Business Combinations and Divestitures

6 Months Ended

Jun. 30, 2017

Business Combinations and Divestitures

Held for Sale

On March 24, 2017, we entered a master formation agreement with affiliates of Schlumberger Limited (“Schlumberger”) to form a joint venture named “OneStim^SM,” which will provide completion products and services for the development of unconventional land reservoirs in the United States and Canada. Under the terms of the master formation agreement, both parties will contribute their respective pressure pumping assets, multistage completions, and pump-down perforating businesses on land in the lower contiguous 48 states of the United States and the provinces of British Columbia, Saskatchewan, Manitoba and Alberta in Canada. In addition, we will contribute manufacturing facilities and supply chain resources to OneStim, and Schlumberger will provide the joint venture with access to its surface and downhole technologies and advanced geo-engineered workflows. At closing, we will own a 30% equity interest in the OneStim joint venture, and Schlumberger will own 70%, and we will also receive a one-time $535 million cash payment from Schlumberger. The transaction is expected to close in the second half of 2017 and is subject to regulatory approvals and other customary closing conditions. The carrying amounts of the major classes of assets and liabilities from our North America segment to be contributed to OneStim have been classified as held for sale in the table below.



	June 30,
(Dollars in millions)	2017
Assets Held for Sale:
Other Current Assets	$	4
Inventory, Net	83
Property, Plant and Equipment, Net	260
Goodwill	555
Total Assets	$	902

Liabilities Held for Sale:
Other Current Liabilities	$	8
Long-term Debt	29
Other Non-Current Liabilities	53
Total Liabilities	$	90

As of June 30, 2017, we also had $27 million of PP&E held for sale unrelated to the OneStim joint venture.