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Business Combinations and Divestitures
3 Months Ended
Mar. 31, 2018
Business Acquisition [Line Items]  
Business Combination Disclosure [Text Block]
Business Combinations and Divestitures

Acquisitions

On March 26, 2018, we acquired the remaining 50% equity interest in our Qatar joint venture that we previously accounted for as an equity method investment. The joint venture was established in 2008 to provide energy related services required for the drilling and completion of oil and gas wells at onshore and offshore locations within the State of Qatar. The total consideration to purchase the remaining equity interest was $87 million, comprised of cash consideration of $72 million, of which $48 million was paid in accordance with closing terms through the joint venture, an additional payment of $24 million that will be made 2 years from closing and estimated contingent consideration of $15 million payable related to services the Qatar entity will render under new contracts. As a result of this step acquisition transaction with a change in control, we remeasured our previously held equity investment to fair value, recognizing a $12 million gain. The Level 3 fair value of the acquisition was determined using an income approach. The unobservable inputs to the income approach included the Qatar entity’s estimated future cash flows and estimates of discount rates commensurate with the entity’s risks. Upon acquisition, we recognized intangible assets of $26 million, PP&E of $25 million, goodwill of $23 million, other current assets of $16 million, and other liabilities of $43 million as a result of the purchase accounting assessment. The Qatar entity is consolidated and its revenues and net income subsequent to acquisition during the quarter were immaterial.

Divestitures

In March 2018, we completed the sale of our continuous sucker rod service business in Canada for a total amount of $25 million in cash and recognized a gain of $2 million. The carrying amounts of the major classes of assets sold are PP&E of $14 million, allocated goodwill of $8 million and inventory of $1 million.

Held for Sale

During the fourth quarter of 2017, we committed to a plan to divest our land drilling rigs assets. As a result, we reclassified the carrying amounts of the assets we plan to divest as held for sale as of March 31, 2018 and December 31, 2017, which included $276 million of PP&E and other assets and $64 million of inventory. As of March 31, 2018, we also classified $29 million of other PP&E as held for sale, primarily real estate.