Kodak 2011 Annual Report Download - page 113

as of December 31, 2011, and its results of operations and cash flows for the year ended December 31, 2011.
The Company’s estimated fair value of the assets acquired and liabilities assumed at the date of acquisition exceeded the purchase price by $5
million. This amount was recorded as a gain from a bargain purchase within Other income (charges), net in the Consolidated Statement of
Operations for the year ended December 31, 2011.
2010
There were no significant acquisitions in 2010.
2009
In the third quarter of 2009, the Company acquired the scanner division of BÖWE BELL + HOWELL, which markets a portfolio of production
document scanners that complements the products currently offered within the GCG segment. Through this acquisition, Kodak expects to expand
customer value by providing a wider choice of production scanners. Since Kodak has provided field service to BÖWE BELL + HOWELL scanners
since 2001, this acquisition is also expected to enhance global access to service and support for channel partners and end-user customers
worldwide. This acquisition was immaterial to the Company’s financial position as of December 31, 2009, and its results of operations and cash
flows for the year ended December 31, 2009.
NOTE 23: DISCONTINUED OPERATIONS
The components of earnings (loss) from discontinued operations, net of income taxes, are as follows:
NOTE 24: EXTRAORDINARY ITEM
The terms of the purchase agreement of the 2004 acquisition of NexPress Solutions LLC called for additional consideration to be paid by the Company if
sales of certain products exceeded a stated minimum number of units sold during a five-year period following the close of the transaction. In May 2009,
the earn-out period lapsed with no additional consideration required to be paid by the Company. Negative goodwill, representing the contingent
consideration obligation of $17 million, was therefore reduced to zero. The reversal of negative goodwill reduced Property, plant and equipment, net by
$2 million and Research and development expense by $7 million and resulted in an extraordinary gain of $6 million, net of tax, during the year ended
December 31, 2009.
NOTE 25: SEGMENT INFORMATION
Segment Reporting Structure
For 2011, the Company had three reportable segments: Consumer Digital Imaging Group, Graphic Communications Group, and Film, Photofinishing
and Entertainment Group. The balance of the Company's continuing operations, which individually and in the aggregate do not meet the criteria of a
reportable segment, are reported in All Other. A description of the segments is as follows:
Consumer Digital Imaging Group Segment (“CDG”): CDG encompasses digital still and video cameras, digital devices such as picture frames, kiosks,
APEX drylab systems, and related consumables and services, consumer inkjet printing systems, Kodak Gallery products and services, and imaging
sensors. CDG also includes the licensing activities related to the Company's intellectual property in digital imaging products. As announced on February 9,
2012, the Company plans to phase out its dedicated capture devices business, including digital cameras, pocket video cameras, and digital picture frames in
the first half of 2012.
For the Year Ended December 31,
(in millions)
2011
2010
2009
Benefit (provision) for income taxes related to discontinued operations
$
4
$
(10
)
$
8
All other items, net
(1
)
(2
)
9
Earnings (loss) from discontinued operations, net of income taxes
$
3
$
(12
)
$
17
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