Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Equity

EQUITY

COMMON UNITS

The BHH LLC Agreement provides that initially there is one class of common units ("Units"), which are currently held by the Members. If Baker Hughes issues a share of Class A common stock, including in connection with an equity incentive or similar plan, we will also issue a corresponding Unit to Baker Hughes or one of its direct subsidiaries. For the year ended December 31, 2021 and 2020, we issued 7,886 thousand and 7,939 thousand Units, respectively, to Baker Hughes or one of its direct subsidiaries in connection with the issuance of its Class A common stock. The Members are entitled through their Units to receive distributions on an equal amount of any dividend paid by Baker Hughes to its Class A shareholders.

As of December 31, 2021, GE’s economic interest in us was reduced to approximately 11.4% primarily as a result of the exchange of 194.9 million shares of Class B common stock, and associated Units. When shares of Class B common stock, together with associated Units, are exchanged for shares of Class A common stock pursuant to the Exchange Agreement, such shares of Class B common stock, together with associated Units, are canceled.

In 2021, Baker Hughes' Board of Directors authorized us to repurchase up to $2 billion of our Units. We expect to fund the repurchase program from cash generated from operations, and we expect to make Unit 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. In 2021, we repurchased and canceled 17.6 million Units for a total of $434 million. As of December 31, 2021, we had authorization remaining to repurchase up to approximately $1.6 billion of our Units.

The following table presents the changes in the number of Units outstanding (in thousands):

	2021		2020
	Units Held by Baker Hughes	Units Held by GE	Units Held by Baker Hughes	Units Held by GE
Balance at beginning of year	723,999	311,433	650,065	377,428
Issue of Units to Baker Hughes under equity incentive plan	7,886	—	7,939	—
Exchange of Units	194,885	(194,885)	65,995	(65,995)
Repurchase and cancellation of Units	(17,628)	—	—	—
Balance at end of year	909,142	116,548	723,999	311,433

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, 2019	$	2	$	(2,274)	$	10	$	(327)	$	(2,589)
Other comprehensive income (loss) before reclassifications	(2)		175		(2)		(181)		(10)
Amounts reclassified from accumulated other comprehensive loss	—		—		(4)		52		48
Deferred taxes	—		—		1		5		6
Other comprehensive income (loss)	(2)		175		(5)		(124)		44
Less: Other comprehensive loss attributable to noncontrolling interests	—		(3)		—		—		(3)
Balance at December 31, 2020	—		(2,096)		5		(451)		(2,542)
Other comprehensive income (loss) before reclassifications	—		(344)		(11)		135		(220)
Amounts reclassified from accumulated other comprehensive loss	—		39		(7)		38		70
Deferred taxes	—		—		2		(3)		(1)
Other comprehensive income (loss)	—		(305)		(16)		170		(151)
Less: Other comprehensive loss attributable to noncontrolling interests	—		(2)		—		—		(2)
Balance at December 31, 2021	$	—	$	(2,398)	$	(12)	$	(281)	$	(2,691)

The amounts reclassified from accumulated other comprehensive loss during the years ended December 31, 2021 and 2020 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, and curtailments which are included in the computation of net periodic pension cost (see "Note 11. Employee Benefit Plans" for additional details), and (iii) the release of foreign currency translation adjustments for certain restructured product lines (see "Note 18. Restructuring, Impairment and Other" for additional details).