National Oilwell Varco 2011 Annual Report Download - page 83

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Index to Financial Statements
2009
The Company completed nine acquisitions for an aggregate purchase price of $573 million, net of cash acquired. These acquisitions included:
The shares of ASEP Group Holding B.V., a Netherlands-based manufacturer of well service equipment.
The shares of ANS (1001) Ltd. (Anson), a U.K.-based manufacturer of pumps and fluid expendibles.
The business and assets of Spirit Drilling Fluids Ltd., a U.S.-based company that provides drilling fluids and related well-site services to exploration and
production companies.
The business and assets of Spirit Minerals L.P., a U.S.-based company that mines, processes and distributes barite to the oil and gas drilling fluid
industry.
The shares of South Seas Inspection (S) Pte. Ltd., a Singapore-based inspection, repair and maintenance provider to the oil and gas industry.
The shares of Hochang Machinery Industries Co., Ltd., a South Korean-based manufacturing and fabrication business.
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition of the 2009 acquisitions (in millions):
Current assets, net of cash acquired $ 404
Property, plant and equipment 149
Intangible assets 115
Goodwill 198
Other assets 5
Total assets acquired 871
Current liabilities 242
Long-term debt 48
Other liabilities 8
Total liabilities 298
Cash consideration, net of cash acquired $ 573
The Company allocated $115 million to intangible assets (11 year weighted-average life), comprised of: $60 million of customer relationships (9 year weighted-average life),
$46 million of trademarks (18 year weighted-average life), and $9 million of other intangible assets (7 year weighted-average life).
In September 2009, the Company sold 45% of certain of its IntelliServ operations and created the IntelliServ Joint Venture (IntelliServ). IntelliServ provides drilling
technology that enables downhole drilling conditions to be measured, evaluated and monitored.
Each of the acquisitions were accounted for using the purchase method of accounting and, accordingly, the results of operations of each business are included in the
consolidated results of operations from the date of acquisition. A summary of the acquisitions follows (in millions):
Years Ended December 31,
2011 2010 2009
Fair value of assets acquired, net of cash acquired $ 1,517 $ 850 $ 871
Cash paid, net of cash acquired (1,038) (556) (573)
Liabilities assumed, debt issued and minority interest $ 479 $ 294 $ 298
Excess purchase price over fair value of net assets acquired $ 377 $ 298 $ 198
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