BAKER HUGHES SUMMARIZED FINANCIAL INFORMATION

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

BAKER HUGHES SUMMARIZED FINANCIAL INFORMATION

NOTE 21. BAKER HUGHES SUMMARIZED FINANCIAL INFORMATION. We account for our remaining interest in Baker Hughes (comprising 377.4 million shares and a promissory note receivable) at fair value. At September 30, 2020, the fair value of our interest in Baker Hughes was $5,102 million. We recognized a net pre-tax unrealized loss of $748 million ($618 million after-tax) and a pre-tax unrealized loss of $4,613 million ($3,679 million after-tax) for the three and nine months ended September 30, 2020, respectively, based on a share price of $13.29. These losses were recorded net of a $45 million derivative gain associated with a forward sale of up to approximately 28 million Baker Hughes shares pursuant to our previously announced program to monetize our Baker Hughes position. In October 2020, we completed this initial forward sale and received proceeds of $417 million. We recognized a pre-tax unrealized loss of $125 million ($98 million after-tax) for the three and nine months ended September 30, 2019. See Notes 2 and 3 for further information.

Summarized financial information of Baker Hughes is as follows.

	Three months ended September 30				Nine months ended September 30
(In millions)	2020		2019(a)		2020		2019(a)
Revenues	$	5,049	$	1,404	$	15,210	$	1,404
Gross Profit	757		263		2,190		263
Net income (loss)	(270)		25		(16,712)		25
Net income (loss) attributable to the entity	(170)		12		(10,592)		12

(a) Financial information is from September 16, 2019 (date of deconsolidation) to September 30, 2019.

Baker Hughes is a SEC registrant with separate filing requirements, and its financial information can be obtained from www.sec.gov or www.bakerhughes.com.