When Kodak made Brownies, folks said, "Cheese!" Now the inventor of the Brownie camera has abandoned consumer photography altogether to focus on imaging for businesses. Kodak, which has staked its future on commercial printing, makes presses and imprinting systems, and technology to print documents, publications, and product packaging for corporate customers. It also serves the motion picture industry with motion imaging products, services, and technology for studios, labs, and independent filmmakers. Founded in 1880 by George Eastman, Eastman Kodak emerged from bankruptcy in 2013 as a smaller company focused on commercial printing products and services after shrinking and restructuring its operations.
In its January 2012 bankruptcy filing, Kodak listed more than 100,000 creditors and debts totaling $6.75 billion. The Bank of New York Mellon, which serves as a trustee for other bondholders, is its top creditor with claims of more than $650 million. There are some well-known companies on the list, such as Sony, Nokia, Wal-Mart, Target, Best Buy, OfficeMax, Disney Studios, and CVS Health. On the plus side, Kodak's more than $5 billion in assets include properties in New York, Colorado, and Oklahoma. The company emerged from Chapter 11 in September 2013.
Rochester, New York-based Kodak has manufacturing operations in Rochester; Dayton, Ohio; Weatherford, Oklahoma; and Columbus, Georgia. Outside the US, its manufacturing facilities are located in Canada, China, Germany, Japan, and the UK.
Going forward, the newly-reorganized company has two reportable segments: Graphics, Entertainment, and Commercial Films (GECF), which provides digital and traditional products and services to commercial printers, direct mail, book publishing, newspapers and magazines, and the motion picture industry, among others; and Digital Printing and Enterprise (DP&E), which supplies customers in the creative, in-plant, data center, commercial prints, packaging, newspaper, and digital service bureau markets with software, hardware, and media products. Digital Printing includes both Kodak's Inkjet Printing and Electrophotographic Printing equipment and related consumables and services.
Upon emerging from bankruptcy, Kodak adopted fresh start accounting methods. As a result, its unaudited financial statements for the four months from September 2013 thru the end of the year aren't compatible to previous reports. Nevertheless, sales figures for that period give a snapshot of the new business. Kodak's Graphics, Entertainment, and Commercial Films (GECF) segment is the largest contributor to revenue, accounting for 64% of net sales. Digital Printing and Enterprise (DP&E) represents 35% of sales. Also, the US contributed just 29% of Kodak's sales, while the international business represents the lion's share. The company continued to operate at a loss with both the GECF and DPE segments in the red. As of December 31, 2013, Kodak has total assets of $3.2 billion, total liabilities of $2.6 billion and equity of approximately $650 million.
Restructuring with the goal of emerging from bankruptcy dominated 2013. Actions taken by Kodak during the year to reduce its cost structure and someday return to profitability included the continued wind down of the consumer inkjet business, reducing manufacturing capacity in the US and the UK, layoffs in France, and other targeted reductions in service, sales, and other areas.