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Note 5 - Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2017
Disclosure Text Block [Abstract] |
Goodwill and Other Intangible Assets Disclosure [Text Block] | NOTE 5: GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents the changes in the carrying amount 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 |  |  | Flexographic Packaging |  |  | Software and Solutions |  |  | Consumer and Film |  |  | Consolidated Total |
Balance as of December 31, 2016 |  | $ | 56 |  |  | $ | 20 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | 88 |
Impairment |  |  | (56 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (56 | )
Balance as of September 30, 2017 |  | $ | - |  |  | $ | 20 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | 32 |
Gross goodwill and accumulated impairment losses were $96 million and $8 million, respectively, as of December 31, 2016 and $96 million and $64 million, respectively, as of September 30, 2017. The Print Systems segment has two goodwill reporting units: Prepress Solutions and Electrophotographic Printing Solutions. The Software and Solutions segment has two goodwill reporting units: Kodak Technology Solutions and Unified Workflow Solutions. The Consumer and Film segment has two goodwill reporting units: Consumer Products and Motion Picture, Industrial Chemicals and Films. The Flexographic Packaging segment, Enterprise Inkjet Systems segment, Advanced Materials and 3D Printing Technology segment and Eastman Business Park segment all have one goodwill reporting unit. Goodwill is recorded in the Prepress Solutions, Flexographic Packaging, Unified Workflow Solutions and Consumer Products reporting units. Given the decline in Kodak’s financial projections for the year and its market capitalization from the last goodwill impairment test (December 31, 2016), Kodak performed an interim goodwill impairment test as of September 30, 2017. Kodak utilized the discounted cash flow method and guideline public company method for the reporting units with goodwill. For these reporting units, Kodak selected equal weighting of the guideline public company method and the discounted cash flow method as the valuation approaches produced comparable ranges of fair value. Fair values for the other reporting units were estimated using the discounted cash flow method only. Based upon the results of Kodak’s September 30, 2017 analysis, Kodak concluded that the Prepress Solutions reporting unit’s carrying value exceeded its fair value and recorded a pre-tax goodwill impairment loss of $56 million in the Consolidated Statement of Operations. No impairment of goodwill was indicated for the other reporting units. The gross carrying amount and accumulated amortization by major intangible asset category as of September 30, 2017 and December 31, 2016 were as follows:
|  | September 30, 2017
(in millions) |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net |  |  | Weighted-Average Amortization Period
Technology-based |  | $ | 105 |  |  | $ | 60 |  |  | $ | 45 |  |  | 6 years
Kodak trade name |  |  | 40 |  |  |  | - |  |  |  | 40 |  |  | Indefinite life
Customer-related |  |  | 11 |  |  |  | 6 |  |  |  | 5 |  |  | 6 years
Other |  |  | 2 |  |  |  | - |  |  |  | 2 |  |  | 21 years
Total |  | $ | 158 |  |  | $ | 66 |  |  | $ | 92 |  |  |
|  | December 31, 2016
(in millions) |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net |  |  | Weighted-Average Amortization Period
Technology-based |  | $ | 122 |  |  | $ | 57 |  |  | $ | 65 |  |  | 6 years
Kodak trade name |  |  | 40 |  |  |  | - |  |  |  | 40 |  |  | Indefinite life
Customer-related |  |  | 26 |  |  |  | 12 |  |  |  | 14 |  |  | 6 years
Other |  |  | 2 |  |  |  | - |  |  |  | 2 |  |  | 21 years
Total |  | $ | 190 |  |  | $ | 69 |  |  | $ | 121 |  |  |
In the third quarter of 2017, due to canceling its copper mesh touch screen program, Kodak wrote off related intangible assets with a gross carrying amount of $33 million and accumulated amortization of $21 million and recorded an impairment charge of $12 million. Amortization expense related to intangible assets was $5 million and $4 million for the three months ended September 30, 2017 and 2016 respectively, and $14 million and $15 million for the nine months ended September 30, 2017 and 2016, respectively. During the first quarter of 2017, Kodak recorded $4 million to adjust the Prosper intangible asset carrying value to the amount that would have been recorded had the Prosper intangible assets been continuously classified as held and used. Refer to Note 10, “Other Operating Expense (Income), net” and Note 21, “Discontinued Operations”. Estimated future amortization expense related to intangible assets that are currently being amortized as of September 30, 2017, is as follows:
(in millions) |  |  |  |
Q4 2017 |  | $ | 4 |
2018 |  |  | 12 |
2019 |  |  | 8 |
2020 |  |  | 6 |
2021 |  |  | 4 |
2022 and thereafter |  |  | 18 |
Total |  | $ | 52 |

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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