Kodak 2014 Annual Report Download - page 7

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2015 Segments
In 2015, Kodak implemented a new organizational structure to make the company faster-moving, more competitive and more entrepreneurial. Effective January 1, 2015,
financial information will be reported for seven segments: Print Systems, Enterprise Inkjet Systems, Micro 3D Printing and Packaging, Software and Solutions, Consumer and
Film, Intellectual Property Solutions and Eastman Business Park.
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 27, “Discontinued Operations” in the Notes to Financial Statements for additional information.
FINANCIAL INFORMATION BY GEOGRAPHIC AREA
Financial information by geographic area for the past three years is shown in Note 23, “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. 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
Equipment sales generally are higher in the fourth quarter, resulting from customer or industry budgeting practices.
RESEARCH AND DEVELOPMENT
Through the years, Kodak has engaged in extensive and productive efforts in research and development.
•
Print Systems will be comprised of Prepress Solutions, which includes Kodak’
s digital offset plate offerings and computer to plate imaging solutions, and
Electrophotographic Printing Solutions.
•
Enterprise Inkjet Systems will include commercial inkjet printing solutions and digital front-end controllers.
•
Micro 3D Printing and Packaging will be comprised of Packaging and Functional Printing.
•
Software and Solutions will be comprised of Kodak Technology Solutions, which includes enterprise services and solutions, and workflow software.
•
Consumer and Film will be comprised of Consumer Inkjet, Entertainment Imaging and Commercial Films, and Brand Licensing.
•
Intellectual Property Solutions will include licensing and research and development activities not directly related to the other segments.
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