Business Combinations and Divestitures

12 Months Ended

Dec. 31, 2017

Business Combinations and Divestitures

Acquisitions

From time to time, we acquire businesses we believe are important to our long-term strategy. Results of operations for acquisitions are included in the accompanying Consolidated Statements of Operations from the date of acquisition. The purchase price for the acquisitions is allocated to the net assets acquired based upon their estimated fair values at the date of acquisition. We did not complete any material acquisitions during the year ended December 31, 2017 or 2016.

Divestitures

On December 29, 2017, we completed the sale of our U.S. pressure pumping and pump-down perforating assets for $430 million in cash. As part of this transaction, we disposed of our ownership of our U.S. pressure pumping and pump-down perforating related facilities and supplier and customer contracts. Proceeds from the sale were applied to reduce outstanding indebtedness.

The carrying amounts of the major classes of assets of U.S. pressure pumping and pump-down perforating divested are as follows:



	December 31,
(Dollars in millions)	2017
Assets:
Inventory, Net	$	7
Property, Plant and Equipment, Net	222
Goodwill	162
Total Assets	$	391

Liabilities:
Long-term Debt	$	9
Other Liabilities	52
Total Liabilities	$	61

Held for Sale

During the fourth quarter of 2017, we committed to a plan to divest our land drilling rigs assets. As such, we reclassified the carrying amounts of the assets we plan to divest as held for sale as of December 31, 2017, which include $276 million of PP&E and other assets and $64 million of inventory. As of December 31, 2017, we also had $19 million of other PP&E held for sale.