Kodak 2000 Annual Report Download - page 59

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Note 15: Acquisitions and Joint Ve n t u re s
2 0 0 0 During the second quart e r, the Company acquired the
remaining ownership interest in Picture Vision, Inc. for cash and
assumed liabilities with a total transaction value of appro x i m a t e l y
$90 million. Picture Vision, the leading provider of digital imaging
network services and solutions at retail, now operates as a wholly-
owned subsidiary of the Company. Kodak has integrated the
p roducts and activities of its Picture Network, which pro v i d e s
consumers with an Internet-based digital imaging network serv-
ice, with Picture Vi s i o n ’s digital imaging service, PhotoNet. In re l a-
tion to this acquisition, the Company’s second quarter re s u l t s
included $10 million in charges for acquired in-process R&D and
a p p roximately $15 million for other acquisition-related charg e s .
Goodwill related to this acquisition is being amortized over 7 years.
1 9 9 9 In connection with the sale of the C ompany’s digital printer,
c o p i e r- d u p l i c a t o r , and roller assembly operations primarily asso-
ciated with the Office Imaging bus iness (See Note 16, Sales
of Assets and Divestitures), the Company and Heidelberg e r
D ruckmaschinen AG (Heidelberg) also announced an agre e m e n t
to expand their joint venture company, NexPress, to include the
black-and-white electrophotographic business. The C ompany
contributed R&D re s o u rces to NexPress, as well as its toner and
developer operations in Rochester and Kirkby, England. This
transaction did not have a material effect on the Company’s
results of operations or financial position in 1999. Kodak and
H e i d e l b e rg established the NexPress joint venture in September
1997 for the purpose of developing and marketing new digital
color printing solutions for the graphic arts industry. In connec-
tion with these arrangements, the Company serves as a supplier
both to Heidelberg and NexPress for consumables such as pho-
t o c o n d u c t o r s and raw materials for toner/developer manufacturing.
58
The following table summarizes information about stock options at December 31, 2000:
(Number of options in thousands) Options Outstanding Options Exerc i s a b l e
We i g h t e d -
Range of Exercise Prices Av e r a g e We i g h t e d - We i g h t e d -
R e m a i n i n g Av e r a g e Av e r a g e
A t L e s s C o n t r a c t u a l E x e rc i s e E x e rc i s e
L e a s t T h a n O p t i o n s L i f e P r i c e O p t i o n s P r i c e
$ 3 0 – $ 4 5 6 , 8 8 9 2 . 7 3 $ 4 0 . 0 4 6 , 3 4 8 $ 4 0 . 0 2
$ 4 5 – $ 6 0 1 3 , 4 3 3 7 . 9 4 $ 5 4 . 4 9 3 , 2 3 0 $ 5 4 . 1 8
$ 6 0 – $ 7 5 2 1 , 4 0 6 7 . 0 7 $ 6 7 . 7 7 1 6 , 7 3 8 $ 6 8 . 3 7
$ 7 5 – $ 9 0 9 9 6 6 . 7 7 $ 8 0 . 4 3 8 4 5 $ 8 0 . 9 6
Over $90 2 , 1 2 2 6 . 1 5 $ 9 0 . 1 9 1 , 6 2 2 $ 9 0 . 2 1
4 4 , 8 4 6 2 8 , 7 8 3
(Number of options in thousands)