Note 3: Other Costs (Gains), Net

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2015			2014			2015			2014

Asset charges -
Goodwill impairment	$	–		$	–		$	517		$	40
Other long-lived asset impairments		–			4			36			4
Accelerated depreciation on underutilized assets		10			–			10			–
Total	$	10		$	4		$	563		$	44

Other costs (gains) -
Facility closures and severance		17			3			33			8
Mark-to-market impact on currency derivatives not designated as accounting hedges		(1	)		–			11			–
Gain from Venezuela currency devaluation		–			–			(4	)		–
Gain from remeasurement of prior interest in equity method investment		–			(8	)		–			(8	)
Loss from Angola currency devaluation		9			–			9			–
All other costs, net		2			(5	)		2			(1	)
Total	$	27		$	(10	)	$	51		$	(1	)
Total other costs (gains), net	$	37		$	(6	)	$	614		$	43

Asset impairment 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 June 30, 2015 of $53 million.

Previously, 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 review conducted during the first quarter of 2014.

The Company also recognized impairment charges of $36 million during the six months ended June 30, 2015 relating to certain underutilized facilities resulting from weak market conditions. Charges of $4 million were recognized during the first six months of 2014 for impairment of certain intangible assets.

As a result of current market conditions and the impact on the Company’s operations, charges of $43 million were recognized during the six months ended June 30, 2015 related to the impact of pending facility closures, accelerated depreciation on underutilized assets, and workforce reductions.

Gain from Venezuela currency devaluation

Because of the continuing economic turmoil in Venezuela and further statutory changes which impact exchange rates companies are allowed to use by the Venezuelan government when converting bolivars into dollars, Cameron recognized a gain of $4 million relating to the impact on its bolivar-denominated net liabilities of a devaluation of the Venezuelan currency from the official exchange rate used in the past to a market-based rate during the first six months of 2015.

Gain from remeasurement of prior interest in equity method investment

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 during the second quarter of 2014.