Kodak 2006 Annual Report Download - page 89

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NOTE 6: OTHER LONG-TERM ASSETS
(in millions) 2006 2005
Prepaid pension costs $ 1,599 $ 1,144
Investments in unconsolidated affiliates 54 61
Deferred income taxes, net of valuation allowance 642 450
Intangible assets other than goodwill 673 806
Non-current receivables 402 383
Miscellaneous other long-term assets 355 377
Total $ 3,725 $ 3,221
The miscellaneous component above consists of other miscellaneous long-term assets that, individually, are less than 5% of the Company’s total as-
sets, and therefore, have been aggregated in accordance with Regulation S-X.
NOTE 7: INVESTMENTS
Equity Method
At December 31, 2006 and 2005, the Company’s significant equity method investees and the Company’s approximate ownership interest in each
investee were as follows:
2006 2005
SK Display Corporation — 34%
Matsushita-Ultra Technologies Battery Corporation 30% 30%
Lucky Film Co. Ltd. (Lucky Film) 13% 13%
KJ Imaging 34% 34%
J League Photo 25% 25%
At December 31, 2006 and 2005, the carrying value of the Company’s equity investment in these significant unconsolidated affiliates was $36 million
and $30 million, respectively, and is reported within other long-term assets in the accompanying Consolidated Statement of Financial Position. The
Company records its equity in the income or losses of these investees and reports such amounts in other income (charges), net in the accompanying
Consolidated Statement of Operations. See Note 14, “Other Income (Charges), Net.”
In January 2006, Kodak terminated the SK Display joint venture arrangement with Sanyo Electric Company pursuant to terms of the original agree-
ment. The Company recognized a $7 million gain in other income (charges), net on this transaction. This termination did not have a material impact on
the Company’s financial position, results of operations or cash flows. Kodak will continue as exclusive licensing agent on behalf of Kodak and Sanyo
for certain OLED intellectual property.
Through April 1, 2005, the Company held a 50% interest in Kodak Polychrome Graphics (KPG). This joint venture between the Company and Sun
Chemical Corporation was accounted for using the equity method of accounting. On April 1, 2005, the Company acquired Sun Chemical Corporation’s
50% interest in KPG, which resulted in KPG becoming a wholly owned and fully consolidated subsidiary of the Company, operating within the Graphic
Communications Group segment. See Note 21, “Acquisitions” for further discussion regarding the KPG acquisition.