GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6: GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill was $277 million and $294 million as of December 31, 2011 and 2010, respectively. The changes in the carrying amount of goodwill by reportable segment for 2011 and 2010 were as follows:

(in millions)	Consumer						Film,
	Digital			Graphic			Photofinishing
	Imaging			Communications			and Entertainment			Consolidated
	Group			Group			Group			Total

Balance as of December 31, 2009:
Goodwill	$	195		$	879		$	618		$	1,692
Accumulated impairment losses		-			(785	)		-			(785	)
	$	195		$	94		$	618		$	907

Impairment		-			8			(626	)		(618	)
Currency translation adjustments		6			(9	)		8			5
Balance as of December 31, 2010:
Goodwill		201			870			626			1,697
Accumulated impairment losses		-			(777	)		(626	)		(1,403	)
	$	201		$	93		$	-		$	294

Impairment		-			(8	)		-			(8	)
Divesiture		(6	)		(4	)		-			(10	)
Currency translation adjustments		2			(1	)		-			1
Balance as of December 31, 2011:
Goodwill		197			865			626			1,688
Accumulated impairment losses		-			(785	)		(626	)		(1,411	)
	$	197		$	80		$	-		$	277

During 2010, due to continuing challenging business conditions driven, in part, by rising commodity prices and a continuation of significant declines in the FPEG business caused by digital substitution, the Company concluded there was an indication of a possible goodwill impairment related to the FPEG segment. Based on its analysis, the Company concluded that there was an impairment of goodwill related to the FPEG segment. The Company recorded a pre-tax impairment charge of $626 million in the fourth quarter of 2010 that was included in Other operating expenses (income), net in the Consolidated Statement of Operations.

During 2011, due to the impact of continued pricing pressures and higher commodity costs within Prepress Solutions, as well as higher start-up costs associated with the commercialization and placement of Prosper Printing Systems, the Company concluded that the carrying value of goodwill for its Commercial Printing reporting unit exceeded the implied fair value of goodwill. The Company recorded a pre-tax impairment charge of $8 million in 2011 that was included in Other operating expenses (income), net in the Consolidated Statement of Operations.

The gross carrying amount and accumulated amortization by major intangible asset category as of December 31, 2011 and 2010 were as follows:

	As of December 31, 2011
	Gross Carrying		Accumulated				Weighted-Average
(in millions)	Amount		Amortization		Net		Amortization Period
Technology-based	$	146	$	133	$	13	7 years
Customer-related		223		157		66	10 years
Other		16		8		8	18 years

Total	$	385	$	298	$	87	9 years

	As of December 31, 2010
	Gross Carrying		Accumulated				Weighted-Average
(in millions)	Amount		Amortization		Net		Amortization Period
Technology-based	$	168	$	135	$	33	7 years
Customer-related		256		177		79	11 years
Other		29		17		12	14 years

Total	$	453	$	329	$	124	10 years

Amortization expense related to intangible assets was $41 million, $60 million, and $73 million for the years ended December 31, 2011, 2010, and 2009, respectively.

Estimated future amortization expense related to purchased intangible assets as of December 31, 2011 was as follows (in millions):

2012	$	27
2013		14
2014		11
2015		10
2016		10
2017+		15
Total	$	87

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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