Business Acquisition and Disposition (Tables)

12 Months Ended

Dec. 31, 2019

Preliminary identifiable assets acquired and liabilities assumed

The tables below present the final fair value of assets acquired and liabilities assumed and the associated fair value of the noncontrolling interest related to the acquired net assets of BHI. The final determination of the fair value of assets and liabilities was concluded in the second quarter of 2018.



Preliminary identifiable assets acquired and liabilities assumed	Fair Value at July 3, 2017
Assets
Cash and equivalents	$	4,133
Current receivables	2,342
Inventories	1,712
Property, plant and equipment	4,514
Intangible assets ⁽¹⁾	4,005
Deferred income taxes ⁽²⁾	30
All other assets	1,335
Liabilities
Accounts payable	$	(1,213	)
Borrowings	(3,370		)
Liabilities for pension and other postretirement benefits	(654		)
All other liabilities	(1,670		)
Total identifiable net assets	$	11,164
Noncontrolling interest associated with net assets acquired	(35		)
Goodwill ⁽³⁾	13,669
Total purchase consideration	$	24,798


⁽¹⁾	Intangible assets, as provided in the table below, are recorded at fair value, as determined by management based on available information. The useful lives for intangible assets were determined based upon the remaining useful

economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows. We consider the Baker Hughes trade name to be an indefinite life intangible asset, which will not be amortized and will be subject to an annual impairment test.



	Fair Value		Weighted Average Life (Years)
Trade name - Baker Hughes	$	2,100	Indefinite life
Customer relationships	1,240		15
Patents and technology	465		10
In-process research and development	70		Indefinite life
Capitalized software	64		2
Trade names - other	45		10
Favorable lease contracts & others	21		10
Total	$	4,005


⁽²⁾	Includes approximately $83 million of net deferred tax liabilities related to the fair value of intangible assets included in the purchase consideration and approximately $113 million of other net deferred tax assets, including non-U.S. loss carryforwards net of valuation allowances partially offset by liabilities for unrecognized benefits.

⁽³⁾

Goodwill resulting from the Transactions has been primarily allocated to the Oilfield Services segment, of which $67 million is deductible for tax purposes.

Pro forma information

Significant adjustments to the pro forma information below include amortization associated with an estimate of the acquired intangible assets and reduction of interest expense for fair value adjustments to debt. Excluded from the proforma information below are non-recurring direct incremental acquisition costs from 2017.



	2017
Revenue	$	21,841
Net loss	(586		)
Net loss attributable to the Company	(592		)