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Baker Hughes Incorporated
Notes to Consolidated Financial Statements
69
NOTE 11. 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, 2014 $3,102 $ 587 $ 1,068 $ 819 $ 505 $ 6,081
Currency translation adjustments (5) (3) — — (3) (11)
Balance at December 31, 2015 $3,097 $ 584 $ 1,068 $ 819 $ 502 $ 6,070
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, 2015 related to the annual impairment test.
Intangible assets are comprised of the following at December 31:
2015 2014
Gross
Carrying
Amount
Less:
Accumulated
Amortization Net
Gross
Carrying
Amount
Less:
Accumulated
Amortization Net
Technology $ 866 $ 452 $ 414 $ 870 $ 393 $ 477
Customer relationships (1) 251 106 145 488 191 297
Trade names (1) 108 89 19 120 92 28
Other 18 13 5 23 13 10
Total intangibles $ 1,243 $ 660 $ 583 $ 1,501 $ 689 $ 812
(1) During 2015, we recorded impairments relating to our customer relationships and trade names intangible
assets totaling $116 million. See Note 3. "Impairment and Restructuring Charges" for further discussion.
Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 3 to
30 years. Amortization expense for the years ended December 31, 2015, 2014 and 2013 was $104 million, $107
million and $119 million, respectively. Estimated amortization expense for each of the subsequent five fiscal years
is expected to be as follows:
Year
Estimated
Amortization
Expense
2016 $ 87
2017 84
2018 77
2019 72
2020 62