Kodak 2011 Annual Report Download - page 89

NOTE 14: OTHER OPERATING (INCOME) EXPENSES, NET
In November 2009, the Company agreed to terminate its patent infringement litigation with LG Electronics, Inc., LG Electronics USA, Inc., and LG
Electronics Mobilecomm USA, Inc., entered into a technology cross license agreement with LG Electronics, Inc. and agreed to sell assets of its OLED
group to Global OLED Technology LLC, an entity established by LG Electronics, Inc., LG Display Co., Ltd. and LG Chem, Ltd. As the transactions
were entered into in contemplation of one another, in order to reflect the asset sale separately from the licensing transaction, the total consideration was
allocated between the asset sale and the licensing transaction based on the estimated fair value of the assets sold. Fair value of the assets sold was
estimated using other competitive bids received by the Company. Accordingly, $100 million of the proceeds was allocated to the asset sale. The
remaining gross proceeds of $414 million were allocated to the licensing transaction and reported in net sales of the CDG segment.
NOTE 15: OTHER INCOME (CHARGES), NET
For the Year Ended December 31,
(in millions)
2011
2010
2009
Expenses (income):
Goodwill impairments (1)
$
8
$
626
$
-
Long
-
lived asset impairments
4
-
8
Gains related to the sales of assets and businesses (2)
(80
)
(8
)
(100
)
Other
1
1
4
Total
$
(67
)
$
619
$
(88
)
(1)
Refer to Note 6
“
Goodwill and Other Intangible Assets,
”
in the Notes to Financial Statements.
(2) On March 31, 2011, the Company sold patents and patent applications related to CMOS image sensors to OmniVision Technologies Inc.
for $65 million. The Company recognized a gain, net of transaction costs, of $62 million from this transaction.
For the Year Ended December 31,
(in millions)
2011
2010
2009
Income (charges):
Interest income
$
10
$
11
$
12
Loss on foreign exchange transactions
(14
)
(5
)
(2
)
Legal settlements
-
-
19
Gain on sale of investee
-
10
-
Other
2
10
1
Total
$
(2
)
$
26
$
30
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