Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2011

Goodwill and Intangible Assets [Abstract]

NOTE 7. GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill are detailed below by reportable segment.


							Europe/		Middle			Industrial
							Africa/		East/			Services
	North			Latin			Russia		Asia			and
	America			America			Caspian		Pacific			Other		Total

Balance as of December 31, 2010	$	2,731		$	879		$	936	$	895		$	428	$	5,869
Purchase price adjustments for previous acquisitions		314			(293	)		86		(42	)		12		77
Acquisitions		4			—			—		—			—		4
Other adjustments		(3	)		—			—		—			—		(3	)

Balance as of September 30, 2011	$	3,046		$	586		$	1,022	$	853		$	440	$	5,947

Intangible assets are comprised of the following:


	September 30, 2011						December 31, 2010
	Gross		Less:				Gross		Less:
	Carrying		Accumulated				Carrying		Accumulated
	Amount		Amortization		Net		Amount		Amortization		Net

Definite lived intangibles:
Technology	$	761	$	218	$	543	$	760	$	181	$	579
Contract-based		18		9		9		20		11		9
Trade names		80		18		62		84		18		66
Customer relationships		496		66		430		495		39		456

Subtotal		1,355		311		1,044		1,359		249		1,110

Indefinite-lived intangibles:
Trade name		360		—		360		360		—		360
In-process research and development		90		—		90		99		—		99

Total	$	1,805	$	311	$	1,494	$	1,818	$	249	$	1,569

Intangible assets are amortized either on a straight-line basis with estimated useful lives ranging from 2 to 20 years, or on a basis that reflects the pattern in which the economic benefits of the intangible assets are expected to be realized, which ranges from 15 to 30 years.

Amortization expense for intangible assets included in net income for the three months and nine months ended September 30, 2011 was $25 million and $71 million, respectively, and is estimated to be $24 million for the remainder of fiscal year 2011. Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows: 2012 — $94 million; 2013 — $93 million; 2014 — $92 million; 2015 — $90 million; and 2016 — $89 million.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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