SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

NOTE 13:  SEGMENT INFORMATION   

Current Segment Reporting Structure

The Company has three reportable segments: Consumer Digital Imaging Group (CDG), Graphic Communications Group (GCG), and Film, Photofinishing and Entertainment Group (FPEG).  The balance of the Company's continuing operations, which individually and in the aggregate do not meet the criteria of a reportable segment, are reported in All Other.  A description of the segments follows.

Consumer Digital Imaging Group Segment (CDG):  CDG encompasses digital still and video cameras, digital devices such as picture frames, kiosks, APEX drylab systems, and related consumables and services, consumer inkjet printing systems, Kodak Gallery products and services, and imaging sensors.  CDG also includes the licensing activities related to the Company's intellectual property in digital imaging products.

Graphic Communications Group Segment (GCG):  GCG encompasses workflow software and digital controllers; digital printing, which includes commercial inkjet and electrophotographic products, including equipment, consumables and service; prepress consumables; prepress equipment and packaging solutions; business solutions and consulting services; and document scanners.

Film, Photofinishing and Entertainment Group Segment (FPEG):  FPEG encompasses consumer and professional film, one-time-use cameras, aerial and industrial materials, and entertainment imaging products and services.   In addition, this segment also includes paper and output systems, and photofinishing services.

Change in Segment Measure of Profit and Loss

During the first quarter of 2011, the Company changed its segment measure of profit and loss to exclude certain components of pension and other postretirement obligations (OPEB).  As a result of this change, the operating segment results exclude the interest cost, expected return on plan assets, amortization of actuarial gains and losses, and special termination benefit, curtailment and settlement components of pension and OPEB expense.  The service cost and amortization of prior service cost components will continue to be reported as part of operating segment results.

Prior period segment results have been revised to reflect this change.

Segment financial information is shown below:

	Three Months Ended  June 30,				Six Months Ended  June 30,
(in millions)	2011		2010		2011		2010
Net sales from continuing operations:
Consumer Digital Imaging Group	$	404	$	438	$	734	$	1,322
Graphic Communications Group		685		656		1,310		1,257
Film, Photofinishing and Entertainment Group		396		461		763		890
Consolidated total	$	1,485	$	1,555	$	2,807	$	3,469

	Three Months Ended  June 30,						Six Months Ended  June 30,
(in millions)	2011			2010			2011			2010
(Loss) earnings from continuing operations before interest expense, other income (charges), net and income taxes:
Consumer Digital Imaging Group	$	(92	)	$	(123	)	$	(260	)	$	278
Graphic Communications Group		(45	)		(17	)		(116	)		(57	)
Film, Photofinishing and Entertainment Group		2			36			(13	)		58
All Other		-			1			-			(1	)
Total of reportable segments		(135	)		(103	)		(389	)		278
Restructuring costs, rationalization and other		(36	)		(11	)		(71	)		(25	)
Corporate components of pension and   OPEB (expense) income		(4	)		22			(12	)		48
Other operating income (expenses), net		1			2			71			(2	)
Legal contingencies and settlements		-			(10	)		-			(10	)
Loss on early extinguishment of debt, net		-			-			-			(102	)
Interest expense		(38	)		(41	)		(76	)		(79	)
Other income (charges), net		17			-			9			(4	)
Consolidated (loss) earnings from continuing   operations before income taxes	$	(195	)	$	(141	)	$	(468	)	$	104

(in millions)	As of June 30, 2011		As of December 31, 2010
Segment total assets:
Consumer Digital Imaging Group	$	1,009	$	1,126
Graphic Communications Group		1,663		1,566
Film, Photofinishing and Entertainment Group		1,137		1,090
Total of reportable segments		3,809		3,782
Cash and marketable securities		959		1,628
Deferred income tax assets		565		815
All Other/corporate items		1		1
Consolidated total assets	$	5,334	$	6,226