XML 30 R15.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS GOODWILL The changes in the carrying value of goodwill are detailed below by segment:
| Oilfield Services | Oilfield Equipment | Turbo-machinery & Process Solutions | Digital Solutions | Total
Balance at December 31, 2019, gross | $ | 15,676 |  | $ | 4,186 |  | $ | 2,171 |  | $ | 2,411 |  | $ | 24,444 |
Accumulated impairment at December 31, 2019 | (2,633) |  | (867) |  | — |  | (254) |  | (3,754) |
Balance at December 31, 2019 | 13,043 |  | 3,319 |  | 2,171 |  | 2,157 |  | 20,690 |
Impairment | (11,484) |  | (3,289) |  | — |  | — |  | (14,773) |
Currency exchange and others | (20) |  | (24) |  | 63 |  | 41 |  | 60 |
Balance at December 31, 2020 | 1,539 |  | 6 |  | 2,234 |  | 2,198 |  | 5,977 |
Currency exchange and others | 10 |  | (3) |  | (62) |  | 37 |  | (18) |
Balance at December 31, 2021 | $ | 1,549 |  | $ | 3 |  | $ | 2,172 |  | $ | 2,235 |  | $ | 5,959 |
We perform our annual goodwill impairment test for each of our reporting units as of July 1 of each fiscal year, in conjunction with our annual strategic planning process. Our reporting units are the same as our four reportable segments. We also test goodwill for impairment whenever events or circumstances occur which, in our judgment, could more likely than not reduce the fair value of one or more reporting units below its carrying value. Potential impairment indicators include, but are not limited to, (i) the results of our most recent annual or interim impairment testing, in particular the magnitude of the excess of fair value over carrying value observed, (ii) downward revisions to internal forecasts, and the magnitude thereof, if any, and (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, if any. During the third quarter of 2021, we completed our annual impairment test as of July 1 and determined that the fair value was substantially in excess of the carrying value for each reporting unit resulting in no goodwill impairment. Between our annual test date of July 1, 2021 and December 31, 2021, we did not identify any indicators that would lead to a determination that it is more likely than not the fair value of any reporting unit is less than its carrying value. There can be no assurances that future sustained declines in macroeconomic or business conditions affecting our industry will not occur, which could result in goodwill impairment charges in future periods. During the first quarter of 2020, our market capitalization declined significantly. Our closing stock price fell to a historic low of $9.33 on March 23, 2020. Over the same period, the equity value of our peer group companies and the overall U.S. stock market also declined significantly amid market volatility. In addition, the Oilfield Services Index ("OSX"), an indicator of investors’ view of the earnings prospects and cost of capital of the oil and gas services industry, traded at prices that were the lowest in its history. These declines were driven by the uncertainty surrounding the outbreak of the coronavirus ("COVID-19") and other macroeconomic events such as the geopolitical tensions between the Organization of Petroleum Exporting Countries ("OPEC") and Russia, which also resulted in a significant drop in oil prices. Based on these factors, we concluded that a triggering event occurred and, accordingly, an interim quantitative impairment test was performed as of March 31, 2020. Based upon the results of our interim quantitative impairment test, we concluded that the carrying value of the Oilfield Services and Oilfield Equipment reporting units exceeded their estimated fair value as of March 31, 2020, which resulted in goodwill impairment charges of $11,484 million and $3,289 million, respectively. The goodwill impairment was calculated as the amount that the carrying value of the reporting unit, including any goodwill, exceeded its fair value. OTHER INTANGIBLE ASSETS Intangible assets are comprised of the following at December 31:
| 2021 | 2020
| Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net
Customer relationships | $ | 1,922 |  | $ | (752) |  | $ | 1,170 |  | $ | 2,261 |  | $ | (916) |  | $ | 1,345 |
Technology | 1,090 |  | (747) |  | 343 |  | 1,127 |  | (696) |  | $ | 431 |
Trade names and trademarks | 292 |  | (169) |  | 123 |  | 326 |  | (181) |  | 145 |
Capitalized software | 1,311 |  | (1,057) |  | 254 |  | 1,294 |  | (1,041) |  | 253 |
Finite-lived intangible assets (1) | 4,615 |  | (2,725) |  | 1,890 |  | 5,008 |  | (2,834) |  | 2,174 |
Indefinite-lived intangible assets | 2,241 |  | — |  | 2,241 |  | 2,223 |  | — |  | 2,223 |
Total intangible assets | $ | 6,856 |  | $ | (2,725) |  | $ | 4,131 |  | $ | 7,231 |  | $ | (2,834) |  | $ | 4,397 |
(1)For the year ended December 31, 2020, we recorded intangible asset impairments to customer relationships of $481 million, technology of $8 million, and trade names and trademarks of $237 million. See "Note 20. Restructuring, Impairment and Other" for further discussion. Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 1 to 35 years. Amortization expense was $253 million, $308 million and $365 million for the years ended December 31, 2021, 2020 and 2019, respectively. Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows:
Year | Estimated Amortization Expense
2022 | $ | 216 |
2023 | 204 |
2024 | 187 |
2025 | 142 |
2026 | 95 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration