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Business Combination - Summary of Preliminary Purchase Price Allocation (Detail) - USD ($)
$ in Millions
12 Months Ended
May 10, 2018
Dec. 31, 2018
Net tangible assets:    
Contracts in progress   $ 278
Advance billings on contracts   (1,800)
Goodwill   2,654
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 879  
Inventory 111  
Contracts in progress 273 1,200
Assets held for sale [1] 70  
Other current assets 273  
Investments in unconsolidated affiliates [2] 428  
Property, plant and equipment 401 374
Other non-current assets 127  
Accounts payable (472)  
Advance billings on contracts [3] (2,410)  
Deferred tax liabilities (16)  
Other current liabilities (1,200)  
Other non-current liabilities (454) (443)
Noncontrolling interest 14  
Total net tangible liabilities (1,478)  
Project-related intangible assets/liabilities, net [4] 150  
Other intangible assets [5] 1,071  
Net identifiable liabilities (257)  
Goodwill 4,822 [6] $ 4,800
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. During the third quarter of 2018, we completed the sale of CB&I’s former administrative headquarters for proceeds of $52 million.
[2] Investments in unconsolidated affiliates includes a fair value adjustment of $217 million associated with the Combination. Approximately $148 million of the fair value adjustment is attributable to the basis difference between McDermott’s investment and the underlying equity in identifiable assets of unconsolidated affiliates and will be amortized to Investment in unconsolidated affiliate related amortization over a range of two to 30 years based on the life of assets to which the basis difference is attributed.
[3] Advance billings on contracts includes accrued provisions for estimated losses on projects of $374 million. See the discussions below and in Note 4, Revenue Recognition, for information concerning our acquired significant loss projects, including changes since our initial preliminary estimates reported for the second quarter of 2018.
[4] Project-related intangible assets/liabilities, net includes intangible asset and liabilities of $259 million and $109 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 two to six years within Project intangibles amortization in our Statements of Operations.
[5] 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 external 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.
[6] 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 $4.8 billion of estimated goodwill recorded in conjunction with the Combination, $1.7 billion is deductible for tax purposes. See Note 9, Goodwill and Other Intangible Assets, for our allocation of goodwill by reporting segment and discussion of impairment charges recorded during the fourth quarter of 2018.