Kodak 2013 Annual Report Download - page 7

Table of Contents
Kodak’s Functional Printing business has entered the commercialization phase for two separate solutions that provide touch panel sensor films
to the touch module industry, a silver halide-based solution and an additive printing solution. Both pathways are expected to be in commercial
production in 2014.
Enterprise Services & Solutions: Enterprise Services & Solutions assists with the challenges and opportunities created by the worldwide
digital transformation. Kodak brings together its technological strengths to meet the needs of its customers in the areas of print & managed
media services, brand protection solutions and services, and document management services. The group serves customers in enterprises
including government; pharmaceuticals and healthcare; consumer and luxury good products; retail; and finance.
Consumer Inkjet Systems: Consumer Inkjet Systems includes consumer inkjet printers and related ink and media consumables. Starting in
2013, the Consumer Inkjet Systems business is focused on the sale of ink to its installed base of consumer inkjet printers.
Net sales for Consumer Inkjet Systems accounted for 7%, 9%, 11%, and 10% of total consolidated revenue for the four months ended
December 31, 2013, eight months ended August 31, 2013 and years ended December 31, 2012 and 2011, respectively.
Marketing and Competition: The key imperatives and marketing focus for the DP&E businesses are 1) to expand the company’s position in
the high-growth markets of commercial inkjet, packaging and functional printing by leveraging Kodak’s success in developing and
commercializing digital printing technologies, including the SQUAREspot laser writing imaging technology and continuous inkjet Stream
technology and 2) to partner with and provide professional services to customers in the commercial printing and digital imaging markets,
supporting new customer applications and business solutions. DP&E faces competition from other companies that offer a range of commercial
offset and digital printing equipment, consumables and service. Competition is generally focused on technology, solutions, and price.
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-Rochester, LLC (“RED”), a
variable interest entity of which Kodak is the primary beneficiary.
DISCONTINUED OPERATIONS
Discontinued operations of Kodak include the Personalized Imaging and Document Imaging businesses, the digital capture and devices
business, Kodak Gallery, and other miscellaneous businesses. For details, refer to Note 26, “Discontinued Operations” for additional
information.
FINANCIAL INFORMATION BY GEOGRAPHIC AREA
Financial information by geographic area for the past three years is shown in Note 25, “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. Kodak
purchases silver from numerous suppliers under annual agreements or on a spot basis. 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.
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