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Note 5 - Goodwill and Other Intangible Assets | 6 Months Ended
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Jun. 30, 2020
Disclosure Text Block [Abstract] |
Goodwill and Other Intangible Assets | NOTE 5: GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents the carrying value of goodwill by reportable segment.
(in millions) |  | Traditional Printing |  |  | Digital Printing |  |  | Advanced Materials and Chemicals |  |  | Brand |  |  | Total |
As of December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 56 |  |  | $ | 6 |  |  | $ | 14 |  |  | $ | — |  |  | $ | 76 |
Accumulated impairment losses |  |  | (56 | ) |  |  | — |  |  |  | (8 | ) |  |  | — |  |  |  | (64 | )
Balance as of December 31, 2019 |  |  | — |  |  |  | 6 |  |  |  | 6 |  |  |  | — |  |  |  | 12 |
Goodwill reallocation |  |  | — |  |  |  | — |  |  |  | (6 | ) |  |  | 6 |  |  |  | — |
Balance as of June 30, 2020 |  | $ | — |  |  | $ | 6 |  |  | $ | — |  |  | $ | 6 |  |  | $ | 12 |
As a result of the change in segments that became effective as of January 1, 2020, Kodak’s goodwill reporting units changed. Refer to Note 22, “Segment Information” for additional information on the change to Kodak’s organizational structure. The Digital Printing segment has three goodwill reporting units: Electrophotographic Printing Solutions; Prosper and Versamark; and Software. The Advanced Materials and Chemicals segment has three goodwill reporting units: Motion Picture and Industrial Films and Chemicals; Advanced Materials and Functional Printing; and Kodak Services for Business. The Traditional Printing segment and Brand segment each have one goodwill reporting unit. As of December 31, 2019, the goodwill balance of $12 million under the prior year segment reporting structure was comprised of $6 million for the Brand, Film and Imaging segment and $6 million for the Kodak Software segment, which had only one reporting unit (Software). The goodwill in the Brand, Film and Imaging segment was reported in the Consumer Products reporting unit. The goodwill previously reported in the Consumer Products goodwill reporting unit was transferred to the Brand goodwill reporting unit using a relative fair value allocation to affected reporting units. Goodwill previously reported in the Software reporting unit was transferred to the Digital Printing segment where it continues to remain its own reporting unit. Kodak performed interim tests of impairment for goodwill as of June 30, 2020 due to the continued uncertainty regarding the negative impact of the COVID-19 pandemic on its operations, and as of March 31, 2020, due to the decline in market capitalization as of that date since the last goodwill impairment test (December 31, 2019) and the uncertainty regarding the negative impact of the COVID-19 pandemic at that time. Based on the results of the June 30, 2020 and March 31, 2020 analyses, no impairment of goodwill was indicated. As of June 30, 2020 and March 31, 2020, the Brand reporting unit had negative carrying value. The gross carrying amount and accumulated amortization by major intangible asset category as of June 30, 2020 and December 31, 2019 were as follows:
|  | June 30, 2020
(in millions) |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net |  |  | Weighted-Average Amortization Period
Technology-based |  | $ | 99 |  |  | $ | 79 |  |  | $ | 20 |  |  | 5 years
Kodak trade name |  |  | 18 |  |  |  | — |  |  |  | 18 |  |  | Indefinite life
Customer-related |  |  | 11 |  |  |  | 8 |  |  |  | 3 |  |  | 3 years
Total |  | $ | 128 |  |  | $ | 87 |  |  | $ | 41 |  |  |
|  | December 31, 2019
(in millions) |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net |  |  | Weighted-Average 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 |  |  |
In the first quarter of 2020, due to the uncertainty regarding the negative impact of the COVID-19 pandemic at that time, Kodak performed an interim test of impairment for the Kodak trade name. Based on the result of the interim impairment test, Kodak concluded the carrying value of the Kodak trade name exceeded its fair value. Pre-tax impairment charges of $3 million are included in Other operating income, net in the six months ended June 30, 2020 in the Consolidated Statement of Operations. Kodak also performed an interim test of impairment for the Kodak trade name as of June 30, 2020 due to the continued uncertainty regarding the negative impact of the COVID-19 pandemic. The interim impairment tests of the Kodak trade name used the income approach, specifically the relief from royalty method. Based on the result of the interim impairment test as of June 30, 2020, Kodak concluded the fair value of the Kodak trade name exceeded its’ carrying value resulting in no additional impairment. Amortization expense related to intangible assets was $2 million for the three months ended June 30, 2020 and 2019 and $3 million for the six months ended June 30, 2020 and 2019. Estimated future amortization expense related to intangible assets that are currently being amortized as of June 30, 2020 was as follows:
(in millions) |  |  |  |
Q3 - Q4 2020 |  | $ | 3 |
2021 |  |  | 5 |
2022 |  |  | 4 |
2023 |  |  | 4 |
2024 |  |  | 4 |
2025 and thereafter |  |  | 3 |
Total |  | $ | 23 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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