National Oilwell Varco 2010 Annual Report Download - page 73

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Intangible Assets
The Company has approximately $5.8 billion of goodwill and $4.1 billion of identified intangible assets as of December 31, 2010. Generally
accepted accounting principles require the Company to test goodwill and other indefinite-lived intangible assets for impairment at least annually
or more frequently whenever events or circumstances occur indicating that such assets might be impaired.
Goodwill is identified by segment as follows (in millions):
Petroleum
Rig Services & Distribution
Technology Supplies Services Total
Balance at December 31, 2008 $ 1,458 $ 3,705 $ 62 $ 5,225
Goodwill acquired during period 97 143 240
Translation and other adjustments 12 7 5 24
Balance at December 31, 2009 1,567 3,855 67 5,489
Goodwill acquired during period 287 2 9 298
Translation adjustments 2 1 3
Balance at December 31, 2010 $ 1,854 $ 3,859 $ 77 $ 5,790
Identified intangible assets with determinable lives consist primarily of customer relationships, trademarks, trade names, patents, and technical
drawings acquired in acquisitions, and are being amortized on a straight-line basis over the estimated useful lives of 2-30 years. Amortization
expense of identified intangibles is expected to be approximately $260 million in each of the next five years. Included in intangible assets are
approximately $643 million of indefinite-lived trade names.
The net book value of identified intangible assets are identified by segment as follows (in millions):
Petroleum
Rig Services & Distribution
Technology Supplies Services Total
Balance at December 31, 2008 $ 361 $ 3,933 $ 6 $ 4,300
Additions to intangible assets 86 37 123
Asset impairment (147) (147)
Amortization (36) (204) (1) (241)
Translation 5 11 1 17
Balance at December 31, 2009 416 3,630 6 4,052
Additions to intangible assets 291 8 299
Amortization (38) (206) (1) (245)
Translation (3)  (3)
Balance at December 31, 2010 $ 666 $ 3,432 $ 5 $ 4,103
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