Kodak 2013 Annual Report Download - page 5

Table of Contents
PART I
When used in this report, unless otherwise indicated by the context, “we,” “our,” “us,” and “Kodak” refer to the consolidated company on the
basis of consolidation described in Note 1 to the consolidated financial statements in Part II, Item 8, “Financial Statements and Supplementary
Data” of this Form 10-K Report. Also, unless otherwise indicated by the context, “EKC”
means the parent company, Eastman Kodak Company
(the “Company”).
Kodak is a technology company focused on imaging for business. Kodak offers high-quality, cost-effective products and services to the
commercial imaging industry. Kodak’s portfolio of products and services meets two distinct needs for its customers: transforming large
printing markets with digital offset, digital print and hybrid solutions; and developing new solutions for high-growth markets. Kodak also
offers leading products and services in entertainment imaging and commercial films.
The Company was founded by George Eastman in 1880 and incorporated in 1901 in the State of New Jersey. Kodak is headquartered in
Rochester, New York.
EMERGENCE FROM VOLUNTARY REORGANIZATION UNDER CHAPTER 11 PROCEEDINGS
On January 19, 2012 (the “Petition Date”), the Company and its U.S. subsidiaries (collectively, the “Debtors”) filed voluntary petitions for
relief (the “Bankruptcy Filing”) under chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States
Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The cases (the “Chapter 11 Cases”) were jointly
administered as Case No. 12-10202 (ALG) under the caption “In re Eastman Kodak Company.” The Debtors operated their businesses as
“debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of chapter 11 of the
Bankruptcy Code and the orders of the Bankruptcy Court until their emergence from bankruptcy. The Company’s foreign subsidiaries
(collectively, the “Non-Filing Entities”) were not part of the Chapter 11 Cases, and continued to operate in the ordinary course of business.
On August 23, 2013, the Bankruptcy Court entered an order (the “Confirmation Order”) confirming the revised First Amended Joint Chapter
11 Plan of Reorganization of Eastman Kodak Company and its Debtor Affiliates (the “Plan”). On September 3, 2013 (the “Effective Date”),
the
Plan became effective and the Debtors emerged from chapter 11 protection.
Fresh Start Accounting
Upon emergence from chapter 11, Kodak applied the provisions of fresh start accounting to its financial statements as of September 1, 2013.
The adoption of fresh start accounting resulted in Kodak becoming a new entity for financial reporting purposes. Accordingly, the consolidated
financial statements on or after September 1, 2013 are not comparable to the consolidated financial statements prior to that date. References to
“Successor” or “Successor Company” relate to the reorganized Kodak subsequent to the Effective Date. References to “Predecessor” or
“Predecessor Company” relate to Kodak prior to the Effective Date.
REPORTABLE SEGMENTS
As of December 31, 2012, Kodak had three reportable segments: the Graphics, Entertainment and Commercial Films Segment, the Digital
Printing and Enterprise Segment, and the Personalized and Document Imaging Segment. Effective in the first quarter of 2013, the Intellectual
Property and Brand Licensing strategic product group is reported in the Graphics, Entertainment and Commercial Films Segment. The
Intellectual Property and Brand Licensing strategic product group was previously reported in the Personalized and Document Imaging
Segment. Effective in the second quarter of 2013, due to the Personalized and Document Imaging Segment (excluding the film business, for
which Kodak has entered into an ongoing supply arrangement) being reported as discontinued operations, 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. 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 25, “Segment Information,” in the
Notes to Financial Statements.
Graphics, Entertainment and Commercial Films (“GECF”) Segment
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
film markets.
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ITEM 1.
BUSINESS