Kodak 2001 Annual Report Download - page 76

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74
The following table summarizes information about stock options at December 31, 2001:
(Number of options in thousands) Options Outstanding Options Exercisable
Weighted-
Range of Exercise Prices Average Weighted- Weighted-
Remaining Average Average
At Less Contractual Exercise Exercise
Least Than Options Life Price Options Price
$25 – $40 6,175 7.98 $ 32.08 1,351 $ 33.81
$40 – $55 14,356 6.26 $ 47.87 4,999 $ 45.31
$55 – $70 20,060 6.55 $ 62.52 15,711 $ 63.44
$70 – $85 7,512 5.16 $ 73.42 7,158 $ 73.40
Over $85 2,352 5.17 $ 90.01 2,352 $ 90.01
50,455 31,571
Note 19: Acquisitions, Joint Ventures and
Business Ventures
2001 On December 4, 2001, the Company and SANYO Electric Co., Ltd.
announced the formation of a global business venture, the SK Display
Corporation, to manufacture organic light emitting diode (OLED) displays
for consumer devices such as cameras, personal data assistants (PDAs),
and portable entertainment machines. Kodak will hold a 34% stake in
the business venture and will contribute approximately $19 million in
cash and $100 million in loan guarantees during 2002 and 2003. SANYO
will hold a 66% stake in the business venture and will contribute
approximately $36 million in cash and $195 million in loan guarantees
during the same periods.
On June 4, 2001, the Company completed its acquisition of Ofoto,
Inc. The purchase price of this stock acquisition was approximately $58
million in cash. The acquisition was accounted for as a purchase with
$10 million allocated to tangible net assets, $37 million allocated to
goodwill and $11 million allocated to other intangible assets. The
acquisition of Ofoto will accelerate Kodak’s growth in the online
photography market and help drive more rapid adoption of digital and
online services. Ofoto offers digital processing of digital images and
traditional film, top-quality prints, private online image storage, sharing,
editing and creative tools, frames, cards and other merchandise.
On February 7, 2001, the Company completed its acquisition of
substantially all of the imaging services operations of Bell & Howell
Company. The purchase price of this stock and asset acquisition was
$141 million in cash. The acquisition was accounted for as a purchase
with $15 million allocated to tangible net assets, $70 million allocated to
goodwill, and $56 million allocated to other intangible assets, primarily
customer contracts. The acquired units provide customers worldwide with
maintenance for document imaging components, micrographic-related
equipment, supplies, parts and service.
During 2001, the Company also completed additional acquisitions,
none of which are individually material to the Company’s financial
position, results of operations or cash flows, which had an aggregate
purchase price of approximately $122 million in cash and stock.
2000 During the second quarter, the Company acquired the remaining
ownership interest in PictureVision, Inc. for cash and assumed liabilities
with a total transaction value of approximately $90 million. In relation to
this acquisition, the Company’s second quarter results included
$10 million in charges for acquired in-process R&D and approximately
$15 million for other acquisition-related charges. The Company used
independent professional appraisal consultants to assess and allocate
values to the in-process R&D.
During 2000, the Company also completed additional acquisitions,
none of which are individually material to the Company’s financial
position, results of operations or cash flows, which had an aggregate
purchase price of approximately $79 million in cash.
1999 In connection with the sale of the Company’s digital printer, copier-
duplicator, and roller assembly operations primarily associated with the
Office Imaging operations (See Note 20), the Company and Heidelberger
Druckmaschinen AG (Heidelberg) also announced an agreement to
expand their joint venture company, NexPress, to include the black-and-
white electrophotographic operations. The Company contributed R&D
resources 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 Heidelberg established the NexPress joint venture in