Kodak 2006 Annual Report Download - page 88


The purchase accounting adjustments of $2 million for the year ended December 31, 2006 were attributable to the finalization of purchase accounting
for the 2005 acquisition of KPG in the amount of $19 million, and finalization of purchase accounting for the 2005 acquisition of Creo in the amount of
$(17) million.
Due to the realignment of the Company’s operating model and change in reporting structure, as described in Note 23, “Segment Information,” effec-
tive January 1, 2006, the Company reassessed its goodwill for impairment during the first quarter of 2006, and determined that no reporting units’
carrying values exceeded their respective estimated fair values based on the realigned reporting structure and, therefore, there was no impairment.
The gross carrying amount and accumulated amortization by major intangible asset category for 2006 and 2005 were as follows:
As of December 31, 2006
(in millions) Gross Carrying Amount Accumulated Amortization Net Weighted-Average Amortization Period
Technology-based $ 488 $ 225 $ 263 7 years
Customer-related 402 118 284 13 years
Other 217 91 126 7 years
Total $ 1,107 $ 434 $ 673 9 years
As of December 31, 2005
(in millions) Gross Carrying Amount Accumulated Amortization Net Weighted-Average Amortization Period
Technology-based $ 482 $ 154 $ 328 7 years
Customer-related 400 81 319 13 years
Other 212 53 159 7 years
Total $ 1,094 $ 288 $ 806 9 years
The intangible assets acquired during 2006 of $3 million were attributable to technology-based intangible assets for the purchase of intellectual
property.
Amortization expense related to intangible assets was $146 million, $125 million and $67 million in 2006, 2005 and 2004, respectively.
Estimated future amortization expense related to purchased intangible assets at December 31, 2006 is as follows (in millions):
2007 $ 136
2008 130
2009 118
2010 92
2011 48
2012+ 149
Total $ 673