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Note 5 - Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2019
Disclosure Text Block [Abstract]  
Goodwill and Other Intangible Assets

NOTE 5:  GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents the changes in the carrying value of goodwill by reportable segment.  The Enterprise Inkjet Systems, Advanced Materials and 3D Printing Technology, and Eastman Business Park segments do not have goodwill and are therefore not presented.

 

(in millions)

 

Print

Systems

 

 

Kodak Software

 

 

Brand, Film and Imaging

 

 

Advanced Materials and 3D Printing Technology

 

 

Consolidated Total

 

As of December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

56

 

 

$

6

 

 

$

6

 

 

$

8

 

 

$

76

 

Accumulated impairment losses

 

 

(56

)

 

 

 

 

 

 

 

 

(8

)

 

 

(64

)

Balance as of December 31, 2017

 

 

 

 

 

6

 

 

 

6

 

 

 

 

 

 

12

 

Impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2018

 

 

 

 

 

6

 

 

 

6

 

 

 

 

 

 

12

 

Impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

56

 

 

 

6

 

 

 

6

 

 

 

8

 

 

 

76

 

Accumulated impairment losses

 

 

(56

)

 

 

 

 

 

 

 

 

(8

)

 

 

(64

)

Balance as of December 31, 2019

 

$

 

 

$

6

 

 

$

6

 

 

$

 

 

$

12

 

 

 

The Print Systems segment has two goodwill reporting units: Prepress Solutions and Electrophotographic Printing Solutions.  The Brand, Film and Imaging segment has three goodwill reporting units: Consumer Products, Motion Picture, Industrial Chemicals and Films, and Kodak Technology Solutions and Kodak Services for Business.  The Enterprise Inkjet Systems segment, Kodak Software segment, Advanced Materials and 3D Printing Technology segment and the Eastman Business Park segment each have one goodwill reporting unit. As of December 31, 2019, goodwill is recorded in the Kodak Software and Consumer Products reporting units.  Both reporting units have negative carrying values as of December 31, 2019.

 

Based upon the results of Kodak’s December 31, 2019 annual impairment test, no impairment of goodwill is indicated.

 

The gross carrying amount and accumulated amortization by major intangible asset category as of December 31, 2019 and 2018 were as follows:

 

 

 

As of December 31, 2019

 

 

Gross Carrying

 

 

Accumulated

 

 

 

 

 

 

Weighted-Average

(in millions)

 

Amount

 

 

Amortization

 

 

Net

 

 

Amortization Period

Technology-based

 

$

99

 

 

$

76

 

 

$

23

 

 

5 years

Kodak trade name

 

 

21

 

 

 

 

 

 

21

 

 

Indefinite life

Customer-related

 

 

11

 

 

 

8

 

 

 

3

 

 

4 years

Total

 

$

131

 

 

$

84

 

 

$

47

 

 

 

 

 

 

As of December 31, 2018

 

 

Gross Carrying

 

 

Accumulated

 

 

 

 

 

 

Weighted-Average

(in millions)

 

Amount

 

 

Amortization

 

 

Net

 

 

Amortization Period

Technology-based

 

$

99

 

 

$

70

 

 

$

29

 

 

6 years

Kodak trade name

 

 

25

 

 

 

 

 

 

25

 

 

Indefinite life

Customer-related

 

 

11

 

 

 

7

 

 

 

4

 

 

5 years

Total

 

$

135

 

 

$

77

 

 

$

58

 

 

 

 

The annual impairment test of the Kodak trade name uses the income approach, specifically the relief from royalty method.  In the fourth quarters of both 2019 and 2018, Kodak concluded the carrying value of the Kodak trade name exceeded its fair value.  Pre-tax impairment charges of $4 million and $13 million, respectively, are included in Other operating expense, net in the Consolidated Statement of Operations.

 

Amortization expense related to intangible assets was $7 million and $11 million for the years ended December 31, 2019 and 2018, respectively. 

 

Estimated future amortization expense related to intangible assets that are currently being amortized as of December 31, 2019 was as follows:

 

(in millions)

 

 

 

 

2020

 

$

6

 

2021

 

 

5

 

2022

 

 

5

 

2023

 

 

4

 

2024

 

 

4

 

2025 and thereafter

 

 

2

 

Total

 

$

26