Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 8. GOODWILL AND INTANGIBLE ASSETS

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

	North America			Latin America			Europe/ Africa/ Russia Caspian		Middle East/ Asia Pacific			Industrial Services And Other			Total
Balance at December 31, 2010	$	2,731		$	879		$	936	$	895		$	428		$	5,869
Purchase price adjustments for previous acquisitions		337			(293	)		90		(38	)		(11	)		85
Acquisitions		4			-			-		-			-			4
Other		(3	)		-			1		-			-			(2	)
Balance at December 31, 2011	$	3,069		$	586		$	1,027	$	857		$	417		$	5,956

We perform an annual impairment test of goodwill as of October 1 of every year. There were no impairments of goodwill in any of the three years ended December 31, 2011 related to the annual impairment test.

Intangible assets are comprised of the following at December 31:

	2011						2010
	Gross Carrying Amount		Less: Accumulated Amortization		Net		Gross Carrying Amount		Less: Accumulated Amortization		Net
Definite lived intangibles:
Technology	$	755		$    231	$	524	$	760		$    181	$	579
Contract-based		17		9		8		20		11		9
Trade names		121		16		105		84		18		66
Customer relationships		497		77		420		495		39		456
Subtotal		1,390		333		1,057		1,359		249		1,110
Indefinite lived intangibles:
Trade name		-		-		-		360		-		360
IPR&D		86		-		86		99		-		99
Total	$	1,476		$    333	$	1,143	$	1,818		$    249	$	1,569

During the fourth quarter of 2011, we recorded a charge of $315 million before-tax ($220 million net of tax) related to the impairment of certain trade names, the majority of which related to the impairment of the BJ Services trade name. The BJ Services trade name was classified as an indefinite lived intangible asset and, therefore, was not being amortized. The impairment of the BJ Services trade name was due to the decision to minimize the use of the BJ Services trade name as part of our overall branding strategy. The BJ Services trade name was revalued resulting in a revised fair value of $61 million, with a remaining useful life of three years, which we will begin amortizing in 2012 on an accelerated basis. We estimated the fair value of this intangible asset based on an income approach using the relief-from-royalty method, which is dependent on a number of estimates and assumptions such as future growth and trends, royalty rates, discount rates and other variables. We based our fair value estimates on assumptions we believe to be reasonable, but which are unpredictable and inherently uncertain.

The following table details the impairment charge by reportable segment.

North America	$	105
Latin America		64
Europe/Africa/Russia Caspian		48
Middle East/Asia Pacific		47
Industrial Services and Other		51
Total	$	315

Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 2 to 20 years. Amortization expense included in net income for the years ended December 31, 2011, 2010 and 2009 was $96 million, $76 million and $31 million, respectively. Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows: 2012 - $135 million; 2013 - $113 million; 2014 - $98 million; 2015 - $90 million; and 2016 - $89 million.