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Goodwill
12 Months Ended
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill

7. Goodwill

Goodwill is identified by segment as follows (in millions):

 

 

United States

 

 

Canada

 

 

International

 

 

Total

 

Balance at December 31, 2017 (1)

 

$

119

 

 

$

98

 

 

$

111

 

 

$

328

 

Foreign currency translation adjustments

 

 

 

 

 

(8

)

 

 

(6

)

 

 

(14

)

Balance at December 31, 2018

 

$

119

 

 

$

90

 

 

$

105

 

 

$

314

 

Additions

 

 

6

 

 

 

 

 

 

 

 

 

6

 

Impairment

 

 

 

 

 

(27

)

 

 

(54

)

 

 

(81

)

Foreign currency translation adjustments

 

 

 

 

 

4

 

 

 

2

 

 

 

6

 

Balance at December 31, 2019

 

$

125

 

 

$

67

 

 

$

53

 

 

$

245

 

 

(1)

In the United States segment, net of prior years accumulated impairment of $393 million.

The Company performed its annual goodwill impairment test during the fourth quarter of 2019 and determined the fair value of the Canada and International reporting units was below their carrying value. As a result, the Company recognized $81 million of goodwill impairment which was included in impairment charges in the consolidated statements of operations. The impairment charges were primarily the result of actual declines in customer and rig activity and downward revisions to forecasted rig and customer spend activity occurring in the fourth quarter of 2019, which we incorporated into our outlook and forecasted results of operations. The impact of the prolonged activity curtailment in Canada and other market condition deteriorations have reduced our near-term outlook and timing of an expected recovery. Further continued adverse market conditions could result in the recognition of additional impairment if the Company determines that the fair values of its reporting units have fallen below their carrying values. No tax benefit was reported on the Company’s goodwill impairment for the year-ended December 31, 2019, as the goodwill impairment was either nondeductible for tax purposes or was subject to a valuation allowance. See Note 9 “Income Taxes” for additional information.

For the years ended December 31, 2018 and 2017 no goodwill impairments were recognized as the fair value of each reporting unit exceeded its carrying value.