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Business Acquisition (Tables) | 6 Months Ended
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Jun. 30, 2018
Business Combinations [Abstract] |
Preliminary identifiable assets acquired and liabilities assumed | The tables below present the fair value of assets acquired and liabilities assumed and the associated fair value of the noncontrolling interest related to the acquired net assets of Baker Hughes. The final determination of the fair value of assets and liabilities was concluded in the second quarter of 2018.
Identifiable assets acquired and liabilities assumed | Fair value at July 3, 2017
Assets |
Cash and equivalents | $ | 4,133 |
Current receivables | 2,342 |
Inventories | 1,712 |
Property, plant and equipment | 4,514 |
Intangible assets (1) | 4,005 |
All other assets | 1,335 |
Liabilities |
Accounts payable | (1,213 | )
Borrowings | (3,370 | )
Deferred income taxes (2) | (258 | )
Liabilities for pension and other postretirement benefits | (654 | )
All other liabilities | (1,676 | )
Total identifiable net assets | $ | 10,870 |
Noncontrolling interest associated with net assets acquired | (35 | )
Goodwill (3) | 13,963 |
Total purchase consideration | $ | 24,798 |
(1) | Intangible assets, as provided in the table below, are recorded at fair value, as determined by management based on available information. The estimated useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows. We consider the Baker Hughes trade name to be an indefinite life intangible asset, which will not be amortized and will be subject to an annual impairment test.
| Fair Value | Estimated Weighted Average Life (Years)
Trade name - Baker Hughes | $ | 2,100 |  | Indefinite life
Customer relationships | 1,240 |  | 15
Patents and technology | 465 |  | 10
In-process research and development | 70 |  | Indefinite life
Capitalized software | 64 |  | 2
Trade names - other | 45 |  | 10
Favorable lease contracts & others | 21 |  | 10
Total | $ | 4,005 |  |
(2) | Includes approximately $500 million of net deferred tax liabilities related to the fair value of intangible assets included in the purchase consideration and approximately $242 million of other net deferred tax assets, including non-U.S. loss carryforwards net of valuation allowances partially offset by liabilities for unrecognized benefits.
(3) | Goodwill represents the excess of the total purchase consideration over fair value of the net assets recognized and represents the future economic benefits that we believe will result from combining the operations of GE O&G and Baker Hughes, including expected future synergies and operating efficiencies. Goodwill resulting from the Transactions has been primarily allocated to the Oilfield Services segment, of which $67 million is deductible for tax purposes. See "Note 6. Goodwill and Other Intangible Assets" for allocation of goodwill to all the segments.
Pro forma information | Significant adjustments to the pro forma information below include recognition of non-recurring direct incremental acquisition costs in 2016 and exclusion of those costs from all other periods presented; amortization associated with an estimate of the acquired intangible assets; depreciation associated with an estimate of the fair value step-up of property, plant and equipment; and reduction of interest expense for fair value adjustments to debt.
| Three Months Ended June 30, 2017 | Six Months Ended June 30, 2017
Revenue | $ | 5,417 |  | $ | 10,741 |
Net loss | (184 | ) | (193 | )
Net loss attributable to the Company | (34 | ) | (31 | )
Basic earnings per Class A common stock | (0.08 | ) | (0.07 | )
Diluted earnings per Class A common stock (1) | (0.08 | ) | (0.07 | )
(1) | The calculation of diluted loss per Class A common stock excludes shares potentially issuable under stock-based incentive compensation plans and the exchange of Class B common stock with Class A common stock under the Exchange Agreement, as their effect, if included, would be anti-dilutive.

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- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)-(3) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84161108&loc=d3e4845-128472 + Details
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