Kodak 2013 Annual Report Download - page 32

Table of Contents
Additionally, in many of the countries in which Kodak operates, environmental regulations exist that require Kodak to handle and dispose of
asbestos in a special manner if a building undergoes major renovations or is demolished. Kodak records a liability equal to the estimated fair
value of its obligation to perform asset retirement activities related to the asbestos, computed using an expected present value technique, when
sufficient information exists to calculate the fair value.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
See Note 1, “Basis of Presentation and Significant Accounting Policies,” in the Notes to Financial Statements in Item 8.
KODAK OPERATING MODEL AND REPORTING STRUCTURE
As of December 31, 2013, Kodak has two reportable segments: the Graphics, Entertainment and Commercial Films Segment and the Digital
Printing and Enterprise Segment. The balance of Kodak’s continuing operations, which do not meet the criteria of a reportable segment, are
reported in All Other. Within each of Kodak’s reportable segments are various components, or Strategic Product Groups (“SPG’s”).
Throughout the remainder of this document, references to the segments’ SPGs are indicated in italics.
Graphics, Entertainment and Commercial Films Segment (“GECF”): The Graphics, Entertainment and Commercial Films Segment
consists of three SPGs, Graphics , Entertainment & Commercial Films, and Intellectual Property & Brand Licensing .
Digital Printing and Enterprise Segment (“DP&E”): The Digital Printing and Enterprise Segment consists of four SPGs, Digital Printing ,
Packaging and Functional Printing
, Enterprise Services & Solution s , and Consumer Inkjet Systems .
All Other: All Other is composed of Kodak’s consumer film business and a utilities variable interest entity. Effective August 31, 2013 the
Company sold certain utilities and related facilities and entered into utilities supply and servicing arrangements with RED, a variable interest
entity.
Change in Segment Measure of Profit and Loss
During the second quarter of 2013, the Predecessor Company changed its segment measure of profit and loss to exclude amortization of prior
service credits related to the U.S. Postretirement Benefit Plan. Prior to this change, Kodak excluded certain other components of pension and
other postretirement benefit obligation (OPEB) costs from the segment measure of profitability. As a result of this change, the operating
segment results now exclude the interest cost, expected return on plan assets, amortization of actuarial gains and losses, amortization of prior
service credits related to the U.S. Postretirement Benefit Plan, and special termination benefit, curtailment and settlement components of
pension and OPEB expense. The service cost component for all plans will continue to be reported as a part of operating segment results, as will
the amortization of prior service cost component for all plans other than for the U.S. Postretirement Benefit Plan. Prior period segment results
have been revised to reflect this change.
Upon application of fresh start accounting, the Successor Company eliminated prior service credits related to the U.S. Postretirement Benefit
Plan. Therefore, the four-month period ended December 31, 2013 does not include any amortization of prior service credits related to the U.S.
Postretirement Benefit Plan.
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