Kodak 2005 Annual Report Download - page 86

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NOTE 5: GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill was $2,141 million and $1,446 million at December 31, 2005 and 2004, respectively. The changes in the carrying amount of goodwill by
reportable segment for 2004 and 2005 were as follows:
(in millions) D&FIS Health Group Graphic Communications Group Consolidated Total
Balance at December 31, 2003 $ 732 $ 525 $ 92 $ 1,349
G o o d w i l l r e l a t e d t o a c q u i s i t i o n s 1 3 — 1 7 3 0
Goodwill written off related to
disposals/divestitures (21) — — (21)
Finalization of purchase accounting 2 45 7 54
Currency translation adjustments 13 18 3 34
Balance at December 31, 2004 $ 739 $ 588 $ 119 $ 1,446
Goodwill related to acquisitions — 32 709 741
Finalization of purchase accounting — — 1 1
Currency translation adjustments (10) (31) (6) (47)
Balance at December 31, 2005 $ 729 $ 589 $ 823 $ 2,141
The aggregate amount of goodwill acquired during 2005 of $741 million was attributable to $462 for the purchase of Creo, $247 million for the
purchase of the remaining 50% of KPG previously owned by Sun Chemical Corporation, both in the Graphic Communications Group segment; and
$32 million for the purchase of OREX in the Health Group segment.
The gross carrying amount and accumulated amortization by major intangible asset category for 2005 and 2004 were as follows:
As of December 31, 2005
(in millions) Gross Carrying Amount Accumulated Amortization Net Weighted-Average Amortization Period
Technology-based $ 481 $ 155 $ 326 7 years
Customer-related 397 77 320 13 years
Other 205 51 154 8 years
Total $ 1,083 $ 283 $ 800 9 years
As of December 31, 2004
(in millions) Gross Carrying Amount Accumulated Amortization Net Weighted-Average Amortization Period
Technology-based $ 264 $ 106 $ 158 8 years
Customer-related 206 34 172 15 years
Other 168 20 148 13 years
Total $ 638 $ 160 $ 478 11 years
The aggregate amount of intangible assets acquired during 2005 of $445 million was attributable to $77 million of customer-related intangible assets,
$45 million of technology-based intangible assets, and $21 million of miscellaneous other intangible assets for the purchase of KPG; $110 million of
customer-related intangible assets, $136 million of technology-based intangible assets, and $10 million of miscellaneous other intangible assets for
the purchase of Creo; $4 million of customer-related intangible assets and $9 million of technology-based intangible assets for the purchase of OREX;
$26 million of other technology-based intangible assets; and $7 million of manufacturing exclusivity intangible assets related to Lucky Film.