Kodak 2009 Annual Report Download - page 72

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NOTE 5: GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill was $907 million and $896 million as of December 31, 2009 and 2008, respectively. The changes in the carrying amount of
goodwill by reportable segment for 2009 and 2008 were as follows:
(in millions)
Consumer Film,
Digital Photofinishing Graphic
Imaging and Entertainment Communications Consolidated
Group Group Group Total
Balance as of December 31, 2007:
Goodwill $ 204 $ 601 $ 852 $ 1,657
Accumulated impairment losses - - - -
$ 204 $ 601 $ 852 $ 1,657
Additions - - 25 25
Purchase accounting adjustments - - 3 3
Currency translation adjustments (9) 12 (7) (4)
Impairments - - (785) (785)
Balance as of December 31, 2008:
Goodwill 195 613 873 1,681
Accumulated impairment losses - - (785) (785)
$ 195 $ 613 $ 88 $ 896
Additions - - 4 4
Purchase accounting adjustments - - (1) (1)
Currency translation adjustments - 5 3 8
Balance as of December 31, 2009:
Goodwill 195 618 879 1,692
Accumulated impairment losses - - (785) (785)
$ 195 $ 618 $ 94 $ 907
As of December 31, 2008, due to the continuing challenging business conditions and the significant decline in its market
capitalization during the fourth quarter of 2008, the Company concluded there was an indication of possible impairment. Based on its
updated analysis, the Company concluded that there was an impairment of goodwill related to the Graphic Communications Group
(GCG) segment and, thus, recorded a pre-tax impairment charge of $785 million in the fourth quarter of 2008 that was included in
Other operating expenses (income), net in the Consolidated Statement of Operations.
The fair values of reporting units within the Company’s Consumer Digital Imaging Group (CDG) and Film, Photofinishing and
Entertainment Group (FPEG) segments, and one of the two GCG reporting units were greater than their respective carrying values
as of December 31, 2008, so no goodwill impairment was recorded for these reporting units. Reasonable changes in the
assumptions used to determine these fair values would not have resulted in goodwill impairments in any of these reporting units.
On September 1, 2009, the Company completed the acquisition of the scanner division of BÖWE BELL + HOWELL, a global
supplier of documents scanners to value-added resellers, system integrators, and end-users. The acquired scanner division is now a
part of the Company’s GCG segment. As a result of the acquisition, the Company recorded $4 million and $8 million of goodwill and
intangible assets, respectively.
The aggregate amount of goodwill additions during 2008 of $25 million was primarily attributable to $14 million for the purchase of
Intermate A/S and $10 million for the purchase of Design2Launch in the second quarter of 2008, all within the GCG segment. Refer
to Note 21, “Acquisitions,” in the Notes to Financial Statements.