Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 16, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-38143 | |
Registrant Name | Baker Hughes Company | |
Entity Incorporation, State Code | DE | |
Entity Tax Identification Number | 81-4403168 | |
Entity Address, Address Line One | 17021 Aldine Westfield | |
Entity Address, City or Town | Houston, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77073-5101 | |
City Area Code | 713 | |
Local Phone Number | 439-8600 | |
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | BKR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001701605 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 828,487,126 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 214,026,897 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||||
Revenues | $ 5,142 | $ 4,736 | $ 9,924 | $ 10,160 |
Costs and expenses: | ||||
Selling, general and administrative | 642 | 590 | 1,229 | 1,265 |
Goodwill impairment | 0 | 0 | 0 | 14,773 |
Restructuring, impairment and other | 125 | 103 | 205 | 1,429 |
Separation related | 15 | 37 | 42 | 77 |
Total costs and expenses | 4,948 | 4,788 | 9,566 | 26,271 |
Operating income (loss) | 194 | (52) | 358 | (16,111) |
Other non-operating loss, net | (63) | (244) | (689) | (219) |
Interest expense, net | (65) | (69) | (138) | (128) |
Income (loss) before income taxes | 66 | (365) | (469) | (16,458) |
Benefit (provision) for income taxes | (143) | 21 | (213) | 16 |
Net loss | (77) | (344) | (682) | (16,442) |
Less: Net loss attributable to noncontrolling interests | (9) | (149) | (162) | (6,020) |
Net loss attributable to Baker Hughes Company | $ (68) | $ (195) | $ (520) | $ (10,422) |
Per share amounts: | ||||
Diluted loss per Class A common stock (in dollars per share) | $ (0.08) | $ (0.30) | $ (0.67) | $ (15.93) |
Class A Common Stock | ||||
Per share amounts: | ||||
Basic loss per Class A common stock (in dollars per share) | (0.08) | (0.30) | (0.67) | (15.93) |
Diluted loss per Class A common stock (in dollars per share) | (0.08) | (0.30) | (0.67) | (15.93) |
Cash dividend per Class A common stock (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.36 | $ 0.36 |
Sales of goods | ||||
Revenue: | ||||
Revenues | $ 3,078 | $ 2,868 | $ 6,014 | $ 5,949 |
Costs and expenses: | ||||
Costs | 2,674 | 2,531 | 5,208 | 5,376 |
Sales of services | ||||
Revenue: | ||||
Revenues | 2,064 | 1,868 | 3,910 | 4,211 |
Costs and expenses: | ||||
Costs | $ 1,492 | $ 1,527 | $ 2,882 | $ 3,351 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (77) | $ (344) | $ (682) | $ (16,442) |
Less: Net loss attributable to noncontrolling interests | (9) | (149) | (162) | (6,020) |
Net loss attributable to Baker Hughes Company | (68) | (195) | (520) | (10,422) |
Other comprehensive income (loss): | ||||
Investment securities | 0 | 0 | 0 | (2) |
Foreign currency translation adjustments | 158 | 41 | 107 | (236) |
Cash flow hedges | (16) | 0 | (11) | (8) |
Benefit plans | 50 | 8 | 53 | 30 |
Other comprehensive income (loss) | 192 | 49 | 149 | (216) |
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 39 | 16 | 28 | (81) |
Other comprehensive income (loss) attributable to Baker Hughes Company | 153 | 33 | 121 | (135) |
Comprehensive income (loss) | 115 | (295) | (533) | (16,658) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 30 | (133) | (134) | (6,101) |
Comprehensive income (loss) attributable to Baker Hughes Company | $ 85 | $ (162) | $ (399) | $ (10,557) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 3,913 | $ 4,132 |
Current receivables, net | 5,407 | 5,622 |
Inventories, net | 4,212 | 4,421 |
All other current assets | 1,980 | 2,280 |
Total current assets | 15,512 | 16,455 |
Property, plant and equipment (net of accumulated depreciation of $5,079 and $5,115) | 5,086 | 5,358 |
Goodwill | 6,052 | 5,977 |
Other intangible assets, net | 4,202 | 4,397 |
Contract and other deferred assets | 1,836 | 2,001 |
All other assets | 2,990 | 2,866 |
Deferred income taxes | 991 | 953 |
Total assets | 36,669 | 38,007 |
Current liabilities: | ||
Accounts payable | 3,593 | 3,532 |
Short-term debt and current portion of long-term debt | 51 | 889 |
Progress collections and deferred income | 3,467 | 3,454 |
All other current liabilities | 2,694 | 2,352 |
Total current liabilities | 9,805 | 10,227 |
Long-term debt | 6,722 | 6,744 |
Deferred income taxes | 149 | 186 |
Liabilities for pensions and other postretirement benefits | 1,163 | 1,217 |
All other liabilities | 1,430 | 1,391 |
Equity: | ||
Capital in excess of par value | 26,253 | 24,613 |
Retained loss | (10,462) | (9,942) |
Accumulated other comprehensive loss | (1,901) | (1,778) |
Baker Hughes Company equity | 13,890 | 12,893 |
Noncontrolling interests | 3,510 | 5,349 |
Total equity | 17,400 | 18,242 |
Total liabilities and equity | 36,669 | 38,007 |
Class A Common Stock | ||
Equity: | ||
Common stock | 0 | 0 |
Class B Common Stock | ||
Equity: | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Property, plant and equipment, accumulated depreciation | $ 5,079 | $ 5,115 |
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) | 828,000,000 | 724,000,000 |
Common stock outstanding (in shares) | 828,000,000 | 724,000,000 |
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) | 214,000,000 | 311,000,000 |
Common stock outstanding (in shares) | 214,000,000 | 311,000,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Loss | Accumulated Other Comprehensive Loss | Non- controlling Interests |
Beginning Balance at Dec. 31, 2019 | $ 34,499 | $ 0 | $ 23,565 | $ 0 | $ (1,636) | $ 12,570 |
Comprehensive loss: | ||||||
Net loss | (16,442) | (10,422) | (6,020) | |||
Other comprehensive income (loss) | (216) | (135) | (81) | |||
Dividends on Class A common stock | (236) | (236) | ||||
Distributions to GE | (136) | (136) | ||||
Stock-based compensation cost | 112 | 112 | ||||
Other | (16) | (9) | (2) | (5) | ||
Ending Balance at Jun. 30, 2020 | 17,565 | 0 | 23,432 | (10,424) | (1,771) | 6,328 |
Beginning Balance at Mar. 31, 2020 | 17,985 | 0 | 23,486 | (10,229) | (1,804) | 6,532 |
Comprehensive loss: | ||||||
Net loss | (344) | (195) | (149) | |||
Other comprehensive income (loss) | 49 | 33 | 16 | |||
Dividends on Class A common stock | (118) | (118) | ||||
Distributions to GE | (68) | (68) | ||||
Stock-based compensation cost | 56 | 56 | ||||
Other | 5 | 8 | (3) | |||
Ending Balance at Jun. 30, 2020 | 17,565 | 0 | 23,432 | (10,424) | (1,771) | 6,328 |
Beginning Balance at Dec. 31, 2020 | 18,242 | 0 | 24,613 | (9,942) | (1,778) | 5,349 |
Comprehensive loss: | ||||||
Net loss | (682) | (520) | (162) | |||
Other comprehensive income (loss) | 149 | 121 | 28 | |||
Dividends on Class A common stock | (280) | (280) | ||||
Distributions to GE | (95) | (95) | ||||
Effect of exchange of Class B common stock and associated BHH LLC Units | 0 | 1,845 | (245) | (1,600) | ||
Stock-based compensation cost | 102 | 102 | ||||
Other | (36) | (27) | 1 | (10) | ||
Ending Balance at Jun. 30, 2021 | 17,400 | 0 | 26,253 | (10,462) | (1,901) | 3,510 |
Beginning Balance at Mar. 31, 2021 | 17,424 | 0 | 25,357 | (10,394) | (1,920) | 4,381 |
Comprehensive loss: | ||||||
Net loss | (77) | (68) | (9) | |||
Other comprehensive income (loss) | 192 | 153 | 39 | |||
Dividends on Class A common stock | (149) | (149) | ||||
Distributions to GE | (39) | (39) | ||||
Effect of exchange of Class B common stock and associated BHH LLC Units | 0 | 988 | (134) | (854) | ||
Stock-based compensation cost | 52 | 52 | ||||
Other | (3) | 5 | (8) | |||
Ending Balance at Jun. 30, 2021 | $ 17,400 | $ 0 | $ 26,253 | $ (10,462) | $ (1,901) | $ 3,510 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Class A Common Stock | ||||
Cash dividends per share (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.36 | $ 0.36 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (682) | $ (16,442) |
Adjustments to reconcile net loss to net cash flows from operating activities: | ||
Depreciation and amortization | 570 | 694 |
Goodwill impairment | 0 | 14,773 |
Intangible assets impairment | 0 | 725 |
Property, plant and equipment impairment | 22 | 226 |
Inventory impairment | 0 | 176 |
Loss on equity securities | 815 | 0 |
Loss on sale of business | 0 | 217 |
Changes in operating assets and liabilities: | ||
Current receivables | 267 | 598 |
Inventories | 119 | (275) |
Accounts payable | 71 | (490) |
Progress collections and deferred income | 2 | 593 |
Contract and other deferred assets | 112 | (38) |
Other operating items, net | (112) | (49) |
Net cash flows from operating activities | 1,184 | 708 |
Cash flows from investing activities: | ||
Expenditures for capital assets | (392) | (602) |
Proceeds from disposal of assets | 91 | 109 |
Other investing items, net | 171 | 56 |
Net cash flows used in investing activities | (130) | (437) |
Cash flows from financing activities: | ||
Net repayments of debt and other borrowings | (45) | (149) |
Proceeds from (repayment of) commercial paper | (832) | 737 |
Proceeds from issuance of long-term debt | 0 | 500 |
Dividends paid | (280) | (236) |
Distributions to GE | (95) | (136) |
Other financing items, net | (33) | (21) |
Net cash flows from (used in) financing activities | (1,285) | 695 |
Effect of currency exchange rate changes on cash and cash equivalents | 12 | (83) |
Increase (decrease) in cash and cash equivalents | (219) | 883 |
Cash and cash equivalents, beginning of period | 4,132 | 3,249 |
Cash and cash equivalents, end of period | 3,913 | 4,132 |
Supplemental cash flows disclosures: | ||
Income taxes paid, net of refunds | 48 | 211 |
Interest paid | $ 157 | $ 141 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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 entire energy value chain. We are a holding company and have no material assets other than our 79.5% ownership interest in Baker Hughes Holdings LLC (BHH LLC) and certain intercompany and tax related balances. BHH LLC is a Securities and Exchange Commission (SEC) Registrant with separate filing requirements with the SEC and its separate financial information can be obtained from www.sec.gov. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. and such principles, U.S. GAAP) and pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report). We hold a majority economic interest in BHH LLC and conduct and exercise full control over all activities of BHH LLC without the approval of any other member. Accordingly, we consolidate the financial results of BHH LLC and report a noncontrolling interest in our condensed consolidated financial statements for the economic interest held by General Electric (GE). As of June 30, 2021, GE's interest in BHH LLC was 20.5%. See "Note 12. Equity" for further information. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated. In the Company's financial statements and notes, certain amounts have been reclassified to conform to the current year presentation. In the notes to 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. Separation related costs as reflected in our condensed consolidated statements of income (loss) include costs incurred in connection with the ongoing activities related to our separation from GE. See "Note 16. Related Party Transactions" for further information. 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 2020 Annual Report for the discussion of our significant accounting policies. Cash and Cash Equivalents As of June 30, 2021 and December 31, 2020, we had $639 million and $687 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S. Included in these amounts are $15 million and $42 million, as of June 30, 2021 and December 31, 2020, respectively, held on behalf of GE. Cash and cash equivalents includes a total of $16 million and $44 million of cash at June 30, 2021 and December 31, 2020, respectively, held on behalf of GE, and a corresponding liability is reported in short-term debt. See "Note 16. Related Party Transactions" for further details. NEW ACCOUNTING STANDARDS TO BE ADOPTED All 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. |
Revenue Related to Contracts wi
Revenue Related to Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Related to Contracts with Customers | REVENUE RELATED TO CONTRACTS WITH CUSTOMERS DISAGGREGATED REVENUE We disaggregate our revenue from contracts with customers by primary geographic markets. Three Months Ended June 30, Six Months Ended June 30, Total Revenue 2021 2020 2021 2020 U.S. $ 1,085 $ 983 $ 2,138 $ 2,298 Non-U.S. 4,057 3,753 7,786 7,862 Total $ 5,142 $ 4,736 $ 9,924 $ 10,160 REMAINING PERFORMANCE OBLIGATIONS As of June 30, 2021 and 2020, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.8 billion and $22.9 billion, respectively. As of June 30, 2021, we expect to recognize revenue of approximately 49%, 66% and 88% 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. Contract liabilities include progress collections, which reflects billings in excess of revenue, and deferred income on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities are comprised of the following: June 30, 2021 December 31, 2020 Progress collections $ 3,345 $ 3,352 Deferred income 122 102 Progress collections and deferred income (contract liabilities) $ 3,467 $ 3,454 Revenue recognized during the three months ended June 30, 2021 and 2020 that was included in the contract liabilities at the beginning of the period was $708 million and $320 million, respectively, and $1,585 million and $827 million during the six months ended June 30, 2021 and 2020, respectively. |
Current Receivables
Current Receivables | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Current Receivables | CURRENT RECEIVABLES Current receivables are comprised of the following: June 30, 2021 December 31, 2020 Customer receivables $ 4,655 $ 4,676 Related parties 343 429 Other 785 890 Total current receivables 5,783 5,995 Less: Allowance for credit losses (376) (373) Total current receivables, net $ 5,407 $ 5,622 Customer receivables are recorded at the invoiced amount. Related parties consists of amounts owed to us by GE. The "Other" category consists primarily of indirect taxes, advance payments to suppliers, other tax receivables and customer retentions. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Inventories, net of reserves of $389 million and $421 million as of June 30, 2021 and December 31, 2020, respectively, are comprised of the following: June 30, 2021 December 31, 2020 Finished goods $ 2,338 $ 2,337 Work in process and raw materials 1,874 2,084 Total inventories, net $ 4,212 $ 4,421 During the three and six months ended June 30, 2020, we recorded inventory impairments of $16 million, predominately in our Oilfield Equipment segment, and $176 million, predominately in our Oilfield Services segment, respectively, as a result of certain restructuring activities initiated by the Company. Charges for inventory impairments are predominantly reported in the "Cost of goods sold" caption of the condensed consolidated statements of income (loss). |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL The changes in the carrying value of goodwill are detailed below by segment: Oilfield Oilfield Turbo- Digital Total Balance at December 31, 2019, gross $ 15,676 $ 4,186 $ 2,171 $ 2,411 $ 24,444 Accumulated impairment at December 31, 2019 (2,633) (867) — (254) (3,754) Balance at December 31, 2019 13,043 3,319 2,171 2,157 20,690 Impairment (11,484) (3,289) — — (14,773) Currency exchange and others (20) (24) 63 41 60 Balance at December 31, 2020 1,539 6 2,234 2,198 5,977 Currency exchange and others 1 (3) 1 76 75 Balance at June 30, 2021 $ 1,540 $ 3 $ 2,235 $ 2,274 $ 6,052 We perform our annual goodwill impairment test for each of our reporting units as of July 1 of each fiscal year, in conjunction with our annual strategic planning process. Our reporting units are the same as our four reportable segments. We also test goodwill for impairment whenever events or circumstances occur which, in our judgment, could more likely than not reduce the fair value of one or more reporting units below its carrying value. Potential impairment indicators include, but are not limited to, (i) the results of our most recent annual or interim impairment testing, in particular the magnitude of the excess of fair value over carrying value observed, (ii) downward revisions to internal forecasts, and the magnitude thereof, if any, and (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, if any. During the second quarter of 2021, we completed a review to assess whether indicators of impairment existed. As a result of this assessment, we concluded that no indicators existed that would lead to a determination that it is more likely than not that the fair value of each reporting unit is less than its carrying value. There can be no assurances that future sustained declines in macroeconomic or business conditions affecting our industry will not occur, which could result in goodwill impairment charges in future periods. During the first quarter of 2020, our market capitalization declined significantly. Our closing stock price fell to a historic low of $9.33 on March 23, 2020. Over the same period, the equity value of our peer group companies and the overall U.S. stock market also declined significantly amid market volatility. In addition, the Oilfield Services Index (OSX), an indicator of investors’ view of the earnings prospects and cost of capital of the oil and gas services industry, traded at prices that were the lowest in its history. These declines were driven by the uncertainty surrounding the outbreak of the coronavirus (COVID-19) and other macroeconomic events such as the geopolitical tensions between the Organization of Petroleum Exporting Countries (OPEC) and Russia, which also resulted in a significant drop in oil prices. Based on these factors, we concluded that a triggering event occurred and, accordingly, an interim quantitative impairment test was performed as of March 31, 2020. Based upon the results of our interim quantitative impairment test, we concluded that the carrying value of the Oilfield Services and Oilfield Equipment reporting units exceeded their estimated fair value as of March 31, 2020, which resulted in goodwill impairment charges of $11,484 million and $3,289 million, respectively. The goodwill impairment was calculated as the amount that the carrying value of the reporting unit, including any goodwill, exceeded its fair value. OTHER INTANGIBLE ASSETS Intangible assets are comprised of the following: June 30, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,958 $ (739) $ 1,219 $ 2,261 $ (916) $ 1,345 Technology 1,114 (728) 386 1,127 (696) 431 Trade names and trademarks 294 (166) 128 326 (181) 145 Capitalized software 1,299 (1,053) 246 1,294 (1,041) 253 Finite-lived intangible assets 4,665 (2,686) 1,979 5,008 (2,834) 2,174 Indefinite-lived intangible assets 2,223 — 2,223 2,223 — 2,223 Total intangible assets $ 6,888 $ (2,686) $ 4,202 $ 7,231 $ (2,834) $ 4,397 Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 1 to 35 years. Amortization expense for the three months ended June 30, 2021 and 2020 was $65 million and $72 million, respectively, and $134 million and $156 million for the six months ended June 30, 2021 and 2020, respectively. Estimated amortization expense for the remainder of 2021 and each of the subsequent five fiscal years is expected to be as follows: Year Estimated Amortization Expense Remainder of 2021 $ 116 2022 210 2023 198 2024 181 2025 134 2026 94 |
Contract and Other Deferred Ass
Contract and Other Deferred Assets | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract and Other Deferred Assets | CONTRACT AND OTHER DEFERRED ASSETS A majority of our long-term product service agreements relate to our Turbomachinery & Process Solutions segment. Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements and other deferred contract related costs. Contract assets are comprised of the following: June 30, 2021 December 31, 2020 Long-term product service agreements $ 621 $ 660 Long-term equipment contracts (1) 1,015 1,160 Contract assets (total revenue in excess of billings) 1,636 1,820 Deferred inventory costs 164 138 Non-recurring engineering costs 36 43 Contract and other deferred assets $ 1,836 $ 2,001 (1) Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements. Revenue recognized during the three months ended June 30, 2021 and 2020 from performance obligations satisfied (or partially satisfied) in previous periods related to our long-term service agreements was $9 million and $24 million, respectively, and $9 million and $30 million during the six months ended June 30, 2021 and 2020, 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. |
Progress Collections and Deferr
Progress Collections and Deferred Income | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Progress Collections and Deferred Income | REVENUE RELATED TO CONTRACTS WITH CUSTOMERS DISAGGREGATED REVENUE We disaggregate our revenue from contracts with customers by primary geographic markets. Three Months Ended June 30, Six Months Ended June 30, Total Revenue 2021 2020 2021 2020 U.S. $ 1,085 $ 983 $ 2,138 $ 2,298 Non-U.S. 4,057 3,753 7,786 7,862 Total $ 5,142 $ 4,736 $ 9,924 $ 10,160 REMAINING PERFORMANCE OBLIGATIONS As of June 30, 2021 and 2020, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.8 billion and $22.9 billion, respectively. As of June 30, 2021, we expect to recognize revenue of approximately 49%, 66% and 88% 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. Contract liabilities include progress collections, which reflects billings in excess of revenue, and deferred income on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities are comprised of the following: June 30, 2021 December 31, 2020 Progress collections $ 3,345 $ 3,352 Deferred income 122 102 Progress collections and deferred income (contract liabilities) $ 3,467 $ 3,454 Revenue recognized during the three months ended June 30, 2021 and 2020 that was included in the contract liabilities at the beginning of the period was $708 million and $320 million, respectively, and $1,585 million and $827 million during the six months ended June 30, 2021 and 2020, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
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. Three Months Ended June 30, Six Months Ended June 30, Operating Lease Expense 2021 2020 2021 2020 Long-term fixed lease $ 65 $ 70 $ 128 $ 142 Long-term variable lease 8 9 16 20 Short-term lease 110 119 210 280 Total operating lease expense $ 183 $ 198 $ 354 $ 442 Cash flows used in operating activities for operating leases approximates our expense for the three and six months ended June 30, 2021 and 2020. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Short-term and long-term borrowings are comprised of the following: June 30, 2021 December 31, 2020 Short-term borrowings Commercial paper $ — $ 801 Short-term borrowings from GE 16 45 Other borrowings 35 43 Total short-term borrowings 51 889 Long-term borrowings 2.773% Senior Notes due December 2022 1,248 1,247 8.55% Debentures due June 2024 120 123 3.337% Senior Notes due December 2027 1,344 1,344 6.875% Notes due January 2029 281 284 3.138% Senior Notes due November 2029 522 522 4.486% Senior Notes due May 2030 497 497 5.125% Senior Notes due September 2040 1,294 1,297 4.08% Senior Notes due December 2047 1,337 1,337 Other long-term borrowings 78 93 Total long-term borrowings 6,722 6,744 Total borrowings $ 6,773 $ 7,633 The estimated fair value of total borrowings at June 30, 2021 and December 31, 2020 was $7,567 million and $8,502 million, respectively. For a majority of our borrowings the fair value was determined using quoted period-end market prices. Where market prices are not available, we estimate fair values based on valuation methodologies using current market interest rate data adjusted for our non-performance risk. BHH LLC has a $3 billion committed unsecured revolving credit facility (the Credit Agreement) with commercial banks maturing in December 2024. The Credit Agreement contains certain customary representations and warranties, certain customary affirmative covenants and certain customary negative covenants. Upon the occurrence of certain events of default, BHH LLC's 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. At June 30, 2021 and December 31, 2020, there were no borrowings under the Credit Agreement. In addition, we have a commercial paper program under which we may issue from time to time commercial paper with maturities of no more than 397 days. As a result of the repayment of our commercial paper that matured on April 30, 2021, our authorized commercial paper program was reduced from $3.8 billion to $3 billion. Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with BHH LLC on our long-term debt securities. This co-obligor is a 100%-owned finance subsidiary of BHH LLC that was incorporated for the sole purpose of serving as a corporate co-obligor of long-term debt securities and has no assets or operations other than those related to its sole purpose. As of June 30, 2021, Baker Hughes Co-Obligor, Inc. is a co-obligor of our long-term debt securities totaling $6,644 million. Certain Senior Notes contain covenants that restrict BHH LLC's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits. At June 30, 2021, we were in compliance with all debt covenants. See "Note 16. Related Party Transactions" for additional information on the short-term borrowings from GE. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We have both funded and unfunded defined benefit plans which include four U.S. plans and seven non-U.S. plans, primarily in the UK, Germany, and Canada, all with plan assets or obligations greater than $20 million. We use a December 31 measurement date for these plans, and generally provide benefits to employees based on formulas recognizing length of service and earnings. The components of net periodic cost of plans sponsored by us are as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Service cost $ 7 $ 7 $ 14 $ 14 Interest cost 16 20 32 40 Expected return on plan assets (31) (31) (63) (62) Amortization of net actuarial loss 9 8 20 16 Net periodic cost $ 1 $ 4 $ 3 $ 8 The service cost component of the net periodic cost is included in operating income (loss) and all other components are included in non-operating income (loss) in our condensed consolidated statements of income (loss). |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For the three and six months ended June 30, 2021, the provision for income taxes was $143 million and $213 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances and changes in unrecognized tax benefits. For the three months ended June 30, 2020, the income tax benefit was $21 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances, partially offset by the impact of the U.S. Coronavirus Aid, Relief, and Economic Security Act (CARES Act). For the six months ended June 30, 2020, the income tax benefit was $16 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to non-deductible goodwill impairment, the geographical mix of earnings and losses, and losses with no tax benefit due to valuation allowances. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2021 | |
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. The number of shares of Class A common stock and Class B common stock outstanding as of June 30, 2021 is 828 million and 214 million, respectively. We have not issued any preferred stock. GE owns all the issued and outstanding Class B common stock. Each share of Class A and Class B common stock and the associated membership interest in BHH LLC form a paired interest. While each share of Class B common stock has equal voting rights to a share of Class A common stock, it has no economic rights, meaning holders of Class B common stock have no right to dividends or any assets in the event of liquidation of the Company. GE is entitled through BHH LLC Units (LLC Units) to receive distributions on an equal amount of any dividend paid by the Company. In July 2020, GE launched a program to divest of its ownership interest in us, at its discretion, in a series of transactions over approximately three years, subject to market conditions and other factors. During the six months ended June 30, 2021, GE's economic interest in BHH LLC was reduced to approximately 20.5% primarily as a result of the exchange of 97.4 million shares of Class B common stock, and associated LLC Units. The following table presents the changes in the number of shares outstanding (in thousands): Class A Class B 2021 2020 2021 2020 Balance at January 1 723,999 650,065 311,433 377,428 Issue of shares upon vesting of restricted stock units (1) 4,881 3,107 — — Issue of shares on exercises of stock options (1) 261 5 — — Issue of shares for employee stock purchase plan 1,315 2,279 — — Exchange of Class B common stock for Class A common stock (2) 97,406 — (97,406) — Balance at June 30 827,863 655,456 214,027 377,428 (1) Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation. (2) During the six months ended June 30, 2021, GE exchanged 97.4 million shares of Class B common stock and paired LLC Units for Class A common stock. When shares of Class B common stock, together with associated LLC Units, are exchanged for shares of Class A common stock pursuant to the Exchange Agreement, such shares of Class B common stock are canceled. ACCUMULATED OTHER COMPREHENSIVE LOSS (AOCL) The following tables present 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, 2020 $ — $ (1,464) $ 3 $ (317) $ (1,778) Other comprehensive income (loss) before reclassifications — 107 (5) 30 132 Amounts reclassified from accumulated other comprehensive income (loss) — — (6) 21 15 Deferred taxes — — — 2 2 Other comprehensive income (loss) — 107 (11) 53 149 Less: Other comprehensive income (loss) attributable to noncontrolling interests — 20 (2) 10 28 Less: Reallocation of AOCL based on change in ownership of BHH LLC Units — 202 (1) 43 244 Balance at June 30, 2021 $ — $ (1,579) $ (5) $ (317) $ (1,901) Investment Securities Foreign Currency Translation Adjustments Cash Flow Hedges Benefit Plans Accumulated Other Comprehensive Loss Balance at December 31, 2019 $ 1 $ (1,436) $ 6 $ (207) $ (1,636) Other comprehensive income (loss) before reclassifications (2) (236) (9) 14 (233) Amounts reclassified from accumulated other comprehensive income (loss) — — — 21 21 Deferred taxes — — 1 (5) (4) Other comprehensive income (loss) (2) (236) (8) 30 (216) Less: Other comprehensive income (loss) attributable to noncontrolling interests (1) (88) (3) 11 (81) Balance at June 30, 2020 $ — $ (1,584) $ 1 $ (188) $ (1,771) The amounts reclassified from accumulated other comprehensive loss during the six months ended June 30, 2021 and 2020 for benefit plans represent amortization of net actuarial gain (loss) which are included in the computation of net periodic pension cost (see "Note 10. Employee Benefit Plans" for additional details) and recorded in "Other non-operating loss, net" in our condensed consolidated statements of income (loss). NONCONTROLLING INTEREST Noncontrolling interests represent the portion of net assets in consolidated entities that are not owned by the Company. As of June 30, 2021 and December 31, 2020, GE owned approximately 20.5% and 30.1%, respectively, of BHH LLC and this represents the majority of the noncontrolling interest balance reported within equity. June 30, 2021 December 31, 2020 GE's interest in BHH LLC $ 3,368 $ 5,216 Other noncontrolling interests 142 133 Total noncontrolling interests $ 3,510 $ 5,349 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic and diluted net income (loss) per share of Class A common stock is presented below: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2021 2020 2021 2020 Net loss $ (77) $ (344) $ (682) $ (16,442) Less: Net loss attributable to noncontrolling interests (9) (149) (162) (6,020) Net loss attributable to Baker Hughes Company $ (68) $ (195) $ (520) $ (10,422) Weighted average shares outstanding: Class A basic & diluted 806 655 773 654 Net loss per share attributable to common stockholders: Class A basic & diluted $ (0.08) $ (0.30) $ (0.67) $ (15.93) Under the Exchange Agreement between GE and us, GE is entitled to exchange its holding in our Class B common stock, and associated LLC Units, for Class A common stock on a one-for-one basis (subject to adjustment in accordance with the terms of the Exchange Agreement) or, at the option of Baker Hughes, an amount of cash equal to the aggregate value (determined in accordance with the terms of the Exchange Agreement) of the shares of Class A common stock that would have otherwise been received by GE in the exchange. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) attributable to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests associated with the Class B common stock (including any tax impact). For the three and six months ended June 30, 2021 and 2020, such exchange is not reflected in diluted net loss per share as the assumed exchange is not dilutive. Shares of our Class B common stock do not share in earnings or losses of the Company and are not considered in the calculation of basic or diluted earnings per share (EPS). As such, separate presentation of basic and diluted EPS of Class B under the two class method has not been presented. For the three and six months ended June 30, 2021 and 2020, we excluded all outstanding equity awards from the computation of diluted net loss per share because their effect is antidilutive. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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 consists of derivative instruments and investment securities. June 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Net Balance Level 1 Level 2 Level 3 Net Balance Assets Derivatives $ — $ 40 $ — $ 40 $ — $ 118 $ — $ 118 Investment securities 544 — 8 552 1,502 — 30 1,532 Total assets 544 40 8 592 1,502 118 30 1,650 Liabilities Derivatives — (35) — (35) — (52) — (52) Total liabilities $ — $ (35) $ — $ (35) $ — $ (52) $ — $ (52) There were no transfers between Level 1, 2 and 3 during the six months ended June 30, 2021. The following table provides a reconciliation of recurring Level 3 fair value measurements for investment securities: 2021 2020 Balance at January 1 $ 30 $ 259 Proceeds at maturity (22) (118) Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) — (2) Balance at June 30 $ 8 $ 139 The most significant unobservable input used in the valuation of our Level 3 instruments is the discount rate. Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value of our investment securities. There are no unrealized gains or losses recognized in the condensed consolidated statement of income (loss) on account of any Level 3 instrument still held at the reporting date. June 30, 2021 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investment securities Non-U.S. debt securities (1) $ 8 $ — $ — $ 8 $ 30 $ — $ — $ 30 Equity securities (2) 61 485 (2) 544 76 1,431 (5) 1,502 Total $ 69 $ 485 $ (2) $ 552 $ 106 $ 1,431 $ (5) $ 1,532 (1) All of our investment securities are classified as available for sale instruments. Non-U.S. debt securities mature within one year. (2) Gains (losses) recorded to earnings related to these securities were $(26) million and nil for the three months ended June 30, 2021 and 2020, respectively, and $(813) million and $(13) million for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021 and December 31, 2020, our equity securities are comprised primarily of our investment in C3.ai, which consists of 8,650,476 and 10,813,095 shares, respectively, of C3.ai Class A common stock, an economic interest of approximately 8% and 11%, respectively, with a fair value of $541 million and $1,500 million, respectively. During the three months ended June 30, 2021, we sold approximately 2.2 million shares of C3.ai Class A common stock and received proceeds of $145 million. For the three and six months ended June 30, 2021, we recorded a loss of $27 million and $815 million, respectively, from the net change in fair value of our investment in C3.ai, which is reported in the “Other non-operating loss, net” caption in our condensed consolidated statement of income (loss). See “Note 16. Related Party Transactions” for further details on our agreements with C3.ai. As of June 30, 2021 and December 31, 2020, $544 million and $1,514 million of total investment securities are recorded in "All other current assets" and $8 million and $18 million are recorded in "All other assets" of the condensed consolidated statements of financial position, respectively. FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS Our financial instruments include cash, 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 June 30, 2021 and December 31, 2020 approximates their carrying value as reflected in our condensed consolidated financial statements. For further information on the fair value of our debt, see "Note 9. Borrowings." 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. June 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Currency exchange contracts $ 3 $ — $ 5 $ — Interest rate swap contracts — (10) — — Derivatives not accounted for as hedges Currency exchange contracts and other 37 (25) 113 (52) Total derivatives $ 40 $ (35) $ 118 $ (52) Derivatives are classified in condensed consolidated statements of financial position depending on their respective maturity date. As of June 30, 2021 and December 31, 2020, $39 million and $115 million of derivative assets are recorded in "All other current assets" and $1 million and $3 million are recorded in "All other assets" of the condensed consolidated statements of financial position, respectively. As of June 30, 2021 and December 31, 2020, $34 million and $48 million of derivative liabilities are recorded in "All other current liabilities" and $1 million and $4 million are recorded in "All other liabilities" of the condensed consolidated statements of financial position, respectively. FORMS OF HEDGING Cash Flow Hedges We use cash flow hedging primarily to reduce or eliminate 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 the planned issuance of long-term debt. During the six months ended June 30, 2021, the Company executed interest rate swap contracts designated as cash flow hedges. These contracts are expected to mitigate interest rate risk associated with the anticipated refinancing of certain portions of long-term debt. 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 12. Equity" for further information on activity in AOCI for cash flow hedges. As of June 30, 2021 and December 31, 2020, the maximum term of derivative instruments that hedge forecasted transactions was one year. 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. In June 2021, we entered into an interest rate swap with a notional amount of $200 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. 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. Economic Hedges These derivatives are not designated as hedges from an accounting standpoint (and therefore we do not apply hedge accounting to the relationship) but otherwise serve the same economic purpose as other hedging arrangements. Economic hedges are marked to fair value through earnings each period. The following table summarizes the gains (losses) from derivatives not designated as hedges in the condensed consolidated statements of income (loss). Derivatives not designated as hedging instruments Condensed consolidated statement of income caption Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Currency exchange contracts (1) Cost of goods sold $ (3) $ 4 $ 9 $ 17 Currency exchange contracts Cost of services sold (11) 2 (8) 46 Commodity derivatives Cost of goods sold 3 1 5 (1) Other derivatives Other non-operating loss, net — — — 8 Total (2) $ (11) $ 7 $ 6 $ 70 (1) Excludes losses of $2 million on embedded derivatives for the three months ended June 30, 2020, and gains of $3 million and $5 million during the six months ended June 30, 2021 and 2020, respectively, as embedded derivatives are not considered to be hedging instruments in our economic hedges. (2) The effect on earnings of derivatives not designated as hedges is substantially offset by the change in fair value of the economically hedged items in the current and future periods. NOTIONAL AMOUNT OF DERIVATIVES The notional amount of a derivative is the number of units of the underlying. A substantial majority of the outstanding notional amount of $6.0 billion and $7.0 billion at June 30, 2021 and December 31, 2020, 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. We generally disclose derivative notional amounts on a gross basis to indicate the total counterparty risk. Where we have gross purchase and sale derivative contracts for a particular currency, we look to execute these contracts with the same counterparty to reduce our exposure. The notional amount of these derivative instruments do not generally represent cash amounts exchanged by us and the counterparties, but rather the nominal amount upon which changes in the value of the derivatives are measured. 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. OTHER EQUITY INVESTMENTS As of June 30, 2021 and December 31, 2020, the carrying amount of equity securities without readily determinable fair values was $573 million and $554 million, respectively, recorded in "All other assets" of the condensed consolidated statements of financial position. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Our reportable segments, which are the same as our operating segments, are organized based on the nature of markets and customers. We report our operating results through our four operating segments that consist of similar products and services within each segment as described below. OILFIELD SERVICES (OFS) Oilfield Services provides products and services for onshore and offshore operations across the lifecycle of a well, ranging from drilling, evaluation, completion, production and intervention. Products and services include diamond and tri-cone drill bits, drilling services, including directional drilling technology, measurement while drilling & logging while drilling, downhole completion tools and systems, wellbore intervention tools and services, wireline services, drilling and completions fluids, oilfield and industrial chemicals, pressure pumping, and artificial lift technologies, including electrical submersible pumps. OILFIELD EQUIPMENT (OFE) Oilfield Equipment provides a broad portfolio of products and services required to facilitate the safe and reliable flow of hydrocarbons from the wellhead to the production facilities. The Oilfield Equipment portfolio has solutions for the subsea, offshore surface, and onshore operating environments. Products and services include subsea and surface pressure control and production systems and services, capital drilling equipment and services, flexible pipe systems for offshore and onshore applications, and life-of-field solutions including well intervention, covering the entire life cycle of a field. TURBOMACHINERY & PROCESS SOLUTIONS (TPS) Turbomachinery & Process Solutions provides equipment and related services for mechanical-drive, compression and power-generation applications across the oil and gas industry as well as products and services to serve the downstream segments of the industry including refining, petrochemical, distributed gas, flow and process control and other industrial applications. The Turbomachinery & Process Solutions portfolio includes drivers (aero-derivative gas turbines, heavy-duty gas turbines and synchronous and induction electric motors), compressors (centrifugal and axial, direct drive high speed, integrated, subsea compressors, turbo expanders and reciprocating), turn-key solutions (industrial modules and waste heat recovery), pumps, valves, and compressed natural gas (CNG) and small-scale liquefied natural gas (LNG) solutions used primarily for shale oil and gas field development. DIGITAL SOLUTIONS (DS) Digital Solutions provides equipment, software, and services for a wide range of industries, including oil & gas, power generation, aerospace, metals, and transportation. The offerings include sensor-based process measurement, non-destructive testing and inspection, turbine, generator and plant controls and condition monitoring, as well as pipeline integrity solutions. SEGMENT RESULTS Segment revenue and profit are determined based on the internal performance measures used by the Company to assess the performance of each segment in a financial period. Summarized financial information is shown in the following tables. Consistent accounting policies have been applied by all segments within the Company, for all reporting periods. Three Months Ended June 30, Six Months Ended June 30, Segment revenue 2021 2020 2021 2020 Oilfield Services $ 2,358 $ 2,411 $ 4,558 $ 5,550 Oilfield Equipment 637 696 1,264 1,407 Turbomachinery & Process Solutions 1,628 1,161 3,113 2,246 Digital Solutions 520 468 989 957 Total $ 5,142 $ 4,736 $ 9,924 $ 10,160 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, separation related costs, goodwill impairments and certain gains and losses not allocated to the operating segments. Three Months Ended June 30, Six Months Ended June 30, Segment income (loss) before income taxes 2021 2020 2021 2020 Oilfield Services $ 171 $ 46 $ 315 $ 252 Oilfield Equipment 28 (14) 32 (23) Turbomachinery & Process Solutions 220 149 427 283 Digital Solutions 25 41 49 71 Total segment 444 221 824 583 Corporate (111) (117) (219) (239) Goodwill impairment — — — (14,773) Inventory impairment (1) — (16) — (176) Restructuring, impairment and other (125) (103) (205) (1,429) Separation related (15) (37) (42) (77) Other non-operating loss, net (63) (244) (689) (219) Interest expense, net (65) (69) (138) (128) Income (loss) before income taxes $ 66 $ (365) $ (469) $ (16,458) (1) Charges for inventory impairments are predominantly reported in the "Cost of goods sold" caption of the condensed consolidated statements of income (loss). The following table presents depreciation and amortization by segment: Three Months Ended June 30, Six Months Ended June 30, Segment depreciation and amortization 2021 2020 2021 2020 Oilfield Services $ 195 $ 248 $ 396 $ 497 Oilfield Equipment 26 34 58 78 Turbomachinery & Process Solutions 30 27 60 55 Digital Solutions 22 24 43 49 Total segment 273 333 558 680 Corporate 5 7 12 15 Total $ 278 $ 340 $ 570 $ 694 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS WITH GE GE is our largest shareholder, and we have continuing involvement with GE primarily through their remaining interest in us and BHH LLC, ongoing purchases and sales of products and services, transition services that they provide, as well as an aeroderivative joint venture (Aero JV) we formed with GE in 2019. Until GE and its affiliates own less than 20% of the voting power of our outstanding common stock, GE is entitled to designate one person for nomination to our board of directors. At June 30, 2021 and December 31, 2020, GE's economic interest in BHH LLC through their ownership of Class B common stock and associated LLC Units were 20.5% and 30.1%, respectively. The Aero JV is jointly controlled by GE and us, and therefore, we do not consolidate the JV. We had purchases with GE and its affiliates, including the Aero JV, of $307 million and $346 million during the three months ended June 30, 2021 and 2020, respectively, and $622 million and $609 million during the six months ended June 30, 2021 and 2020, respectively. In addition, we sold products and services to GE and its affiliates for $39 million and $49 million during the three months ended June 30, 2021 and 2020, respectively, and $89 million and $105 million during the six months ended June 30, 2021 and 2020, respectively. The Company has $331 million and $356 million of accounts payable at June 30, 2021 and December 31, 2020, respectively, for goods and services provided by GE in the ordinary course of business. The Company has $343 million and $429 million of current receivables at June 30, 2021 and December 31, 2020, respectively, for goods and services provided to GE in the ordinary course of business. On July 3, 2017, we executed a promissory note with GE that represents certain cash that we are holding on GE's behalf due to the restricted nature of the cash. The restriction arises as the majority of the cash cannot be released, transferred or otherwise converted into a non-restricted market currency due to the lack of market liquidity, capital controls or similar monetary or exchange limitations by a government entity of the jurisdiction in which such cash is situated. There is no maturity date on the promissory note, but we remain obligated to repay GE, therefore, this obligation is reflected as short-term borrowings. As of June 30, 2021, of the $16 million due to GE, all was held in the form of cash. As of December 31, 2020, of the $45 million due to GE, $44 million was held in the form of cash and $1 million was held in the form of investment securities. A corresponding liability is reported in short-term debt in the condensed consolidated statements of financial position. RELATED PARTY TRANSACTIONS WITH C3.ai We have agreements with C3.ai under which, among other things, we received a five-year subscription (which we refer to below as direct subscription fees) to use certain C3.ai offerings for internal use and the development of applications on the C3.ai AI Suite, as well as the right to resell C3.ai offerings worldwide on an exclusive basis in the oil and gas market and, with C3.ai's prior consent, non-exclusively in other markets, in each case subject to certain exceptions and conditions. The agreement has an expiration date in the fiscal year ending April 30, 2024 with annual contractual amounts of our minimum revenue commitment of $53 million, $75 million, $125 million, and $150 million per year, which amounts are inclusive of direct subscription fees of approximately $28 million per year, over the fiscal years ending April 30, 2021, 2022, 2023, and 2024, respectively. To the extent we are unable to meet the annual minimum revenue commitment under such arrangement, we are obligated to pay C3.ai the shortfall; if we exceed the annual minimum revenue commitment, C3.ai will pay us a sales commission. Lorenzo Simonelli, Chief Executive Officer of Baker Hughes, serves as a member of the board of directors of C3.ai. As of June 30, 2021 and December 31, 2020, we held an economic interest in C3.ai of approximately 8% and 11%, respectively. See “Note 14. Financial Instruments” for further discussion of our investment in C3.ai. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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. In January 2013, INEOS and Naphtachimie initiated expertise proceedings in Aix-en-Provence, France arising out of a fire at a chemical plant owned by INEOS in Lavera, France, which resulted in a 15-day plant shutdown and destruction of a steam turbine, which was part of a compressor train owned by Naphtachimie. The most recent quantification of the alleged damages is €250 million. Two of the Company's subsidiaries (and 17 other companies) were notified to participate in the proceedings. The proceedings are ongoing, and at this time, there is no indication that the Company's subsidiaries were involved in the incident. Although the outcome of the claims remains uncertain, our insurer has accepted coverage and is defending the Company in the expertise proceeding. 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. At this time, we are not able to predict the outcome of these proceedings. On March 15, 2019 and March 18, 2019, the City of Riviera Beach Pension Fund and Richard Schippnick, respectively, filed in the Delaware Court of Chancery shareholder derivative lawsuits for and on the Company’s behalf against GE, the then-current members of the Board of Directors of the Company and the Company as a nominal defendant, related to the decision to (i) terminate the contractual prohibition barring GE from selling any of the Company’s shares before July 3, 2019; (ii) repurchase $1.5 billion in the Company’s stock from GE; (iii) permit GE to sell approximately $2.5 billion in the Company’s stock through a secondary offering; and (iv) enter into a series of other agreements and amendments that will govern the ongoing relationship between the Company and GE (collectively, the “2018 Transactions”). The complaints in both lawsuits allege, among other things, that GE, as the Company’s controlling stockholder, and the members of the Company’s Board of Directors breached their fiduciary duties by entering into the 2018 Transactions. The relief sought in the complaints includes a request for a declaration that the defendants breached their fiduciary duties, that GE was unjustly enriched, disgorgement of profits, an award of damages sustained by the Company, pre- and post-judgment interest, and attorneys’ fees and costs. On March 21, 2019, the Chancery Court entered an order consolidating the Schippnick and City of Riviera Beach complaints under consolidated C.A. No. 2019-0201-AGB, styled in re Baker Hughes, a GE company derivative litigation. On May 10, 2019, Plaintiffs voluntarily dismissed their claims against the members of the Company’s Conflicts Committee, and on May 15, 2019, Plaintiffs voluntarily dismissed their claims against former Baker Hughes director Martin Craighead. On June 7, 2019, the defendants and nominal defendant filed a motion to dismiss the lawsuit on the ground that the derivative plaintiffs failed to make a demand on the Company’s Board of Directors to pursue the claims itself, and GE and the Company’s Board of Directors filed a motion to dismiss the lawsuit on the ground that the complaint failed to state a claim on which relief can be granted. The Chancery Court denied the motions on October 8, 2019, except granted GE’s motion to dismiss the unjust enrichment claim against it. On October 31, 2019, the Company’s Board of Directors designated a Special Litigation Committee and empowered it with full authority to investigate and evaluate the allegations and issues raised in the derivative litigation. The Special Litigation Committee filed a motion to stay the derivative litigation during its investigation. On December 3, 2019, the Chancery Court granted the motion and stayed the derivative litigation until June 1, 2020. On May 20, 2020, the Chancery Court granted an extension of the stay to October 1, 2020, and on September 29, 2020, the Court granted a further extension of the stay to October 15, 2020. On October 13, 2020, the Special Litigation Committee filed its report with the Court. At this time, we are not able to predict the outcome of these claims. In March 2019, the Company received a document request from the United States Department of Justice (the “DOJ”) related to certain of the Company’s operations in Iraq and its dealings with Unaoil Limited and its affiliates. In December 2019, the Company received a similar document request from the Securities Exchange Commission (the "SEC"). The Company is cooperating with the DOJ and the SEC in connection with their requests and any related matters. In addition, the Company has agreed to toll any statute of limitations in connection with the matters subject to the DOJ’s document request. On August 13, 2019, Tri-State Joint Fund filed in the Delaware Court of Chancery, a shareholder class action lawsuit for and on the behalf of itself and all similarly situated public stockholders of Baker Hughes Incorporated against the General Electric Company (GE), the former members of the Board of Directors of BHI, and certain former BHI Officers alleging breaches of fiduciary duty, aiding and abetting, and other claims in connection with the combination of BHI and the oil and gas business (GE O&G) of GE (the Transactions). On October 28, 2019, City of Providence filed in the Delaware Court of Chancery a shareholder class action lawsuit for and on behalf of itself and all similarly situated public shareholders of BHI against GE, the former members of the Board of Directors of BHI, and certain former BHI Officers alleging substantially the same claims in connection with the Transactions. The relief sought in these complaints include a request for a declaration that Defendants breached their fiduciary duties, an award of damages, pre- and post-judgment interest, and attorneys’ fees and costs. The lawsuits have been consolidated, and plaintiffs filed a consolidated class action complaint on December 17, 2019 against certain former BHI officers alleging breaches of fiduciary duty and against GE for aiding and abetting those breaches. The December 2019 complaint omitted the former members of the Board of Directors of BHI, except for Mr. Craighead who also served as President and CEO of BHI. Mr. Craighead and Ms. Ross, who served as Senior Vice President and Chief Financial Officer of BHI, remain named in the December 2019 complaint along with GE. The relief sought in the consolidated complaint includes a declaration that the former BHI officers breached their fiduciary duties and that GE aided and abetted those breaches, an award of damages, pre- and post-judgment interest, and attorneys’ fees and costs. On or around February 12, 2020, the defendants filed motions to dismiss the lawsuit on the grounds that the complaint failed to state a claim on which relief could be granted. On or around October 27, 2020, the Chancery Court granted GE’s motion to dismiss, and granted in part the motion to dismiss filed by Mr. Craighead and Ms. Ross, thereby dismissing all of the claims against GE and Ms. Ross, and all but one of the claims against Mr. Craighead. At this time, we are not able to predict the outcome of the remaining claim. On December 11, 2019, BMC Software, Inc. (“BMC”) filed a lawsuit in federal court in the Southern District of Texas against Baker Hughes, a GE company, LLC alleging trademark infringement, unfair competition, and unjust enrichment, arising out of the Company’s use of its new logo and affiliated branding. On January 1, 2020, BMC amended its complaint to add Baker Hughes Company. The relief sought in the complaint includes a request for injunctive relief, an award of damages (including punitive damages), pre- and post-judgment interest, and attorneys’ fees and costs. At this time, we are not able to predict the outcome of these claims. In December 2020, the Company received notice that the SEC is conducting a formal investigation that the Company understands is related to its books and records and internal controls regarding sales of its products and services in projects impacted by U.S. sanctions. The Company is cooperating with the SEC and providing requested information. The Company has also initiated an internal review with the assistance of external legal counsel regarding internal controls and compliance related to U.S. sanctions requirements. The SEC's investigation and the Company's internal review are ongoing, and the Company cannot anticipate the timing, outcome or possible impact of the investigation or review, financial or otherwise. 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 guarantees to GE Capital on behalf of some customers who have entered into financing arrangements with GE Capital. Total off-balance sheet arrangements were approximately $4.4 billion at June 30, 2021. It is not practicable to estimate the fair value of these financial instruments. 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 Oilfield Equipment 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. |
Restructuring, Impairment and O
Restructuring, Impairment and Other | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment and Other | RESTRUCTURING, IMPAIRMENT AND OTHER We recorded restructuring, impairment and other charges of $125 million and $103 million during the three months ended June 30, 2021 and 2020, respectively, and $205 million and $1,429 million during the six months ended June 30, 2021 and 2020, respectively. Charges incurred during the first six months of 2021 are primarily related to initiatives in our OFS segment that are the continuation of our overall strategy to right-size our structural costs for the year-over-year change in activity levels and market conditions. Details of these charges are discussed below. RESTRUCTURING AND IMPAIRMENT The following table presents restructuring and impairment charges by the impacted segment, however, these charges are not included in the reported segment results: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Oilfield Services $ 53 $ 14 $ 105 $ 310 Oilfield Equipment — 1 1 99 Turbomachinery & Process Solutions 6 12 14 20 Digital Solutions 1 10 3 34 Corporate 5 6 7 15 Total $ 65 $ 43 $ 130 $ 478 Restructuring and impairment charges were primarily related to employee termination expenses from reducing our headcount in certain geographical locations, and product line rationalization, including facility closures and related expenses such as property, plant & equipment impairments and contract termination fees. The table below includes any gains on the dispositions of certain property, plant & equipment previously impaired as a consequence of exit activities. Details of these charges are as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Property, plant & equipment, net $ 34 $ 8 $ 22 $ 149 Employee-related termination expenses 23 26 93 298 Contract termination fees — 1 1 22 Other incremental costs 8 8 14 9 Total $ 65 $ 43 $ 130 $ 478 OTHER Other charges included in "Restructuring, impairment and other" of the condensed consolidated statements of income (loss) were $60 million and $75 million for the three and six months ended June 30, 2021, respectively, and $61 million and $951 million for the three and six months ended June 30, 2020, respectively. Charges for the three and six months ended June 30, 2021 were primarily related to certain litigation matters in our TPS segment and the release of foreign currency translation adjustments for certain restructured product lines in our DS segment. Charges for the three months ended June 30, 2020 were primarily related to corporate facility rationalization. Charges for the six months ended June 30, 2020 were comprised of intangible asset impairments of $601 million driven by our decision to exit certain businesses primarily in our OFS segment, other long-lived asset impairments of $216 million ($124 million of intangible assets, $77 million of property, plant and equipment and $15 million of other assets) in our OFE segment and other charges of $73 million driven by certain litigation matters and impairment of an equity method investment primarily in corporate and the OFE segment. |
Assets and Liabilities of Busin
Assets and Liabilities of Business Held for Sale | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities of Business Held for Sale | ASSETS AND LIABILITIES OF BUSINESS HELD FOR SALE In March 2021, we announced that we entered into an agreement with Akastor ASA to create a joint venture company (JV Company) to deliver global offshore drilling solutions. The JV Company will be owned 50-50 by Baker Hughes and Akastor ASA. We will contribute our subsea drilling systems (SDS) business, a division of our Oilfield Equipment segment, to the JV Company in return for 50% of the shares of the JV Company and $200 million in consideration of which $120 million is payable in cash at the time of closing. The JV Company will issue notes to Baker Hughes representing the balance of the consideration owed that will be subordinated to the JV Company’s external debt financing. The transaction is expected to close in the second half of 2021 subject to customary conditions, including regulatory approvals. As of June 30, 2021, the SDS business continues to meet the criteria to be classified as held for sale and is measured and reported at the lower of its carrying amount or fair value less costs to sell. Based on our preliminary estimates, the carrying value is expected to approximate the fair value less costs to sell, which would include deal costs and foreign currency translation adjustments associated with this business. The following table presents financial information related to the assets and liabilities of the SDS business being contributed to the JV Company that are classified as held for sale and reported in "All other current assets" and "All other current liabilities" in our condensed consolidated statement of financial position as of June 30, 2021. Assets and liabilities of business held for sale June 30, 2021 Assets Current assets (1) $ 122 Property, plant and equipment 107 Intangible assets 122 All other assets 59 Total assets 410 Liabilities Current liabilities 57 All other liabilities 7 Total liabilities 64 Total carrying amount of net assets contributed $ 346 (1) In lieu of contributing customer receivables, we will contribute cash equal to the carrying value of the customer receivables at the time of closing. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 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, 2020 (2020 Annual Report). We hold a majority economic interest in BHH LLC and conduct and exercise full control over all activities of BHH LLC without the approval of any other member. Accordingly, we consolidate the financial results of BHH LLC and report a noncontrolling interest in our condensed consolidated financial statements for the economic interest held by General Electric (GE). As of June 30, 2021, GE's interest in BHH LLC was 20.5%. See "Note 12. Equity" for further information. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated. In the Company's financial statements and notes, certain amounts have been reclassified to conform to the current year presentation. In the notes to 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. Separation related costs as reflected in our condensed consolidated statements of income (loss) include costs incurred in connection with the ongoing activities related to our separation from GE. See "Note 16. Related Party Transactions" for further information. |
Cash and Cash Equivalents | Cash and Cash Equivalents As of June 30, 2021 and December 31, 2020, we had $639 million and $687 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these |
New Accounting Standards To Be Adopted | NEW ACCOUNTING STANDARDS TO BE ADOPTED All 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. |
Fair Value Measurements | The most significant unobservable input used in the valuation of our Level 3 instruments is the discount rate. Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value of our investment securities. |
Revenue Related to Contracts _2
Revenue Related to Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenue from contracts with customers by primary geographical markets | We disaggregate our revenue from contracts with customers by primary geographic markets. Three Months Ended June 30, Six Months Ended June 30, Total Revenue 2021 2020 2021 2020 U.S. $ 1,085 $ 983 $ 2,138 $ 2,298 Non-U.S. 4,057 3,753 7,786 7,862 Total $ 5,142 $ 4,736 $ 9,924 $ 10,160 |
Current Receivables (Tables)
Current Receivables (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Current receivables | Current receivables are comprised of the following: June 30, 2021 December 31, 2020 Customer receivables $ 4,655 $ 4,676 Related parties 343 429 Other 785 890 Total current receivables 5,783 5,995 Less: Allowance for credit losses (376) (373) Total current receivables, net $ 5,407 $ 5,622 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory, Net [Abstract] | |
Inventories, net of reserves | Inventories, net of reserves of $389 million and $421 million as of June 30, 2021 and December 31, 2020, respectively, are comprised of the following: June 30, 2021 December 31, 2020 Finished goods $ 2,338 $ 2,337 Work in process and raw materials 1,874 2,084 Total inventories, net $ 4,212 $ 4,421 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying value of goodwill are detailed below by segment: Oilfield Oilfield Turbo- Digital Total Balance at December 31, 2019, gross $ 15,676 $ 4,186 $ 2,171 $ 2,411 $ 24,444 Accumulated impairment at December 31, 2019 (2,633) (867) — (254) (3,754) Balance at December 31, 2019 13,043 3,319 2,171 2,157 20,690 Impairment (11,484) (3,289) — — (14,773) Currency exchange and others (20) (24) 63 41 60 Balance at December 31, 2020 1,539 6 2,234 2,198 5,977 Currency exchange and others 1 (3) 1 76 75 Balance at June 30, 2021 $ 1,540 $ 3 $ 2,235 $ 2,274 $ 6,052 |
Schedule of finite-lived intangible assets | Intangible assets are comprised of the following: June 30, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,958 $ (739) $ 1,219 $ 2,261 $ (916) $ 1,345 Technology 1,114 (728) 386 1,127 (696) 431 Trade names and trademarks 294 (166) 128 326 (181) 145 Capitalized software 1,299 (1,053) 246 1,294 (1,041) 253 Finite-lived intangible assets 4,665 (2,686) 1,979 5,008 (2,834) 2,174 Indefinite-lived intangible assets 2,223 — 2,223 2,223 — 2,223 Total intangible assets $ 6,888 $ (2,686) $ 4,202 $ 7,231 $ (2,834) $ 4,397 |
Schedule of indefinite-lived intangible assets | Intangible assets are comprised of the following: June 30, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,958 $ (739) $ 1,219 $ 2,261 $ (916) $ 1,345 Technology 1,114 (728) 386 1,127 (696) 431 Trade names and trademarks 294 (166) 128 326 (181) 145 Capitalized software 1,299 (1,053) 246 1,294 (1,041) 253 Finite-lived intangible assets 4,665 (2,686) 1,979 5,008 (2,834) 2,174 Indefinite-lived intangible assets 2,223 — 2,223 2,223 — 2,223 Total intangible assets $ 6,888 $ (2,686) $ 4,202 $ 7,231 $ (2,834) $ 4,397 |
Schedule of finite-lived intangible assets, future amortization expense | Estimated amortization expense for the remainder of 2021 and each of the subsequent five fiscal years is expected to be as follows: Year Estimated Amortization Expense Remainder of 2021 $ 116 2022 210 2023 198 2024 181 2025 134 2026 94 |
Contract and Other Deferred A_2
Contract and Other Deferred Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract assets | Contract assets are comprised of the following: June 30, 2021 December 31, 2020 Long-term product service agreements $ 621 $ 660 Long-term equipment contracts (1) 1,015 1,160 Contract assets (total revenue in excess of billings) 1,636 1,820 Deferred inventory costs 164 138 Non-recurring engineering costs 36 43 Contract and other deferred assets $ 1,836 $ 2,001 (1) Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements. June 30, 2021 December 31, 2020 Progress collections $ 3,345 $ 3,352 Deferred income 122 102 Progress collections and deferred income (contract liabilities) $ 3,467 $ 3,454 |
Progress Collections and Defe_2
Progress Collections and Deferred Income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Contract liabilities | Contract assets are comprised of the following: June 30, 2021 December 31, 2020 Long-term product service agreements $ 621 $ 660 Long-term equipment contracts (1) 1,015 1,160 Contract assets (total revenue in excess of billings) 1,636 1,820 Deferred inventory costs 164 138 Non-recurring engineering costs 36 43 Contract and other deferred assets $ 1,836 $ 2,001 (1) Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements. June 30, 2021 December 31, 2020 Progress collections $ 3,345 $ 3,352 Deferred income 122 102 Progress collections and deferred income (contract liabilities) $ 3,467 $ 3,454 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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. Three Months Ended June 30, Six Months Ended June 30, Operating Lease Expense 2021 2020 2021 2020 Long-term fixed lease $ 65 $ 70 $ 128 $ 142 Long-term variable lease 8 9 16 20 Short-term lease 110 119 210 280 Total operating lease expense $ 183 $ 198 $ 354 $ 442 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Short-term and long-term borrowings | Short-term and long-term borrowings are comprised of the following: June 30, 2021 December 31, 2020 Short-term borrowings Commercial paper $ — $ 801 Short-term borrowings from GE 16 45 Other borrowings 35 43 Total short-term borrowings 51 889 Long-term borrowings 2.773% Senior Notes due December 2022 1,248 1,247 8.55% Debentures due June 2024 120 123 3.337% Senior Notes due December 2027 1,344 1,344 6.875% Notes due January 2029 281 284 3.138% Senior Notes due November 2029 522 522 4.486% Senior Notes due May 2030 497 497 5.125% Senior Notes due September 2040 1,294 1,297 4.08% Senior Notes due December 2047 1,337 1,337 Other long-term borrowings 78 93 Total long-term borrowings 6,722 6,744 Total borrowings $ 6,773 $ 7,633 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic cost | The components of net periodic cost of plans sponsored by us are as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Service cost $ 7 $ 7 $ 14 $ 14 Interest cost 16 20 32 40 Expected return on plan assets (31) (31) (63) (62) Amortization of net actuarial loss 9 8 20 16 Net periodic cost $ 1 $ 4 $ 3 $ 8 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of changes in number of shares outstanding | The following table presents the changes in the number of shares outstanding (in thousands): Class A Class B 2021 2020 2021 2020 Balance at January 1 723,999 650,065 311,433 377,428 Issue of shares upon vesting of restricted stock units (1) 4,881 3,107 — — Issue of shares on exercises of stock options (1) 261 5 — — Issue of shares for employee stock purchase plan 1,315 2,279 — — Exchange of Class B common stock for Class A common stock (2) 97,406 — (97,406) — Balance at June 30 827,863 655,456 214,027 377,428 (1) Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation. (2) During the six months ended June 30, 2021, GE exchanged 97.4 million shares of Class B common stock and paired LLC Units for Class A common stock. When shares of Class B common stock, together with associated LLC Units, are exchanged for shares of Class A common stock pursuant to the Exchange Agreement, such shares of Class B common stock are canceled. |
Schedule of accumulated other comprehensive loss | The following tables present 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, 2020 $ — $ (1,464) $ 3 $ (317) $ (1,778) Other comprehensive income (loss) before reclassifications — 107 (5) 30 132 Amounts reclassified from accumulated other comprehensive income (loss) — — (6) 21 15 Deferred taxes — — — 2 2 Other comprehensive income (loss) — 107 (11) 53 149 Less: Other comprehensive income (loss) attributable to noncontrolling interests — 20 (2) 10 28 Less: Reallocation of AOCL based on change in ownership of BHH LLC Units — 202 (1) 43 244 Balance at June 30, 2021 $ — $ (1,579) $ (5) $ (317) $ (1,901) Investment Securities Foreign Currency Translation Adjustments Cash Flow Hedges Benefit Plans Accumulated Other Comprehensive Loss Balance at December 31, 2019 $ 1 $ (1,436) $ 6 $ (207) $ (1,636) Other comprehensive income (loss) before reclassifications (2) (236) (9) 14 (233) Amounts reclassified from accumulated other comprehensive income (loss) — — — 21 21 Deferred taxes — — 1 (5) (4) Other comprehensive income (loss) (2) (236) (8) 30 (216) Less: Other comprehensive income (loss) attributable to noncontrolling interests (1) (88) (3) 11 (81) Balance at June 30, 2020 $ — $ (1,584) $ 1 $ (188) $ (1,771) |
Schedule of noncontrolling interest | As of June 30, 2021 and December 31, 2020, GE owned approximately 20.5% and 30.1%, respectively, of BHH LLC and this represents the majority of the noncontrolling interest balance reported within equity. June 30, 2021 December 31, 2020 GE's interest in BHH LLC $ 3,368 $ 5,216 Other noncontrolling interests 142 133 Total noncontrolling interests $ 3,510 $ 5,349 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic and diluted net income (loss) per share | Basic and diluted net income (loss) per share of Class A common stock is presented below: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2021 2020 2021 2020 Net loss $ (77) $ (344) $ (682) $ (16,442) Less: Net loss attributable to noncontrolling interests (9) (149) (162) (6,020) Net loss attributable to Baker Hughes Company $ (68) $ (195) $ (520) $ (10,422) Weighted average shares outstanding: Class A basic & diluted 806 655 773 654 Net loss per share attributable to common stockholders: Class A basic & diluted $ (0.08) $ (0.30) $ (0.67) $ (15.93) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | Our assets and liabilities measured at fair value on a recurring basis consists of derivative instruments and investment securities. June 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Net Balance Level 1 Level 2 Level 3 Net Balance Assets Derivatives $ — $ 40 $ — $ 40 $ — $ 118 $ — $ 118 Investment securities 544 — 8 552 1,502 — 30 1,532 Total assets 544 40 8 592 1,502 118 30 1,650 Liabilities Derivatives — (35) — (35) — (52) — (52) Total liabilities $ — $ (35) $ — $ (35) $ — $ (52) $ — $ (52) |
Reconciliation of recurring Level 3 fair value measurements | The following table provides a reconciliation of recurring Level 3 fair value measurements for investment securities: 2021 2020 Balance at January 1 $ 30 $ 259 Proceeds at maturity (22) (118) Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) — (2) Balance at June 30 $ 8 $ 139 |
Schedule of investment securities classified as available for sale | June 30, 2021 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investment securities Non-U.S. debt securities (1) $ 8 $ — $ — $ 8 $ 30 $ — $ — $ 30 Equity securities (2) 61 485 (2) 544 76 1,431 (5) 1,502 Total $ 69 $ 485 $ (2) $ 552 $ 106 $ 1,431 $ (5) $ 1,532 (1) All of our investment securities are classified as available for sale instruments. Non-U.S. debt securities mature within one year. (2) Gains (losses) recorded to earnings related to these securities were $(26) million and nil for the three months ended June 30, 2021 and 2020, respectively, and $(813) million and $(13) million for the six months ended June 30, 2021 and 2020, respectively. |
Schedule of derivatives | The table below summarizes the fair value of all derivatives, including hedging instruments and embedded derivatives. June 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Currency exchange contracts $ 3 $ — $ 5 $ — Interest rate swap contracts — (10) — — Derivatives not accounted for as hedges Currency exchange contracts and other 37 (25) 113 (52) Total derivatives $ 40 $ (35) $ 118 $ (52) |
Schedule of gains (losses) from derivatives not designated as hedges | The following table summarizes the gains (losses) from derivatives not designated as hedges in the condensed consolidated statements of income (loss). Derivatives not designated as hedging instruments Condensed consolidated statement of income caption Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Currency exchange contracts (1) Cost of goods sold $ (3) $ 4 $ 9 $ 17 Currency exchange contracts Cost of services sold (11) 2 (8) 46 Commodity derivatives Cost of goods sold 3 1 5 (1) Other derivatives Other non-operating loss, net — — — 8 Total (2) $ (11) $ 7 $ 6 $ 70 (1) Excludes losses of $2 million on embedded derivatives for the three months ended June 30, 2020, and gains of $3 million and $5 million during the six months ended June 30, 2021 and 2020, respectively, as embedded derivatives are not considered to be hedging instruments in our economic hedges. (2) The effect on earnings of derivatives not designated as hedges is substantially offset by the change in fair value of the economically hedged items in the current and future periods. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summarized financial information | Summarized financial information is shown in the following tables. Consistent accounting policies have been applied by all segments within the Company, for all reporting periods. Three Months Ended June 30, Six Months Ended June 30, Segment revenue 2021 2020 2021 2020 Oilfield Services $ 2,358 $ 2,411 $ 4,558 $ 5,550 Oilfield Equipment 637 696 1,264 1,407 Turbomachinery & Process Solutions 1,628 1,161 3,113 2,246 Digital Solutions 520 468 989 957 Total $ 5,142 $ 4,736 $ 9,924 $ 10,160 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, separation related costs, goodwill impairments and certain gains and losses not allocated to the operating segments. Three Months Ended June 30, Six Months Ended June 30, Segment income (loss) before income taxes 2021 2020 2021 2020 Oilfield Services $ 171 $ 46 $ 315 $ 252 Oilfield Equipment 28 (14) 32 (23) Turbomachinery & Process Solutions 220 149 427 283 Digital Solutions 25 41 49 71 Total segment 444 221 824 583 Corporate (111) (117) (219) (239) Goodwill impairment — — — (14,773) Inventory impairment (1) — (16) — (176) Restructuring, impairment and other (125) (103) (205) (1,429) Separation related (15) (37) (42) (77) Other non-operating loss, net (63) (244) (689) (219) Interest expense, net (65) (69) (138) (128) Income (loss) before income taxes $ 66 $ (365) $ (469) $ (16,458) (1) Charges for inventory impairments are predominantly reported in the "Cost of goods sold" caption of the condensed consolidated statements of income (loss). The following table presents depreciation and amortization by segment: Three Months Ended June 30, Six Months Ended June 30, Segment depreciation and amortization 2021 2020 2021 2020 Oilfield Services $ 195 $ 248 $ 396 $ 497 Oilfield Equipment 26 34 58 78 Turbomachinery & Process Solutions 30 27 60 55 Digital Solutions 22 24 43 49 Total segment 273 333 558 680 Corporate 5 7 12 15 Total $ 278 $ 340 $ 570 $ 694 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Impairment and restructuring charges | The following table presents restructuring and impairment charges by the impacted segment, however, these charges are not included in the reported segment results: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Oilfield Services $ 53 $ 14 $ 105 $ 310 Oilfield Equipment — 1 1 99 Turbomachinery & Process Solutions 6 12 14 20 Digital Solutions 1 10 3 34 Corporate 5 6 7 15 Total $ 65 $ 43 $ 130 $ 478 Restructuring and impairment charges were primarily related to employee termination expenses from reducing our headcount in certain geographical locations, and product line rationalization, including facility closures and related expenses such as property, plant & equipment impairments and contract termination fees. The table below includes any gains on the dispositions of certain property, plant & equipment previously impaired as a consequence of exit activities. Details of these charges are as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Property, plant & equipment, net $ 34 $ 8 $ 22 $ 149 Employee-related termination expenses 23 26 93 298 Contract termination fees — 1 1 22 Other incremental costs 8 8 14 9 Total $ 65 $ 43 $ 130 $ 478 |
Assets and Liabilities of Bus_2
Assets and Liabilities of Business Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of assets and liabilities of business held for sale | The following table presents financial information related to the assets and liabilities of the SDS business being contributed to the JV Company that are classified as held for sale and reported in "All other current assets" and "All other current liabilities" in our condensed consolidated statement of financial position as of June 30, 2021. Assets and liabilities of business held for sale June 30, 2021 Assets Current assets (1) $ 122 Property, plant and equipment 107 Intangible assets 122 All other assets 59 Total assets 410 Liabilities Current liabilities 57 All other liabilities 7 Total liabilities 64 Total carrying amount of net assets contributed $ 346 (1) In lieu of contributing customer receivables, we will contribute cash equal to the carrying value of the customer receivables at the time of closing. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Restricted cash and cash equivalents held in bank accounts | $ 639 | $ 687 |
General Electric Company | ||
Business Acquisition [Line Items] | ||
Restricted cash and cash equivalents held in bank accounts | 15 | 42 |
GE | Related party amount, due to related party | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents held on behalf of GE | $ 16 | $ 44 |
BHH LLC | ||
Business Acquisition [Line Items] | ||
Approximate interest | 79.50% | |
BHH LLC | General Electric Company | ||
Business Acquisition [Line Items] | ||
Ownership percentage by noncontrolling owners | 30.10% | |
BHH LLC | General Electric Company | GE | ||
Business Acquisition [Line Items] | ||
Ownership percentage by noncontrolling owners | 20.50% | 30.10% |
Revenue Related to Contracts _3
Revenue Related to Contracts with Customers - Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 5,142 | $ 4,736 | $ 9,924 | $ 10,160 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,085 | 983 | 2,138 | 2,298 |
Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 4,057 | $ 3,753 | $ 7,786 | $ 7,862 |
Revenue Related to Contracts _4
Revenue Related to Contracts with Customers - Narrative (Details) - USD ($) $ in Billions | Jun. 30, 2021 | Jun. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Performance obligations expected to be satisfied | $ 23.8 | $ 22.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Period one | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations expected to be satisfied, percent | 49.00% | |
Performance obligations expected to be satisfied, expected timing | 2 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Period two | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations expected to be satisfied, percent | 66.00% | |
Performance obligations expected to be satisfied, expected timing | 5 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Period three | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations expected to be satisfied, percent | 88.00% | |
Performance obligations expected to be satisfied, expected timing | 15 years |
Current Receivables (Details)
Current Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables | $ 5,783 | $ 5,995 |
Less: Allowance for credit losses | (376) | (373) |
Total current receivables, net | 5,407 | 5,622 |
Customer receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables | 4,655 | 4,676 |
Related parties | GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables | 343 | 429 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables | $ 785 | $ 890 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Inventory, Net [Abstract] | ||||
Inventory valuation reserves | $ 389 | $ 421 | ||
Finished goods | 2,338 | 2,337 | ||
Work in process and raw materials | 1,874 | 2,084 | ||
Total inventories, net | 4,212 | $ 4,421 | ||
Inventory impairment | $ 16 | $ 0 | $ 176 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||||
Balance at December 31, 2019, gross | $ 24,444 | |||||
Accumulated impairment at December 31, 2019 | (3,754) | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, net, beginning balance | $ 5,977 | $ 20,690 | $ 20,690 | |||
Impairment | $ 0 | $ 0 | 0 | (14,773) | (14,773) | |
Currency exchange and others | 75 | 60 | ||||
Goodwill, net, ending balance | 6,052 | 6,052 | 5,977 | |||
Oilfield Services | ||||||
Goodwill [Line Items] | ||||||
Balance at December 31, 2019, gross | 15,676 | |||||
Accumulated impairment at December 31, 2019 | (2,633) | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, net, beginning balance | 1,539 | 13,043 | 13,043 | |||
Impairment | (11,484) | |||||
Currency exchange and others | 1 | (20) | ||||
Goodwill, net, ending balance | 1,540 | 1,540 | 1,539 | |||
Oilfield Equipment | ||||||
Goodwill [Line Items] | ||||||
Balance at December 31, 2019, gross | 4,186 | |||||
Accumulated impairment at December 31, 2019 | (867) | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, net, beginning balance | 6 | 3,319 | 3,319 | |||
Impairment | (3,289) | |||||
Currency exchange and others | (3) | (24) | ||||
Goodwill, net, ending balance | 3 | 3 | 6 | |||
Turbo- machinery & Process Solutions | ||||||
Goodwill [Line Items] | ||||||
Balance at December 31, 2019, gross | 2,171 | |||||
Accumulated impairment at December 31, 2019 | 0 | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, net, beginning balance | 2,234 | 2,171 | 2,171 | |||
Impairment | 0 | |||||
Currency exchange and others | 1 | 63 | ||||
Goodwill, net, ending balance | 2,235 | 2,235 | 2,234 | |||
Digital Solutions | ||||||
Goodwill [Line Items] | ||||||
Balance at December 31, 2019, gross | 2,411 | |||||
Accumulated impairment at December 31, 2019 | $ (254) | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, net, beginning balance | 2,198 | $ 2,157 | 2,157 | |||
Impairment | 0 | |||||
Currency exchange and others | 76 | 41 | ||||
Goodwill, net, ending balance | $ 2,274 | $ 2,274 | $ 2,198 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Mar. 23, 2020$ / shares | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||
Number of reportable segments | segment | 4 | ||||||
Number of reportable units | segment | 4 | ||||||
Share price (in dollars per share) | $ / shares | $ 9.33 | ||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | $ 0 | $ 0 | $ 0 | $ 14,773 | $ 14,773 | ||
Amortization expense for intangible assets included in net income | $ 65 | $ 72 | $ 134 | $ 156 | |||
Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful lives | 1 year | ||||||
Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful lives | 35 years | ||||||
OFS | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | $ 11,484 | ||||||
OFE | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | $ 3,289 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Intangible Assets by Type (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-lived intangible assets | ||
Gross Carrying Amount | $ 4,665 | $ 5,008 |
Accumulated Amortization | (2,686) | (2,834) |
Net | 1,979 | 2,174 |
Indefinite-lived intangible assets | 2,223 | 2,223 |
Total intangible assets, Gross Carrying Amount | 6,888 | 7,231 |
Total intangible assets, Net | 4,202 | 4,397 |
Customer relationships | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 1,958 | 2,261 |
Accumulated Amortization | (739) | (916) |
Net | 1,219 | 1,345 |
Technology | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 1,114 | 1,127 |
Accumulated Amortization | (728) | (696) |
Net | 386 | 431 |
Trade names and trademarks | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 294 | 326 |
Accumulated Amortization | (166) | (181) |
Net | 128 | 145 |
Capitalized software | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 1,299 | 1,294 |
Accumulated Amortization | (1,053) | (1,041) |
Net | $ 246 | $ 253 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Future Estimated Amortization Expense (Details) $ in Millions | Jun. 30, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 116 |
2022 | 210 |
2023 | 198 |
2024 | 181 |
2025 | 134 |
2026 | $ 94 |
Contract and Other Deferred A_3
Contract and Other Deferred Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Contract assets (revenue in excess of billings) | $ 1,636 | $ 1,636 | $ 1,820 | ||
Deferred inventory costs | 164 | 164 | 138 | ||
Non-recurring engineering costs | 36 | 36 | 43 | ||
Contract and other deferred assets | 1,836 | 1,836 | 2,001 | ||
Revenue recognized from performance obligations satisfied in previous periods | 9 | $ 24 | 9 | $ 30 | |
Long-term product service agreements | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Contract assets (revenue in excess of billings) | 621 | 621 | 660 | ||
Long-term equipment contracts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Contract assets (revenue in excess of billings) | $ 1,015 | $ 1,015 | $ 1,160 |
Progress Collections and Defe_3
Progress Collections and Deferred Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Progress collections and deferred income (contract liabilities) | $ 3,467 | $ 3,467 | $ 3,454 | ||
Revenue recognized, included in contract liability | 708 | $ 320 | 1,585 | $ 827 | |
Progress collections | |||||
Disaggregation of Revenue [Line Items] | |||||
Progress collections and deferred income (contract liabilities) | 3,345 | 3,345 | 3,352 | ||
Deferred income | |||||
Disaggregation of Revenue [Line Items] | |||||
Progress collections and deferred income (contract liabilities) | $ 122 | $ 122 | $ 102 |
Leases - Operating Lease Expens
Leases - Operating Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Lease Expense | ||||
Long-term fixed lease | $ 65 | $ 70 | $ 128 | $ 142 |
Long-term variable lease | 8 | 9 | 16 | 20 |
Short-term lease | 110 | 119 | 210 | 280 |
Total operating lease expense | $ 183 | $ 198 | $ 354 | $ 442 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease, weighted-average remaining lease term | 9 years | 8 years |
Operating lease, weighted-average discount rate | 3.60% | 3.70% |
Borrowings - Short-term and Lon
Borrowings - Short-term and Long-term Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Short-term borrowings | ||
Total short-term borrowings | $ 51 | $ 889 |
Long-term borrowings | ||
Other long-term borrowings | 78 | 93 |
Total long-term borrowings | 6,722 | 6,744 |
Total borrowings | $ 6,773 | 7,633 |
2.773% Senior Notes due December 2022 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.773% | |
8.55% Debentures due June 2024 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.55% | |
3.337% Senior Notes due December 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.337% | |
6.875% Notes due January 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.875% | |
Long-term borrowings | ||
Long-term borrowings | $ 281 | 284 |
3.138% Senior Notes due November 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.138% | |
4.486% Senior Notes due May 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.486% | |
5.125% Senior Notes due September 2040 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.125% | |
4.08% Senior Notes due December 2047 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.08% | |
Senior Notes | 2.773% Senior Notes due December 2022 | ||
Long-term borrowings | ||
Long-term borrowings | $ 1,248 | 1,247 |
Senior Notes | 3.337% Senior Notes due December 2027 | ||
Long-term borrowings | ||
Long-term borrowings | 1,344 | 1,344 |
Senior Notes | 3.138% Senior Notes due November 2029 | ||
Long-term borrowings | ||
Long-term borrowings | 522 | 522 |
Senior Notes | 4.486% Senior Notes due May 2030 | ||
Long-term borrowings | ||
Long-term borrowings | 497 | 497 |
Senior Notes | 5.125% Senior Notes due September 2040 | ||
Long-term borrowings | ||
Long-term borrowings | 1,294 | 1,297 |
Senior Notes | 4.08% Senior Notes due December 2047 | ||
Long-term borrowings | ||
Long-term borrowings | 1,337 | 1,337 |
Debentures | 8.55% Debentures due June 2024 | ||
Long-term borrowings | ||
Long-term borrowings | 120 | 123 |
Commercial paper | ||
Short-term borrowings | ||
Total short-term borrowings | 0 | 801 |
Short-term borrowings from GE | ||
Short-term borrowings | ||
Total short-term borrowings | 16 | 45 |
Other borrowings | ||
Short-term borrowings | ||
Total short-term borrowings | $ 35 | $ 43 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2021 | Apr. 30, 2021 | Apr. 29, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||||
Estimated fair value of debt | $ 7,567,000,000 | $ 8,502,000,000 | ||
Commercial paper | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 3,000,000,000 | $ 3,800,000,000 | ||
Debt term (no more than) | 397 days | |||
BHH LLC | Baker Hughes Co-Obligor, Inc. | ||||
Line of Credit Facility [Line Items] | ||||
Ownership percentage | 100.00% | |||
BHH LLC | Baker Hughes Co-Obligor, Inc. | Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Long-term borrowings | $ 6,644,000,000 | |||
BHH LLC | Revolving credit facility | 2019 Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 3,000,000,000 | |||
Line of credit outstanding | $ 0 | $ 0 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - Pension Benefits | 6 Months Ended |
Jun. 30, 2021USD ($)plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Pension assets or obligations, threshold, per plan | $ | $ 20,000,000 |
U.S. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Number of plans | 4 |
Non-U.S. Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Number of plans | 7 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Period Cost (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 7 | $ 7 | $ 14 | $ 14 |
Interest cost | 16 | 20 | 32 | 40 |
Expected return on plan assets | (31) | (31) | (63) | (62) |
Amortization of net actuarial loss | 9 | 8 | 20 | 16 |
Net periodic cost | $ 1 | $ 4 | $ 3 | $ 8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Benefit (provision) for income taxes | $ (143) | $ 21 | $ (213) | $ 16 |
Equity - Narrative (Details)
Equity - Narrative (Details) - $ / shares | 1 Months Ended | 6 Months Ended | |||
Jul. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||||
Preferred stock authorized (in shares) | 50,000,000 | ||||
Preferred stock par value (in dollars per share) | $ 0.0001 | ||||
General Electric Company | BHH LLC | |||||
Class of Stock [Line Items] | |||||
Period of complete divestment | 3 years | ||||
Ownership percentage by noncontrolling owners | 30.10% | ||||
General Electric Company | BHH LLC | GE | |||||
Class of Stock [Line Items] | |||||
Ownership percentage by noncontrolling owners | 20.50% | 30.10% | |||
Class A Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Common stock outstanding (in shares) | 828,000,000 | 724,000,000 | |||
Class A Common Stock | Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock outstanding (in shares) | 827,863,000 | 655,456,000 | 723,999,000 | 650,065,000 | |
Exchange of Class B common stock for Class A common stock (in shares) | 97,406,000 | 0 | |||
Class B Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock authorized (in shares) | 1,250,000,000 | 1,250,000,000 | |||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Common stock outstanding (in shares) | 214,000,000 | 311,000,000 | |||
Class B Common Stock | BHH LLC | |||||
Class of Stock [Line Items] | |||||
Exchange of Class B common stock for Class A common stock (in shares) | 97,400,000 | ||||
Class B Common Stock | Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock outstanding (in shares) | 214,027,000 | 377,428,000 | 311,433,000 | 377,428,000 | |
Exchange of Class B common stock for Class A common stock (in shares) | (97,406,000) | 0 |
Equity - Changes in Number of S
Equity - Changes in Number of Shares Outstanding (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Class A Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 724,000 | |
Ending balance (in shares) | 828,000 | |
Class B Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 311,000 | |
Ending balance (in shares) | 214,000 | |
Class B Common Stock | BHH LLC | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Exchange of Class B common stock for Class A common stock (in shares) | 97,400 | |
Common Stock | Class A Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 723,999 | 650,065 |
Issue of shares for employee stock purchase plan (in shares) | 1,315 | 2,279 |
Exchange of Class B common stock for Class A common stock (in shares) | 97,406 | 0 |
Ending balance (in shares) | 827,863 | 655,456 |
Common Stock | Class A Common Stock | Restricted Stock Units (RSUs) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Issue of shares upon vesting of restricted stock units (in shares) | 4,881 | 3,107 |
Common Stock | Class A Common Stock | Options | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Issue of shares on exercises of stock options (in shares) | 261 | 5 |
Common Stock | Class B Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 311,433 | 377,428 |
Issue of shares for employee stock purchase plan (in shares) | 0 | 0 |
Exchange of Class B common stock for Class A common stock (in shares) | (97,406) | 0 |
Ending balance (in shares) | 214,027 | 377,428 |
Common Stock | Class B Common Stock | Restricted Stock Units (RSUs) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Issue of shares upon vesting of restricted stock units (in shares) | 0 | 0 |
Common Stock | Class B Common Stock | Options | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Issue of shares on exercises of stock options (in shares) | 0 | 0 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 17,424 | $ 17,985 | $ 18,242 | $ 34,499 |
Other comprehensive income (loss) before reclassifications | 132 | (233) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 15 | 21 | ||
Deferred taxes | 2 | (4) | ||
Other comprehensive income (loss) | 192 | 49 | 149 | (216) |
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 39 | 16 | 28 | (81) |
Less: Reallocation of AOCL based on change in ownership of BHH LLC Units | 244 | |||
Ending Balance | 17,400 | 17,565 | 17,400 | 17,565 |
Investment Securities, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | 1 | ||
Ending Balance | 0 | 0 | 0 | 0 |
Investment Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | 0 | (2) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Deferred taxes | 0 | 0 | ||
Other comprehensive income (loss) | 0 | (2) | ||
Investment Securities, Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 0 | (1) | ||
Less: Reallocation of AOCL based on change in ownership of BHH LLC Units | 0 | |||
Foreign Currency Translation Adjustment, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,464) | (1,436) | ||
Ending Balance | (1,579) | (1,584) | (1,579) | (1,584) |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | 107 | (236) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Deferred taxes | 0 | 0 | ||
Other comprehensive income (loss) | 107 | (236) | ||
Foreign Currency Translation Adjustments, Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 20 | (88) | ||
Less: Reallocation of AOCL based on change in ownership of BHH LLC Units | 202 | |||
Cash Flow Hedges, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 3 | 6 | ||
Ending Balance | (5) | 1 | (5) | 1 |
Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | (5) | (9) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (6) | 0 | ||
Deferred taxes | 0 | 1 | ||
Other comprehensive income (loss) | (11) | (8) | ||
Cash Flow Hedges, Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | (2) | (3) | ||
Less: Reallocation of AOCL based on change in ownership of BHH LLC Units | (1) | |||
Benefit Plans, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (317) | (207) | ||
Ending Balance | (317) | (188) | (317) | (188) |
Benefit Plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | 30 | 14 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 21 | 21 | ||
Deferred taxes | 2 | (5) | ||
Other comprehensive income (loss) | 53 | 30 | ||
Benefit Plans, Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 10 | 11 | ||
Less: Reallocation of AOCL based on change in ownership of BHH LLC Units | 43 | |||
Accumulated Other Comprehensive Loss | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,920) | (1,804) | (1,778) | (1,636) |
Other comprehensive income (loss) | 153 | 33 | 121 | (135) |
Ending Balance | $ (1,901) | $ (1,771) | $ (1,901) | $ (1,771) |
Equity - Non-controlling Intere
Equity - Non-controlling Interest (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Noncontrolling Interest [Line Items] | ||
Total noncontrolling interests | $ 3,510 | $ 5,349 |
GE's interest in BHH LLC | ||
Noncontrolling Interest [Line Items] | ||
Total noncontrolling interests | 3,368 | 5,216 |
Other noncontrolling interests | ||
Noncontrolling Interest [Line Items] | ||
Total noncontrolling interests | $ 142 | $ 133 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share | ||||
Net loss | $ (77) | $ (344) | $ (682) | $ (16,442) |
Less: Net loss attributable to noncontrolling interests | (9) | (149) | (162) | (6,020) |
Net loss attributable to Baker Hughes Company | $ (68) | $ (195) | $ (520) | $ (10,422) |
Weighted average shares outstanding: | ||||
Class A diluted (in shares) | 806 | 655 | 773 | 654 |
Net loss per share attributable to common stockholders: | ||||
Class A diluted (in dollars per share) | $ (0.08) | $ (0.30) | $ (0.67) | $ (15.93) |
Class A Common Stock | ||||
Weighted average shares outstanding: | ||||
Class A basic (in shares) | 806 | 655 | 773 | 654 |
Net loss per share attributable to common stockholders: | ||||
Class A basic (in dollars per share) | $ (0.08) | $ (0.30) | $ (0.67) | $ (15.93) |
Class A diluted (in dollars per share) | $ (0.08) | $ (0.30) | $ (0.67) | $ (15.93) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Class A Common Stock | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Conversion ratio | 1 |
Financial Instruments - Recurri
Financial Instruments - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Investment securities | $ 552 | $ 1,532 |
Total assets | 40 | 118 |
Liabilities | ||
Total liabilities | (35) | (52) |
Fair value, measurements, recurring | ||
Assets | ||
Derivatives | 40 | 118 |
Investment securities | 552 | 1,532 |
Total assets | 592 | 1,650 |
Liabilities | ||
Derivatives | (35) | (52) |
Total liabilities | (35) | (52) |
Fair value, measurements, recurring | Level 1 | ||
Assets | ||
Derivatives | 0 | 0 |
Investment securities | 544 | 1,502 |
Total assets | 544 | 1,502 |
Liabilities | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Fair value, measurements, recurring | Level 2 | ||
Assets | ||
Derivatives | 40 | 118 |
Investment securities | 0 | 0 |
Total assets | 40 | 118 |
Liabilities | ||
Derivatives | (35) | (52) |
Total liabilities | (35) | (52) |
Fair value, measurements, recurring | Level 3 | ||
Assets | ||
Derivatives | 0 | 0 |
Investment securities | 8 | 30 |
Total assets | 8 | 30 |
Liabilities | ||
Derivatives | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Financial Instruments - Reconci
Financial Instruments - Reconciliation of Recurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 30 | $ 259 |
Proceeds at maturity | (22) | (118) |
Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) | 0 | (2) |
Ending balance | $ 8 | $ 139 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investment securities | $ 552,000,000 | $ 552,000,000 | $ 1,532,000,000 |
Notional amount | 6,000,000,000 | 6,000,000,000 | 7,000,000,000 |
Equity securities without readily determinable fair values | $ 573,000,000 | $ 573,000,000 | $ 554,000,000 |
3.337% Senior Notes due December 2027 | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Stated interest rate | 3.337% | 3.337% | |
3.337% Senior Notes due December 2027 | Senior Notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Aggregate principal amount | $ 1,350,000,000 | $ 1,350,000,000 | |
Interest rate swap contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount | 200,000,000 | $ 200,000,000 | |
Cash flow hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, term | 1 year | 1 year | |
All other current assets | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investment securities | 544,000,000 | $ 544,000,000 | $ 1,514,000,000 |
Derivative assets | 39,000,000 | 39,000,000 | 115,000,000 |
All other assets | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investment securities | 8,000,000 | 8,000,000 | 18,000,000 |
Derivative assets | 1,000,000 | 1,000,000 | 3,000,000 |
All other current liabilities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative liability | 34,000,000 | 34,000,000 | 48,000,000 |
All other liabilities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative liability | 1,000,000 | 1,000,000 | $ 4,000,000 |
C3.ai | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss on equity securities | $ 27,000,000 | $ 815,000,000 | |
C3.ai | Class A Common Stock | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investment shares owned (in shares) | 8,650,476 | 8,650,476 | 10,813,095 |
Ownership percentage by noncontrolling owners | 8.00% | 8.00% | 11.00% |
Equity securities economic interest fair value | $ 541,000,000 | $ 541,000,000 | $ 1,500,000,000 |
Investments owned, number of shares sold (in shares) | 2,200,000 | ||
Proceeds from sale of long-term investments | $ 145,000,000 | ||
Level 3 | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized gain (loss) on Level 3 instruments held at reporting date | $ 0 |
Financial Instruments - Investm
Financial Instruments - Investment Securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Equity securities, amortized cost | $ 61,000,000 | $ 61,000,000 | $ 76,000,000 | ||
Equity securities, gross unrealized gains | 485,000,000 | 485,000,000 | 1,431,000,000 | ||
Equity securities, gross unrealized losses | (2,000,000) | (2,000,000) | (5,000,000) | ||
Equity securities, estimated fair value | 544,000,000 | 544,000,000 | 1,502,000,000 | ||
Total, amortized cost | 69,000,000 | 69,000,000 | 106,000,000 | ||
Total, gross unrealized gains | 485,000,000 | 485,000,000 | 1,431,000,000 | ||
Total, gross unrealized losses | (2,000,000) | (2,000,000) | (5,000,000) | ||
Investment securities | 552,000,000 | 552,000,000 | 1,532,000,000 | ||
Loss on equity securities | (26,000,000) | $ 0 | (813,000,000) | $ (13,000,000) | |
Non-U.S. debt securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Investment securities, amortized cost | 8,000,000 | 8,000,000 | 30,000,000 | ||
Investment securities, gross unrealized gains | 0 | 0 | 0 | ||
Investment securities, gross unrealized losses | 0 | 0 | 0 | ||
Investment securities | $ 8,000,000 | $ 8,000,000 | $ 30,000,000 | ||
Derivative, term | 1 year |
Financial Instruments - Derivat
Financial Instruments - Derivatives and Hedging (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 40 | $ 118 |
Liabilities | (35) | (52) |
Currency exchange contracts | Derivatives accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 3 | 5 |
Liabilities | 0 | 0 |
Currency exchange contracts | Derivatives not accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 37 | 113 |
Liabilities | (25) | (52) |
Interest rate swap contracts | Derivatives accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | $ (10) | $ 0 |
Financial Instruments - Economi
Financial Instruments - Economic Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Embedded derivatives, loss | $ (2) | |||
Embedded derivatives, gain | $ 3 | $ 5 | ||
Not designated as hedging instrument, economic hedge | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total | $ (11) | 7 | 6 | 70 |
Not designated as hedging instrument, economic hedge | Currency exchange contracts | Cost of goods sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gains (losses) from derivatives | (3) | 4 | 9 | 17 |
Not designated as hedging instrument, economic hedge | Currency exchange contracts | Cost of services sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gains (losses) from derivatives | (11) | 2 | (8) | 46 |
Not designated as hedging instrument, economic hedge | Commodity derivatives | Cost of goods sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gains (losses) from derivatives | 3 | 1 | 5 | (1) |
Not designated as hedging instrument, economic hedge | Other derivatives | Other non-operating loss, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gains (losses) from derivatives | $ 0 | $ 0 | $ 0 | $ 8 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment Information - Summarize
Segment Information - Summarized Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Segment revenue | $ 5,142 | $ 4,736 | $ 9,924 | $ 10,160 | |
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes and equity in loss of affiliate | 66 | (365) | (469) | (16,458) | |
Goodwill impairment | 0 | 0 | 0 | (14,773) | $ (14,773) |
Inventory impairments | (16) | 0 | (176) | ||
Other non-operating loss, net | (63) | (244) | (689) | (219) | |
Interest expense, net | (65) | (69) | (138) | (128) | |
Operating segments | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes and equity in loss of affiliate | 444 | 221 | 824 | 583 | |
Corporate | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes and equity in loss of affiliate | (111) | (117) | (219) | (239) | |
Segment reconciling items | |||||
Summarized financial information [Abstract] | |||||
Goodwill impairment | 0 | 0 | 0 | (14,773) | |
Inventory impairments | 0 | (16) | 0 | (176) | |
Restructuring, impairment and other | (125) | (103) | (205) | (1,429) | |
Separation related | (15) | (37) | (42) | (77) | |
Other non-operating loss, net | (63) | (244) | (689) | (219) | |
Interest expense, net | (65) | (69) | (138) | (128) | |
Oilfield Services | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 2,358 | 2,411 | 4,558 | 5,550 | |
Summarized financial information [Abstract] | |||||
Goodwill impairment | (11,484) | ||||
Oilfield Services | Operating segments | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes and equity in loss of affiliate | 171 | 46 | 315 | 252 | |
Oilfield Equipment | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 637 | 696 | 1,264 | 1,407 | |
Summarized financial information [Abstract] | |||||
Goodwill impairment | (3,289) | ||||
Oilfield Equipment | Operating segments | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes and equity in loss of affiliate | 28 | (14) | 32 | (23) | |
Turbomachinery & Process Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 1,628 | 1,161 | 3,113 | 2,246 | |
Summarized financial information [Abstract] | |||||
Goodwill impairment | 0 | ||||
Turbomachinery & Process Solutions | Operating segments | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes and equity in loss of affiliate | 220 | 149 | 427 | 283 | |
Digital Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 520 | 468 | 989 | 957 | |
Summarized financial information [Abstract] | |||||
Goodwill impairment | $ 0 | ||||
Digital Solutions | Operating segments | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes and equity in loss of affiliate | $ 25 | $ 41 | $ 49 | $ 71 |
Segment Information - Capital E
Segment Information - Capital Expenditures and Depreciation and Amortization by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 278 | $ 340 | $ 570 | $ 694 |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 273 | 333 | 558 | 680 |
Operating segments | Oilfield Services | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 195 | 248 | 396 | 497 |
Operating segments | OFE | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 26 | 34 | 58 | 78 |
Operating segments | Turbo- machinery & Process Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 30 | 27 | 60 | 55 |
Operating segments | Digital Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 22 | 24 | 43 | 49 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 5 | $ 7 | $ 12 | $ 15 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)person | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||
Total current receivables, gross | $ 5,783 | $ 5,783 | $ 5,995 | ||
Investment securities held on behalf of GE | $ 552 | $ 552 | $ 1,532 | ||
C3.ai | Related Party Transactions with C3.ai | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 8.00% | 8.00% | 11.00% | ||
Subscription term | 5 years | ||||
Purchase commitment, to be paid, year one | $ 53 | $ 53 | |||
Purchase commitment, to be paid, year two | 75 | 75 | |||
Purchase commitment, to be paid, year three | 125 | 125 | |||
Purchase commitment, to be paid, year four | 150 | 150 | |||
Subscription fee | $ 28 | ||||
General Electric Company | BHH LLC | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 30.10% | ||||
GE | |||||
Related Party Transaction [Line Items] | |||||
Voting power threshold | 20.00% | ||||
Board of directors nomination, upon triggering event | person | 1 | ||||
GE | Related parties | |||||
Related Party Transaction [Line Items] | |||||
Total current receivables, gross | 343 | $ 343 | $ 429 | ||
GE | Accounts Payable, GE and its affiliates | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable, related party | 331 | 331 | 356 | ||
GE | Related party amount, due to related party | |||||
Related Party Transaction [Line Items] | |||||
Cash and cash equivalents held on behalf of GE | $ 16 | $ 16 | 45 | ||
Cash held on behalf of GE | 44 | ||||
Investment securities held on behalf of GE | $ 1 | ||||
GE | General Electric Company | BHH LLC | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 20.50% | 20.50% | 30.10% | ||
Areo JV | Purchases, GE and its affiliates | |||||
Related Party Transaction [Line Items] | |||||
Related party purchases | $ 307 | $ 346 | $ 622 | $ 609 | |
Areo JV | Sales of products and services, GE and its affiliates | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 39 | $ 49 | $ 89 | $ 105 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions | May 29, 2020USD ($) | Mar. 03, 2020USD ($) | Mar. 15, 2019USD ($) | Mar. 18, 2018USD ($) | Jan. 31, 2013 | Jun. 30, 2021EUR (€)companysubsidiary | Jun. 30, 2021USD ($) | Mar. 18, 2019USD ($) |
Loss Contingencies [Line Items] | ||||||||
Off-balance sheet arrangements | $ 4,400 | |||||||
Pending litigation | Damage from fire | INOES and Naphtachimie | ||||||||
Loss Contingencies [Line Items] | ||||||||
Plant shutdown days | 15 days | |||||||
Value of alleged damages sought | € | € 250 | |||||||
Subsidiaries participating | subsidiary | 2 | |||||||
Other companies participating | company | 17 | |||||||
Pending litigation | Lost profits and various costs | International Engineering & Construction S.A. (IEC) | ||||||||
Loss Contingencies [Line Items] | ||||||||
Value of alleged damages sought | $ 235 | $ 244.9 | $ 591 | |||||
Pending litigation | Loss of cash flow | International Engineering & Construction S.A. (IEC) | ||||||||
Loss Contingencies [Line Items] | ||||||||
Value of alleged damages sought | 700 | |||||||
Pending litigation | Liquidated damages | International Engineering & Construction S.A. (IEC) | ||||||||
Loss Contingencies [Line Items] | ||||||||
Value of alleged damages sought | 4.8 | |||||||
Pending litigation | Take-or-pay future obligations | International Engineering & Construction S.A. (IEC) | ||||||||
Loss Contingencies [Line Items] | ||||||||
Value of alleged damages sought | $ 58.6 | |||||||
Pending litigation | Legal fees | International Engineering & Construction S.A. (IEC) | ||||||||
Loss Contingencies [Line Items] | ||||||||
Value of alleged damages sought | $ 14.2 | |||||||
Pending litigation | Breach of fiduciary duties | 2018 Transactions | ||||||||
Loss Contingencies [Line Items] | ||||||||
Repurchase of stock from GE | $ 1,500 | |||||||
GE sale of stock | $ 2,500 |
Restructuring, Impairment and_3
Restructuring, Impairment and Other - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, impairment and other | $ 125 | $ 103 | $ 205 | $ 1,429 |
Intangible assets impairment | 0 | 725 | ||
Property, plant and equipment impairment | 22 | 226 | ||
Litigation and impairment of equity method investment | 73 | |||
OFS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Intangible assets impairment | 601 | |||
OFE | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Intangible assets impairment | 124 | |||
Other long-lived asset impairments | 216 | |||
Property, plant and equipment impairment | 77 | |||
Other assets | 15 | |||
Restructuring Impairmentand Other Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other asset impairment charges and foreign currency translation gain (loss), realized | $ 60 | $ 61 | $ 75 | $ 951 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other - Schedule of Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ 65 | $ 43 | $ 130 | $ 478 |
Property, plant & equipment, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 34 | 8 | 22 | 149 |
Employee-related termination expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 23 | 26 | 93 | 298 |
Contract termination fees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 0 | 1 | 1 | 22 |
Other incremental costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 8 | 8 | 14 | 9 |
Operating segments | Oilfield Services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 53 | 14 | 105 | 310 |
Operating segments | Oilfield Equipment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 0 | 1 | 1 | 99 |
Operating segments | Turbo- machinery & Process Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 6 | 12 | 14 | 20 |
Operating segments | Digital Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 1 | 10 | 3 | 34 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ 5 | $ 6 | $ 7 | $ 15 |
Assets and Liabilities of Bus_3
Assets and Liabilities of Business Held for Sale - Narrative (Details) $ in Millions | Mar. 31, 2021USD ($) |
Subsea Drilling Systems | Held for sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Consideration | $ 200 |
Cash consideration | $ 120 |
Joint Venture Company | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Joint venture ownership percentage | 50.00% |
Joint Venture Company | Akastor ASA | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Joint venture ownership percentage | 50.00% |
Assets and Liabilities of Bus_4
Assets and Liabilities of Business Held for Sale - Schedule of Assets and Liabilities of Business Held for Sale (Details) - Held for sale - Subsea Drilling Systems $ in Millions | Jun. 30, 2021USD ($) |
Assets | |
Current assets | $ 122 |
Property, plant and equipment | 107 |
Intangible assets | 122 |
All other assets | 59 |
Total assets | 410 |
Liabilities | |
Current liabilities | 57 |
All other liabilities | 7 |
Total liabilities | 64 |
Total carrying amount of net assets contributed | $ 346 |