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Baker Hughes Incorporated
Notes to Consolidated Financial Statements
69
NOTE 10. GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill are detailed below by segment.
North
America Latin
America
Europe/
Africa/
Russia
Caspian
Middle
East/
Asia
Pacific Industrial
Services Total
Goodwill
Balance at December 31, 2013 $3,065 $ 587 $ 1,030 $ 852 $ 432 $ 5,966
Acquisitions and other 37 — 38 (33) 73 115
Balance at December 31, 2014 $3,102 $ 587 $ 1,068 $ 819 $ 505 $ 6,081
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, 2014 related to the annual impairment test.
Intangible assets are comprised of the following at December 31:
2014 2013
Gross
Carrying
Amount
Less:
Accumulated
Amortization Net
Gross
Carrying
Amount
Less:
Accumulated
Amortization Net
Technology $ 870 $ 393 $ 477 $ 814 $ 337 $ 477
Customer relationships 488 191 297 494 157 337
Trade names 120 92 28 120 82 38
Other (1) 23 13 10 43 12 31
Total intangibles $ 1,501 $ 689 $ 812 $ 1,471 $ 588 $ 883
(1) Includes indefinite-lived intangibles of $7 million and $27 million at December 31, 2014 and 2013,
respectively, related to in-process research and development projects.
Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 3 to
30 years. Amortization expense included in net income for the years ended December 31, 2014, 2013 and 2012
was $107 million, $119 million and $140 million, respectively. Estimated amortization expense for each of the
subsequent five fiscal years is expected to be as follows:
Year
Estimated
Amortization
Expense
2015 $ 104
2016 101
2017 97
2018 91
2019 89