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2013 Annual Report 62
Baker Hughes Incorporated
Notes to Consolidated Financial Statements
NOTE 7. 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, 2012 $ 3,069 $ 586 $ 1,018 $ 852 $ 433 $ 5,958
Acquisitions and other (4) 1 12 — (1) 8
Balance at December 31, 2013 $ 3,065 $ 587 $ 1,030 $ 852 $ 432 $ 5,966
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, 2013 related to the annual impairment test.
Intangible assets are comprised of the following at December 31:
2013 2012
Gross
Carrying
Amount
Less:
Accumulated
Amortization Net
Gross
Carrying
Amount
Less:
Accumulated
Amortization Net
Technology $ 814 $ 337 $ 477 $ 787 $ 282 $ 505
Customer relationships 494 157 337 494 117 377
Trade names 120 82 38 121 60 61
Other (1) 43 12 31 60 10 50
Total intangibles $ 1,471 $ 588 $ 883 $ 1,462 $ 469 $ 993
(1) Includes indefinite-lived intangibles of $27 million and $44 million at December 31, 2013 and 2012,
respectively, related to in-process research and development projects.
During 2011, we recognized impairments of certain trade names, the majority of which related to the impairment
of the BJ Services trade name. As a result, we recorded a charge of $315 million before-tax ($220 million net of
tax) in net income. The BJ Services trade name was classified as an indefinite lived intangible asset and, therefore,
was not being amortized. The impairment of the BJ Services trade name was due to the decision to minimize the
use of the BJ Services trade name as part of our overall branding strategy. The BJ Services trade name was
revalued resulting in a revised fair value of $61 million, with a remaining useful life of 3 years, which we began
amortizing in 2012 on an accelerated basis.
The following table details the impairment charge by segment:
2011
North America $ 105
Latin America 64
Europe/Africa/Russia Caspian 48
Middle East/Asia Pacific 47
Industrial Services 51
Total $ 315