Kodak 2008 Annual Report Download - page 17

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ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
The Company's worldwide headquarters is located in Rochester, New York.
The CDG segment of Kodak’s business in the United States is headquartered in Rochester, New York. Kodak Gallery operations are
managed from Emeryville, California. Kodak Consumer Inkjet Systems operations are located in San Diego, California; Xiamen,
China; and Rochester, New York. Many of CDG’s businesses rely on manufacturing assets, company-owned or through
relationships with design and manufacturing partners, which are located close to end markets and/or supplier networks.
The FPEG segment of Kodak’s business is centered in Rochester, New York, where film and photographic chemicals and related
materials are manufactured. A manufacturing facility in Harrow, England produces photographic paper. Additional manufacturing
facilities supporting the business are located in Windsor, Colorado; China; Mexico; India; Brazil; and Russia. Entertainment Imaging
has business operations in Hollywood, California and Rochester, New York.
Products in the GCG segment are manufactured in the United States, primarily in Rochester, New York; Dayton, Ohio; Columbus,
Georgia; Weatherford, Oklahoma; and Windsor, Colorado. Manufacturing facilities outside the United States are located in the
United Kingdom, Germany, Israel, Bulgaria, China, Japan, and Canada.
Properties within a country may be shared by all segments operating within that country.
Regional distribution centers are located in various places within and outside of the United States. The Company owns or leases
administrative, manufacturing, marketing, and processing facilities in various parts of the world. The leases are for various periods
and are generally renewable.
ITEM 3. LEGAL PROCEEDINGS
During March 2005, the Company was contacted by members of the Division of Enforcement of the SEC concerning the announced
restatement of the Company's financial statements for the full year and quarters of 2003 and the first three unaudited quarters of
2004. An informal inquiry by the staff of the SEC into the substance of that restatement is continuing. The Company continues to
fully cooperate with this inquiry, and the staff has indicated that the inquiry should not be construed as an indication by the SEC or its
staff that any violations of law have occurred.
On July 9, 2008, the Company received a proposed Consent Order from the New York State Department of Environmental
Conservation ("DEC”) resolving alleged violations of the environmental quality programs at the Company's primary manufacturing
facility in Rochester, New York ("Kodak Park") which have occurred between February 28, 2005 and June 30, 2008. These alleged
violations include violations of the solid and hazardous waste management regulations, the facility-wide air permit and the waste
water discharge permit; most were discovered by Kodak and self-reported to the DEC. An agreement was reached on September
23, 2008, concluding this matter, with Kodak paying $125,000 to the DEC.
The Company has been named as third-party defendant (along with approximately 200 other entities) in an action initially brought by
the New Jersey Department of Environmental Protection (NJDEP) against Occidental Chemical Corporation and several other
companies that are successors in interest to Diamond Shamrock Corporation. The NJDEP seeks recovery of all costs associated
with the investigation, removal, cleanup and damage to natural resources occasioned by Diamond Shamrock's disposal of various
forms of chemicals in the Passaic River. The damages are alleged to potentially range "from hundreds of millions to several billions
of dollars". Pursuant to New Jersey's Court Rules, the defendants were required to identify all other parties which could be subject to
permissive joinder in the litigation based on common questions of law or fact. Third-party complaints seeking contribution from more
than 200 entities, who have been identified as potentially contributing to the contamination in the Passaic, were filed on February 5,
2009. The potential monetary exposure is likely to be in excess of $100,000 but is not expected to be material.
On November 17, 2008, the Company filed a complaint with the U.S. International Trade Commission (“ITC”) against Samsung
Electronics Company Ltd., Samsung Electronics America Inc., Samsung Telecommunications America, LLC, LG Electronics Inc., LG
Electronics USA Inc., and LG Electronics MobileComm USA, Inc. for infringement of patents related to digital camera technology.
Discovery has commenced before the ITC. The Company is seeking a limited exclusion order preventing importation of infringing
devices, including certain mobile telephones and wireless communication devices featuring digital cameras.
On February 17, 2009 Samsung Electronics Company Ltd. and Samsung Electronics America Inc. filed a complaint with the ITC
against the Company for infringement of certain of their patents alleged to be related to digital camera technology. Samsung is
seeking a limited exclusion order preventing importation of devices found to infringe the asserted patents. The Company intends to
vigorously defend itself in this matter.