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Business Combination - Summary of Preliminary Purchase Price Allocation (Detail) - USD ($)
$ in Millions
6 Months Ended
May 10, 2018
Jun. 30, 2018
Net tangible assets:    
Goodwill   $ 3,926
Less: Cash acquired   (498)
Total Combination consideration transferred, net of cash acquired $ 4,100 2,374
Chicago Bridge & Iron Company N.V. [Member]    
Net tangible assets:    
Cash 498  
Accounts receivable 905  
Inventory 62  
Contracts in progress 341  
Assets held for sale [1] 66  
Other current assets 153  
Deferred tax assets 45  
Investments in unconsolidated affiliates 403  
Property, plant and equipment 409  
Deferred tax liabilities (17)  
Other non-current assets 145  
Accounts payable (498)  
Advance billings on contracts [2] (1,400)  
Other current liabilities (1,189)  
Other non-current liabilities (445)  
Total net tangible assets (522)  
Project related intangible assets/liabilities, net [3] 112  
Other intangible assets [4] 1,049  
Net identifiable assets 639  
Goodwill 3,926 [5] $ 3,900
Total Combination consideration transferred 4,565  
Less: Cash acquired (498)  
Total Combination consideration transferred, net of cash acquired $ 4,067  
[1] Assets held for sale includes CB&I’s former administrative headquarters within Corporate and various fabrication facilities within NCSA.
[2] Advance billings on contracts includes provisions for estimated losses on projects of $112 million.
[3] Project related intangible assets/liabilities, net includes intangible asset and liabilities of $145 million and $33 million, respectively. The balances represent the fair value of acquired RPOs and normalized profit margin fair value associated with acquired long-term contracts that were deemed to be lower than fair value (excluding amounts recorded in Advance billings on contracts and Contracts in progress) as of the Combination Date. The project related intangible assets and liabilities will be amortized as the applicable projects progress over a range of 2 to 4 years within Project intangibles amortization in our Statements of Operations.
[4] Other Intangible assets are reflected in the table below and recorded at estimated fair value, as determined by our management, based on available information which includes a preliminary valuation from outside experts. 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.
[5] Goodwill resulted from the acquired established workforce, which does not qualify for separate recognition, as well as expected future cost savings and revenue synergies associated with the combined operations. Of the $3.9 billion of estimated goodwill recorded in conjunction with the Combination, $1.7 billion is deductible for tax purposes. Given the proximity of the Combination Date to the reporting date of June 30, 2018, the allocation of goodwill for each of our operating groups is in process, and therefore has not been presented. We have not finalized our assessment of the fair values of purchased receivables, intangible assets and liabilities, inventory, property and equipment, joint venture and consortium arrangements, tax balances, contingent liabilities, long-term leases or acquired contracts. The purchase price allocation is based on preliminary information and is subject to change when additional information is obtained. The final purchase price allocation will result in adjustments to various assets and liabilities, including the residual amount allocated to goodwill during the measurement period.