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ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2017
Business Combinations [Abstract]  
Purchase Price
PURCHASE PRICE
 
(In millions)
July 3, 2017

 
 
Cash consideration
$
7,498

Fair value of the Class A Shares in BHGE issued to Baker Hughes shareholders
17,300

Total consideration for Baker Hughes
$
24,798
Preliminary Identifiable Assets Acquired and Liabilities Assumed
PRELIMINARY IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED
 
(In millions)
July 3, 2017

 
 
Cash and cash equivalents
$
4,133

Accounts receivable
2,383

Inventories
1,695

Property, plant, and equipment - net
4,868

Other intangible assets - net
4,123

All other assets
1,544

Accounts payable
(1,106
)
Borrowings
(3,370
)
Deferred taxes(a)
(464
)
All other liabilities
(2,288
)
Total identifiable net assets
11,518

Fair value of existing noncontrolling interest
(76
)
Goodwill
13,356

Total allocated purchase price
$
24,798


(a)
Includes an increase of approximately $ $1,051 million primarily related to fair value adjustments to identifiable assets and liabilities (excluding goodwill) partially offset by a tax asset of approximately $572 million associated with the recognition of foreign tax credits.
Estimated Fair Value of Intangible Assets and Useful Lives
The estimated fair value of intangible assets and related useful lives in the preliminary purchase price allocation included:
(In millions)
Estimated fair value


Estimated useful life (in years)
Trademarks - Baker Hughes
$
2,100

Indefinite life
Customer-related
1,260

15
Patents and technology
550

10
Trademarks - Other
70

10
Capitalized software
90

3-7
In-process research and development
45

Indefinite life
Favorable lease contracts
8

10
Total
$
4,123

 
Schedule of Unaudited Pro Forma Information
The following unaudited pro forma information has been presented as if the Baker Hughes transaction occurred on January 1, 2016. This information has been prepared by combining the historical results of the Company and historical results of Baker Hughes. The unaudited pro forma combined financial data for all periods presented were adjusted to give effect to proforma events that 1) are directly attributable to the aforementioned transaction, 2) factually supportable, and 3) expected to have a continuing impact on the consolidated results of operations.

The unaudited combined pro forma results do not include any incremental cost savings that may result from the integration. The adjustments are based on information available to the Company at this time. Accordingly, the adjustments are subject to change and the impact of such changes may be material. The unaudited combined pro forma information is for informational purposes only.

The pro forma information is not necessarily indicative of what the combined company’s results actually would have been had the acquisition been completed as of the beginning of the periods as indicated. In addition, the unaudited pro forma information does not purport to project the future results of the combined company.
(In millions)
2017

2016

Revenues and other income
$
126,755

$
133,526

Earnings (loss) from continuing operations
(5,817
)
6,379
Changes in Goodwill Balances
CHANGES IN GOODWILL BALANCES
 
 
 
 
 
 
 
 
 
 
 
2017
 
2016
(In millions)
Balance at
January 1

Acquisitions

Dispositions,
currency
exchange
and other

Balance at
December 31


Balance at
January 1

Acquisitions

Dispositions,
currency
exchange
and other

Balance at
December 31


 
 
 
 
 
 
 
 
 
Power
$
26,403

$
37

$
(1,171
)
$
25,269

 
$
22,963

$
4,131

$
(692
)
$
26,403

Renewable Energy
2,507

1,503

83

4,093

 
2,580

(46
)
(27
)
2,507

Oil & Gas
10,363

13,364

216

23,943

 
10,594

—

(231
)
10,363

Aviation
9,455

25

529

10,008

 
8,567

1,045

(158
)
9,455

Healthcare
17,424

60

(178
)
17,306

 
17,353

191

(120
)
17,424

Transportation
899

—

3

902

 
851

41

6

899

Lighting
281

—

(281
)
—

 
214

63

5

281

Capital
2,368

—

(1,384
)
984

 
2,370

—

(1
)
2,368

Corporate
739

727

(3
)
1,463

 
34

487

218

739

Total
$
70,438

$
15,716

$
(2,186
)
$
83,968

 
$
65,526

$
5,911

$
(1,000
)
$
70,438
Other Intangible Assets - Net
OTHER INTANGIBLE ASSETS - NET
 
 
 
December 31 (In millions)
2017

2016


 
 
Intangible assets subject to amortization
$
18,056

$
16,336

Indefinite-lived intangible assets(a)
2,217

100

Total
$
20,273

$
16,436

(a)
Indefinite-lived intangible assets principally comprise trademarks and in-process research and development.
Intangible Assets Subject to Amortization
INTANGIBLE ASSETS SUBJECT TO AMORTIZATION
 
 
 
 
 
 
 
 
 
2017
 
2016
December 31 (In millions)
Gross
carrying
amount

Accumulated
amortization

Net


Gross
carrying
amount

Accumulated
amortization

Net


 
 
 
 
 
 
 
Customer-related
$
10,614

$
(3,095
)
$
7,521

 
$
9,172

$
(2,408
)
$
6,764

Patents and technology
10,271

(3,899
)
6,372

 
8,695

(3,327
)
5,368

Capitalized software
8,064

(4,974
)
3,089

 
7,652

(4,538
)
3,114

Trademarks
1,280

(421
)
859

 
1,165

(307
)
859

Lease valuations
170

(80
)
89

 
143

(59
)
84

Present value of future profits(a)
—

—

—

 
684

(684
)
—

All other
218

(92
)
125

 
273

(124
)
149

Total
$
30,618

$
(12,561
)
$
18,056

 
$
27,783

$
(11,446
)
$
16,336

(a)
See Note 11 for discussion on the present value of future profits in our run-off insurance operations.
Estimated 5 Year Consolidation Amortization
ESTIMATED 5 YEAR CONSOLIDATED AMORTIZATION
 
 
 
 
 
 
(In millions)
2018

2019

2020

2021

2022


 
 
 
 
 
Estimated annual pre-tax amortization
$
2,274

$
2,148

$
2,039

$
1,878

$
1,713
Components of Finite-Lived Intangible Assets Acquired
COMPONENTS OF FINITE-LIVED INTANGIBLE ASSETS ACQUIRED DURING 2017
 
 
 
(In millions)
Gross
carrying value

Weighted-average
amortizable period
(in years)

 
 
Customer-related
$
1,451

14.9
Patents and technology
1,214

10.7
Capitalized software
982

5.4
Trademarks
91

8.6
Lease valuations
8

10.0
All other
19

8.6