw materials used by Kodak are many and varied, and are generally readily available. Lithographic aluminum is the primary material used
in the manufacture of offset printing plates. Kodak procures lithographic aluminum coils from several suppliers on a spot basis or under
contracts generally in place over the next one to two years. Silver is one of the essential materials used in the manufacture of films and
photographic papers. Kodak purchases silver from numerous suppliers under annual agreements or on a spot basis. Paper base is an essential
material in the manufacture of photographic papers. Kodak has a contract to acquire paper base from a certified photographic paper supplier
through the end of 2013. Electronic components are used in the manufacturing of commercial printers and other electronic devices. Although
most electronic components are generally available from multiple sources, certain key electronic components included in the finished goods
manufactured by and purchased from Kodak’s third party suppliers are obtained from single or limited sources, which may subject Kodak to
supply risks.
SEASONALITY OF BUSINESS
Sales and earnings of Personalized Imaging within the P&DI segment are linked to the timing of holidays, vacations and other leisure or gifting
seasons. Sales are normally lowest in the first quarter due to fewer holidays and less picture-taking and gift-
giving opportunities during that time.
Sales and earnings of Document Imaging within the P&DI segment generally exhibit higher levels in the fourth quarter due to seasonal demand
of government agencies and other customers operating under calendar year budget deadlines.
Sales of the DP&E segment generally exhibit modestly higher levels in the fourth quarter due to the seasonal nature of equipment placements.
Sales of entertainment imaging film within the GECF segment are typically strongest in the second quarter reflecting increased demand due to
the summer motion picture season.
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