2.2.0.7falseAcquisitions0202 - Disclosure - Acquisitionstruefalsefalsefalse1USDfalsefalseUSDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170PureStandardhttp://www.xbrl.org/2003/instancepurexbrli0SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0$20bhi_AcquisitionsAbstractbhifalsenadurationAcquisitions.falsefalsefalsefalsefalsetruefalsefalsefalsefalsefalsefalse1falsefalsefalsefalse00falsefalsefalsexbrli:stringItemTypestringAcquisitions.false31us-gaap_BusinessCombinationDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabelfalse1falsefalsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 2 - us-gaap:BusinessCombinationDisclosureTextBlock-->
<div align="left" style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 2. ACQUISITIONS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>ACQUISITION OF BJ SERVICES</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On April 28, 2010 (the “Acquisition Date”), we acquired 100% of the outstanding common stock
of BJ Services Company (including its successor “BJ Services”) in a cash and stock transaction
valued at $6,897 million. BJ Services is a leading provider of
pressure pumping and other oilfield
services and was acquired to expand the product offerings of the Company. For the year ended
September 30, 2009, BJ Services’ revenues were $4,122 million, BJ Services employed approximately
14,000 people and operated in over 50 countries.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Revenues and net income of BJ Services from the Acquisition Date included in our consolidated
condensed statement of operations for the three and six months ended June 30, 2010 were $799
million and $30 million, respectively. Included in the net income attributable to BJ Services is $4 million of
acquisition-related costs consisting primarily of legal fees and other expenses
directly related to the acquisition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Pursuant to a final agreement with the Antitrust Division of the Department of Justice (“DOJ”)
in connection with the governmental approval of the acquisition, we are required to divest two
leased stimulation vessels (the <i>HR Hughes </i>and <i>Blue Ray</i>) and
certain other assets used to perform sand control services in the U.S. Gulf of Mexico.
Additionally, pursuant to a Hold Separate Stipulation and Order, the operation of our U.S. business
and the U.S. business of BJ Services are required to be operated separately until these assets
are divested.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On July 6, 2010, we announced that we entered into an agreement with a subsidiary of Superior
Energy Services, Inc., to sell a package of assets, including the two leased stimulation vessels,
for approximately $55 million. We expect the transaction to close following approval from the DOJ.
We do not expect the divestiture to be material to our business or our consolidated condensed
financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Consideration</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Under the terms of the acquisition agreement, BJ Services stockholders received $2.69 per
share in cash and 0.40035 Baker Hughes shares of common stock for each BJ Services share of common
stock they owned. In total, we paid $793 million in cash and issued 118 million shares valued at
$6,048 million (based upon the closing price of our common stock on the Acquisition Date of
$51.24). We also assumed all outstanding stock options held by BJ Services employees and directors
and guaranteed $500 million principal amount of long-term debt of BJ Services.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The BJ Services stock options outstanding at closing were converted into Baker Hughes options
at the conversion ratio. The estimated fair value associated with the Baker Hughes options issued
in exchange for the BJ Services options was $58 million based on a Black-Scholes valuation model.
All BJ Services stock options became fully vested and exercisable in accordance with pre-existing
change-in-control provisions. Accordingly, $56 million of the estimated fair value was recorded as
part of the consideration transferred, with the remaining $2 million recorded as an expense as of
the date of the acquisition when all options vested and no further service was required.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Total consideration transferred in acquiring BJ Services is summarized as follows:
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash consideration paid: 295 million shares at $2.69
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">793</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Equity consideration paid: 118 million shares valued $51.24
</div></td>
<td> </td>
<td> </td>
<td align="right">6,048</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value of BJ Services Options assumed
</div></td>
<td> </td>
<td> </td>
<td align="right">56</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Fair value of consideration transferred
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">6,897</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Recording of Assets Acquired and Liabilities Assumed</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The transaction has been accounted for using the acquisition method of accounting which
requires that, among other things, assets acquired and liabilities assumed be recorded at their
fair values as of the Acquisition Date. The excess of the consideration transferred over those
fair values is recorded as goodwill. We have not finalized the determination of the fair values of
the assets acquired and liabilities assumed and therefore, the fair values set forth below are
subject to adjustment once the valuations are completed. We have not finalized the determination
of the estimated useful lives and methods to be used in calculating
the amortization and depreciation
expense related to the tangible and intangible assets recorded as a result of the acquisition of BJ Services. We will
finalize these items as we obtain the information necessary to complete the analysis. We expect to
be substantially complete with this analysis during the third quarter of 2010. However, under U.S.
GAAP, companies have one year after an acquisition to finalize the acquisition accounting. The
provisional amounts recorded for assets acquired and liabilities assumed were based on preliminary
estimates of their fair value as of the Acquisition Date and are as follows:
</div>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Estimated Fair Value</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash and cash equivalents
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">113</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accounts receivable
</div></td>
<td> </td>
<td> </td>
<td align="right">951</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Inventories
</div></td>
<td> </td>
<td> </td>
<td align="right">462</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">96</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Property, plant and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">2,816</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right">1,820</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">3,679</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other long-term assets
</div></td>
<td> </td>
<td> </td>
<td align="right">37</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Liabilities for change in control and transaction fees
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(196</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Current liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(632</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred income taxes and other tax liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,498</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Debt
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(531</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Pension and other postretirement liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(144</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other long-term liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(76</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net Assets Acquired
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">6,897</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Property, plant and equipment (“PP&E”)</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A step-up adjustment of $477 million was recorded to present the PP&E acquired at its
estimated fair value. The preliminary weighted average useful life
used to calculate depreciation of the step-up related to PPE is
approximately six years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Intangible assets</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We identified other intangible assets associated with pressure pumping and other services,
including trade names, technology, in-process research and development (“IPR&D”), and customer
relationships. We consider the BJ Services trade name to be an indefinite life intangible asset,
which will not be amortized and will be subject to an annual impairment test.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the fair value estimates recorded for the identifiable
intangible assets and their estimated useful lives:
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Estimated Fair Value</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Estimated Useful Life</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Customer relationships
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">666</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">9-13 years</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Technology
</div></td>
<td> </td>
<td> </td>
<td align="right">625</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">5-18 years</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">BJ Services trade name
</div></td>
<td> </td>
<td> </td>
<td align="right">384</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">Indefinite</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other trade names
</div></td>
<td> </td>
<td> </td>
<td align="right">44</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">5-12 years</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">IPR&D
</div></td>
<td> </td>
<td> </td>
<td align="right">101</td>
<td> </td>
<td> </td>
<td colspan="3" align="center">7-14 years</td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total Identifiable Intangible Assets
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">1,820</td>
<td> </td>
<td colspan="3" align="center"></td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="5" align="left" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Deferred taxes</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We provided deferred taxes and other tax liabilities as part of the acquisition accounting
related to the estimated fair market value adjustments for acquired intangible assets and PP&E, as
well as for uncertain tax positions taken in prior year tax returns. An adjustment of $1,307
million was recorded to present the deferred taxes and other tax liabilities at fair value.
Included in the adjustment is deferred taxes of $597 million for the outside basis difference
associated with shares in certain BJ Services foreign subsidiaries for which no taxes have been
previously provided. We expect to reverse the outside basis difference primarily through
repatriating earnings from those subsidiaries in lieu of permanently reinvesting them as well as
through the reorganization of those subsidiaries. We are still assessing certain factors that
impact the outside basis difference related to the BJ Services foreign subsidiaries, other deferred
taxes and uncertain tax positions. The deferred tax liabilities and other tax liabilities will be
revised after the assessment is finalized.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Debt</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our acquisition subsidiary assumed all of the obligations of BJ Services in respect of $250
million principal amount of 5.75% senior notes due June 2011 and $250 million principal amount of
6.00% senior notes due June 2018. In addition, Baker Hughes
unconditionally guarantees the performance of all obligations of BJ Services with respect to
these notes. A step-up adjustment of $34 million was recorded to present these notes at their
estimated fair value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Liabilities for pensions and other postretirement benefits</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We assumed several defined benefit pension plans covering certain employees primarily in the
U.K., Norway and Canada. Additionally, we assumed a non-qualified supplemental executive
retirement plan (“SERP”), as well as postretirement benefit plans that provide certain health care
and life insurance benefits for retired employees, primarily in the United States, who meet
specified age and service requirements. A step-up adjustment of $23 million was recorded to
present these liabilities at their estimated fair value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Goodwill</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Goodwill of $3,679 million was recognized for this acquisition and is calculated as the excess
of the consideration transferred over the net assets recognized and represents the future economic
benefits arising from other assets acquired that could not be individually identified and
separately recognized. It specifically includes the expected synergies and other benefits that we
believe will result from combining the operations of BJ Services with the operations of Baker
Hughes and any intangible assets that do not qualify for separate recognition such as the assembled
workforce.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have not yet completed the process of allocating the goodwill to our reporting units and
determining the deductibility thereof for income tax purposes.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Acquisition-Related Costs</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Acquisition-related costs are
being expensed as incurred. They include expenses directly
related to acquiring BJ Services and integration expenses incurred in combining the companies.
These costs
are classified as acquisition-related costs on our consolidated condensed statement of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Pro Forma Impact of the Acquisition</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following unaudited supplemental pro forma results present consolidated information as if
the acquisition had been completed as of January 1, 2010 and January 1, 2009. The pro forma
results include: (i) the amortization associated with an estimate of the acquired intangible
assets, (ii) interest expense associated with debt used to fund a portion of the acquisition and
reduced interest income associated with cash used to fund a portion of the acquisition, (iii) the
impact of certain fair value adjustments such as additional depreciation expense for adjustments to
property, plant and equipment and reduction to interest expense for adjustments to debt, and (iv)
costs directly related to acquiring BJ Services. The pro forma results do not
include any potential synergies, cost savings or other expected benefits of the acquisition.
Accordingly, the pro forma results should not be considered indicative of the results that would
have occurred if the acquisition and related borrowings had been consummated as of January 1, 2009,
or January 1, 2010 nor are they indicative of future results.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">3,745</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,116</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">7,402</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">6,831</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">98</td>
<td nowrap="nowrap"></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(21</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">231</td>
<td nowrap="nowrap"></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">185</td>
<td nowrap="nowrap"></td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic net income (loss) per share
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">0.23</td>
<td nowrap="nowrap"></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.05</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">0.54</td>
<td nowrap="nowrap"></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">0.43</td>
<td nowrap="nowrap"></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted net
income (loss) per share
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">0.23</td>
<td nowrap="nowrap"></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.05</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">0.53</td>
<td nowrap="nowrap"></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">0.43</td>
<td nowrap="nowrap"></td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>OTHER ACQUISTIONS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the second quarter of 2010 we completed two other acquisitions having an aggregate
purchase price of approximately $154 million. As a result of these acquisitions, we recorded $127
million of goodwill, which is subject to final acquisition accounting
adjustments. Pro forma
results of operations for these two acquisitions have not been presented because the effect of
these acquisitions was not material to our consolidated condensed financial statements.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Notefalsefalsefalseus-types:textBlockItemTypetextblockDescription of a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. This element may be used as a single block of text to encapsulate the entire disclosure (including data and tables) regarding business combinations, including leverage buyout transactions (as applicable).Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F
false12falseUnKnownUnKnownUnKnownfalsetrue