Kodak 2014 Annual Report Download - page 36

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Revenues
Current Year
For the year ended December 31, 2014, revenues decreased approximately 11% compared with the same period in 2013, primarily due to volume declines in Entertainment
Imaging and Commercial Films
(-4%), Consumer Inkjet Systems (-3%) and Digital Printing (-2%). Also contributing to the decline was unfavorable foreign exchange (-
1%) and unfavorable price/mix (-1%) within Graphics . Partially offsetting these declines was favorable price/mix within Intellectual Property and Brand Licensing
(+1%). See segment discussions below for additional information.
Included in revenues were non-recurring intellectual property licensing agreements. Such agreements contributed approximately $70 million to revenues in 2014 and $40
million in 2013.
Prior Year
For the year ended December 31, 2013, net sales decreased approximately 14% compared with the same period in 2012 primarily due to volume declines in each segment,
partially offset by favorable price/mix within Intellectual Property and Brand Licensing (+3%) and Entertainment Imaging and Commercial Films (+2%). The impact of
the application of fresh start accounting was not material. See segment discussions below for additional information.
Included in revenues were non-recurring intellectual property licensing agreements. Such agreements contributed approximately $40 million to revenues in 2013. There
were no significant non-recurring intellectual property licensing agreements in 2012. However, there was a $61 million license revenue reduction reflecting sharing, with
licensees, of the withholding tax refund received in 2012 (refer to Note 14, “Income Taxes” for additional information).
Gross Profit
Current Year
The increase in gross profit percent from 2013 to 2014 was driven by favorable manufacturing and other costs due to the revaluation of inventory from the application of fresh
start accounting impacting the prior year. Unfavorable price/mix within Consumer Inkjet Systems (-1pp) and Graphics (-1pp) was partially offset by favorable price/mix
within Intellectual Property and Brand Licensing (+1pp). See segment discussions below for additional details.
Prior Year
The increase in gross profit percent from 2012 to 2013 was due to favorable price/mix in the Graphics, Entertainment and Commercial Films Segment (+4pp) primarily
from intellectual property licensing and the Digital Printing and Enterprise Segment (+3pp). Also contributing to the increase was a reduction in pension and other
postretirement benefit costs in the current year (+3pp) and other cost improvements from each segment (+3pp) partially offset by increased manufacturing and other costs
due to the revaluation of inventory from the application of fresh start accounting (-3pp). See segment discussions below for additional details.
Selling, General and Administrative Expenses
The decreases in consolidated selling, general and administrative expenses (SG&A) from 2013 to 2014 and from 2012 to 2013 were the result of cost reduction
actions. For 2012 to 2013 this included the change in strategy for Consumer Inkjet Systems .
Research and Development Costs
The decrease in consolidated R&D from 2013 to 2014 was driven by a reduction in pension and other postretirement benefit costs in the current year.
The decrease in consolidated research and development costs (R&D) from 2012 to 2013 was primarily attributable to cost reduction actions resulting from focusing
development activities on core products and certain products reaching the commercialization stage.
Restructuring Costs and Other
These costs, as well as the restructuring costs reported in Cost of revenues, are discussed under the "RESTRUCTURING COSTS AND OTHER" section in this MD&A.
Other Operating Expense (Income), Net
For details, refer to Note 12, “Other Operating Expense (Income), Net.”
Other (Charges) Income, Net
For details, refer to Note 13, “Other (Charges) Income, Net.”
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