| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| (State or other jurisdiction | (I.R.S. Employer Identification No.) | ||||||||||
| of incorporation or organization) | |||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
| ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||||||||||||||
Page No. | ||||||||
| Three Months Ended March 31, | ||||||||
| (In millions, except per share amounts) | 2024 | 2023 | ||||||
| Revenue: | ||||||||
| Sales of goods | $ | $ | ||||||
| Sales of services | ||||||||
| Total revenue | ||||||||
| Costs and expenses: | ||||||||
| Cost of goods sold | ||||||||
| Cost of services sold | ||||||||
| Selling, general and administrative | ||||||||
| Restructuring, impairment and other | ||||||||
| Total costs and expenses | ||||||||
| Operating income | ||||||||
Other non-operating income, net | ||||||||
| Interest expense, net | ( | ( | ||||||
Income before income taxes | ||||||||
| Provision for income taxes | ( | ( | ||||||
Net income | ||||||||
| Less: Net income attributable to noncontrolling interests | ||||||||
Net income attributable to Baker Hughes Company | $ | $ | ||||||
| Per share amounts: | ||||||||
Basic income per Class A common stock | $ | $ | ||||||
Diluted income per Class A common stock | $ | $ | ||||||
| Cash dividend per Class A common stock | $ | $ | ||||||
| Three Months Ended March 31, | ||||||||
| (In millions) | 2024 | 2023 | ||||||
| Net income | $ | $ | ||||||
| Less: Net income attributable to noncontrolling interests | ||||||||
| Net income attributable to Baker Hughes Company | ||||||||
| Other comprehensive income (loss): | ||||||||
| Foreign currency translation adjustments | ( | ( | ||||||
| Cash flow hedges | ( | |||||||
| Benefit plans | ||||||||
Other comprehensive loss | ( | ( | ||||||
| Less: Other comprehensive loss attributable to noncontrolling interests | ||||||||
Other comprehensive loss attributable to Baker Hughes Company | ( | ( | ||||||
Comprehensive income | ||||||||
| Less: Comprehensive income attributable to noncontrolling interests | ||||||||
Comprehensive income attributable to Baker Hughes Company | $ | $ | ||||||
(In millions, except par value) | March 31, 2024 | December 31, 2023 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Current receivables, net | ||||||||
| Inventories, net | ||||||||
| All other current assets | ||||||||
| Total current assets | ||||||||
Property, plant and equipment (net of accumulated depreciation of $ | ||||||||
| Goodwill | ||||||||
| Other intangible assets, net | ||||||||
| Contract and other deferred assets | ||||||||
| All other assets | ||||||||
| Deferred income taxes | ||||||||
| Total assets | $ | $ | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | $ | ||||||
| Short-term and current portion of long-term debt | ||||||||
| Progress collections and deferred income | ||||||||
| All other current liabilities | ||||||||
| Total current liabilities | ||||||||
| Long-term debt | ||||||||
| Deferred income taxes | ||||||||
| Liabilities for pensions and other postretirement benefits | ||||||||
| All other liabilities | ||||||||
| Equity: | ||||||||
Class A Common Stock, $ | ||||||||
Class B Common Stock, $ | ||||||||
Capital in excess of par value | ||||||||
| Retained loss | ( | ( | ||||||
| Accumulated other comprehensive loss | ( | ( | ||||||
| Baker Hughes Company equity | ||||||||
| Noncontrolling interests | ||||||||
| Total equity | ||||||||
| Total liabilities and equity | $ | $ | ||||||
(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, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||
| Comprehensive income: | ||||||||||||||||||||
| Net income | ||||||||||||||||||||
Other comprehensive loss | ( | ( | ||||||||||||||||||
Dividends on Class A common stock ($ | ( | ( | ||||||||||||||||||
| Repurchase and cancellation of Class A common stock | ( | ( | ||||||||||||||||||
| Stock-based compensation cost | ||||||||||||||||||||
| Other | ( | ( | ||||||||||||||||||
| Balance at March 31, 2024 | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||
(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, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||
Comprehensive income: | ||||||||||||||||||||
Net income | ||||||||||||||||||||
| Other comprehensive loss | ( | ( | ||||||||||||||||||
Dividends on Class A common stock ($ | ( | ( | ||||||||||||||||||
| Stock-based compensation cost | ||||||||||||||||||||
| Other | ( | ( | ( | |||||||||||||||||
| Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||
| Three Months Ended March 31, | ||||||||
| (In millions) | 2024 | 2023 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||||
| Depreciation and amortization | ||||||||
Gain on equity securities | ( | ( | ||||||
Provision (benefit) for deferred income taxes | ( | |||||||
| Stock-based compensation cost | ||||||||
| Inventory impairment | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Current receivables | ( | |||||||
| Inventories | ( | ( | ||||||
| Accounts payable | ||||||||
| Progress collections and deferred income | ||||||||
| Contract and other deferred assets | ( | ( | ||||||
| Other operating items, net | ( | ( | ||||||
| Net cash flows from operating activities | ||||||||
| Cash flows from investing activities: | ||||||||
| Expenditures for capital assets | ( | ( | ||||||
| Proceeds from disposal of assets | ||||||||
| Other investing items, net | ||||||||
| Net cash flows used in investing activities | ( | ( | ||||||
| Cash flows from financing activities: | ||||||||
| Dividends paid | ( | ( | ||||||
| Repurchase of Class A common stock | ( | |||||||
| Other financing items, net | ( | ( | ||||||
| Net cash flows used in financing activities | ( | ( | ||||||
| Effect of currency exchange rate changes on cash and cash equivalents | ( | ( | ||||||
| Increase (decrease) in cash and cash equivalents | ( | |||||||
| Cash and cash equivalents, beginning of period | ||||||||
| Cash and cash equivalents, end of period | $ | $ | ||||||
| Supplemental cash flows disclosures: | ||||||||
| Income taxes paid, net of refunds | $ | $ | ||||||
| Interest paid | $ | $ | ||||||
| March 31, 2024 | December 31, 2023 | |||||||
| Customer receivables | $ | $ | ||||||
| Other | ||||||||
| Total current receivables | ||||||||
| Less: Allowance for credit losses | ( | ( | ||||||
| Total current receivables, net | $ | $ | ||||||
| March 31, 2024 | December 31, 2023 | |||||||
| Finished goods | $ | $ | ||||||
| Work in process and raw materials | ||||||||
| Total inventories, net | $ | $ | ||||||
| March 31, 2024 | December 31, 2023 | |||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||
| Customer relationships | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||
| Technology | ( | ( | ||||||||||||||||||
| Trade names and trademarks | ( | ( | ||||||||||||||||||
| Capitalized software | ( | ( | ||||||||||||||||||
| Finite-lived intangible assets | ( | ( | ||||||||||||||||||
| Indefinite-lived intangible assets | — | — | ||||||||||||||||||
| Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||
| Year | Estimated Amortization Expense | ||||
Remainder of 2024 | $ | ||||
| 2025 | |||||
| 2026 | |||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| March 31, 2024 | December 31, 2023 | |||||||
| Long-term product service agreements | $ | $ | ||||||
| Long-term equipment contracts and certain other service agreements | ||||||||
| Contract assets (total revenue in excess of billings) | ||||||||
| Deferred inventory costs | ||||||||
Other costs to fulfill or obtain a contract | ||||||||
| Contract and other deferred assets | $ | $ | ||||||
| March 31, 2024 | December 31, 2023 | |||||||
| Progress collections | $ | $ | ||||||
| Deferred income | ||||||||
| Progress collections and deferred income (contract liabilities) | $ | $ | ||||||
| Three Months Ended March 31, | ||||||||
| Operating Lease Expense | 2024 | 2023 | ||||||
| Long-term fixed lease | $ | $ | ||||||
| Long-term variable lease | ||||||||
| Short-term lease | ||||||||
| Total operating lease expense | $ | $ | ||||||
| March 31, 2024 | December 31, 2023 | |||||||
| Short-term and current portion of long-term debt | ||||||||
| $ | $ | |||||||
| Other debt | ||||||||
| Total short-term and current portion of long-term debt | ||||||||
| Long-term debt | ||||||||
| Other long-term debt | ||||||||
| Total long-term debt | ||||||||
| Total debt | $ | $ | ||||||
| Class A Common Stock | ||||||||
| 2024 | 2023 | |||||||
| Balance at January 1 | ||||||||
Issue of shares upon vesting of restricted stock units (1) | ||||||||
Issue of shares on exercise of stock options (1) | ||||||||
| Issue of shares for employee stock purchase plan | ||||||||
| Repurchase and cancellation of Class A common stock | ( | |||||||
| Balance at March 31 | ||||||||
| Foreign Currency Translation Adjustments | Cash Flow Hedges | Benefit Plans | Accumulated Other Comprehensive Loss | |||||||||||
| Balance at December 31, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | ( | |||||||||||
| Amounts reclassified from accumulated other comprehensive loss | ||||||||||||||
| Deferred taxes | ( | ( | ||||||||||||
| Other comprehensive income (loss) | ( | ( | ||||||||||||
| Balance at March 31, 2024 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
| Foreign Currency Translation Adjustments | Cash Flow Hedges | Benefit Plans | Accumulated Other Comprehensive Loss | |||||||||||
| Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
| Other comprehensive loss before reclassifications | ( | ( | ( | |||||||||||
| Amounts reclassified from accumulated other comprehensive loss | ||||||||||||||
| Other comprehensive income (loss) | ( | ( | ( | |||||||||||
| Balance at March 31, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
| Three Months Ended March 31, | ||||||||
| (In millions, except per share amounts) | 2024 | 2023 | ||||||
| Net income | $ | $ | ||||||
| Less: Net income attributable to noncontrolling interests | ||||||||
| Net income attributable to Baker Hughes Company | $ | $ | ||||||
| Weighted average shares outstanding: | ||||||||
| Class A basic | ||||||||
| Class A diluted | ||||||||
Net income per share attributable to common stockholders: | ||||||||
| Class A basic | $ | $ | ||||||
| Class A diluted | $ | $ | ||||||
| March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Net Balance | Level 1 | Level 2 | Level 3 | Net Balance | |||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
Derivatives | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Investment securities | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||
| Derivatives | ( | ( | ( | ( | ||||||||||||||||||||||
| Total liabilities | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||
| March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||||
Non-U.S. debt securities (2) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Equity securities | ( | |||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||
| March 31, 2024 | December 31, 2023 | |||||||||||||
| Assets | Liabilities | Assets | Liabilities | |||||||||||
| Derivatives accounted for as hedges | ||||||||||||||
| Currency exchange contracts | $ | $ | ( | $ | $ | ( | ||||||||
| Interest rate swap contracts | ( | ( | ||||||||||||
| Derivatives not accounted for as hedges | ||||||||||||||
| Currency exchange contracts and other | ( | ( | ||||||||||||
| Total derivatives | $ | $ | ( | $ | $ | ( | ||||||||
| Three Months Ended March 31, | ||||||||
| Total Revenue | 2024 | 2023 | ||||||
| Well Construction | $ | $ | ||||||
| Completions, Intervention & Measurements | ||||||||
| Production Solutions | ||||||||
| Subsea & Surface Pressure Systems | ||||||||
| Oilfield Services & Equipment | ||||||||
Gas Technology Equipment | ||||||||
Gas Technology Services | ||||||||
| Total Gas Technology | ||||||||
Industrial Products | ||||||||
Industrial Solutions | ||||||||
Controls (1) | ||||||||
| Total Industrial Technology | ||||||||
Climate Technology Solutions | ||||||||
| Industrial & Energy Technology | ||||||||
| Total | $ | $ | ||||||
| Three Months Ended March 31, | ||||||||
| Oilfield Services & Equipment Geographic Revenue | 2024 | 2023 | ||||||
| North America | $ | $ | ||||||
| Latin America | ||||||||
| Europe/CIS/Sub-Saharan Africa | ||||||||
| Middle East/Asia | ||||||||
| Oilfield Services & Equipment | $ | $ | ||||||
| Three Months Ended March 31, | ||||||||
| Revenue | 2024 | 2023 | ||||||
| Oilfield Services & Equipment | $ | $ | ||||||
| Industrial & Energy Technology | ||||||||
| Total | $ | $ | ||||||
| Three Months Ended March 31, | ||||||||
| Income before income taxes | 2024 | 2023 | ||||||
| Oilfield Services & Equipment | $ | $ | ||||||
| Industrial & Energy Technology | ||||||||
| Total segment | ||||||||
| Corporate | ( | ( | ||||||
Inventory impairment (1) | ( | |||||||
| Restructuring, impairment and other | ( | ( | ||||||
| Other non-operating income, net | ||||||||
| Interest expense, net | ( | ( | ||||||
| Income before income taxes | $ | $ | ||||||
| Three Months Ended March 31, | ||||||||
| Depreciation and amortization | 2024 | 2023 | ||||||
| Oilfield Services & Equipment | $ | $ | ||||||
| Industrial & Energy Technology | ||||||||
| Total segment | ||||||||
| Corporate | ||||||||
| Total | $ | $ | ||||||
Three Months Ended | |||||
| Segments | March 31, 2023 | ||||
| Oilfield Services & Equipment | $ | ||||
| Industrial & Energy Technology | |||||
| Corporate | |||||
| Total | $ | ||||
Three Months Ended | |||||
| Charges by Type | March 31, 2023 | ||||
| Property, plant & equipment, net | $ | ||||
| Employee-related termination costs | |||||
| Other incremental costs | |||||
| Total | $ | ||||
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
Brent oil price ($/Bbl) (1) | $ | 82.92 | $ | 81.07 | ||||
WTI oil price ($/Bbl) (2) | 77.50 | 75.93 | ||||||
Natural gas price ($/mmBtu) (3) | 2.15 | 2.64 | ||||||
| Three Months Ended March 31, | |||||||||||
| 2024 | 2023 | % Change | |||||||||
| North America | 831 | 982 | (15) | % | |||||||
| International | 965 | 915 | 5 | % | |||||||
| Worldwide | 1,796 | 1,897 | (5) | % | |||||||
| Three Months Ended March 31, | $ Change | ||||||||||
| 2024 | 2023 | ||||||||||
| Revenue: | |||||||||||
| Well Construction | $ | 1,061 | $ | 1,061 | $ | — | |||||
| Completions, Intervention & Measurements | 1,006 | 909 | 97 | ||||||||
| Production Solutions | 945 | 938 | 7 | ||||||||
| Subsea & Surface Pressure Systems | 771 | 670 | 101 | ||||||||
| Oilfield Services & Equipment | 3,783 | 3,577 | 206 | ||||||||
Gas Technology Equipment | 1,210 | 831 | 379 | ||||||||
Gas Technology Services | 614 | 591 | 23 | ||||||||
| Total Gas Technology | 1,824 | 1,422 | 402 | ||||||||
Industrial Products | 462 | 423 | 39 | ||||||||
Industrial Solutions | 265 | 222 | 42 | ||||||||
Controls (1) | — | 40 | (40) | ||||||||
| Total Industrial Technology | 727 | 685 | 42 | ||||||||
Climate Technology Solutions | 83 | 31 | 52 | ||||||||
| Industrial & Energy Technology | 2,634 | 2,138 | 496 | ||||||||
| Total | $ | 6,418 | $ | 5,716 | $ | 702 | |||||
| Three Months Ended March 31, | $ Change | ||||||||||
| 2024 | 2023 | ||||||||||
| North America | $ | 990 | $ | 992 | $ | (2) | |||||
| Latin America | 637 | 661 | (23) | ||||||||
Europe/CIS/Sub-Saharan Africa | 750 | 581 | 170 | ||||||||
| Middle East/Asia | 1,405 | 1,345 | 61 | ||||||||
| Oilfield Services & Equipment | $ | 3,783 | $ | 3,577 | $ | 206 | |||||
| North America | $ | 990 | $ | 992 | $ | (2) | |||||
| International | 2,793 | 2,586 | 208 | ||||||||
| Three Months Ended March 31, | $ Change | ||||||||||
| 2024 | 2023 | ||||||||||
| Segment operating income: | |||||||||||
| Oilfield Services & Equipment | $ | 422 | $ | 371 | $ | 50 | |||||
| Industrial & Energy Technology | 330 | 241 | 89 | ||||||||
| Total segment operating income | 752 | 612 | 139 | ||||||||
| Corporate | (92) | (100) | 8 | ||||||||
Inventory impairment (1) | — | (18) | 18 | ||||||||
| Restructuring, impairment and other | (7) | (56) | 49 | ||||||||
| Operating income | 653 | 438 | 215 | ||||||||
| Other non-operating income, net | 29 | 386 | (357) | ||||||||
| Interest expense, net | (41) | (64) | 23 | ||||||||
| Income before income taxes | 641 | 760 | (119) | ||||||||
| Provision for income taxes | (178) | (179) | 1 | ||||||||
| Net income | $ | 463 | $ | 581 | $ | (118) | |||||
| (In millions) | 2024 | 2023 | ||||||
| Operating activities | $ | 784 | $ | 461 | ||||
| Investing activities | (269) | (229) | ||||||
| Financing activities | (427) | (250) | ||||||
| Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share (2) | Total Number of Shares Purchased as Part of a Publicly Announced Program (3)(4) | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program (3)(4) | ||||||||||
Jan 1-31, 2024 | 1,715,275 | $ | 30.21 | — | $ | 2,217,416,302 | ||||||||
February 1-29, 2024 | 5,134,241 | $ | 29.29 | 5,123,565 | $ | 2,067,338,864 | ||||||||
March 1-31, 2024 | 638,270 | $ | 30.68 | 275,766 | $ | 2,059,105,097 | ||||||||
| Total | 7,487,786 | $ | 29.62 | 5,399,331 | ||||||||||
| Name and Title | Action | Date | Plans | Number of Shares to be Sold | Expiration | |||||||||||||||
Rule 10b5-1 (1) | Non-Rule 10b5-1 (2) | |||||||||||||||||||
| Adoption | X | Earlier of when all shares under plan are sold and February 7, 2025 | ||||||||||||||||||
| Adoption | X | Earlier of when all shares under plan are sold and December 31, 2024 | ||||||||||||||||||
| 101.INS* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
| 101.SCH* | XBRL Schema Document | |||||||
| 101.CAL* | XBRL Calculation Linkbase Document | |||||||
| 101.DEF* | XBRL Definition Linkbase Document | |||||||
| 101.LAB* | XBRL Label Linkbase Document | |||||||
| 101.PRE* | XBRL Presentation Linkbase Document | |||||||
| 104* | Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101) | |||||||
| Baker Hughes Company (Registrant) | |||||||||||
| Date: | April 24, 2024 | By: | /s/ NANCY BUESE | ||||||||
| Nancy Buese | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
| Date: | April 24, 2024 | By: | /s/ REBECCA CHARLTON | ||||||||
| Rebecca Charlton | |||||||||||
| Senior Vice President, Controller and Chief Accounting Officer | |||||||||||
| Date: | April 24, 2024 | By: | /s/ Lorenzo Simonelli | |||||||||||
| Lorenzo Simonelli | ||||||||||||||
| President and Chief Executive Officer | ||||||||||||||
| Date: | April 24, 2024 | By: | /s/ Nancy Buese | |||||||||||
| Nancy Buese | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
| /s/ Lorenzo Simonelli | ||||||||||||||
| Name: | Lorenzo Simonelli | |||||||||||||
| Title: | President and Chief Executive Officer | |||||||||||||
| Date: | April 24, 2024 | |||||||||||||
| /s/ Nancy Buese | ||||||||||||||
| Name: | Nancy Buese | |||||||||||||
| Title: | Executive Vice President and Chief Financial Officer | |||||||||||||
| Date: | April 24, 2024 | |||||||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Statement of Comprehensive Income [Abstract] | ||
| Net income | $ 463 | $ 581 |
| Less: Net income attributable to noncontrolling interests | 8 | 5 |
| Net income attributable to Baker Hughes Company | 455 | 576 |
| Other comprehensive income (loss): | ||
| Foreign currency translation adjustments | (63) | (61) |
| Cash flow hedges | 2 | (1) |
| Benefit plans | 2 | 7 |
| Other comprehensive loss | (59) | (55) |
| Less: Other comprehensive loss attributable to noncontrolling interests | 0 | 0 |
| Other comprehensive loss attributable to Baker Hughes Company | (59) | (55) |
| Comprehensive income | 404 | 526 |
| Less: Comprehensive income attributable to noncontrolling interests | 8 | 5 |
| Comprehensive income attributable to Baker Hughes Company | $ 396 | $ 521 |
Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Property, plant and equipment, accumulated depreciation | $ 5,824 | $ 5,678 |
| Class A Common Stock | ||
| Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
| Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
| Common stock issued (in shares) | 998,000,000 | 998,000,000 |
| Common stock outstanding (in shares) | 997,513,000 | 997,709,000 |
| Class B Common Stock | ||
| Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
| Common stock authorized (in shares) | 1,250,000,000 | 1,250,000,000 |
| Common stock issued (in shares) | 0 | 0 |
| Common stock outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions |
Total |
Class A and Class B Common Stock |
Capital in Excess of Par Value |
Retained Loss |
Accumulated Other Comprehensive Loss |
Non- controlling Interests |
|---|---|---|---|---|---|---|
| Beginning Balance at Dec. 31, 2022 | $ 14,525 | $ 0 | $ 28,126 | $ (10,761) | $ (2,971) | $ 131 |
| Comprehensive income: | ||||||
| Net income | 581 | 576 | 5 | |||
| Other comprehensive income (loss) | (55) | (55) | ||||
| Dividends on Class A common stock | (192) | (192) | ||||
| Stock-based compensation cost | 49 | 49 | ||||
| Other | (59) | (58) | (1) | |||
| Ending Balance at Mar. 31, 2023 | 14,849 | 0 | 27,925 | (10,185) | (3,026) | 135 |
| Beginning Balance at Dec. 31, 2023 | 15,519 | 0 | 26,983 | (8,819) | (2,796) | 151 |
| Comprehensive income: | ||||||
| Net income | 463 | 455 | 8 | |||
| Other comprehensive income (loss) | (59) | (59) | ||||
| Dividends on Class A common stock | (210) | (210) | ||||
| Repurchase and cancellation of Class A common stock | (158) | (158) | ||||
| Stock-based compensation cost | 51 | 51 | ||||
| Other | (56) | (56) | ||||
| Ending Balance at Mar. 31, 2024 | $ 15,550 | $ 0 | $ 26,610 | $ (8,364) | $ (2,855) | $ 159 |
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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| Class A Common Stock | ||
| Cash dividends per share (in dollars per share) | $ 0.21 | $ 0.19 |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
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Mar. 31, 2024 | |
| Accounting Policies [Abstract] | |
| BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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. 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 Securities and Exchange Commission ("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, 2023 (the "2023 Annual Report"). 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 with 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 2023 Annual Report for the discussion of our significant accounting policies. Supply Chain Finance Programs As of March 31, 2024 and December 31, 2023, $391 million and $332 million of supply chain finance program liabilities are recorded in "Accounts payable" in our condensed consolidated statements of financial position, respectively, and reflected in net cash flows from operating activities in our condensed consolidated statements of cash flows when settled. NEW ACCOUNTING STANDARDS TO BE ADOPTED In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for the Company prospectively to all annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which enhances the disclosures required for operating segments in the Company's annual and interim consolidated financial statements. ASU 2023-07 is effective retrospectively for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. All other 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.
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CURRENT RECEIVABLES |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CURRENT RECEIVABLES | CURRENT RECEIVABLES Current receivables consist of the following:
Customer receivables are recorded at the invoiced amount. The "Other" category consists primarily of advance payments to suppliers and indirect taxes.
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INVENTORIES |
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| Inventory, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| INVENTORIES | INVENTORIES Inventories, net of reserves of $382 million and $389 million as of March 31, 2024 and December 31, 2023, respectively, consist of the following:
During the three months ended March 31, 2023, we recorded inventory impairments of $18 million, primarily in our Oilfield Services & Equipment ("OFSE") segment. See "Note 17. Restructuring, Impairment, and Other" for further information.
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OTHER INTANGIBLE ASSETS |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER INTANGIBLE ASSETS | OTHER INTANGIBLE ASSETS Intangible assets consist of the following:
Amortization expense for the three months ended March 31, 2024 and 2023 was $68 million and $63 million, respectively. Estimated amortization expense for the remainder of 2024 and each of the subsequent five fiscal years is expected to be as follows:
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CONTRACT AND OTHER DEFERRED ASSETS |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONTRACT AND OTHER DEFERRED ASSETS | CONTRACT AND OTHER DEFERRED ASSETS Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, provide long-term product service and maintenance or extended warranty arrangements and other deferred contract related costs. Our long-term product service agreements are provided by our Industrial & Energy Technology ("IET") segment. Our long-term equipment contracts are provided by both our IET and OFSE segments. Contract assets consist of the following:
Revenue recognized during the three months ended March 31, 2024 and 2023 from performance obligations satisfied (or partially satisfied) in previous periods related to our long-term service agreements was $(1) million and $1 million, 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.
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PROGRESS COLLECTIONS AND DEFERRED INCOME |
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| PROGRESS COLLECTIONS AND DEFERRED INCOME | 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 consist of the following:
DISAGGREGATED REVENUE We disaggregate our revenue from contracts with customers by product line for both our OFSE and IET segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. In addition, management views revenue from contracts with customers for OFSE by geography based on the location to where the product is shipped or the services are performed. The series of tables below present our revenue disaggregated by these categories.
(1)The sale of our controls business was completed in April 2023.
REMAINING PERFORMANCE OBLIGATIONS As of March 31, 2024, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $32.7 billion. As of March 31, 2024, we expect to recognize revenue of approximately 62%, 74% and 90% 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.
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LEASES |
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| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES | LEASES Our leasing activities primarily consist of operating leases for administrative offices, manufacturing facilities, research centers, service centers, sales offices and certain equipment.
Cash flows used in operating activities for operating leases approximates our expense for the three months ended March 31, 2024 and 2023. The weighted-average remaining lease term as of March 31, 2024 and December 31, 2023 was approximately seven years for our operating leases. The weighted-average discount rate used to determine the operating lease liability as of March 31, 2024 and December 31, 2023 was 4.0% and 3.3%, respectively.
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DEBT |
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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT | DEBT The carrying value of our short-term and long-term debt consist of the following:
The estimated fair value of total debt at March 31, 2024 and December 31, 2023 was $5,479 million and $5,571 million, respectively. For a majority of our debt 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. We have a $3 billion committed unsecured revolving credit facility ("the Credit Agreement") with commercial banks maturing in November 2028. The Credit Agreement contains certain representations and warranties, certain affirmative covenants and negative covenants, in each case we consider customary. Upon the occurrence of certain events of default, our obligations under the Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the Credit Agreement and other customary defaults. No such events of default have occurred. The Credit Agreement is fully and unconditionally guaranteed on a senior unsecured basis by Baker Hughes. In addition, we have authorization to issue up to $3 billion of commercial paper. At March 31, 2024 and December 31, 2023, there were no borrowings under the Credit Agreement and no outstanding commercial paper. Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with Baker Hughes Holdings LLC ("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 March 31, 2024, Baker Hughes Co-Obligor, Inc. is a co-obligor of certain debt securities totaling $5,900 million. Certain Senior Notes contain covenants that restrict our 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 March 31, 2024, we were in compliance with all debt covenants.
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INCOME TAXES |
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Mar. 31, 2024 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES For the three months ended March 31, 2024, the provision for income taxes was $178 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to income in jurisdictions with tax rates higher than in the U.S. and losses with no tax benefit due to valuation allowances, partially offset by income subject to U.S. tax at an effective rate less than 21% due to valuation allowances. For the three months ended March 31, 2023, the provision for income taxes was $179 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to income in jurisdictions with tax rates higher than in the U.S., which is partially offset by income subject to U.S. tax at an effective rate less than 21% due to valuation allowances.
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EQUITY |
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| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EQUITY | 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. As of March 31, 2024 and December 31, 2023, there were no shares of Class B common stock issued and outstanding. We have not issued any preferred stock. We have a share repurchase program which we expect to fund 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 months ended March 31, 2024, the Company repurchased and canceled 5.4 million shares of Class A common stock for $158 million, representing an average price per share of $29.32. There were no shares of Class common stock repurchased during the three months ended March 31, 2023. As of March 31, 2024, the Company had authorization remaining to repurchase up to approximately $2.1 billion of its Class A common stock. The following table presents the changes in the number of shares outstanding (in thousands):
(1)Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation. ACCUMULATED OTHER COMPREHENSIVE LOSS (AOCL) The following tables present the changes in accumulated other comprehensive loss, net of tax:
The amounts reclassified from accumulated other comprehensive loss during the three months ended March 31, 2024 and 2023 represent (i) gains (losses) reclassified on cash flow hedges when the hedged transaction occurs, (ii) the amortization of net actuarial gain (loss), prior service credit, settlements, and curtailments which are included in the computation of net periodic pension cost, and (iii) the release of foreign currency translation adjustments.
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EARNINGS PER SHARE |
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| EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted net income per share of Class A common stock is presented below:
For the three months ended March 31, 2024 and 2023, Class A diluted shares include the dilutive impact of equity awards except for approximately 1 million and 2 million options, respectively, that were excluded because the exercise price exceeded the average market price of our Class A common stock and is therefore antidilutive.
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FINANCIAL INSTRUMENTS |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS RECURRING FAIR VALUE MEASUREMENTS Our assets and liabilities measured at fair value on a recurring basis consist of derivative instruments and investment securities.
(1)Gains recorded to earnings related to these securities were $27 million and $392 million for the three months ended March 31, 2024 and 2023, respectively. (2)As of March 31, 2024, our non-U.S. debt securities are classified as available for sale securities and mature within two years. As of March 31, 2024 and December 31, 2023, the balance of our equity securities with readily determinable fair values is $1,014 million and $975 million, respectively, and is comprised mainly of our investment in ADNOC Drilling, and is recorded primarily in "All other current assets" in the condensed consolidated statements of financial position. We measured our investments at fair value based on quoted prices in active markets. Gains recorded to earnings for our equity securities with readily determinable fair values were $52 million and $392 million for the three months ended March 31, 2024 and 2023, respectively. Gains (losses) related to our equity securities with readily determinable fair values are reported in "Other non-operating income (loss), net" in the condensed consolidated statements of income (loss). FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS Our financial instruments include cash and cash equivalents, current receivables, certain investments, accounts payable, short and long-term debt, and derivative financial instruments. Except for long-term debt, the estimated fair value of these financial instruments as of March 31, 2024 and December 31, 2023 approximates their carrying value as reflected in our condensed consolidated financial statements. For further information on the fair value of our debt, see "Note 8. Debt." DERIVATIVES AND HEDGING We use derivatives to manage our risks and do not use derivatives for speculation. The table below summarizes the fair value of all derivatives, including hedging instruments and embedded derivatives.
Derivatives are classified in the condensed consolidated statements of financial position depending on their respective maturity date. As of March 31, 2024 and December 31, 2023, $19 million and $31 million of derivative assets are recorded in "All other current assets" and $2 million and $3 million are recorded in "All other assets" in the condensed consolidated statements of financial position, respectively. As of March 31, 2024 and December 31, 2023, $16 million and $23 million of derivative liabilities are recorded in "All other current liabilities" and $57 million and $53 million are recorded in "All other liabilities" in the condensed consolidated statements of financial position, respectively. In January 2024, we issued a credit default swap ("CDS") for a notional amount of $261 million to a third-party financial institution. The CDS relates to a secured borrowing provided by the financial institution to a customer in Mexico that was utilized to pay certain of our outstanding receivables. The notional amount of the CDS will reduce on a monthly basis over its 26-month term. As of March 31, 2024, the fair value of this derivative liability was not material. FORMS OF HEDGING Cash Flow Hedges We use cash flow hedging primarily to mitigate the effects of foreign exchange rate changes on purchase and sale contracts. Accordingly, the vast majority of our derivative activity in this category consists of currency exchange contracts. In addition, we are exposed to interest rate risk fluctuations in connection with long-term debt that we issue from time to time to fund our operations. Changes in the fair value of cash flow hedges are recorded in a separate component of equity (referred to as "Accumulated Other Comprehensive Income" or "AOCI") and are recorded in earnings in the period in which the hedged transaction occurs. See "Note 10. Equity" for further information on activity in AOCI for cash flow hedges. As of March 31, 2024 and December 31, 2023, the maximum term of cash flow hedges that hedge forecasted transactions was approximately two years. Fair Value Hedges All of our long-term debt is comprised of fixed rate instruments. We are subject to interest rate risk on our debt portfolio and may use interest rate swaps to manage the economic effect of fixed rate obligations associated with certain debt. Under these arrangements, we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. As of March 31, 2024 and December 31, 2023, we had interest rate swaps with a notional amount of $500 million that converted a portion of our $1,350 million aggregate principal amount of 3.337% fixed rate Senior Notes due 2027 into a floating rate instrument with an interest rate based on a LIBOR index as a hedge of its exposure to changes in fair value that are attributable to interest rate risk. As of July 1, 2023, the interest rate changed to be based on a Secured Overnight Financing Rate index. We concluded that the interest rate swap met the criteria necessary to qualify for the short-cut method of hedge accounting, and as such, an assumption is made that the change in the fair value of the hedged debt, due to changes in the benchmark rate, exactly offsets the change in the fair value of the interest rate swaps. Therefore, the derivative is considered to be effective at achieving offsetting changes in the fair value of the hedged liability, and no ineffectiveness is recognized. The mark-to-market of this fair value hedge is recorded as gains or losses in interest expense and is equally offset by the gain or loss of the underlying debt instrument, which also is recorded in interest expense. NOTIONAL AMOUNT OF DERIVATIVES The notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. We disclose the derivative notional amounts on a gross basis to indicate the total counterparty risk but it does not generally represent amounts exchanged by us and the counterparties. A substantial majority of the outstanding notional amount of $5.0 billion and $4.2 billion at March 31, 2024 and December 31, 2023, respectively, is related to hedges of anticipated sales and purchases in foreign currency, commodity purchases, changes in interest rates, and contractual terms in contracts that are considered embedded derivatives and for intercompany borrowings in foreign currencies. COUNTERPARTY CREDIT RISK Fair values of our derivatives can change significantly from period to period based on, among other factors, market movements and changes in our positions. We manage counterparty credit risk (the risk that counterparties will default and not make payments to us according to the terms of our agreements) on an individual counterparty basis.
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REVENUE RELATED TO CONTRACTS WITH CUSTOMERS |
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| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REVENUE RELATED TO CONTRACTS WITH CUSTOMERS | 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 consist of the following:
DISAGGREGATED REVENUE We disaggregate our revenue from contracts with customers by product line for both our OFSE and IET segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. In addition, management views revenue from contracts with customers for OFSE by geography based on the location to where the product is shipped or the services are performed. The series of tables below present our revenue disaggregated by these categories.
(1)The sale of our controls business was completed in April 2023.
REMAINING PERFORMANCE OBLIGATIONS As of March 31, 2024, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $32.7 billion. As of March 31, 2024, we expect to recognize revenue of approximately 62%, 74% and 90% 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.
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SEGMENT INFORMATION |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEGMENT INFORMATION | SEGMENT INFORMATION The Company's segments are determined as those operations whose results are reviewed regularly by the chief operating decision maker ("CODM"), who is our Chief Executive Officer, in deciding how to allocate resources and assess performance. We report our operating results through two operating segments, OFSE and IET. Each segment is organized and managed based upon the nature of our markets and customers and consists of similar products and services. These products and services operate across upstream oil and gas and broader energy and industrial markets. OILFIELD SERVICES & EQUIPMENT Oilfield Services & Equipment provides products and services for onshore and offshore oilfield operations across the lifecycle of a well, ranging from exploration, appraisal, and development, to production, rejuvenation, and decommissioning. OFSE is organized into four product lines: Well Construction, which encompasses drilling services, drill bits, and drilling & completions fluids; Completions, Intervention, and Measurements, which encompasses well completions, pressure pumping, and wireline services; Production Solutions, which spans artificial lift systems and oilfield & industrial chemicals; and Subsea & Surface Pressure Systems, which encompasses subsea projects services and drilling systems, surface pressure control, and flexible pipe systems. Beyond its traditional oilfield concentration, OFSE is expanding its capabilities and technology portfolio to meet the challenges of a net-zero future. These efforts include expanding into new energy areas such as geothermal and carbon capture, utilization and storage, strengthening its digital architecture and addressing key energy market themes. INDUSTRIAL & ENERGY TECHNOLOGY Industrial & Energy Technology provides technology solutions and services for mechanical-drive, compression and power-generation applications across the energy industry, including oil and gas, liquefied natural gas ("LNG") operations, downstream refining and petrochemical markets, as well as lower carbon solutions to broader energy and industrial sectors. IET also provides equipment, software, and services that serve a wide range of industries including petrochemical and refining, nuclear, aviation, automotive, mining, cement, metals, pulp and paper, and food and beverage. IET is organized into five product lines - Gas Technology Equipment, Gas Technology Services, Industrial Products, Industrial Solutions, and Climate Technology Solutions. Revenue and operating income for each segment are used by the CODM to assess the performance of each segment in a financial period. The performance of our operating segments is evaluated based on segment operating income (loss), which is defined as income (loss) before income taxes before the following: net interest expense, net other non-operating income (loss), corporate expenses, restructuring, impairment and other charges, inventory impairments, and certain gains and losses not allocated to the operating segments. Consistent accounting policies have been applied by all segments within the Company, for all reporting periods. Intercompany revenue and expense amounts have been eliminated within each segment to report on the basis that management uses internally for evaluating segment performance. Summarized financial information for the Company's segments is shown in the following tables.
(1)Charges for inventory impairments are reported in "Cost of goods sold" in the condensed consolidated statements of income (loss). The following table presents depreciation and amortization:
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RELATED PARTY TRANSACTIONS |
3 Months Ended |
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Mar. 31, 2024 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS We have an aeroderivative joint venture ("Aero JV") we formed with General Electric Company ("GE") in 2019. As of March 31, 2024, the Aero JV was jointly controlled by GE and us, each with ownership interest of 50%, and therefore, we do not consolidate the Aero JV. In February 2024, we received notice from GE that it intends to transfer its interest in the Aero JV to GE Vernova LLC in the second quarter of 2024. The transfer occurred as a result of GE's spin-off of GE Vernova. We had purchases from the Aero JV of $103 million and $114 million during the three months ended March 31, 2024 and 2023, respectively. We have $82 million and $71 million of accounts payable at March 31, 2024 and December 31, 2023, respectively, for products and services provided by the Aero JV in the ordinary course of business.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2024 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES LITIGATION We are subject to legal proceedings arising in the ordinary course of our business. Because legal proceedings are inherently uncertain, we are unable to predict the ultimate outcome of such matters. We record a liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. Based on the opinion of management, we do not expect the ultimate outcome of currently pending legal proceedings to have a material adverse effect on our results of operations, financial position or cash flows. However, there can be no assurance as to the ultimate outcome of these matters. On July 31, 2018, International Engineering & Construction S.A. ("IEC") initiated arbitration proceedings in New York administered by the International Center for Dispute Resolution ("ICDR") against the Company and its subsidiaries arising out of a series of sales and service contracts entered between IEC and the Company's subsidiaries for the sale and installation of LNG plants and related power generation equipment in Nigeria ("Contracts"). Prior to the filing of the IEC Arbitration, the Company's subsidiaries made demands for payment due under the Contracts. On August 15, 2018, the Company's subsidiaries initiated a separate demand for ICDR arbitration against IEC for claims of additional costs and amounts due under the Contracts. On October 10, 2018, IEC filed a Petition to Compel Arbitration in the United States District Court for the Southern District of New York against the Company seeking to compel non-signatory Baker Hughes entities to participate in the arbitration filed by IEC. The complaint is captioned International Engineering & Construction S.A. et al. v. Baker Hughes, a GE company, LLC, et al. No. 18-cv-09241 ("S.D.N.Y 2018"); this action was dismissed by the Court on August 13, 2019. In the arbitration, IEC alleges breach of contract and other claims against the Company and its subsidiaries and seeks recovery of alleged compensatory damages, in addition to reasonable attorneys' fees, expenses and arbitration costs. On March 15, 2019, IEC amended its request for arbitration to alleged damages of $591 million of lost profits plus unspecified additional costs based on alleged non-performance of the contracts in dispute. The arbitration hearing was held from December 9, 2019 to December 20, 2019. On March 3, 2020, IEC amended their damages claim to $700 million of alleged loss cash flow or, in the alternative, $244.9 million of lost profits and various costs based on alleged non-performance of the contracts in dispute, and in addition $4.8 million of liquidated damages, $58.6 million in take-or-pay costs of feed gas, and unspecified additional costs of rectification and take-or-pay future obligations, plus unspecified interest and attorneys' fees. On May 3, 2020, the arbitration panel dismissed IEC's request for take-or-pay damages. On May 29, 2020, IEC quantified their claim for legal fees at $14.2 million and reduced their alternative claim from $244.9 million to approximately $235 million. The Company and its subsidiaries have contested IEC's claims and are pursuing claims for compensation under the contracts. On October 31, 2020, the ICDR notified the arbitration panel's final award, which dismissed the majority of IEC's claims and awarded a portion of the Company's claims. On January 27, 2021, IEC filed a petition to vacate the arbitral award in the Supreme Court of New York, County of New York. On March 5, 2021, the Company filed a petition to confirm the arbitral award, and on March 8, 2021, the Company removed the matter to the United States District Court for the Southern District of New York. On November 16, 2021, the court granted the Company's petition to confirm the award and denied IEC's petition to vacate. During the second quarter of 2022, IEC paid the amounts owed under the arbitration award, which had an immaterial impact on the Company's financial statements. On February 3, 2022, IEC initiated another arbitration proceeding in New York administered by the ICDR against certain of the Company's subsidiaries arising out of the same project which formed the basis of the first arbitration. On March 25, 2022, the Company's subsidiaries initiated a separate demand for ICDR arbitration against IEC for claims of additional costs and amounts due; such claims against IEC have now been resolved, with any consideration having an immaterial impact on the Company's financial statements. At this time, we are not able to predict the outcome of the proceeding which is pending against the Company's subsidiaries. On or around February 15, 2023, the lead plaintiff and three additional named plaintiffs in a putative securities class action styled The Reckstin Family Trust, et al., v. C3.ai, Inc., et al., No. 4:22-cv-01413-HSG, filed an amended class action complaint (the "Amended Complaint") in the United States District Court for the Northern District of California. The Amended Complaint names the following as defendants: (i) C3.ai., Inc. ("C3 AI"), (ii) certain of C3 AI's current and/or former officers and directors, (iii) certain underwriters for the C3 AI initial public offering (the "IPO"), and (iv) the Company, and its President and CEO (who formerly served as a director on the board of C3 AI). The Amended Complaint alleges violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 (the "Exchange Act") in connection with the IPO and the subsequent period between December 9, 2020 and December 2, 2021, during which BHH LLC held equity investments in C3 AI. The action seeks unspecified damages and the award of costs and expenses, including reasonable attorneys' fees. On February 22, 2024, the Court dismissed the claims against the Company. However, on April 4, 2024, the plaintiffs filed an amended complaint, reasserting their claims against the Company under the Securities Act of 1933 and the Exchange Act. At this time, we are not able to predict the outcome of these proceedings. We insure against risks arising from our business to the extent deemed prudent by our management and to the extent insurance is available, but no assurance can be given that the nature and amount of that insurance will be sufficient to fully indemnify us against liabilities arising out of pending or future legal proceedings or other claims. Most of our insurance policies contain deductibles or self-insured retentions in amounts we deem prudent and for which we are responsible for payment. In determining the amount of self-insurance, it is our policy to self-insure those losses that are predictable, measurable and recurring in nature, such as claims for automobile liability, general liability and workers compensation. OTHER In the normal course of business with customers, vendors and others, we have entered into off-balance sheet arrangements, such as surety bonds for performance, letters of credit and other bank issued guarantees. We also provide a guarantee to GE Capital on behalf of a customer who entered into a financing arrangement with GE Capital. Total off-balance sheet arrangements were approximately $5.1 billion at March 31, 2024. It is not practicable to estimate the fair value of these financial instruments. As of March 31, 2024, none of the off-balance sheet arrangements either has, or is likely to have, a material effect on our financial position, results of operations or cash flows. We sometimes enter into consortium or similar arrangements for certain projects primarily in our OFSE segment. Under such arrangements, each party is responsible for performing a certain scope of work within the total scope of the contracted work, and the obligations expire when all contractual obligations are completed. The failure or inability, financially or otherwise, of any of the parties to perform their obligations could impose additional costs and obligations on us. These factors could result in unanticipated costs to complete the project, liquidated damages or contract disputes.
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RESTRUCTURING, IMPAIRMENT AND OTHER |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RESTRUCTURING, IMPAIRMENT AND OTHER | RESTRUCTURING, IMPAIRMENT AND OTHER We recorded restructuring, impairment and other charges of $7 million and $56 million during the three months ended March 31, 2024 and 2023, respectively. The charges in the first quarter of 2023 primarily relate to employee termination expenses driven by actions taken by the Company to facilitate the reorganization into two segments and corporate restructuring. These actions also included inventory impairments of $18 million, recorded in "Cost of goods sold" in our condensed consolidated statements of income (loss). The following table presents restructuring and impairment charges by the impacted segment; however, these net charges are not included in the reported segment results:
The following table presents restructuring and impairment charges by type, and includes gains on the dispositions of certain facilities as a consequence of exit activities:
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Pay vs Performance Disclosure | ||
| Net Income (Loss) | $ 455 | $ 576 |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
|
Mar. 31, 2024
shares
| |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | true |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
| Lorenzo Simonelli [Member] | |
| Trading Arrangements, by Individual | |
| Name | Lorenzo Simonelli |
| Title | Chairman, President and Chief Executive Officer |
| Adoption Date | February 8, 2024 |
| Aggregate Available | 228,572 |
| Maria Claudia Borras [Member] | |
| Trading Arrangements, by Individual | |
| Name | Maria Claudia Borras |
| Title | Executive Vice President, Oilfield Services and Equipment |
| Adoption Date | February 21, 2024 |
| Aggregate Available | 55,980 |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2024 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation | 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 Securities and Exchange Commission ("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, 2023 (the "2023 Annual Report"). 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 with 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.
|
| Supply Chain Finance Programs and New Accounting Standards To Be Adopted | Supply Chain Finance Programs As of March 31, 2024 and December 31, 2023, $391 million and $332 million of supply chain finance program liabilities are recorded in "Accounts payable" in our condensed consolidated statements of financial position, respectively, and reflected in net cash flows from operating activities in our condensed consolidated statements of cash flows when settled. NEW ACCOUNTING STANDARDS TO BE ADOPTED In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for the Company prospectively to all annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which enhances the disclosures required for operating segments in the Company's annual and interim consolidated financial statements. ASU 2023-07 is effective retrospectively for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. All other 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.
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CURRENT RECEIVABLES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Current Receivables | Current receivables consist of the following:
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INVENTORIES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Inventory, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Inventories, Net of Reserves | Inventories, net of reserves of $382 million and $389 million as of March 31, 2024 and December 31, 2023, respectively, consist of the following:
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OTHER INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Finite-Lived Intangible Assets | Intangible assets consist of the following:
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| Schedule of Indefinite-Lived Intangible Assets | Intangible assets consist of the following:
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| Schedule of Estimated Amortization Expense | Estimated amortization expense for the remainder of 2024 and each of the subsequent five fiscal years is expected to be as follows:
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CONTRACT AND OTHER DEFERRED ASSETS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Contract Assets | Contract assets consist of the following:
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PROGRESS COLLECTIONS AND DEFERRED INCOME (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Contract Liabilities | Contract assets consist of the following:
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LEASES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Operating Lease Expense | Our leasing activities primarily consist of operating leases for administrative offices, manufacturing facilities, research centers, service centers, sales offices and certain equipment.
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DEBT (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Borrowings | The carrying value of our short-term and long-term debt consist of the following:
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EQUITY (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Changes in Number of Shares Outstanding | The following table presents the changes in the number of shares outstanding (in thousands):
(1)Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation.
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| Schedule of Accumulated Other Comprehensive Loss, Net of Tax | The following tables present the changes in accumulated other comprehensive loss, net of tax:
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EARNINGS PER SHARE (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Basic and Diluted Net Income (Loss) per Share | Basic and diluted net income per share of Class A common stock is presented below:
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FINANCIAL INSTRUMENTS (Tables) |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Our assets and liabilities measured at fair value on a recurring basis consist of derivative instruments and investment securities.
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| Schedule of Investment Securities Classified as Available for Sale |
(1)Gains recorded to earnings related to these securities were $27 million and $392 million for the three months ended March 31, 2024 and 2023, respectively. (2)As of March 31, 2024, our non-U.S. debt securities are classified as available for sale securities and mature within two years.
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| Schedule of Derivatives | The table below summarizes the fair value of all derivatives, including hedging instruments and embedded derivatives.
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REVENUE RELATED TO CONTRACTS WITH CUSTOMERS (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Disaggregated Segment Revenue | The series of tables below present our revenue disaggregated by these categories.
(1)The sale of our controls business was completed in April 2023.
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| Schedule of Revenue by Geographic Region |
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SEGMENT INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Financial Information | Summarized financial information for the Company's segments is shown in the following tables.
(1)Charges for inventory impairments are reported in "Cost of goods sold" in the condensed consolidated statements of income (loss). The following table presents depreciation and amortization:
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RESTRUCTURING, IMPAIRMENT AND OTHER (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Restructuring and Impairment Charges | The following table presents restructuring and impairment charges by the impacted segment; however, these net charges are not included in the reported segment results:
The following table presents restructuring and impairment charges by type, and includes gains on the dispositions of certain facilities as a consequence of exit activities:
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Accounting Standards Update 2022-04 | SCF program | ||
| Supplier Finance Program [Line Items] | ||
| SCF program liabilities | $ 391 | $ 332 |
CURRENT RECEIVABLES (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Total current receivables | $ 7,199 | $ 7,425 |
| Less: Allowance for credit losses | (326) | (350) |
| Total current receivables, net | 6,873 | 7,075 |
| Customer receivables | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Total current receivables | 5,863 | 6,033 |
| Other | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Total current receivables | $ 1,336 | $ 1,392 |
INVENTORIES (Details) - USD ($) |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
| Inventory [Line Items] | |||
| Inventory valuation reserves | $ 382,000,000 | $ 389,000,000 | |
| Finished goods | 2,575,000,000 | 2,626,000,000 | |
| Work in process and raw materials | 2,764,000,000 | 2,468,000,000 | |
| Total inventories, net | 5,339,000,000 | $ 5,094,000,000 | |
| Inventory impairment | $ 0 | $ 18,000,000 | |
| Oilfield Services & Equipment | |||
| Inventory [Line Items] | |||
| Inventory impairment | $ 18,000,000 | ||
OTHER INTANGIBLE ASSETS - Intangible Assets by Type (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Finite-lived intangible assets | ||
| Gross Carrying Amount | $ 4,926 | $ 4,901 |
| Accumulated Amortization | (3,073) | (3,010) |
| Net | 1,853 | 1,891 |
| Indefinite-lived intangible assets | 2,202 | 2,202 |
| Total intangible assets, Gross Carrying Amount | 7,128 | 7,103 |
| Total intangible assets, Net | 4,055 | 4,093 |
| Customer relationships | ||
| Finite-lived intangible assets | ||
| Gross Carrying Amount | 1,940 | 1,945 |
| Accumulated Amortization | (836) | (818) |
| Net | 1,104 | 1,127 |
| Technology | ||
| Finite-lived intangible assets | ||
| Gross Carrying Amount | 1,258 | 1,253 |
| Accumulated Amortization | (921) | (899) |
| Net | 337 | 354 |
| Trade names and trademarks | ||
| Finite-lived intangible assets | ||
| Gross Carrying Amount | 291 | 290 |
| Accumulated Amortization | (189) | (186) |
| Net | 102 | 104 |
| Capitalized software | ||
| Finite-lived intangible assets | ||
| Gross Carrying Amount | 1,437 | 1,413 |
| Accumulated Amortization | (1,127) | (1,107) |
| Net | $ 310 | $ 306 |
OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Finite-Lived Intangible Assets [Line Items] | ||
| Amortization expense | $ 68 | $ 63 |
OTHER INTANGIBLE ASSETS - Future Estimated Amortization Expense (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
|---|---|
| Year | |
| Remainder of 2024 | $ 190 |
| 2025 | 215 |
| 2026 | 170 |
| 2027 | 147 |
| 2028 | 126 |
| 2029 | $ 105 |
CONTRACT AND OTHER DEFERRED ASSETS (Details) - USD ($) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
| Contract assets (total revenue in excess of billings) | $ 1,673 | $ 1,602 | |
| Deferred inventory costs | 128 | 126 | |
| Other costs to fulfill or obtain a contract | 22 | 28 | |
| Contract and other deferred assets | 1,824 | 1,756 | |
| Revenue recognized from performance obligations satisfied in previous periods | (1) | $ 1 | |
| Long-term product service agreements | |||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
| Contract assets (total revenue in excess of billings) | 402 | 418 | |
| Long-term equipment contracts and certain other service agreements | |||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
| Contract assets (total revenue in excess of billings) | $ 1,271 | $ 1,184 | |
PROGRESS COLLECTIONS AND DEFERRED INCOME (Details) - USD ($) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
| Disaggregation of Revenue [Line Items] | |||
| Progress collections and deferred income (contract liabilities) | $ 5,711 | $ 5,542 | |
| Revenue recognized, included in contract liability | 1,476 | $ 962 | |
| Progress collections | |||
| Disaggregation of Revenue [Line Items] | |||
| Progress collections and deferred income (contract liabilities) | 5,573 | 5,405 | |
| Deferred income | |||
| Disaggregation of Revenue [Line Items] | |||
| Progress collections and deferred income (contract liabilities) | $ 138 | $ 137 | |
LEASES - Operating Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Operating Lease Expense | ||
| Long-term fixed lease | $ 74 | $ 69 |
| Long-term variable lease | 24 | 15 |
| Short-term lease | 140 | 128 |
| Total operating lease expense | $ 238 | $ 212 |
LEASES - Narrative (Details) |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Leases [Abstract] | ||
| Weighted-average remaining lease term | 7 years | 7 years |
| Weighted-average discount rate | 4.00% | 3.30% |
DEBT - Narrative (Details) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
| Line of Credit Facility [Line Items] | ||
| Estimated fair value of debt | $ 5,479,000,000 | $ 5,571,000,000 |
| Commercial paper | ||
| Line of Credit Facility [Line Items] | ||
| Maximum borrowing capacity | $ 3,000,000,000 | |
| BHH LLC | Baker Hughes Co-Obligor, Inc. | ||
| Line of Credit Facility [Line Items] | ||
| Ownership percentage | 100.00% | |
| Long-term debt | $ 5,900,000,000 | |
| Revolving Credit Facility | The Credit Agreement | BHH LLC | ||
| Line of Credit Facility [Line Items] | ||
| Maximum borrowing capacity | 3,000,000,000 | |
| Line of credit outstanding | $ 0 | $ 0 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Income Tax Disclosure [Abstract] | ||
| Provision for income taxes | $ 178 | $ 179 |
EQUITY - Changes in Number of Shares Outstanding (Details) - shares |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Class A Common Stock | ||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
| Beginning balance (in shares) | 997,709,000 | 1,005,960,000 |
| Issue of shares upon vesting of restricted stock units (in shares) | 4,745,000 | 5,342,000 |
| Issue of shares on exercises of stock options (in shares) | 0 | 88,000 |
| Issue of shares for employee stock purchase plan (in shares) | 458,000 | 491,000 |
| Repurchase and cancellation of Class A common stock (in shares) | (5,399,000) | 0 |
| Ending balance (in shares) | 997,513,000 | 1,011,881,000 |
| Class B Common Stock | ||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
| Beginning balance (in shares) | 0 | |
| Ending balance (in shares) | 0 | |
EARNINGS PER SHARE - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Class of Stock [Line Items] | ||
| Net income | $ 463 | $ 581 |
| Less: Net income attributable to noncontrolling interests | 8 | 5 |
| Net income attributable to Baker Hughes Company | $ 455 | $ 576 |
| Class A Common Stock | ||
| Weighted average shares outstanding: | ||
| Class A basic (in shares) | 998 | 1,010 |
| Class A diluted (in shares) | 1,004 | 1,018 |
| Net income per share attributable to common stockholders: | ||
| Class A basic (in dollars per share) | $ 0.46 | $ 0.57 |
| Class A diluted (in dollars per share) | $ 0.45 | $ 0.57 |
EARNINGS PER SHARE - Narrative (Details) - Class A Common Stock - shares shares in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
| Basic weighted average shares outstanding (in shares) | 998 | 1,010 |
| Employee Stock | ||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
| Antidilutive securities excluded from diluted EPS calculation (in shares) | 1 | 2 |
FINANCIAL INSTRUMENTS - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Assets | ||
| Derivatives | $ 21 | $ 34 |
| Investment securities | 1,044 | 1,042 |
| Liabilities | ||
| Derivatives | (73) | (76) |
| Recurring | ||
| Assets | ||
| Derivatives | 21 | 34 |
| Investment securities | 1,044 | 1,042 |
| Total assets | 1,065 | 1,076 |
| Liabilities | ||
| Derivatives | (73) | (76) |
| Total liabilities | (73) | (76) |
| Recurring | Level 1 | ||
| Assets | ||
| Derivatives | 0 | 0 |
| Investment securities | 1,042 | 1,040 |
| Total assets | 1,042 | 1,040 |
| Liabilities | ||
| Derivatives | 0 | 0 |
| Total liabilities | 0 | 0 |
| Recurring | Level 2 | ||
| Assets | ||
| Derivatives | 21 | 34 |
| Investment securities | 0 | 0 |
| Total assets | 21 | 34 |
| Liabilities | ||
| Derivatives | (73) | (76) |
| Total liabilities | (73) | (76) |
| Recurring | Level 3 | ||
| Assets | ||
| Derivatives | 0 | 0 |
| Investment securities | 2 | 2 |
| Total assets | 2 | 2 |
| Liabilities | ||
| Derivatives | 0 | 0 |
| Total liabilities | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Investment Securities (Details) - USD ($) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
| Debt Securities, Available-for-sale [Line Items] | |||
| Equity securities, amortized cost | $ 529 | $ 527 | |
| Equity securities, gross unrealized gains | 485 | 451 | |
| Equity securities, gross unrealized losses | 0 | (3) | |
| Equity securities, estimated fair value | 1,014 | 975 | |
| Total, amortized cost | 559 | 593 | |
| Total, gross unrealized gains | 485 | 452 | |
| Total, gross unrealized losses | 0 | (3) | |
| Total, estimated fair value | 1,044 | 1,042 | |
| Gains (losses) recorded to earnings | 27 | $ 392 | |
| Non-U.S. debt securities | |||
| Debt Securities, Available-for-sale [Line Items] | |||
| Debt securities, amortized cost | 30 | 66 | |
| Debt securities, gross unrealized gains | 0 | 1 | |
| Debt securities, gross unrealized losses | 0 | 0 | |
| Debt securities, estimated fair value | $ 30 | $ 67 | |
| Available for sale securities maturity | 2 years | ||
FINANCIAL INSTRUMENTS - Derivatives and Hedging (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
| Derivatives, Fair Value [Line Items] | ||
| Assets | $ 21 | $ 34 |
| Liabilities | (73) | (76) |
| Credit Default Swap | ||
| Derivatives, Fair Value [Line Items] | ||
| Debt Instrument, Debt Default, Amount | $ 261 | |
| Debt term (no more than) | 26 months | |
| Currency exchange contracts | Derivatives accounted for as hedges | ||
| Derivatives, Fair Value [Line Items] | ||
| Assets | $ 10 | 10 |
| Liabilities | (1) | (3) |
| Currency exchange contracts | Derivatives not accounted for as hedges | ||
| Derivatives, Fair Value [Line Items] | ||
| Assets | 11 | 24 |
| Liabilities | (15) | (21) |
| Interest rate swap contracts | Derivatives accounted for as hedges | ||
| Derivatives, Fair Value [Line Items] | ||
| Assets | 0 | 0 |
| Liabilities | $ (57) | $ (52) |
SEGMENT INFORMATION - Narrative (Details) |
3 Months Ended |
|---|---|
|
Mar. 31, 2024
product_line
segment
| |
| Segment Reporting Information [Line Items] | |
| Number of operating segments | segment | 2 |
| Oilfield Services & Equipment | |
| Segment Reporting Information [Line Items] | |
| Number of product lines | 4 |
| Industrial & Energy Technology | |
| Segment Reporting Information [Line Items] | |
| Number of product lines | 5 |
SEGMENT INFORMATION - Capital Expenditures and Depreciation and Amortization by Segment (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
| Segment Reporting Information [Line Items] | ||
| Depreciation and amortization | $ 283 | $ 269 |
| Operating segments | ||
| Segment Reporting Information [Line Items] | ||
| Depreciation and amortization | 279 | 264 |
| Operating segments | Oilfield Services & Equipment | ||
| Segment Reporting Information [Line Items] | ||
| Depreciation and amortization | 222 | 208 |
| Operating segments | Industrial & Energy Technology | ||
| Segment Reporting Information [Line Items] | ||
| Depreciation and amortization | 56 | 56 |
| Corporate | ||
| Segment Reporting Information [Line Items] | ||
| Depreciation and amortization | $ 4 | $ 5 |
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2019 |
|
| Related Party Transaction [Line Items] | ||||
| Accounts payable | $ 4,595 | $ 4,471 | ||
| Corporate joint venture | ||||
| Related Party Transaction [Line Items] | ||||
| Purchases | 103 | $ 114 | ||
| Accounts payable | $ 82 | $ 71 | ||
| Corporate joint venture | Aero JV | ||||
| Related Party Transaction [Line Items] | ||||
| Ownership percentage | 50.00% | |||
| Corporate joint venture | Aero JV | General Electric Company (GE) | ||||
| Related Party Transaction [Line Items] | ||||
| Ownership percentage | 50.00% | |||
RESTRUCTURING, IMPAIRMENT AND OTHER - Narrative (Details) $ in Millions |
3 Months Ended | |
|---|---|---|
|
Mar. 31, 2024
USD ($)
segment
|
Mar. 31, 2023
USD ($)
|
|
| Restructuring Cost and Reserve [Line Items] | ||
| Restructuring, impairment and other | $ 7 | $ 56 |
| Restructuring and impairment charges | 56 | |
| Number of operating segments | segment | 2 | |
| Inventory impairment | $ 0 | $ 18 |
RESTRUCTURING, IMPAIRMENT AND OTHER - Schedule of Restructuring and Impairment Charges (Details) $ in Millions |
3 Months Ended |
|---|---|
|
Mar. 31, 2023
USD ($)
| |
| Restructuring Cost and Reserve [Line Items] | |
| Total restructuring charges | $ 56 |
| Property, plant & equipment, net | |
| Restructuring Cost and Reserve [Line Items] | |
| Total restructuring charges | 15 |
| Employee-related termination costs | |
| Restructuring Cost and Reserve [Line Items] | |
| Total restructuring charges | 31 |
| Other incremental costs | |
| Restructuring Cost and Reserve [Line Items] | |
| Total restructuring charges | 10 |
| Operating segments | Oilfield Services & Equipment | |
| Restructuring Cost and Reserve [Line Items] | |
| Total restructuring charges | 15 |
| Operating segments | Industrial & Energy Technology | |
| Restructuring Cost and Reserve [Line Items] | |
| Total restructuring charges | 14 |
| Corporate | |
| Restructuring Cost and Reserve [Line Items] | |
| Total restructuring charges | $ 27 |
BUSINESS ACQUISITIONS AND DISPOSITIONS (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
| Goodwill | $ 6,114 | $ 6,137 |