5. Inventory
A summary of inventory follows:
(Stated in millions)
As at December 31,
2012 2011
Raw materials & field materials
$2,519
$2,066
Work in process
349
364
Finished goods
1,917
2,270
$4,785
$4,700
6. Fixed Assets
A summary of fixed assets follows:
(Stated in millions)
As at December 31,
2012 2011
Land
$ 366
$ 362
Buildings & improvements
3,209
2,912
Machinery & equipment
27,690
24,404
Seismic vessels
1,903
1,873
33,168
29,551
Less accumulated depreciation
18,388
16,558
$14,780
$12,993
The estimated useful lives of Buildings & improvements are primarily 30 to 40 years. The estimated useful lives of
Machinery & equipment are primarily 5 to 10 years. Seismic vessels are depreciated over periods ranging from 20 to 30
years.
Depreciation expense relating to fixed assets was $2.9 billion, $2.7 billion and $2.4 billion in 2012, 2011 and 2010,
respectively.
7. Multiclient Seismic Data
The change in the carrying amount of multiclient seismic data is as follows:
(Stated in millions)
2012 2011
Balance at beginning of year
$ 425
$ 394
Capitalized in year
351
289
Charged to expense
(258)
(258)
$ 518
$ 425
8. Goodwill
The changes in the carrying amount of goodwill by reporting unit were as follows:
(Stated in millions)
Reservoir
Characterization Drilling Production Distribution Total
Balance at January 1, 2011
$3,381 $8,150
$2,351
$ 70 $13,952
Adjustments relating to Smith acquisition
–
175
13
6
194
Other acquisitions
42
45
–
–
87
Divestiture of business
(51)
–
–
–
(51)
Impact of changes in exchange rates
(12)
(8)
(8)
–
(28)
Balance, December 31, 2011
3,360
8,362
2,356
76 14,154
Acquisitions
391
93
–
–
484
Reallocation
–
(125)
125
–
–
Divestiture of business
–
–
–
(76)
(76)
Impact of changes in exchange rates
9
7
7
–
23
Balance, December 31, 2012
$3,760 $8,337
$2,488
$ – $14,585
47
