Formation!

is episode 118 of the Naruto: Shippūden anime.

Synopsis
While fighting with Sasuke, Jūgo remembers how he met his friend - Kimimaro, and what he experienced with him and he did not like Kimimaro leaving then never coming back for him. After being told that Kimimaro has died for his sake, Jūgo agrees to go with them, believing that Kimimaro lives on within Sasuke. After informing his newly formed team that his goal is to kill Itachi Uchiha of the Akatsuki, Sasuke names their group "Hebi". In the meantime, Naruto decides to go after Itachi in hopes of finding Sasuke as well.

Trivia

 * In ep 118, (at exactly 19:16) the ad poster for the Naruto Shippūden 3: Inheritors of the Will of Fire is posted on the wall.