National Oilwell Varco 2015 Annual Report Download - page 88
Download and view the complete annual report
Please find page 88 of the 2015 National Oilwell Varco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85 -
86 -
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
 |
 |
Table of Contents
The Company has allocated $894 million to identifiable intangible assets (19 year weighted-average life). The intangible assets are amortizable and are
comprised of: $635 million of customer relationships (18 year weighted-average life), $170 million of patents (20 year weighted-average life), $86 million of
trademarks (20 year weighted-average life), and $3 million of other intangible assets (1 year weighted-average life). The amount allocated to goodwill
represents the excess of the purchase price over the fair value of the net assets acquired. Goodwill specifically includes the expected synergies and other
benefits that the Company believes will result from combining its operations with those of businesses acquired and other intangible assets that do not qualify
for separate recognition, such as assembled workforce in place at the date of acquisition. Goodwill resulting from the R&M acquisition is not deductible for
tax purposes.
Each of the acquisitions was accounted for using the purchase method of accounting and, accordingly, the results of operations of each business are included
in the consolidated statements of income from the date of acquisition. A summary of the acquisitions follows (in millions):
Fair value of assets acquired, net of cash acquired $116 $ 406 $ 3,329
Cash paid, net of cash acquired (86) (291) (2,397)
Liabilities assumed, debt issued and noncontrolling interest $ 30 $ 115 $ 932
Excess purchase price over fair value of net assets acquired $ 56 $ 167 $ 1,903
Inventories consist of (in millions):
Raw materials and supplies $1,069 $1,255
Work in process 632 1,027
Finished goods and purchased products 2,977 2,999
Total $4,678 $5,281
Property, plant and equipment consist of (in millions):
Land and buildings 5-35 Years $ 1,582 $ 1,528
Operating equipment 3-15 Years 3,055 3,060
Rental equipment 3-12 Years 639 817
5,276 5,405
Less: Accumulated Depreciation (2,152) (2,043)
$ 3,124 $ 3,362
87