Kodak 2009 Annual Report Download - page 109

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NOTE 23: EXTRAORDINARY ITEM
The terms of the purchase agreement of the 2004 acquisition of NexPress Solutions LLC called for additional consideration to be
paid by the Company if sales of certain products exceeded a stated minimum number of units sold during a five-year period following
the close of the transaction. In May 2009, the earn-out period lapsed with no additional consideration required to be paid by the
Company. Negative goodwill, representing the contingent consideration obligation of $17 million, was therefore reduced to zero. The
reversal of negative goodwill reduced Property, plant and equipment, net by $2 million and Research and development expense by
$7 million and resulted in an extraordinary gain of $6 million, net of tax, during the year ended December 31, 2009.
NOTE 24: SEGMENT INFORMATION
Current Segment Reporting Structure
For 2009, the Company had three reportable segments: Consumer Digital Imaging Group (“CDG”), Film, Photofinishing and
Entertainment Group (“FPEG”), and Graphic Communications Group (“GCG”). The balance of the Company's continuing operations,
which individually and in the aggregate do not meet the criteria of a reportable segment, are reported in All Other. A description of
the segments is as follows:
Consumer Digital Imaging Group Segment (“CDG”): CDG encompasses digital still and video cameras, digital devices such as
picture frames, kiosks and related media, APEX drylab systems, consumer inkjet printing systems, Kodak Gallery products and
services, and imaging sensors. CDG also includes the licensing activities related to the Company's intellectual property in digital
imaging products.
Film, Photofinishing and Entertainment Group Segment (“FPEG”): FPEG encompasses consumer and professional film, one-
time-use cameras, graphic arts film, aerial and industrial film, and entertainment imaging products and services. In addition, this
segment also includes paper and output systems, and photofinishing services. This segment provides consumers, professionals,
cinematographers, and other entertainment imaging customers with film-related products and services. As previously announced,
the Company closed its Qualex central lab operations in the U.S. and Canada at the end of March 2009.
Graphic Communications Group Segment (“GCG”): GCG serves a variety of customers in the creative, in-plant, data center,
commercial printing, packaging, newspaper and digital service bureau market segments with a range of software, media and
hardware products that provide customers with a variety of solutions for prepress equipment, workflow software, analog and digital
printing, and document scanning. Products and related services include workflow software and digital controllers; digital printing,
which includes commercial inkjet and electrophotographic products, including equipment, consumables and service; prepress
consumables; prepress equipment; and document scanners.
All Other: All Other is composed of the Company’s display business and other small, miscellaneous businesses. In December
2009, the Company sold assets of its display business called OLED.
Transactions between segments, which are immaterial, are made on a basis intended to reflect the market value of the products,
recognizing prevailing market prices and distributor discounts. Differences between the reportable segments’ operating results and
assets and the Company’s consolidated financial statements relate primarily to items held at the corporate level, and to other items
excluded from segment operating measurements.
No single customer represented 10% or more of the Company's total net sales in any period presented.