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 |