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Acquisitions
9 Months Ended
Sep. 30, 2011
Acquisitions [Abstract] 
ACQUISITIONS
NOTE 2. ACQUISITIONS
ACQUISITION OF BJ SERVICES
     On April 28, 2010, we acquired 100% of the outstanding common stock of BJ Services Company (“BJ Services”) in a cash and stock transaction valued at $6,897 million. BJ Services is a leading provider of pressure pumping and other oilfield services and was acquired to expand the product offerings of the Company. Total consideration consisted of $793 million in cash, 118 million shares valued at $6,048 million, and Baker Hughes options with a fair value of $56 million in exchange for BJ Services options. We also assumed all outstanding stock options held by BJ Services employees and directors.
Recording of Assets Acquired and Liabilities Assumed
     The transaction has been accounted for using the acquisition method of accounting, and accordingly assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. The excess of the consideration transferred over those fair values totaling $4,406 million was recorded as goodwill. The following table summarizes the amounts recognized for assets acquired and liabilities assumed.
         
    Fair Values  
 
Assets:
       
Cash and cash equivalents
  $ 113  
Accounts receivable
    951  
Inventories
    419  
Other current assets
    125  
Property, plant and equipment
    2,745  
Intangible assets
    1,404  
Goodwill
    4,406  
Other long-term assets
    109  
 
       
Liabilities:
       
Liabilities for change in control and transaction fees
    210  
Current liabilities
    776  
Deferred income taxes and other tax liabilities
    1,428  
Long-term debt
    531  
Pension and other postretirement liabilities
    154  
Other long-term liabilities
    29  
Noncontrolling interests
    247  
 
Net assets acquired
  $ 6,897  
 
     During the quarter ended March 31, 2011, we increased our step-up adjustment related to noncontrolling interests in certain BJ Services entities by $68 million to $202 million and reduced our step-up adjustment related to deferred tax liabilities and other taxes by $21 million to $1,262 million as part of the acquisition accounting related to fair market value adjustments for acquired intangible assets and property, plant and equipment (“PP&E”) as well as for uncertain tax positions taken in prior years.
Pro Forma Impact of the Acquisition
     The following unaudited supplemental pro forma results present consolidated information as if the acquisition had been completed as of January 1, 2010. The pro forma results include: (i) the amortization associated with an estimate of the acquired intangible assets, (ii) interest expense associated with debt used to fund a portion of the acquisition and reduced interest income associated with cash used to fund a portion of the acquisition, (iii) the impact of certain fair value adjustments such as additional depreciation expense for adjustments to PP&E and reduction to interest expense for adjustments to debt, and (iv) costs directly related to acquiring BJ Services. The pro forma results do not include any potential synergies, cost savings or other expected benefits of the acquisition. Accordingly, the pro forma results should not be considered indicative of the results that would have occurred if the acquisition and related borrowings had been consummated as of January 1, 2010, nor are they indicative of future results.
         
    Nine Months Ended  
    September 30, 2010  
    Pro Forma  
 
Revenue
  $ 11,480  
Net income
  $ 493  
Basic net income per share
  $ 1.14  
Diluted net income per share
  $ 1.14