XML 90 R22.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Equity
 12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Equity EQUITY
The BHGE LLC Agreement provides that initially there is one class of Units, which are currently held by Baker Hughes and GE. If Baker Hughes issues a share of Class A common stock, including in connection with an equity incentive or similar plan, BHGE LLC will also issue a corresponding common unit to Baker Hughes or one of its direct subsidiaries. For the year ended December 31, 2019, we issued 4,416 thousand Units to Baker Hughes in connection with the issuance of Class A common stock by Baker Hughes.
The following table presents the changes in the number of Units outstanding (in thousands):
 
2019
2018
 
Units Held by Baker Hughes
Units Held by GE
Units Held by Baker Hughes
Units Held by GE
Balance at beginning of year
513,399

521,543

422,208

706,985

Issue of Units to Baker Hughes under equity incentive plan
4,416

—

1,492

—

Exchange of Units (1)
132,250

(132,250
)
101,200

(101,200
)
Repurchase program  (2)
—

(11,865
)
(11,501
)
(84,241
)
Balance at end of year
650,065

377,428

513,399

521,543

(1) 
In September 2019 and November 2018, Baker Hughes completed underwritten secondary public offerings in which GE and its affiliates sold 132.3 million and 101.2 million shares of its Class A common stock, respectively. The offerings included the exchange by GE and its affiliates of our Units, together with the corresponding shares of Class B common stock of Baker Hughes, for Class A common stock of Baker Hughes.
(2) 
In September 2019, we also repurchased and canceled 11,865,211 of our Units, from GE and its affiliates for an
aggregate of $250 million, or $21.07 per Unit, which is the same per share price paid by the underwriters to GE and its affiliates in the concurrent underwritten public offering. During 2018, we repurchased and canceled 30,742,152 of our Units for a total consideration of $1.0 billion. Additionally, in November 2018, we also repurchased 65 million of our Units from GE and its affiliates for an aggregate of $1,461 million, or $22.48 per Unit, which is the same per share price paid by the underwriters to GE and its affiliates in the concurrent underwritten public offering.
As a result of the exchange of shares in the secondary offering and the Class B common stock of Baker Hughes, together with our associated Units repurchased in September 2019, GE's ownership of our Units reduced during the third quarter of 2019 to approximately 36.8%.
As a result of the exchange of shares in the secondary offering and the Class B common stock of Baker Hughes, together with our associated Units repurchased in November 2018, GE's ownership of our Units reduced during the fourth quarter of 2018 from approximately 62.5% to approximately 50.4%.
ACCUMULATED OTHER COMPREHENSIVE LOSS (AOCL)
The following table presents the changes in accumulated other comprehensive loss, net of tax:
 
Investment Securities
Foreign Currency Translation Adjustments
Cash Flow Hedges
Benefit Plans
Accumulated Other Comprehensive Loss
Balance at December 31, 2017
$
3

$
(1,825
)
$
2

$
(61
)
$
(1,881
)
Other comprehensive loss before reclassifications
(1
)
(502
)
(6
)
(70
)
(579
)
Amounts reclassified from accumulated other comprehensive loss
—

—

1

5

6

Deferred taxes
(2
)
—

1

1

—

Other comprehensive loss
(3
)
(502
)
(4
)
(64
)
(573
)
Less: Other adjustments
—

—

—

8

8

Balance at December 31, 2018
—

(2,327
)
(2
)
(133
)
(2,462
)
Other comprehensive income (loss) before reclassifications
2

53

13

(122
)
(54
)
Amounts reclassified from accumulated other comprehensive loss
—

—

1

26

27

Deferred taxes
—

—

(2
)
21

19

Other comprehensive income (loss)
2

53

12

(75
)
(8
)
Less: Other adjustments
—

—

—

119

119

Balance at December 31, 2019
$
2

$
(2,274
)
$
10

$
(327
)
$
(2,589
)

The amounts reclassified from accumulated other comprehensive loss during the years ended December 31, 2019 and 2018 represent (i) gains (losses) reclassified on cash flow hedges when the hedged transaction occurs and (ii) the amortization of net actuarial loss and prior service credit, and curtailments which are included in the computation of net periodic pension cost (see "Note 12. Employee Benefit Plans" for additional details). Net periodic pension cost is recorded across the various cost and expense line items in the consolidated and combined statements of income (loss).