Other Costs (Gains), Net

Asset charges and other costs (gains) consisted of the following:



	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in millions)	2015		2014		2015		2014

Asset charges -
Goodwill impairment	$	—	$	—	$	517	$	40
Other long-lived asset impairments	18		—		54		4
Accelerated depreciation on underutilized assets	—		—		10		—
Total	$	18	$	—	$	581	$	44

Other costs (gains) -
Loss on disposal of non-core assets	6		10		6		10
Facility closures and severance	10		2		43		10
Merger costs	6		—		6		—
Mark-to-market impact on currency derivatives not designated as accounting hedges	—		4		11		4
Net loss from currency devaluations	2		—		7		—
Gain from remeasurement of prior interest in equity method investment	—		—		—		(8		)
All other costs, net	2		3		4		2
Total	26		19		77		18
Total asset charges and other costs (gains), net	$	44	$	19	$	658	$	62

Asset charges

The Company tests the carrying value of goodwill in accordance with accounting rules on impairment of goodwill, which require that the Company estimate the fair value of each of its reporting units annually, or when impairment indicators exist, and compare such amounts to their respective carrying values to determine if an impairment of goodwill is required.

In connection with our annual goodwill impairment test as of March 31, 2015, we tested the goodwill for each of our six reporting units. With the exception of the Process Systems reporting unit, no goodwill impairments were indicated. As described further in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015, we recorded a goodwill impairment charge of $517 million at March 31, 2015 for the Process Systems reporting unit, leaving a remaining balance of goodwill in this reporting unit at September 30, 2015 of $52 million.

During the first quarter of 2014, goodwill totaling $40 million relating to the Company’s Process Systems and Equipment (PSE) reporting unit was considered to be fully impaired during the annual goodwill impairment test.

The Company also recognized impairment charges of $54 million during the nine months ended September 30, 2015 relating to certain underutilized facilities resulting from weak market conditions and the write-down of assets retained in the agreement to sell the LeTourneau Offshore Products business, of which $18 million was recorded in the third quarter of 2015 (see further discussion below). Charges of $4 million were recognized during the first nine months of 2014 for impairment of certain intangible assets.

Loss on disposal of non-core assets

On August 27, 2015, Cameron entered into an agreement to sell the LeTourneau Offshore Products business within the Drilling Systems division to Keppel Offshore & Marine USA, Inc. for $100 million. In connection with this transaction, the Company recorded an estimated pre-tax loss of $6 million during the third quarter of 2015 to write-down the carrying value of the business to its fair value including certain other accrued liabilities associated with the sale. This was in addition to the $18 million write-down of retained assets discussed above. The sale is currently expected to close during the second quarter of 2016.

Assets and liabilities, including goodwill associated with this business, totaling $105 million and $1 million, respectively, have been presented as held for sale and included in other current assets or accounts payable and accrued liabilities as of September 30, 2015.

All other costs (Gains)

As a result of current market conditions and the impact on the Company’s operations, charges of $53 million were recognized during the nine months ended September 30, 2015 related to the impact of accelerated depreciation on underutilized assets, pending facility closures and severance for workforce reductions.

Merger costs includes costs related directly to activities to support and facilitate Cameron's merger with Schlumberger.

In May 2014, the Company increased its prior ownership interest in Cameron Services Middle East LLC from 49% to 90%, for approximately $18 million. The Company recognized a pre-tax gain of nearly $8 million as a result of remeasuring its prior interest, which had been accounted for under the equity method, to fair value upon obtaining control of this entity.