Baker Hughes 2009 Annual Report Download - page 124

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50 Baker Hughes Incorporated
NOTE 7. INVENTORIES
Inventories, net of reserves of $297 million and $244 million
in 2009 and 2008, respectively, are comprised of the following
at December 31:
2009 2008
Finished goods $ 1,570 $ 1,693
Work in process 126 175
Raw materials 140 153
Total $ 1,836 $ 2,021
NOTE 8. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are comprised of the
following at December 31:
Depreciation
Period 2009 2008
Land $ 81 $ 85
Buildings and
improvements 1–30 years 1,136 878
Machinery and
equipment 1–20 years 3,384 3,082
Rental tools and
equipment 1–15 years 2,228 1,991
Subtotal 6,829 6,036
Accumulated
depreciation (3,668) (3,203)
Total $ 3,161 $ 2,833
NOTE 9. GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill are
detailed below by segment:
Drilling Completion
and and
Evaluation Production Total
Balance as of
December 31, 2007 $ 914 $ 440 $ 1,354
Goodwill acquired
during the period 45 – 45
Purchase price and
other adjustments 9 – 9
Impact of foreign currency
translation adjustments (17) (2) (19)
Balance as of
December 31, 2008 951 438 1,389
Goodwill acquired
during the period 9 – 9
Purchase price and
other adjustments 8 1 9
Impact of foreign currency
translation adjustments 11 – 11
Balance as of
December 31, 2009 $ 979 $ 439 $ 1,418
We perform an annual impairment test of goodwill as of October 1 of every year. There were no impairments of goodwill in
2009, 2008 or 2007 related to the annual impairment test.
Intangible assets are comprised of the following at December 31:
2009 2008
Gross Gross
Carrying Accumulated Carrying Accumulated
Amount Amortization Net Amount Amortization Net
Technology-based $ 277 $ (140) $ 137 $ 256 $ (122) $ 134
Contract-based 13 (9) 4 12 (7) 5
Marketing-related 36 (13) 23 33 (6) 27
Customer-based 41 (10) 31 37 (5) 32
Other 1 (1) – 1 (1) –
Total $ 368 $ (173) $ 195 $ 339 $ (141) $ 198