Quote Originally Posted by Aristophanes View Post
Film was not making a profit. Look at the Q3 2011 AR. Go back a decade reading them and their "film and entertainment" side bleeds red ink, writedowns, and asset sales, mostly of depreciated capital.
This is just funny accounting which in theory shows whether a corporation earns money but in practice ends up drawing a misleading picture. Look at the US$ 626 million goodwill depreciation: Kodak made some investments 10 or 20 years ago when things were running smoothly for them, then film sales tanked and in the year 2010 they finally decided to clean up their books for a little tax gain. So what does this mean? Did their buildings and investments just happen to depreciate that much in 2010? And not at all in the year before? Does this reflect in anyway whether they earned money from making and selling film in 2010?

If PE (whom you like to quote fully when he seems to confirm your doom&gloom view) states repeatedly that film made Kodak a profit, he might state this based insights from former colleges inside Kodak which don't make it into corporate fiction literature written for the SEC and professional AAA raters. Also consider that a sizeable amount of their stated losses come from commitments Kodak made when they were a highly profitable near monopoly, and these losses will evaporate together with their debt when they go into chapter 11.