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Annual Report 1996


13. Business

Nature of Operations
The Company is engaged primarily in one line of business, the design, manufacture and sale of instant photographic imaging products worldwide. Photographic products, which represent over 90 percent of the Company's total revenues, are marketed worldwide through distributors and dealers for amateur and professional photography, business, industry, science, medicine, government and education. In addition, the Company is expanding its role in the market for digital imaging products. The Company's digital imaging products are marketed worldwide through distributors and directly to customers primarily for medical, graphic art and other business applications. Digital imaging products also include products for consumer digital imaging and desktop publishing.

Segments of Business
During 1996, 1995 and 1994 sales to one customer, Wal-Mart Stores, Inc., amounted to 11.9%, 10.9%, and 13.7%, respectively, of the Company's total sales.

Intercompany sales between geographic areas are accounted for at prices representative of unaffiliated party transactions.

The following table shows certain financial information relating to the Company's operations in various geographic areas:

Geographic Areas

Years ended December 31,

(In millions)

1996

1995

1994


Sales      
United States      
Customers

$1,060.3

$1,019.0

$1,160.3

Intercompany

445.7

479.4

496.3

 

1,506.0

1,498.4

1,656.6

Europe      
Customers

663.6

738.8

704.6

Intercompany

397.1

368.1

347.1

 

1,060.7

1,106.9

1,051.7

Asia Pacific, Canada, Latin and South America      
Customers

551.3

479.1

447.6

Intercompany

113.5

123.3

83.5

 

664.8

602.4

531.1

Eliminations

(956.3)

(970.8)

(926.9)

Net sales

$2,275.2

$2,236.9

$2,312.5

Profits      
United States

$13.8

$(179.4)

$100.8

Europe

19.0

20.6

81.8

Asia Pacific, Canada, Latin and South America

25.0

24.4

45.2

General corporate expense

(13.3)

(19.4)

(13.0)

Eliminations

7.3

(4.0)

(14.5)

       
Profit/(loss) from operations

51.8

(157.8)

200.3

Other income/(expense)

(20.6)

(43.6)

(39.6)

Earnings/(loss) before income tax expense/(benefit)

$31.2

$(201.4)

$160.7

       
Assets      
United States

$1,490.0

$1,526.1

$1,480.5

Europe

659.8

669.9

613.8

Asia Pacific, Canada, Latin and South America

279.9

258.4

248.1

Corporate assets (cash, cash equivalents and short-term investments)

78.3

83.1

228.9

Eliminations

(306.4)

(275.7)

(254.6)

       
 Total assets

 $2,201.6

$2,261.8

 $2,316.7




Polaroid Corporation Annual Report 1996
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