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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-38143
Baker Hughes Company
(Exact name of registrant as specified in its charter)
Delaware81-4403168
(State or other jurisdiction(I.R.S. Employer Identification No.)
of incorporation or organization)
17021 Aldine Westfield
Houston,Texas77073-5101
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (713) 439-8600
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A Common Stock, par value $0.0001 per shareBKRThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer" "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer☑Accelerated filer☐Non-accelerated filer☐Smaller reporting company☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☑
As of July 14, 2022, the registrant had outstanding 1,011,754,323 shares of Class A Common Stock, $0.0001 par value per share and 7,000,000 shares of Class B Common Stock, $0.0001 par value per share.


Baker Hughes Company
Table of Contents
Page No.

Baker Hughes Company 2022 Second Quarter Form 10-Q | i


PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Baker Hughes Company
Condensed Consolidated Statements of Income (Loss)
(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(In millions, except per share amounts)2022202120222021
Revenue:
Sales of goods$2,817 $3,078 $5,626 $6,014 
Sales of services2,230 2,064 4,256 3,910 
Total revenue 5,047 5,142 9,882 9,924 
Costs and expenses:
Cost of goods sold2,495 2,674 4,862 5,208 
Cost of services sold1,582 1,492 3,081 2,882 
Selling, general and administrative624 642 1,245 1,229 
Restructuring, impairment and other362 125 423 205 
Separation related9 15 18 42 
Total costs and expenses5,072 4,948 9,629 9,566 
Operating income (loss)(25)194 253 358 
Other non-operating loss, net(570)(63)(597)(689)
Interest expense, net(60)(65)(124)(138)
Income (loss) before income taxes(655)66 (468)(469)
Provision for income taxes(182)(143)(289)(213)
Net loss(837)(77)(757)(682)
Less: Net income (loss) attributable to noncontrolling interests2 (9)10 (162)
Net loss attributable to Baker Hughes Company$(839)$(68)$(767)$(520)
Per share amounts:
Basic & diluted loss per Class A common stock$(0.84)$(0.08)$(0.79)$(0.67)
Cash dividend per Class A common stock$0.18 $0.18 $0.36 $0.36 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Baker Hughes Company 2022 Second Quarter Form 10-Q | 1


Baker Hughes Company
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
(In millions)2022202120222021
Net loss$(837)$(77)$(757)$(682)
Less: Net income (loss) attributable to noncontrolling interests2 (9)10 (162)
Net loss attributable to Baker Hughes Company(839)(68)(767)(520)
Other comprehensive income (loss):
Foreign currency translation adjustments(170)158 (153)107 
Cash flow hedges— (16)1 (11)
Benefit plans24 50 32 53 
Other comprehensive income (loss)(146)192 (120)149 
Less: Other comprehensive income (loss) attributable to noncontrolling interests(2)39 (2)28 
Other comprehensive income (loss) attributable to Baker Hughes Company(144)153 (118)121 
Comprehensive income (loss)(983)115 (877)(533)
Less: Comprehensive income (loss) attributable to noncontrolling interests— 30 8 (134)
Comprehensive income (loss) attributable to Baker Hughes Company$(983)$85 $(885)$(399)
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Baker Hughes Company 2022 Second Quarter Form 10-Q | 2


Baker Hughes Company
Condensed Consolidated Statements of Financial Position
(Unaudited)
(In millions, except par value)
June 30,
2022		December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents$2,928 $3,853 
Current receivables, net5,572 5,651 
Inventories, net4,052 3,979 
All other current assets1,647 1,582 
Total current assets14,199 15,065 
Property, plant and equipment (net of accumulated depreciation of $5,082 and $5,003)
4,531 4,877 
Goodwill5,741 5,959 
Other intangible assets, net4,049 4,131 
Contract and other deferred assets1,547 1,598 
All other assets2,913 2,943 
Deferred income taxes773 735 
Total assets$33,753 $35,308 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$3,764 $3,745 
Current portion of long-term debt34 40 
Progress collections and deferred income 3,289 3,232 
All other current liabilities2,288 2,111 
Total current liabilities9,375 9,128 
Long-term debt6,625 6,687 
Deferred income taxes191 127 
Liabilities for pensions and other postretirement benefits996 1,110 
All other liabilities1,480 1,510 
Equity:
Class A Common Stock, $0.0001 par value - 2,000 authorized, 1,012 and 909 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively
— — 
Class B Common Stock, $0.0001 par value - 1,250 authorized, 7 and 117 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively
— — 
Capital in excess of par value
28,598 27,375 
Retained loss(10,927)(10,160)
Accumulated other comprehensive loss(2,789)(2,385)
Baker Hughes Company equity14,882 14,830 
Noncontrolling interests204 1,916 
Total equity15,086 16,746 
Total liabilities and equity$33,753 $35,308 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Baker Hughes Company 2022 Second Quarter Form 10-Q | 3


Baker Hughes Company
Condensed Consolidated Statements of Changes in Equity
(Unaudited)

(In millions, except per share amounts)
Class A and Class B
Common Stock		Capital in
Excess of
Par Value		Retained
Loss		Accumulated
Other
Comprehensive
Loss		Non-
controlling
Interests		Total Equity
Balance at December 31, 2021$— $27,375 $(10,160)$(2,385)$1,916 $16,746 
Comprehensive loss:
Net income (loss)(767)10 (757)
Other comprehensive loss(118)(2)(120)
Dividends on Class A common stock ($0.36 per share)
(354)(354)
Distributions to GE(15)(15)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock1,947 (287)(1,660)— 
Repurchase and cancellation of Class A common stock(458)1 (5)(462)
Stock-based compensation cost102 102 
Other(14)(40)(54)
Balance at June 30, 2022$— $28,598 $(10,927)$(2,789)$204 $15,086 


(In millions, except per share amounts)
Class A and Class B
Common Stock		Capital in
Excess of
Par Value		Retained
Loss		Accumulated
Other
Comprehensive
Loss		Non-
controlling
Interests		Total Equity
Balance at March 31, 2022$— $28,351 $(10,088)$(2,559)$743 $16,447 
Comprehensive loss:
Net income (loss)(839)2 (837)
Other comprehensive loss(144)(2)(146)
Dividends on Class A common stock ($0.18 per share)
(182)(182)
Distributions to GE(1)(1)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock590 (86)(504)— 
Repurchase and cancellation of Class A common stock(225)(1)(226)
Stock-based compensation cost50 50 
Other14 (33)(19)
Balance at June 30, 2022$— $28,598 $(10,927)$(2,789)$204 $15,086 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.












Baker Hughes Company 2022 Second Quarter Form 10-Q | 4


Baker Hughes Company
Condensed Consolidated Statements of Changes in Equity
(Unaudited)

(In millions, except per share amounts)
Class A and Class B
Common Stock		Capital in
Excess of
Par Value		Retained
Loss		Accumulated
Other
Comprehensive
Loss		Non-
controlling
Interests		Total Equity
Balance at December 31, 2020$— $24,613 $(9,942)$(1,778)$5,349 $18,242 
Comprehensive loss:
Net loss(520)(162)(682)
Other comprehensive income121 28 149 
Dividends on Class A common stock ($0.36 per share)
(280)(280)
Distributions to GE(95)(95)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock1,845 (245)(1,600)— 
Stock-based compensation cost102 102 
Other(27)1 (10)(36)
Balance at June 30, 2021$— $26,253 $(10,462)$(1,901)$3,510 $17,400 


(In millions, except per share amounts)
Class A and Class B
Common Stock		Capital in
Excess of
Par Value		Retained
Loss		Accumulated
Other
Comprehensive
Loss		Non-
controlling
Interests		Total Equity
Balance at March 31, 2021$— $25,357 $(10,394)$(1,920)$4,381 $17,424 
Comprehensive loss:
Net loss(68)(9)(77)
Other comprehensive income153 39 192 
Dividends on Class A common stock ($0.18 per share)
(149)(149)
Distributions to GE(39)(39)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock988 (134)(854)— 
Stock-based compensation cost52 52 
Other5 (8)(3)
Balance at June 30, 2021$— $26,253 $(10,462)$(1,901)$3,510 $17,400 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Baker Hughes Company 2022 Second Quarter Form 10-Q | 5


Baker Hughes Company
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Six Months Ended June 30,
(In millions)20222021
Cash flows from operating activities:
Net loss$(757)$(682)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization551 570 
Loss on assets held for sale426 — 
Loss on equity securities112 815 
Property, plant and equipment impairment, net41 22 
Inventory impairment31 — 
Changes in operating assets and liabilities:
Current receivables(360)267 
Inventories(408)119 
Accounts payable185 71 
Progress collections and deferred income624 2 
Contract and other deferred assets(122)112 
Other operating items, net70 (112)
Net cash flows from operating activities393 1,184 
Cash flows from investing activities:
Expenditures for capital assets(494)(392)
Proceeds from disposal of assets143 91 
Other investing items, net(79)171 
Net cash flows used in investing activities(430)(130)
Cash flows from financing activities:
Net repayments of debt and other borrowings(15)(45)
Repayment of commercial paper— (832)
Dividends paid(354)(280)
Distributions to GE(15)(95)
Repurchase of Class A common stock(462)— 
Other financing items, net(22)(33)
Net cash flows used in financing activities(868)(1,285)
Effect of currency exchange rate changes on cash and cash equivalents(20)12 
Decrease in cash and cash equivalents(925)(219)
Cash and cash equivalents, beginning of period3,853 4,132 
Cash and cash equivalents, end of period$2,928 $3,913 
Supplemental cash flows disclosures:
Income taxes paid, net of refunds$282 $48 
Interest paid$140 $157 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Baker Hughes Company 2022 Second Quarter Form 10-Q | 6


Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DESCRIPTION OF THE BUSINESS
Baker Hughes Company ("Baker Hughes", "the Company", "we", "us", or "our") is an energy technology company with a diversified portfolio of technologies and services that span the energy and industrial value chain. We are a holding company and have no material assets other than our 99.3% ownership interest in our operating company, Baker Hughes Holdings LLC ("BHH LLC"), and certain intercompany and tax related balances. BHH LLC is a Securities and Exchange Commission ("SEC") Registrant with separate filing requirements with the SEC and its separate financial information can be obtained from www.sec.gov.
BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S." and such principles, "U.S. GAAP") and pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 Annual Report").
We hold a majority economic interest in BHH LLC and conduct and exercise full control over all activities of BHH LLC without the approval of any other member. Accordingly, we consolidate the financial results of BHH LLC and report a noncontrolling interest in our condensed consolidated financial statements for the economic interest held by General Electric ("GE"). As of June 30, 2022, GE's economic interest in BHH LLC was 0.7%. See "Note 11. Equity" for further information.
In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated.
In the Company's financial statements and notes, certain prior year amounts have been reclassified to conform to the current year presentation. In the notes to the unaudited condensed consolidated financial statements, all dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Please refer to "Note 1. Basis of Presentation and Summary of Significant Accounting Policies," to our consolidated financial statements from our 2021 Annual Report for the discussion of our significant accounting policies.
Cash and Cash Equivalents
As of June 30, 2022 and December 31, 2021, we had $664 million and $601 million, respectively, of cash held in bank accounts that cannot be readily released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S.
Baker Hughes Company 2022 Second Quarter Form 10-Q | 7


Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
NEW ACCOUNTING STANDARDS TO BE ADOPTED
New accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.
NOTE 2. REVENUE RELATED TO CONTRACTS WITH CUSTOMERS
DISAGGREGATED REVENUE
We disaggregate our revenue from contracts with customers by primary geographic markets.
Three Months Ended June 30,Six Months Ended June 30,
Total Revenue2022202120222021
U.S.$1,221 $1,085 $2,325 $2,138 
Non-U.S.3,826 4,057 7,557 7,786 
Total$5,047 $5,142 $9,882 $9,924 
REMAINING PERFORMANCE OBLIGATIONS
As of June 30, 2022 and 2021, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $24.3 billion and $23.8 billion, respectively. As of June 30, 2022, we expect to recognize revenue of approximately 54%, 67% and 86% of the total remaining performance obligations within 2, 5, and 15 years, respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations.
NOTE 3. CURRENT RECEIVABLES
Current receivables are comprised of the following:
June 30, 2022December 31, 2021
Customer receivables$4,692 $4,724 
Related parties19 481 
Other1,215 846 
Total current receivables5,926 6,051 
Less: Allowance for credit losses(354)(400)
Total current receivables, net$5,572 $5,651 
Customer receivables are recorded at the invoiced amount. Related parties as of December 31, 2021 consists of amounts owed to us primarily by GE. As of June 30, 2022, GE is no longer considered a related party. See "Note 15. Related Party Transactions" for further information. The "Other" category consists primarily of advance payments to suppliers, indirect taxes, amounts owed from GE for certain tax matters indemnified pursuant to the Tax Matters Agreement, and customer retentions.
Baker Hughes Company 2022 Second Quarter Form 10-Q | 8


Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
NOTE 4. INVENTORIES
Inventories, net of reserves of $415 million and $374 million as of June 30, 2022 and December 31, 2021, respectively, are comprised of the following:
June 30, 2022December 31, 2021
Finished goods$2,156 $2,228 
Work in process and raw materials1,896 1,751 
Total inventories, net$4,052 $3,979 
NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL
The changes in the carrying value of goodwill are detailed below by segment:
Oilfield
Services		Oilfield
Equipment		Turbo-
machinery &
Process
Solutions		Digital
Solutions		Total
Balance at December 31, 2020, gross$15,656 $4,162 $2,234 $2,452 $24,504 
Accumulated impairment at December 31, 2020(14,117)(4,156)— (254)(18,527)
Balance at December 31, 20201,539 6 2,234 2,198 5,977 
Currency exchange and others
10 (3)(62)37 (18)
Balance at December 31, 20211,549 3 2,172 2,235 5,959 
Currency exchange and others4 — (57)(4)(57)
Total1,553 3 2,115 2,231 5,902 
Classified as held for sale (1)
(161)— — — (161)
Balance at June 30, 2022$1,392 $3 $2,115 $2,231 $5,741 
(1)The reduction in Oilfield Services ("OFS") goodwill relates to transferring our OFS Russia business to held for sale. See "Note 18. Business Held for Sale" for more information.
We perform our annual goodwill impairment test for each of our reporting units as of July 1 of each fiscal year, in conjunction with our annual strategic planning process. Our reporting units are the same as our four reportable segments. We also test goodwill for impairment whenever events or circumstances occur which, in our judgment, could more likely than not reduce the fair value of one or more reporting units below its carrying value. Potential impairment indicators include, but are not limited to, (i) the results of our most recent annual or interim impairment testing, in particular the magnitude of the excess of fair value over carrying value observed, (ii) downward revisions to internal forecasts, and the magnitude thereof, if any, and (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, if any.
During the second quarter of 2022, we completed a review to assess whether indicators of impairment existed. As a result of this assessment, we concluded that no indicators existed that would lead to a determination that it is more likely than not that the fair value of each reporting unit is less than its carrying value. There can be no assurances that future sustained declines in macroeconomic or business conditions affecting our industry will not occur, which could result in goodwill impairment charges in future periods.
Baker Hughes Company 2022 Second Quarter Form 10-Q | 9


Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
OTHER INTANGIBLE ASSETS
Intangible assets are comprised of the following:
June 30, 2022December 31, 2021
Gross
Carrying
Amount		Accumulated
Amortization		NetGross
Carrying
Amount		Accumulated
Amortization		Net
Customer relationships$1,887 $(759)$1,128 $1,922 $(752)$1,170 
Technology1,110 (763)347 1,090 (747)343 
Trade names and trademarks290 (173)117 292 (169)123 
Capitalized software1,312 (1,057)255 1,311 (1,057)254 
Finite-lived intangible assets4,599 (2,752)1,847 4,615 (2,725)1,890 
Indefinite-lived intangible assets2,202 — 2,202 2,241 — 2,241 
Total intangible assets$6,801 $(2,752)$4,049 $6,856 $(2,725)$4,131 
Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 1 to 35 years. Amortization expense for the three months ended June 30, 2022 and 2021 was $55 million and $65 million, respectively, and $110 million and $134 million for the six months ended June 30, 2022 and 2021, respectively.
Estimated amortization expense for the remainder of 2022 and each of the subsequent five fiscal years is expected to be as follows:
YearEstimated Amortization Expense
Remainder of 2022$110 
2023210 
2024196 
2025155 
2026108 
202785 
Baker Hughes Company 2022 Second Quarter Form 10-Q | 10


Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
NOTE 6. CONTRACT AND OTHER DEFERRED ASSETS
Our long-term product service agreements relate to our Turbomachinery & Process Solutions segment. Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements and other deferred contract related costs. Contract assets are comprised of the following:
June 30, 2022December 31, 2021
Long-term product service agreements $435 $589 
Long-term equipment contracts (1)
952 825 
Contract assets (total revenue in excess of billings)1,387 1,414 
Deferred inventory costs128 156 
Non-recurring engineering costs32 28 
Contract and other deferred assets$1,547 $1,598 
(1)Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements.
Revenue recognized during the three months ended June 30, 2022 and 2021 from performance obligations satisfied (or partially satisfied) in previous periods related to our long-term service agreements was $17 million and $9 million, respectively, and $13 million and $9 million during the six months ended June 30, 2022 and 2021, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract’s total estimated profitability resulting in an adjustment of earnings.
NOTE 7. PROGRESS COLLECTIONS AND DEFERRED INCOME
Contract liabilities include progress collections, which reflects billings in excess of revenue, and deferred income on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities are comprised of the following:
June 30, 2022December 31, 2021
Progress collections$3,173 $3,108 
Deferred income116 124 
Progress collections and deferred income (contract liabilities)$3,289 $3,232 
Revenue recognized during the three months ended June 30, 2022 and 2021 that was included in the contract liabilities at the beginning of the period was $513 million and $708 million, respectively, and $1,253 million and $1,585 million during the six months ended June 30, 2022 and 2021, respectively.
NOTE 8. LEASES
Our leasing activities primarily consist of operating leases for administrative offices, manufacturing facilities, research centers, service centers, sales offices and certain equipment.
Three Months Ended June 30,Six Months Ended June 30,
Operating Lease Expense2022202120222021
Long-term fixed lease$63 $65 $126 $128 
Long-term variable lease13 8 22 16 
Short-term lease114 110 224 210 
Total operating lease expense$190 $183 $372 $354 
Baker Hughes Company 2022 Second Quarter Form 10-Q | 11


Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
Cash flows used in operating activities for operating leases approximates our expense for the three and six months ended June 30, 2022 and 2021.
The weighted-average remaining lease term as of June 30, 2022 and December 31, 2021 was approximately nine years for our operating leases. The weighted-average discount rate used to determine the operating lease liability as of June 30, 2022 and December 31, 2021 was 3.2% and 3.3%, respectively.
NOTE 9. BORROWINGS
The Company's borrowings are comprised of the following:
June 30, 2022December 31, 2021
Current borrowings
Other borrowings$34 $40 
Long-term borrowings  
1.231% Senior Notes due December 2023
648 647 
8.55% Debentures due June 2024
116 118 
2.061% Senior Notes due December 2026
597 597 
3.337% Senior Notes due December 2027
1,294 1,335 
6.875% Notes due January 2029
276 279 
3.138% Senior Notes due November 2029
522 522 
4.486% Senior Notes due May 2030
497 497 
5.125% Senior Notes due September 2040
1,289 1,292 
4.080% Senior Notes due December 2047
1,337 1,337 
Other long-term borrowings49 63 
Total long-term borrowings6,625 6,687 
Total borrowings$6,659 $6,727 
The estimated fair value of total borrowings at June 30, 2022 and December 31, 2021 was $6,109 million and $7,328 million, respectively. For a majority of our borrowings the fair value was determined using quoted period-end market prices. Where market prices are not available, we estimate fair values based on valuation methodologies using current market interest rate data adjusted for our non-performance risk.
BHH LLC has a $3 billion committed unsecured revolving credit facility ("the Credit Agreement") with commercial banks maturing in December 2024. In addition, we have a commercial paper program with authorization up to $3 billion under which we may issue from time to time commercial paper with maturities of no more than 397 days. At June 30, 2022 and December 31, 2021, there were no borrowings under either the Credit Agreement or the commercial paper program.
Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with BHH LLC on our long-term debt securities. This co-obligor is a 100%-owned finance subsidiary of BHH LLC that was incorporated for the sole purpose of serving as a corporate co-obligor of long-term debt securities and has no assets or operations other than those related to its sole purpose. As of June 30, 2022, Baker Hughes Co-Obligor, Inc. is a co-obligor of our long-term debt securities totaling $6,577 million.
Certain Senior Notes contain covenants that restrict BHH LLC's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions, and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits. At June 30, 2022, we were in compliance with all debt covenants.
Baker Hughes Company 2022 Second Quarter Form 10-Q | 12


Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
NOTE 10. INCOME TAXES
For the three and six months ended June 30, 2022, the provision for income taxes was $182 million and $289 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances, restructuring charges related to our Russia operations for which a majority has no tax benefit, and earnings in jurisdictions with tax rates higher than the U.S.
For the three and six months ended June 30, 2021, the provision for income taxes was $143 million and $213 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances and changes in unrecognized tax benefits.
NOTE 11. EQUITY
COMMON STOCK
We are authorized to issue 2 billion shares of Class A common stock, 1.25 billion shares of Class B common stock and 50 million shares of preferred stock each of which have a par value of $0.0001 per share. The number of shares outstanding of Class A and Class B common stock as of June 30, 2022 is 1,012 million and 7 million, respectively. We have not issued any preferred stock. GE owns all the issued and outstanding Class B common stock. Each share of Class A and Class B common stock and the associated membership interest in BHH LLC form a paired interest. While each share of Class B common stock has equal voting rights to a share of Class A common stock, it has no economic rights, meaning holders of Class B common stock have no right to dividends or any assets in the event of liquidation of the Company. GE is entitled through their ownership of BHH LLC common units ("LLC Units") to receive distributions on an equal amount of any dividend paid by the Company.
In 2021, our Board of Directors authorized each of the Company and BHH LLC to repurchase up to $2 billion of its Class A common stock and LLC Units, respectively. We expect to fund the repurchase program from cash generated from operations, and we expect to make share repurchases from time to time subject to the Company's capital plan, market conditions, and other factors, including regulatory restrictions. The repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. During the three and six months ended June 30, 2022, the Company and BHH LLC repurchased and canceled 6.7 million and 14.8 million shares of Class A common stock and LLC Units, each for $226 million and $462 million, representing an average price per share of $33.77 and $31.13, respectively. For the three months ended June 30, 2022, this includes 0.2 million shares totaling $8 million that were repurchased in March 2022 but not settled and cancelled until April 2022. At June 30, 2022, the Company and BHH LLC had authorization remaining to repurchase up to approximately $1.1 billion of its Class A common stock and LLC Units, respectively.
The following table presents the changes in the number of shares outstanding (in thousands):
Class A
Common Stock		Class B
Common Stock
2022202120222021
Balance at January 1909,142 723,999 116,548 311,433 
Issue of shares upon vesting of restricted stock units (1)
6,057 4,881 — — 
Issue of shares on exercises of stock options (1)
1,427 261 — — 
Issue of shares for employee stock purchase plan986 1,315 — — 
Exchange of Class B common stock for Class A common stock (2)
109,548 97,406 (109,548)(97,406)
Repurchase and cancellation of Class A common stock(14,825)— — — 
Balance at June 301,012,335 827,863 7,000 214,027 
(1)Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation.
(2)When shares of Class B common stock, together with associated LLC Units, are exchanged for shares of Class A common stock pursuant to the Exchange Agreement, such shares of Class B common stock are canceled.
Baker Hughes Company 2022 Second Quarter Form 10-Q | 13


Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
ACCUMULATED OTHER COMPREHENSIVE LOSS (AOCL)
The following tables present the changes in accumulated other comprehensive loss, net of tax:
Foreign Currency Translation AdjustmentsCash Flow HedgesBenefit PlansAccumulated Other Comprehensive Loss
Balance at December 31, 2021$(2,125)$(10)$(250)$(2,385)
Other comprehensive income (loss) before reclassifications(188)(1)27 (162)
Amounts reclassified from accumulated other comprehensive loss35 2 12 49 
Deferred taxes— — (7)(7)
Other comprehensive income (loss)(153)1 32 (120)
Less: Other comprehensive income (loss) attributable to noncontrolling interests
(2)— — (2)
Less: Reallocation of AOCL based on change in ownership of LLC Units255 1 30 286 
Balance at June 30, 2022$(2,531)$(10)$(248)$(2,789)
Foreign Currency Translation AdjustmentsCash Flow HedgesBenefit PlansAccumulated Other Comprehensive Loss
Balance at December 31, 2020$(1,464)$3 $(317)$(1,778)
Other comprehensive income (loss) before reclassifications107 (5)30 132 
Amounts reclassified from accumulated other comprehensive loss— (6)21 15 
Deferred taxes— — 2 2 
Other comprehensive income (loss)107 (11)53 149 
Less: Other comprehensive income (loss) attributable to noncontrolling interests20 (2)10 28 
Less: Reallocation of AOCL based on change in ownership of LLC Units202 (1)43 244