Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 15, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-09397 | |
Registrant Name | Baker Hughes Holdings LLC | |
Entity Incorporation, State Code | DE | |
Entity Tax Identification Number | 76-0207995 | |
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 | Share 5.125% Senior Notes due 2040 | |
Trading Symbol | - | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Central Index Key | 0000808362 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Revenues | $ 5,093 | $ 5,049 | $ 15,017 | $ 15,210 |
Costs and expenses: | ||||
Selling, general and administrative | 607 | 565 | 1,836 | 1,830 |
Goodwill impairment | 0 | 0 | 0 | 14,717 |
Restructuring, impairment and other | 14 | 209 | 219 | 1,637 |
Separation related | 11 | 32 | 53 | 110 |
Total costs and expenses | 4,715 | 5,098 | 14,281 | 31,314 |
Operating income (loss) | 378 | (49) | 736 | (16,104) |
Other non-operating loss, net | (102) | (149) | (791) | (367) |
Interest expense, net | (67) | (66) | (205) | (195) |
Income (loss) before income taxes | 209 | (264) | (260) | (16,666) |
Provision for income taxes | (189) | (47) | (422) | (110) |
Net income (loss) | 20 | (311) | (682) | (16,776) |
Less: Net income attributable to noncontrolling interests | 5 | 9 | 24 | 23 |
Net income (loss) attributable to Baker Hughes Holdings LLC | 15 | (320) | (706) | (16,799) |
Sales of goods | ||||
Revenue: | ||||
Revenues | 2,984 | 3,290 | 8,997 | 9,240 |
Costs and expenses: | ||||
Costs | 2,561 | 2,920 | 7,769 | 8,296 |
Sales of services | ||||
Revenue: | ||||
Revenues | 2,109 | 1,759 | 6,020 | 5,970 |
Costs and expenses: | ||||
Costs | $ 1,522 | $ 1,372 | $ 4,404 | $ 4,724 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 20 | $ (311) | $ (682) | $ (16,776) |
Less: Net income attributable to noncontrolling interests | 5 | 9 | 24 | 23 |
Net income (loss) attributable to Baker Hughes Holdings LLC | 15 | (320) | (706) | (16,799) |
Other comprehensive income (loss): | ||||
Investment securities | 0 | 0 | 0 | (2) |
Foreign currency translation adjustments | (158) | 135 | (51) | (101) |
Cash flow hedges | (2) | 2 | (13) | (6) |
Benefit plans | 25 | (54) | 78 | (24) |
Other comprehensive income (loss) | (135) | 83 | 14 | (133) |
Less: Other comprehensive loss attributable to noncontrolling interests | (1) | 0 | (1) | (3) |
Other comprehensive income (loss) attributable to Baker Hughes Holdings LLC | (134) | 83 | 15 | (130) |
Comprehensive loss | (115) | (228) | (668) | (16,909) |
Less: Comprehensive income attributable to noncontrolling interests | 4 | 9 | 23 | 20 |
Comprehensive loss attributable to Baker Hughes Holdings LLC | $ (119) | $ (237) | $ (691) | $ (16,929) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) shares in Thousands, $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 3,917 | $ 4,125 |
Current receivables, net | 5,403 | 5,700 |
Inventories, net | 4,110 | 4,421 |
All other current assets | 1,525 | 2,280 |
Total current assets | 14,955 | 16,526 |
Property, plant and equipment (net of accumulated depreciation of $5,082 and $5,115) | 4,982 | 5,358 |
Goodwill | 5,777 | 5,739 |
Other intangible assets, net | 4,151 | 4,397 |
Contract and other deferred assets | 1,738 | 2,001 |
All other assets | 3,172 | 2,955 |
Deferred income taxes | 974 | 953 |
Total assets | 35,749 | 37,929 |
Current liabilities: | ||
Accounts payable | 3,514 | 3,532 |
Short-term debt and current portion of long-term debt | 56 | 889 |
Progress collections and deferred income | 3,263 | 3,454 |
All other current liabilities | 2,587 | 2,431 |
Total current liabilities | 9,420 | 10,306 |
Long-term debt | 6,708 | 6,744 |
Deferred income taxes | 96 | 108 |
Liabilities for pensions and other postretirement benefits | 1,132 | 1,217 |
All other liabilities | 1,385 | 1,391 |
Members' equity: | ||
Retained loss | (16,645) | (15,939) |
Accumulated other comprehensive loss | (2,527) | (2,542) |
Baker Hughes Holdings LLC equity | 16,866 | 18,031 |
Noncontrolling interests | 142 | 132 |
Total equity | 17,008 | 18,163 |
Total liabilities and equity | $ 35,749 | $ 37,929 |
Common Unit, Outstanding | 1,038,000 | 1,035,000 |
Common Units Held by Baker Hughes | ||
Members' equity: | ||
Common stock | $ 36,038 | $ 36,512 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Property, plant and equipment, accumulated depreciation | $ 5,082 | $ 5,115 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common Units Held by Baker Hughes | Members' Capital | Retained Loss | Accumulated Other Comprehensive Loss | Non- controlling Interests |
Beginning Balance at Dec. 31, 2019 | $ 34,414 | $ 36,998 | $ (110) | $ (2,589) | $ 115 | |
Comprehensive income (loss): | ||||||
Net income (loss) | (16,776) | (16,799) | 23 | |||
Other comprehensive income (loss) | (133) | (130) | (3) | |||
Dividends on Class A common stock | (558) | (558) | ||||
Baker Hughes stock-based compensation cost | 164 | 164 | ||||
Other | 29 | 37 | (4) | (4) | ||
Ending Balance at Sep. 30, 2020 | 17,140 | 36,641 | (16,913) | (2,719) | 131 | |
Beginning Balance at Jun. 30, 2020 | 17,493 | 36,762 | (16,593) | (2,802) | 126 | |
Comprehensive income (loss): | ||||||
Net income (loss) | (311) | (320) | 9 | |||
Other comprehensive income (loss) | 83 | 83 | ||||
Dividends on Class A common stock | (186) | (186) | ||||
Baker Hughes stock-based compensation cost | 52 | 52 | ||||
Other | 9 | 13 | (4) | |||
Ending Balance at Sep. 30, 2020 | 17,140 | 36,641 | (16,913) | (2,719) | 131 | |
Beginning Balance at Dec. 31, 2020 | 18,163 | 36,512 | (15,939) | (2,542) | 132 | |
Comprehensive income (loss): | ||||||
Net income (loss) | (682) | (706) | 24 | |||
Other comprehensive income (loss) | 14 | 15 | (1) | |||
Dividends on Class A common stock | (563) | (563) | ||||
Repurchase and cancellation of common units | (106) | (106) | ||||
Baker Hughes stock-based compensation cost | 153 | 153 | ||||
Other | 29 | 42 | (13) | |||
Ending Balance at Sep. 30, 2021 | 17,008 | 36,038 | (16,645) | (2,527) | 142 | |
Beginning Balance at Jun. 30, 2021 | 17,355 | 36,266 | (16,660) | (2,393) | 142 | |
Comprehensive income (loss): | ||||||
Net income (loss) | 20 | 15 | 5 | |||
Other comprehensive income (loss) | (135) | (134) | (1) | |||
Dividends on Class A common stock | (188) | (188) | ||||
Repurchase and cancellation of common units | (106) | $ (106) | (106) | |||
Baker Hughes stock-based compensation cost | 51 | 51 | ||||
Other | 11 | 15 | (4) | |||
Ending Balance at Sep. 30, 2021 | $ 17,008 | $ 36,038 | $ (16,645) | $ (2,527) | $ 142 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Common Units Held by Baker Hughes | ||||
Cash dividends per share (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.54 | $ 0.54 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (682) | $ (16,776) |
Adjustments to reconcile net loss to net cash flows from operating activities: | ||
Depreciation and amortization | 832 | 1,010 |
Loss on equity securities | 955 | 0 |
Provision (benefit) for deferred income taxes | 42 | (254) |
Property, plant and equipment impairment, net | 21 | 290 |
Goodwill impairment | 0 | 14,717 |
Intangible assets impairment | 0 | 729 |
Inventory impairment | 0 | 218 |
Loss on sale of business | 0 | 217 |
Write-down of assets held for sale | 0 | 129 |
Changes in operating assets and liabilities: | ||
Current receivables | 319 | 580 |
Inventories | 151 | (183) |
Accounts payable | (10) | (674) |
Progress collections and deferred income | (157) | 619 |
Contract and other deferred assets | 178 | (90) |
Other operating items, net | (51) | 392 |
Net cash flows from operating activities | 1,598 | 924 |
Cash flows from investing activities: | ||
Expenditures for capital assets | (590) | (801) |
Proceeds from disposal of assets | 178 | 141 |
Other investing items, net | 200 | 109 |
Net cash flows used in investing activities | (212) | (551) |
Cash flows from financing activities: | ||
Net repayments of debt and other borrowings | (60) | (170) |
Proceeds from (repayment of) commercial paper | (832) | 737 |
Proceeds from issuance of long-term debt | 0 | 500 |
Distributions to Members | (563) | (558) |
Repurchase of common units | (106) | 0 |
Other financing items, net | (24) | (15) |
Net cash flows from (used in) financing activities | (1,585) | 494 |
Effect of currency exchange rate changes on cash and cash equivalents | (9) | (59) |
Increase (decrease) in cash and cash equivalents | (208) | 808 |
Cash and cash equivalents, beginning of period | 4,125 | 3,245 |
Cash and cash equivalents, end of period | 3,917 | 4,053 |
Supplemental cash flows disclosures: | ||
Income taxes paid, net of refunds | 181 | 317 |
Interest paid | $ 204 | $ 188 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 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 Holdings LLC, a Delaware limited liability company (the Company, BHH LLC, we, us, or our) and the successor to Baker Hughes Incorporated (BHI), is an energy technology company with a diversified portfolio of technologies and services that span the entire energy value chain. As of September 30, 2021, General Electric (GE) owns 17.2% of our common units and Baker Hughes Company (Baker Hughes) owns directly or indirectly 82.8% of our common units (collectively, the Members). BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. and such principles, U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report). In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated. In the Company's financial statements and notes, certain amounts have been reclassified to conform to the current year presentation. In the notes to unaudited condensed consolidated financial statements, all dollar and common unit amounts in tabulations are in millions of dollars and units, 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 15. 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 September 30, 2021 and December 31, 2020, we had $691 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. 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 | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, Total Revenue 2021 2020 2021 2020 U.S. $ 1,199 $ 1,032 $ 3,337 $ 3,330 Non-U.S. 3,894 4,017 11,680 11,880 Total $ 5,093 $ 5,049 $ 15,017 $ 15,210 REMAINING PERFORMANCE OBLIGATIONS As of September 30, 2021 and 2020, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.5 billion and $23.0 billion, respectively. As of September 30, 2021, we expect to recognize revenue of approximately 50%, 67% and 89% 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: September 30, 2021 December 31, 2020 Progress collections $ 3,140 $ 3,352 Deferred income 123 102 Progress collections and deferred income (contract liabilities) $ 3,263 $ 3,454 Revenue recognized during the three months ended September 30, 2021 and 2020 that was included in the contract liabilities at the beginning of the period was $448 million and $501 million, respectively, and $2,033 million and $1,328 million during the nine months ended September 30, 2021 and 2020, respectively. |
Current Receivables
Current Receivables | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Current Receivables | CURRENT RECEIVABLES Current receivables are comprised of the following: September 30, 2021 December 31, 2020 Customer receivables $ 4,569 $ 4,676 Related parties 439 507 Other 782 890 Total current receivables 5,790 6,073 Less: Allowance for credit losses (387) (373) Total current receivables, net $ 5,403 $ 5,700 Customer receivables are recorded at the invoiced amount. Related parties consists primarily 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 | 9 Months Ended |
Sep. 30, 2021 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Inventories, net of reserves of $390 million and $421 million as of September 30, 2021 and December 31, 2020, respectively, are comprised of the following: September 30, 2021 December 31, 2020 Finished goods $ 2,255 $ 2,337 Work in process and raw materials 1,855 2,084 Total inventories, net $ 4,110 $ 4,421 During the three and nine months ended September 30, 2020, we recorded inventory impairments of $42 million, predominately in our Oilfield Equipment segment, and $218 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 | 9 Months Ended |
Sep. 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 $ 15,382 $ 4,186 $ 2,171 $ 2,411 $ 24,150 Accumulated impairment at December 31, 2019 (2,633) (867) — (254) (3,754) Balance at December 31, 2019 12,749 3,319 2,171 2,157 20,396 Impairment (11,428) (3,289) — — (14,717) Currency exchange and others (20) (24) 63 41 60 Balance at December 31, 2020 1,301 6 2,234 2,198 5,739 Currency exchange and others — (3) (20) 61 38 Balance at September 30, 2021 $ 1,301 $ 3 $ 2,214 $ 2,259 $ 5,777 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 Baker Hughes' market capitalization below our book value, and the magnitude and duration of those declines, if any. During the third quarter of 2021, we completed our annual impairment test and determined that the fair value was substantially in excess of the carrying value for each reporting unit resulting in no goodwill impairment. 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, Baker Hughes' market capitalization declined significantly. Baker Hughes' 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 $11,428 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: September 30, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,944 $ (749) $ 1,195 $ 2,261 $ (916) $ 1,345 Technology 1,105 (741) 364 1,127 (696) 431 Trade names and trademarks 293 (168) 125 326 (181) 145 Capitalized software 1,306 (1,062) 244 1,294 (1,041) 253 Finite-lived intangible assets 4,648 (2,720) 1,928 5,008 (2,834) 2,174 Indefinite-lived intangible assets 2,223 — 2,223 2,223 — 2,223 Total intangible assets $ 6,871 $ (2,720) $ 4,151 $ 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 September 30, 2021 and 2020 was $59 million and $75 million, respectively, and $193 million and $231 million for the nine months ended September 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 $ 58 2022 213 2023 200 2024 182 2025 135 2026 92 |
Contract and Other Deferred Ass
Contract and Other Deferred Assets | 9 Months Ended |
Sep. 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: September 30, 2021 December 31, 2020 Long-term product service agreements $ 644 $ 660 Long-term equipment contracts (1) 909 1,160 Contract assets (total revenue in excess of billings) 1,553 1,820 Deferred inventory costs 153 138 Non-recurring engineering costs 32 43 Contract and other deferred assets $ 1,738 $ 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. |
Progress Collections and Deferr
Progress Collections and Deferred Income | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, Total Revenue 2021 2020 2021 2020 U.S. $ 1,199 $ 1,032 $ 3,337 $ 3,330 Non-U.S. 3,894 4,017 11,680 11,880 Total $ 5,093 $ 5,049 $ 15,017 $ 15,210 REMAINING PERFORMANCE OBLIGATIONS As of September 30, 2021 and 2020, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.5 billion and $23.0 billion, respectively. As of September 30, 2021, we expect to recognize revenue of approximately 50%, 67% and 89% 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: September 30, 2021 December 31, 2020 Progress collections $ 3,140 $ 3,352 Deferred income 123 102 Progress collections and deferred income (contract liabilities) $ 3,263 $ 3,454 Revenue recognized during the three months ended September 30, 2021 and 2020 that was included in the contract liabilities at the beginning of the period was $448 million and $501 million, respectively, and $2,033 million and $1,328 million during the nine months ended September 30, 2021 and 2020, respectively. |
Leases
Leases | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, Operating Lease Expense 2021 2020 2021 2020 Long-term fixed lease $ 64 $ 71 $ 192 $ 213 Long-term variable lease 7 3 24 23 Short-term lease 119 102 328 382 Total operating lease expense $ 190 $ 176 $ 544 $ 618 Cash flows used in operating activities for operating leases approximates our expense for the three and nine months ended September 30, 2021 and 2020. The weighted-average remaining lease term as of September 30, 2021 and December 31, 2020 was approximately nine years and eight years for our operating leases, respectively. The weighted-average discount rate used to determine the operating lease liability as of September 30, 2021 and December 31, 2020 was 3.5% and 3.7%, respectively. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Short-term and long-term borrowings are comprised of the following: September 30, 2021 December 31, 2020 Short-term borrowings Commercial paper $ — $ 801 Short-term borrowings from GE 11 45 Other borrowings 45 43 Total short-term borrowings 56 889 Long-term borrowings 2.773% Senior Notes due December 2022 1,249 1,247 8.55% Debentures due June 2024 119 123 3.337% Senior Notes due December 2027 1,341 1,344 6.875% Notes due January 2029 280 284 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 1,293 1,297 4.08% Senior Notes due December 2047 1,337 1,337 Other long-term borrowings 70 93 Total long-term borrowings 6,708 6,744 Total borrowings $ 6,764 $ 7,633 The estimated fair value of total borrowings at September 30, 2021 and December 31, 2020 was $7,498 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 September 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 September 30, 2021, Baker Hughes Co-Obligor, Inc. is a co-obligor of our long-term debt securities totaling $6,638 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 September 30, 2021, we were in compliance with all debt covenants. See "Note 15. Related Party Transactions" for additional information on the short-term borrowings from GE. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 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 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Service cost $ 7 $ 7 $ 21 $ 21 Interest cost 15 19 47 59 Expected return on plan assets (32) (31) (95) (93) Amortization of net actuarial loss 10 9 30 25 Curtailment/settlement & other loss 1 3 1 3 Net periodic cost $ 1 $ 7 $ 4 $ 15 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 | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We are a partnership for U.S. federal tax purposes, therefore, any tax effects associated with the U.S. are recognized by our Members and not reflected in our provision for income taxes. For the three and nine months ended September 30, 2021, the provision for income taxes was $189 million and $422 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 related to uncertain tax positions. For the three months ended September 30, 2020, the provision for income taxes was $47 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. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | EQUITY COMMON UNITS The BHH LLC Agreement provides that initially there is one class of common units (Units), which are currently held by the Members. If Baker Hughes issues a share of Class A common stock, including in connection with an equity incentive or similar plan, we will also issue a corresponding Unit to Baker Hughes or one of its direct subsidiaries. For the nine months ended September 30, 2021 and 2020 we issued 7,204 thousand and 6,721 thousand Units, respectively, to Baker Hughes or one of its direct subsidiaries in connection with the issuance of its Class A common stock. The Members are entitled through their Units to receive distributions on an equal amount of any dividend paid by Baker Hughes to its Class A shareholders. During the nine months ended September 30, 2021, GE's economic interest in us was reduced to approximately 17.2% primarily as a result of the exchange of 132.7 million shares of Class B common stock, and associated Units. When shares of Class B common stock, together with associated Units, are exchanged for shares of Class A common stock pursuant to the Exchange Agreement, such shares of Class B common stock, together with associated Units, are canceled. On July 30, 2021, our Board of Directors authorized us to repurchase up to $2 billion of our Units. We expect to fund the repurchase program from cash generated from operations, and we expect to make Unit repurchases from time to time subject to the Company's capital plan, market conditions, and other factors, including regulatory restrictions. The repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. During the three months ended September 30, 2021, we repurchased and canceled 4.4 million Units for a total of $106 million. At September 30, 2021, we had authorization remaining to repurchase up to approximately $1.9 billion of our Units. The following table presents the changes in the number of Units outstanding (in thousands): Common Units Held by Baker Hughes Common Units Held by GE 2021 2020 2021 2020 Balance at January 1 723,999 650,065 311,433 377,428 Issue of Units to Baker Hughes under equity incentive plan 7,204 6,721 — — Exchange of Units 132,706 27,988 (132,706) (27,988) Repurchase and cancellation of Units (4,430) — — — Balance at September 30 859,480 684,775 178,726 349,440 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 $ — $ (2,096) $ 5 $ (451) $ (2,542) Other comprehensive income (loss) before reclassifications — (82) (6) 47 (41) Amounts reclassified from accumulated other comprehensive income (loss) — 31 (7) 32 56 Deferred taxes — — — (1) (1) Other comprehensive income (loss) — (51) (13) 78 14 Less: Other comprehensive loss attributable to noncontrolling interests — (1) — — (1) Balance at September 30, 2021 $ — $ (2,146) $ (8) $ (373) $ (2,527) Investment Securities Foreign Currency Translation Adjustments Cash Flow Hedges Benefit Plans Accumulated Other Comprehensive Loss Balance at December 31, 2019 $ 2 $ (2,274) $ 10 $ (327) $ (2,589) Other comprehensive loss before reclassifications (2) (101) (5) (56) (164) Amounts reclassified from accumulated other comprehensive income (loss) — — (2) 35 33 Deferred taxes — — 1 (3) (2) Other comprehensive (loss) (2) (101) (6) (24) (133) Less: Other comprehensive loss attributable to noncontrolling interests — (3) — — (3) Less: Other adjustments — (1) — 1 — Balance at September 30, 2020 $ — $ (2,371) $ 4 $ (352) $ (2,719) The amounts reclassified from accumulated other comprehensive loss during the nine months ended September 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). |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 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. September 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Net Balance Level 1 Level 2 Level 3 Net Balance Assets Derivatives $ — $ 19 $ — $ 19 $ — $ 118 $ — $ 118 Investment securities 403 — 9 411 1,502 — 30 1,532 Total assets 403 19 9 430 1,502 118 30 1,650 Liabilities Derivatives — (30) — (30) — (52) — (52) Total liabilities $ — $ (30) $ — $ (30) $ — $ (52) $ — $ (52) There were no transfers between Level 1, 2 and 3 during the nine months ended September 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 Purchases — 10 Proceeds at maturity (21) (168) Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) — (3) Balance at September 30 $ 9 $ 98 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. September 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) $ 9 $ — $ — $ 9 $ 30 $ — $ — $ 30 Equity securities (2) 61 345 (3) 403 76 1,431 (5) 1,502 Total $ 70 $ 345 $ (3) $ 411 $ 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 $(141) million and nil for the three months ended September 30, 2021 and 2020, respectively, and $(954) million and $(12) million for the nine months ended September 30, 2021 and 2020, respectively. As of September 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 (C3.ai Shares), with a fair value of $401 million and $1,500 million, respectively. There were no C3.ai Shares sold during the three months ended September 30, 2021. We sold approximately 2.2 million of C3.ai Shares during the nine months ended September 30, 2021 and received proceeds of $145 million. For the three and nine months ended September 30, 2021, we recorded a loss of $140 million and $955 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 15. Related Party Transactions” for further details on our agreements with C3.ai. As of September 30, 2021 and December 31, 2020, $403 million and $1,514 million of total investment securities are recorded in "All other current assets" and $9 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 September 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. September 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Currency exchange contracts $ — $ — $ 5 $ — Interest rate swap contracts — (12) — — Derivatives not accounted for as hedges Currency exchange contracts and other 19 (18) 113 (52) Total derivatives $ 19 $ (30) $ 118 $ (52) Derivatives are classified in condensed consolidated statements of financial position depending on their respective maturity date. As of September 30, 2021 and December 31, 2020, $18 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 September 30, 2021 and December 31, 2020, $27 million and $48 million of derivative liabilities are recorded in "All other current liabilities" and $4 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 nine months ended September 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. Members' Equity" for further information on activity in AOCI for cash flow hedges. As of September 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. As of September 30, 2021, we had interest rate swaps with a notional amount of $500 million that converted a portion of our $1,350 million aggregate principal amount of 3.337% fixed rate Senior Notes due 2027 into a floating rate instrument with an interest rate based on a LIBOR index as a hedge of its exposure to changes in fair value that are attributable to interest rate risk. 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Currency exchange contracts (1) Cost of goods sold $ (2) $ 20 $ 7 $ 37 Currency exchange contracts Cost of services sold 8 17 — 63 Commodity derivatives Cost of goods sold — 3 5 2 Other derivatives Other non-operating loss, net — — — 8 Total (2) $ 6 $ 40 $ 12 $ 110 (1) Excludes gains of $2 million and losses of $14 million on embedded derivatives for the three months ended September 30, 2021 and 2020, respectively, and gains of $5 million and losses of $9 million during the nine months ended September 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 $5.3 billion and $7.0 billion at September 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 September 30, 2021 and December 31, 2020, the carrying amount of equity securities without readily determinable fair values was $572 million and $554 million, respectively, and includes $500 million related to our five percent investment in ADNOC Drilling. These investments are recorded in "All other assets" of the condensed consolidated statements of financial position. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 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. These products and services operate across upstream oil & gas and broader energy and industrial markets. OILFIELD SERVICES (OFS) Oilfield Services provides discrete products and integrated well services for onshore and offshore operations across the lifecycle of a well, ranging from drilling, evaluation, completion, production, and intervention. Products and services include drilling services, including directional drilling technology, measurement while drilling & logging while drilling, oilfield and industrial chemicals, artificial lift technologies, including electrical submersible pumps, downhole completion tools and systems, wellbore intervention tools and services, pressure pumping, drilling and completions fluids, wireline services and diamond and tri-cone drill bits. 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, 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 technology solutions and services for mechanical-drive, compression and power-generation applications across the energy industry, including oil and gas, liquefied natural gas (LNG) operations, downstream refining and petrochemical segments, as well as decarbonization solutions to broader energy and industrial sectors. 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), turnkey solutions (industrial modules and waste heat recovery), pumps, valves, and compressed natural gas (CNG) and small-scale LNG solutions. 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 a number of products and solutions that provide industrial asset management capabilities, including sensor-based process measurement, machine health and condition monitoring, asset strategy and management, control systems, as well as non-destructive testing and inspection, and 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 September 30, Nine Months Ended September 30, Segment revenue 2021 2020 2021 2020 Oilfield Services $ 2,419 $ 2,308 $ 6,976 $ 7,858 Oilfield Equipment 603 726 1,867 2,133 Turbomachinery & Process Solutions 1,562 1,513 4,675 3,759 Digital Solutions 510 503 1,499 1,460 Total $ 5,093 $ 5,049 $ 15,017 $ 15,210 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 September 30, Nine Months Ended September 30, Segment income (loss) before income taxes 2021 2020 2021 2020 Oilfield Services $ 190 $ 93 $ 505 $ 345 Oilfield Equipment 14 19 45 (4) Turbomachinery & Process Solutions 278 191 705 473 Digital Solutions 26 46 75 117 Total segment 508 349 1,330 931 Corporate (105) (115) (324) (353) Goodwill impairment — — — (14,717) Inventory impairment (1) — (42) — (218) Restructuring, impairment and other (14) (209) (219) (1,637) Separation related (11) (32) (53) (110) Other non-operating loss, net (102) (149) (791) (367) Interest expense, net (67) (66) (205) (195) Income (loss) before income taxes $ 209 $ (264) $ (260) $ (16,666) (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 September 30, Nine Months Ended September 30, Segment depreciation and amortization 2021 2020 2021 2020 Oilfield Services $ 183 $ 217 $ 578 $ 714 Oilfield Equipment 22 35 81 114 Turbomachinery & Process Solutions 30 33 90 87 Digital Solutions 22 24 66 73 Total segment 257 309 815 988 Corporate 5 6 17 22 Total $ 262 $ 315 $ 832 $ 1,010 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS WITH GE Our most significant related party transactions are transactions that we have entered into with our Members and their affiliates. We have continuing involvement with GE primarily through their remaining interest in us, 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. We also enter into certain transactions with Baker Hughes as provided in the BHH LLC Agreement. Until GE and its affiliates own less than 20% of the voting power of Baker Hughes' outstanding common stock, which includes both Class A and B common stock, GE is entitled to designate one person for nomination to our board of directors. At September 30, 2021 and December 31, 2020, GE's ownership interest in BHH LLC was 17.2% and 30.1%, respectively. At September 30, 2021, GE owned Class A common stock in addition to their Class B common stock, which represents their overall Baker Hughes ownership of 20.6%. 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 $366 million and $384 million during the three months ended September 30, 2021 and 2020, respectively, and $988 million and $993 million during the nine months ended September 30, 2021 and 2020, respectively. In addition, we sold products and services to GE and its affiliates for $48 million and $46 million during the three months ended September 30, 2021 and 2020, respectively, and $136 million and $150 million during the nine months ended September 30, 2021 and 2020, respectively. The Company has $300 million and $356 million of accounts payable at September 30, 2021 and December 31, 2020, respectively, for goods and services provided by GE in the ordinary course of business. The Company has $362 million and $429 million of current receivables at September 30, 2021 and December 31, 2020, respectively, for goods and services provided to GE in the ordinary course of business. Additionally, the Company has $77 million and $78 million of current receivables at September 30, 2021 and December 31, 2020, respectively, from Baker Hughes. 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 September 30, 2021, of the $11 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 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 $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, 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. See “Note 13. Financial Instruments” for further discussion of our investment in C3.ai. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 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 Baker Hughes' behalf against GE, the then-current members of the Board of Directors of Baker Hughes and Baker Hughes as a nominal defendant, related to the decision to (i) terminate the contractual prohibition barring GE from selling any of Baker Hughes' shares before July 3, 2019; (ii) repurchase $1.5 billion in Baker Hughes' stock from GE; (iii) permit GE to sell approximately $2.5 billion in Baker Hughes' stock through a secondary offering; and (iv) enter into a series of other agreements and amendments that will govern the ongoing relationship between Baker Hughes and GE (collectively, the “2018 Transactions”). The complaints in both lawsuits allege, among other things, that GE, as Baker Hughes' controlling stockholder, and the members of Baker Hughes' 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 Baker Hughes, 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 Baker Hughes' 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 Baker Hughes' Board of Directors to pursue the claims itself, and GE and Baker Hughes' 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, Baker Hughes' 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, Baker Hughes received a document request from the United States Department of Justice (the “DOJ”) related to certain of Baker Hughes' operations in Iraq and its dealings with Unaoil Limited and its affiliates. In December 2019, Baker Hughes received a similar document request from the SEC. Baker Hughes has cooperated with the DOJ and the SEC in connection with their requests and any related matters. On September 30, 2021, Baker Hughes was informed that the matter has been closed and no enforcement action has been taken. 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, Baker Hughes received notice that the SEC is conducting a formal investigation that Baker Hughes 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. Baker Hughes is cooperating with the SEC and providing requested information. Baker Hughes has also initiated an internal review with the assistance of external legal counsel regarding internal controls and compliance related to U.S. sanctions requirements. While Baker Hughes' review remains ongoing, in September 2021, Baker Hughes voluntarily informed the Office of Foreign Assets Control (OFAC) that non-U.S. Baker Hughes affiliates in two foreign countries appear to have received payments, involving U.S. touchpoints, that are subject to debt restrictions pursuant to applicable U.S. sanctions laws. Although the value of the payments in connection with the identified transactions is immaterial, Baker Hughes is unable to determine at this time if any remedial or other actions may be taken by OFAC. Baker Hughes provided a copy of the letter to the SEC, and, as the SEC investigation is ongoing, Baker Hughes 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 $4.5 billion at September 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 | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment and Other | RESTRUCTURING, IMPAIRMENT AND OTHERWe recorded restructuring, impairment and other charges of $14 million and $209 million during the three months ended September 30, 2021 and 2020, respectively, and $219 million and $1,637 million during the nine months ended September 30, 2021 and 2020, respectively. Charges incurred in 2021 are primarily related to 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Oilfield Services $ 14 $ 144 $ 119 $ 453 Oilfield Equipment 3 21 4 121 Turbomachinery & Process Solutions (3) 7 11 27 Digital Solutions — 18 3 52 Corporate — 1 7 15 Total $ 14 $ 191 $ 144 $ 668 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Property, plant & equipment, net $ (1) $ 65 $ 21 $ 214 Employee-related termination expenses 1 108 94 406 Contract termination fees 3 1 4 23 Other incremental costs 11 17 25 25 Total $ 14 $ 191 $ 144 $ 668 OTHER During the three months ended September 30, 2021, there were no other charges incurred. During the nine months ended September 30, 2021, we incurred other charges of $75 million. During the three and nine months ended September 30, 2020, we incurred other charges of $18 million and $969 million, respectively. Charges for the nine months ended September 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 nine months ended September 30, 2020 were comprised of intangible asset impairments of $605 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, and charges related to corporate facility rationalization. |
Assets and Liabilities of Busin
Assets and Liabilities of Business Held for Sale | 9 Months Ended |
Sep. 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 known as HMH and owned 50-50 by Baker Hughes and Akastor ASA. Consequently, on October 1, 2021, we closed the transaction and contributed our subsea drilling systems (SDS) business, a division of our Oilfield Equipment segment, to the JV Company and received as consideration 50% of the shares of the JV Company and $200 million cash of which $120 million was paid at the time of closing. The JV Company issued notes to Baker Hughes for $80 million representing the balance of the consideration owed that will be subordinated to the JV Company’s external debt financing. Our ongoing operations in the JV Company will not be integral to our operations. The Company's interest in the JV Company will be accounted for as an equity method investment. As of September 30, 2021, the SDS business was classified as held for sale and 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 September 30, 2021. Assets and liabilities of business held for sale September 30, 2021 Assets Current assets (1) $ 122 Property, plant and equipment 108 Intangible assets 122 All other assets 56 Total assets 408 Liabilities Current liabilities 48 All other liabilities 6 Total liabilities 54 Total carrying amount of net assets contributed $ 354 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 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 Securities and Exchange Commission (SEC) for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report). In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated. In the Company's financial statements and notes, certain amounts have been reclassified to conform to the current year presentation. In the notes to unaudited condensed consolidated financial statements, all dollar and common unit amounts in tabulations are in millions of dollars and units, 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 15. Related Party Transactions" for further information. |
Cash and Cash Equivalents | Cash and Cash Equivalents As of September 30, 2021 and December 31, 2020, we had $691 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. |
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) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, Total Revenue 2021 2020 2021 2020 U.S. $ 1,199 $ 1,032 $ 3,337 $ 3,330 Non-U.S. 3,894 4,017 11,680 11,880 Total $ 5,093 $ 5,049 $ 15,017 $ 15,210 |
Current Receivables (Tables)
Current Receivables (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Current receivables | Current receivables are comprised of the following: September 30, 2021 December 31, 2020 Customer receivables $ 4,569 $ 4,676 Related parties 439 507 Other 782 890 Total current receivables 5,790 6,073 Less: Allowance for credit losses (387) (373) Total current receivables, net $ 5,403 $ 5,700 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory, Net [Abstract] | |
Inventories, net of reserves | Inventories, net of reserves of $390 million and $421 million as of September 30, 2021 and December 31, 2020, respectively, are comprised of the following: September 30, 2021 December 31, 2020 Finished goods $ 2,255 $ 2,337 Work in process and raw materials 1,855 2,084 Total inventories, net $ 4,110 $ 4,421 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 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 $ 15,382 $ 4,186 $ 2,171 $ 2,411 $ 24,150 Accumulated impairment at December 31, 2019 (2,633) (867) — (254) (3,754) Balance at December 31, 2019 12,749 3,319 2,171 2,157 20,396 Impairment (11,428) (3,289) — — (14,717) Currency exchange and others (20) (24) 63 41 60 Balance at December 31, 2020 1,301 6 2,234 2,198 5,739 Currency exchange and others — (3) (20) 61 38 Balance at September 30, 2021 $ 1,301 $ 3 $ 2,214 $ 2,259 $ 5,777 |
Schedule of finite-lived intangible assets | Intangible assets are comprised of the following: September 30, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,944 $ (749) $ 1,195 $ 2,261 $ (916) $ 1,345 Technology 1,105 (741) 364 1,127 (696) 431 Trade names and trademarks 293 (168) 125 326 (181) 145 Capitalized software 1,306 (1,062) 244 1,294 (1,041) 253 Finite-lived intangible assets 4,648 (2,720) 1,928 5,008 (2,834) 2,174 Indefinite-lived intangible assets 2,223 — 2,223 2,223 — 2,223 Total intangible assets $ 6,871 $ (2,720) $ 4,151 $ 7,231 $ (2,834) $ 4,397 |
Schedule of indefinite-lived intangible assets | Intangible assets are comprised of the following: September 30, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,944 $ (749) $ 1,195 $ 2,261 $ (916) $ 1,345 Technology 1,105 (741) 364 1,127 (696) 431 Trade names and trademarks 293 (168) 125 326 (181) 145 Capitalized software 1,306 (1,062) 244 1,294 (1,041) 253 Finite-lived intangible assets 4,648 (2,720) 1,928 5,008 (2,834) 2,174 Indefinite-lived intangible assets 2,223 — 2,223 2,223 — 2,223 Total intangible assets $ 6,871 $ (2,720) $ 4,151 $ 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 $ 58 2022 213 2023 200 2024 182 2025 135 2026 92 |
Contract and Other Deferred A_2
Contract and Other Deferred Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract assets | Contract assets are comprised of the following: September 30, 2021 December 31, 2020 Long-term product service agreements $ 644 $ 660 Long-term equipment contracts (1) 909 1,160 Contract assets (total revenue in excess of billings) 1,553 1,820 Deferred inventory costs 153 138 Non-recurring engineering costs 32 43 Contract and other deferred assets $ 1,738 $ 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. September 30, 2021 December 31, 2020 Progress collections $ 3,140 $ 3,352 Deferred income 123 102 Progress collections and deferred income (contract liabilities) $ 3,263 $ 3,454 |
Progress Collections and Defe_2
Progress Collections and Deferred Income (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Contract liabilities | Contract assets are comprised of the following: September 30, 2021 December 31, 2020 Long-term product service agreements $ 644 $ 660 Long-term equipment contracts (1) 909 1,160 Contract assets (total revenue in excess of billings) 1,553 1,820 Deferred inventory costs 153 138 Non-recurring engineering costs 32 43 Contract and other deferred assets $ 1,738 $ 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. September 30, 2021 December 31, 2020 Progress collections $ 3,140 $ 3,352 Deferred income 123 102 Progress collections and deferred income (contract liabilities) $ 3,263 $ 3,454 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, Operating Lease Expense 2021 2020 2021 2020 Long-term fixed lease $ 64 $ 71 $ 192 $ 213 Long-term variable lease 7 3 24 23 Short-term lease 119 102 328 382 Total operating lease expense $ 190 $ 176 $ 544 $ 618 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Short-term and long-term borrowings | Short-term and long-term borrowings are comprised of the following: September 30, 2021 December 31, 2020 Short-term borrowings Commercial paper $ — $ 801 Short-term borrowings from GE 11 45 Other borrowings 45 43 Total short-term borrowings 56 889 Long-term borrowings 2.773% Senior Notes due December 2022 1,249 1,247 8.55% Debentures due June 2024 119 123 3.337% Senior Notes due December 2027 1,341 1,344 6.875% Notes due January 2029 280 284 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 1,293 1,297 4.08% Senior Notes due December 2047 1,337 1,337 Other long-term borrowings 70 93 Total long-term borrowings 6,708 6,744 Total borrowings $ 6,764 $ 7,633 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic cost | The components of net periodic cost are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Service cost $ 7 $ 7 $ 21 $ 21 Interest cost 15 19 47 59 Expected return on plan assets (32) (31) (95) (93) Amortization of net actuarial loss 10 9 30 25 Curtailment/settlement & other loss 1 3 1 3 Net periodic cost $ 1 $ 7 $ 4 $ 15 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of changes in number of shares outstanding | The following table presents the changes in the number of Units outstanding (in thousands): Common Units Held by Baker Hughes Common Units Held by GE 2021 2020 2021 2020 Balance at January 1 723,999 650,065 311,433 377,428 Issue of Units to Baker Hughes under equity incentive plan 7,204 6,721 — — Exchange of Units 132,706 27,988 (132,706) (27,988) Repurchase and cancellation of Units (4,430) — — — Balance at September 30 859,480 684,775 178,726 349,440 |
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 $ — $ (2,096) $ 5 $ (451) $ (2,542) Other comprehensive income (loss) before reclassifications — (82) (6) 47 (41) Amounts reclassified from accumulated other comprehensive income (loss) — 31 (7) 32 56 Deferred taxes — — — (1) (1) Other comprehensive income (loss) — (51) (13) 78 14 Less: Other comprehensive loss attributable to noncontrolling interests — (1) — — (1) Balance at September 30, 2021 $ — $ (2,146) $ (8) $ (373) $ (2,527) Investment Securities Foreign Currency Translation Adjustments Cash Flow Hedges Benefit Plans Accumulated Other Comprehensive Loss Balance at December 31, 2019 $ 2 $ (2,274) $ 10 $ (327) $ (2,589) Other comprehensive loss before reclassifications (2) (101) (5) (56) (164) Amounts reclassified from accumulated other comprehensive income (loss) — — (2) 35 33 Deferred taxes — — 1 (3) (2) Other comprehensive (loss) (2) (101) (6) (24) (133) Less: Other comprehensive loss attributable to noncontrolling interests — (3) — — (3) Less: Other adjustments — (1) — 1 — Balance at September 30, 2020 $ — $ (2,371) $ 4 $ (352) $ (2,719) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 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. September 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Net Balance Level 1 Level 2 Level 3 Net Balance Assets Derivatives $ — $ 19 $ — $ 19 $ — $ 118 $ — $ 118 Investment securities 403 — 9 411 1,502 — 30 1,532 Total assets 403 19 9 430 1,502 118 30 1,650 Liabilities Derivatives — (30) — (30) — (52) — (52) Total liabilities $ — $ (30) $ — $ (30) $ — $ (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 Purchases — 10 Proceeds at maturity (21) (168) Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) — (3) Balance at September 30 $ 9 $ 98 |
Schedule of investment securities classified as available for sale | September 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) $ 9 $ — $ — $ 9 $ 30 $ — $ — $ 30 Equity securities (2) 61 345 (3) 403 76 1,431 (5) 1,502 Total $ 70 $ 345 $ (3) $ 411 $ 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 $(141) million and nil for the three months ended September 30, 2021 and 2020, respectively, and $(954) million and $(12) million for the nine months ended September 30, 2021 and 2020, respectively. |
Schedule of derivatives | The table below summarizes the fair value of all derivatives, including hedging instruments and embedded derivatives. September 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Currency exchange contracts $ — $ — $ 5 $ — Interest rate swap contracts — (12) — — Derivatives not accounted for as hedges Currency exchange contracts and other 19 (18) 113 (52) Total derivatives $ 19 $ (30) $ 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Currency exchange contracts (1) Cost of goods sold $ (2) $ 20 $ 7 $ 37 Currency exchange contracts Cost of services sold 8 17 — 63 Commodity derivatives Cost of goods sold — 3 5 2 Other derivatives Other non-operating loss, net — — — 8 Total (2) $ 6 $ 40 $ 12 $ 110 (1) Excludes gains of $2 million and losses of $14 million on embedded derivatives for the three months ended September 30, 2021 and 2020, respectively, and gains of $5 million and losses of $9 million during the nine months ended September 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) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, Segment revenue 2021 2020 2021 2020 Oilfield Services $ 2,419 $ 2,308 $ 6,976 $ 7,858 Oilfield Equipment 603 726 1,867 2,133 Turbomachinery & Process Solutions 1,562 1,513 4,675 3,759 Digital Solutions 510 503 1,499 1,460 Total $ 5,093 $ 5,049 $ 15,017 $ 15,210 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 September 30, Nine Months Ended September 30, Segment income (loss) before income taxes 2021 2020 2021 2020 Oilfield Services $ 190 $ 93 $ 505 $ 345 Oilfield Equipment 14 19 45 (4) Turbomachinery & Process Solutions 278 191 705 473 Digital Solutions 26 46 75 117 Total segment 508 349 1,330 931 Corporate (105) (115) (324) (353) Goodwill impairment — — — (14,717) Inventory impairment (1) — (42) — (218) Restructuring, impairment and other (14) (209) (219) (1,637) Separation related (11) (32) (53) (110) Other non-operating loss, net (102) (149) (791) (367) Interest expense, net (67) (66) (205) (195) Income (loss) before income taxes $ 209 $ (264) $ (260) $ (16,666) (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 September 30, Nine Months Ended September 30, Segment depreciation and amortization 2021 2020 2021 2020 Oilfield Services $ 183 $ 217 $ 578 $ 714 Oilfield Equipment 22 35 81 114 Turbomachinery & Process Solutions 30 33 90 87 Digital Solutions 22 24 66 73 Total segment 257 309 815 988 Corporate 5 6 17 22 Total $ 262 $ 315 $ 832 $ 1,010 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Oilfield Services $ 14 $ 144 $ 119 $ 453 Oilfield Equipment 3 21 4 121 Turbomachinery & Process Solutions (3) 7 11 27 Digital Solutions — 18 3 52 Corporate — 1 7 15 Total $ 14 $ 191 $ 144 $ 668 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Property, plant & equipment, net $ (1) $ 65 $ 21 $ 214 Employee-related termination expenses 1 108 94 406 Contract termination fees 3 1 4 23 Other incremental costs 11 17 25 25 Total $ 14 $ 191 $ 144 $ 668 |
Assets and Liabilities of Bus_2
Assets and Liabilities of Business Held for Sale (Tables) | 9 Months Ended |
Sep. 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 September 30, 2021. Assets and liabilities of business held for sale September 30, 2021 Assets Current assets (1) $ 122 Property, plant and equipment 108 Intangible assets 122 All other assets 56 Total assets 408 Liabilities Current liabilities 48 All other liabilities 6 Total liabilities 54 Total carrying amount of net assets contributed $ 354 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Restricted cash and cash equivalents held in bank accounts | $ 691 | $ 687 |
BHH LLC | ||
Business Acquisition [Line Items] | ||
Approximate interest | 82.80% | |
BHH LLC | GE | GE | ||
Business Acquisition [Line Items] | ||
Ownership percentage by noncontrolling owners | 17.20% | 30.10% |
Revenue Related to Contracts _3
Revenue Related to Contracts with Customers - Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 5,093 | $ 5,049 | $ 15,017 | $ 15,210 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,199 | 1,032 | 3,337 | 3,330 |
Non-U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 3,894 | $ 4,017 | $ 11,680 | $ 11,880 |
Revenue Related to Contracts _4
Revenue Related to Contracts with Customers - Narrative (Details) - USD ($) $ in Billions | Sep. 30, 2021 | Sep. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Performance obligations expected to be satisfied | $ 23.5 | $ 23 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Period one | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations expected to be satisfied, percent | 50.00% | |
Performance obligations expected to be satisfied, expected timing | 2 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Period two | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations expected to be satisfied, percent | 67.00% | |
Performance obligations expected to be satisfied, expected timing | 5 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Period three | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations expected to be satisfied, percent | 89.00% | |
Performance obligations expected to be satisfied, expected timing | 15 years |
Current Receivables (Details)
Current Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables | $ 5,790 | $ 6,073 |
Less: Allowance for credit losses | (387) | (373) |
Total current receivables, net | 5,403 | 5,700 |
Customer receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables | 4,569 | 4,676 |
Related parties | GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables | 439 | 507 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables | $ 782 | $ 890 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Inventory, Net [Abstract] | ||||
Inventory valuation reserves | $ 390 | $ 421 | ||
Finished goods | 2,255 | 2,337 | ||
Work in process and raw materials | 1,855 | 2,084 | ||
Total inventories, net | 4,110 | $ 4,421 | ||
Inventory impairment | $ 42 | $ 0 | $ 218 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||||
Balance at December 31, 2019, gross | $ 24,150 | |||||
Accumulated impairment at December 31, 2019 | (3,754) | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, net, beginning balance | $ 5,739 | $ 20,396 | $ 20,396 | |||
Impairment | $ 0 | $ 0 | 0 | (14,717) | (14,717) | |
Currency exchange and others | 38 | 60 | ||||
Goodwill, net, ending balance | 5,777 | 5,777 | 5,739 | |||
Oilfield Services | ||||||
Goodwill [Line Items] | ||||||
Balance at December 31, 2019, gross | 15,382 | |||||
Accumulated impairment at December 31, 2019 | (2,633) | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, net, beginning balance | 1,301 | 12,749 | 12,749 | |||
Impairment | (11,428) | |||||
Currency exchange and others | 0 | (20) | ||||
Goodwill, net, ending balance | 1,301 | 1,301 | 1,301 | |||
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 | (20) | 63 | ||||
Goodwill, net, ending balance | 2,214 | 2,214 | 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 | 61 | 41 | ||||
Goodwill, net, ending balance | $ 2,259 | $ 2,259 | $ 2,198 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 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 | $ 14,717 | $ 14,717 | ||
Amortization expense for intangible assets included in net income | $ 59 | $ 75 | $ 193 | $ 231 | |||
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 | $ 11,428 | ||||||
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-lived intangible assets | ||
Gross Carrying Amount | $ 4,648 | $ 5,008 |
Accumulated Amortization | (2,720) | (2,834) |
Net | 1,928 | 2,174 |
Indefinite-lived intangible assets | 2,223 | 2,223 |
Total intangible assets, Gross Carrying Amount | 6,871 | 7,231 |
Total intangible assets, Net | 4,151 | 4,397 |
Customer relationships | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 1,944 | 2,261 |
Accumulated Amortization | (749) | (916) |
Net | 1,195 | 1,345 |
Technology | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 1,105 | 1,127 |
Accumulated Amortization | (741) | (696) |
Net | 364 | 431 |
Trade names and trademarks | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 293 | 326 |
Accumulated Amortization | (168) | (181) |
Net | 125 | 145 |
Capitalized software | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 1,306 | 1,294 |
Accumulated Amortization | (1,062) | (1,041) |
Net | $ 244 | $ 253 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Future Estimated Amortization Expense (Details) $ in Millions | Sep. 30, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 58 |
2022 | 213 |
2023 | 200 |
2024 | 182 |
2025 | 135 |
2026 | $ 92 |
Contract and Other Deferred A_3
Contract and Other Deferred Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Contract assets (revenue in excess of billings) | $ 1,553 | $ 1,553 | $ 1,820 | ||
Deferred inventory costs | 153 | 153 | 138 | ||
Non-recurring engineering costs | 32 | 32 | 43 | ||
Contract and other deferred assets | 1,738 | 1,738 | 2,001 | ||
Revenue recognized from performance obligations satisfied in previous periods | 9 | $ (8) | 18 | $ 22 | |
Long-term product service agreements | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Contract assets (revenue in excess of billings) | 644 | 644 | 660 | ||
Long-term equipment contracts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Contract assets (revenue in excess of billings) | $ 909 | $ 909 | $ 1,160 |
Progress Collections and Defe_3
Progress Collections and Deferred Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Progress collections and deferred income (contract liabilities) | $ 3,263 | $ 3,263 | $ 3,454 | ||
Revenue recognized, included in contract liability | 448 | $ 501 | 2,033 | $ 1,328 | |
Progress collections | |||||
Disaggregation of Revenue [Line Items] | |||||
Progress collections and deferred income (contract liabilities) | 3,140 | 3,140 | 3,352 | ||
Deferred income | |||||
Disaggregation of Revenue [Line Items] | |||||
Progress collections and deferred income (contract liabilities) | $ 123 | $ 123 | $ 102 |
Leases - Operating Lease Expens
Leases - Operating Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Lease Expense | ||||
Long-term fixed lease | $ 64 | $ 71 | $ 192 | $ 213 |
Long-term variable lease | 7 | 3 | 24 | 23 |
Short-term lease | 119 | 102 | 328 | 382 |
Total operating lease expense | $ 190 | $ 176 | $ 544 | $ 618 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease, weighted-average remaining lease term | 9 years | 8 years |
Operating lease, weighted-average discount rate | 3.50% | 3.70% |
Borrowings - Short-term and Lon
Borrowings - Short-term and Long-term Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Short-term borrowings | ||
Total short-term borrowings | $ 56 | $ 889 |
Long-term borrowings | ||
Other long-term borrowings | 70 | 93 |
Total long-term borrowings | 6,708 | 6,744 |
Total borrowings | $ 6,764 | 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 | $ 280 | 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 | $ 1,249 | 1,247 |
Senior Notes | 3.337% Senior Notes due December 2027 | ||
Long-term borrowings | ||
Long-term borrowings | 1,341 | 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 | 1,293 | 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 | 119 | 123 |
Commercial paper | ||
Short-term borrowings | ||
Total short-term borrowings | 0 | 801 |
Short-term borrowings from GE | ||
Short-term borrowings | ||
Total short-term borrowings | 11 | 45 |
Other borrowings | ||
Short-term borrowings | ||
Total short-term borrowings | $ 45 | $ 43 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2021 | Apr. 30, 2021 | Apr. 29, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||||
Estimated fair value of debt | $ 7,498,000,000 | $ 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 | $ 6,638,000,000 | |||
BHH LLC | Revolving credit facility | The 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 | 9 Months Ended |
Sep. 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 7 | $ 7 | $ 21 | $ 21 |
Interest cost | 15 | 19 | 47 | 59 |
Expected return on plan assets | (32) | (31) | (95) | (93) |
Amortization of net actuarial loss | 10 | 9 | 30 | 25 |
Curtailment/settlement & other loss | 1 | 3 | 1 | 3 |
Net periodic cost | $ 1 | $ 7 | $ 4 | $ 15 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ (189) | $ (47) | $ (422) | $ (110) |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Jul. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||||
Repurchase and cancellation of common units | $ 106 | $ 106 | ||
BHH LLC | ||||
Class of Stock [Line Items] | ||||
Authorized stock repurchase (in shares) | 2,000,000,000 | |||
Remaining authorized repurchase amount | $ 1,900 | $ 1,900 | ||
BHH LLC | GE | GE | ||||
Class of Stock [Line Items] | ||||
Ownership percentage by noncontrolling owners | 17.20% | 17.20% | 30.10% | |
Common Units Held by Baker Hughes | ||||
Class of Stock [Line Items] | ||||
Stock repurchased and canceled (in shares) | 4,400,000 | |||
Repurchase and cancellation of common units | $ 106 | |||
Common Units Held by GE | BHH LLC | ||||
Class of Stock [Line Items] | ||||
Exchange of Class B common stock for Class A common stock (in shares) | 132,700,000 |
Equity - Changes in Number of S
Equity - Changes in Number of Shares Outstanding (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Common Units Held by GE | BHH LLC | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Exchange of Class B common stock for Class A common stock (in shares) | (132,700) | |
Common Stock | Common Units Held by Baker Hughes | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 723,999 | 650,065 |
Exchange of Class B common stock for Class A common stock (in shares) | (132,706) | (27,988) |
Repurchase and cancellation of Class A common stock (in shares) | (4,430) | 0 |
Ending balance (in shares) | 859,480 | 684,775 |
Common Stock | Common Units Held by Baker Hughes | Restricted Stock Units (RSUs) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Issue of shares upon vesting of restricted stock units (in shares) | 7,204 | 6,721 |
Common Stock | Common Units Held by GE | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 311,433 | 377,428 |
Exchange of Class B common stock for Class A common stock (in shares) | (132,706) | (27,988) |
Repurchase and cancellation of Class A common stock (in shares) | 0 | 0 |
Ending balance (in shares) | 178,726 | 349,440 |
Common Stock | Common Units Held by GE | Restricted Stock Units (RSUs) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Issue of shares upon vesting of restricted stock units (in shares) | 0 | 0 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 17,355 | $ 17,493 | $ 18,163 | $ 34,414 |
Other comprehensive income (loss) before reclassifications | (41) | (164) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 56 | 33 | ||
Deferred taxes | (1) | (2) | ||
Other comprehensive income (loss) | (135) | 83 | 14 | (133) |
Less: Other comprehensive loss attributable to noncontrolling interests | (1) | 0 | (1) | (3) |
Less: Other adjustments | 0 | |||
Ending Balance | 17,008 | 17,140 | 17,008 | 17,140 |
Investment Securities, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | 2 | ||
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 loss attributable to noncontrolling interests | 0 | 0 | ||
Less: Other adjustments | 0 | |||
Foreign Currency Translation Adjustment, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (2,096) | (2,274) | ||
Ending Balance | (2,146) | (2,371) | (2,146) | (2,371) |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | (82) | (101) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 31 | 0 | ||
Deferred taxes | 0 | 0 | ||
Other comprehensive income (loss) | (51) | (101) | ||
Foreign Currency Translation Adjustments, Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Less: Other comprehensive loss attributable to noncontrolling interests | (1) | (3) | ||
Less: Other adjustments | (1) | |||
Cash Flow Hedges, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 5 | 10 | ||
Ending Balance | (8) | 4 | (8) | 4 |
Cash Flow Hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | (6) | (5) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (7) | (2) | ||
Deferred taxes | 0 | 1 | ||
Other comprehensive income (loss) | (13) | (6) | ||
Cash Flow Hedges, Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Less: Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | ||
Less: Other adjustments | 0 | |||
Benefit Plans, Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (451) | (327) | ||
Ending Balance | (373) | (352) | (373) | (352) |
Benefit Plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | 47 | (56) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 32 | 35 | ||
Deferred taxes | (1) | (3) | ||
Other comprehensive income (loss) | 78 | (24) | ||
Benefit Plans, Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Less: Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | ||
Less: Other adjustments | 1 | |||
Accumulated Other Comprehensive Loss | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (2,393) | (2,802) | (2,542) | (2,589) |
Other comprehensive income (loss) | (134) | 83 | 15 | (130) |
Ending Balance | $ (2,527) | $ (2,719) | $ (2,527) | $ (2,719) |
Financial Instruments - Recurri
Financial Instruments - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Investment securities | $ 411 | $ 1,532 |
Total assets | 19 | 118 |
Liabilities | ||
Total liabilities | (30) | (52) |
Recurring basis | ||
Assets | ||
Derivatives | 19 | 118 |
Investment securities | 411 | 1,532 |
Total assets | 430 | 1,650 |
Liabilities | ||
Derivatives | (30) | (52) |
Total liabilities | (30) | (52) |
Recurring basis | Level 1 | ||
Assets | ||
Derivatives | 0 | 0 |
Investment securities | 403 | 1,502 |
Total assets | 403 | 1,502 |
Liabilities | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring basis | Level 2 | ||
Assets | ||
Derivatives | 19 | 118 |
Investment securities | 0 | 0 |
Total assets | 19 | 118 |
Liabilities | ||
Derivatives | (30) | (52) |
Total liabilities | (30) | (52) |
Recurring basis | Level 3 | ||
Assets | ||
Derivatives | 0 | 0 |
Investment securities | 9 | 30 |
Total assets | 9 | 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 | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 30 | $ 259 |
Purchases | 0 | 10 |
Proceeds at maturity | (21) | (168) |
Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) | 0 | (3) |
Ending balance | $ 9 | $ 98 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investment securities | $ 411,000,000 | $ 411,000,000 | $ 1,532,000,000 |
Notional amount | 5,300,000,000 | 5,300,000,000 | 7,000,000,000 |
Equity securities without readily determinable fair values | 572,000,000 | 572,000,000 | 554,000,000 |
ADNOC Drilling | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Equity securities without readily determinable fair values | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 |
Investment percent | 5.00% | 5.00% | |
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 | 500,000,000 | $ 500,000,000 | |
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 | 403,000,000 | $ 403,000,000 | $ 1,514,000,000 |
Derivative assets | 18,000,000 | 18,000,000 | 115,000,000 |
All other assets | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investment securities | 9,000,000 | 9,000,000 | 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 | 27,000,000 | 27,000,000 | 48,000,000 |
All other liabilities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative liability | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 |
C3.ai | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investments owned, number of shares sold (in shares) | 0 | 2,200,000 | |
Proceeds from sale of long-term investments | $ 145,000,000 | ||
Loss on equity securities | $ 140,000,000 | $ 955,000,000 | |
C3.ai | Common Units Held by Baker Hughes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investment shares owned (in shares) | 8,650,476 | 8,650,476 | 10,813,095 |
Equity securities economic interest fair value | $ 401,000,000 | $ 401,000,000 | $ 1,500,000,000 |
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 | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 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 | 345,000,000 | 345,000,000 | 1,431,000,000 | ||
Equity securities, gross unrealized losses | (3,000,000) | (3,000,000) | (5,000,000) | ||
Equity securities, estimated fair value | 403,000,000 | 403,000,000 | 1,502,000,000 | ||
Total, amortized cost | 70,000,000 | 70,000,000 | 106,000,000 | ||
Total, gross unrealized gains | 345,000,000 | 345,000,000 | 1,431,000,000 | ||
Total, gross unrealized losses | (3,000,000) | (3,000,000) | (5,000,000) | ||
Investment securities | 411,000,000 | 411,000,000 | 1,532,000,000 | ||
Loss on equity securities | (141,000,000) | $ 0 | (954,000,000) | $ (12,000,000) | |
Non-U.S. debt securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Investment securities, amortized cost | 9,000,000 | 9,000,000 | 30,000,000 | ||
Investment securities, gross unrealized gains | 0 | 0 | 0 | ||
Investment securities, gross unrealized losses | 0 | 0 | 0 | ||
Investment securities | $ 9,000,000 | $ 9,000,000 | $ 30,000,000 | ||
Derivative, term | 1 year |
Financial Instruments - Derivat
Financial Instruments - Derivatives and Hedging (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 19 | $ 118 |
Liabilities | (30) | (52) |
Derivatives accounted for as hedges | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 5 |
Liabilities | 0 | 0 |
Derivatives accounted for as hedges | Interest rate swap contracts | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | (12) | 0 |
Derivatives not accounted for as hedges | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 19 | 113 |
Liabilities | $ (18) | $ (52) |
Financial Instruments - Economi
Financial Instruments - Economic Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net gain (loss) on embedded derivatives | $ 2 | $ 14 | $ 5 | $ 9 |
Not designated as hedging instrument, economic hedge | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total | 6 | 40 | 12 | 110 |
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 | (2) | 20 | 7 | 37 |
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 | 8 | 17 | 0 | 63 |
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 | 0 | 3 | 5 | 2 |
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) | 9 Months Ended |
Sep. 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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Segment revenue | $ 5,093 | $ 5,049 | $ 15,017 | $ 15,210 | |
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes | 209 | (264) | (260) | (16,666) | |
Goodwill impairment | 0 | 0 | 0 | (14,717) | $ (14,717) |
Inventory impairments | (42) | 0 | (218) | ||
Other non-operating loss, net | (102) | (149) | (791) | (367) | |
Interest expense, net | (67) | (66) | (205) | (195) | |
Operating segments | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes | 508 | 349 | 1,330 | 931 | |
Corporate | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes | (105) | (115) | (324) | (353) | |
Segment reconciling items | |||||
Summarized financial information [Abstract] | |||||
Goodwill impairment | 0 | 0 | 0 | (14,717) | |
Inventory impairments | 0 | (42) | 0 | (218) | |
Restructuring, impairment and other | (14) | (209) | (219) | (1,637) | |
Separation related | (11) | (32) | (53) | (110) | |
Other non-operating loss, net | (102) | (149) | (791) | (367) | |
Interest expense, net | (67) | (66) | (205) | (195) | |
Oilfield Services | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 2,419 | 2,308 | 6,976 | 7,858 | |
Summarized financial information [Abstract] | |||||
Goodwill impairment | (11,428) | ||||
Oilfield Services | Operating segments | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes | 190 | 93 | 505 | 345 | |
Oilfield Equipment | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 603 | 726 | 1,867 | 2,133 | |
Summarized financial information [Abstract] | |||||
Goodwill impairment | (3,289) | ||||
Oilfield Equipment | Operating segments | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes | 14 | 19 | 45 | (4) | |
Turbomachinery & Process Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 1,562 | 1,513 | 4,675 | 3,759 | |
Summarized financial information [Abstract] | |||||
Goodwill impairment | 0 | ||||
Turbomachinery & Process Solutions | Operating segments | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes | 278 | 191 | 705 | 473 | |
Digital Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenue | 510 | 503 | 1,499 | 1,460 | |
Summarized financial information [Abstract] | |||||
Goodwill impairment | $ 0 | ||||
Digital Solutions | Operating segments | |||||
Summarized financial information [Abstract] | |||||
Income (loss) before income taxes | $ 26 | $ 46 | $ 75 | $ 117 |
Segment Information - Capital E
Segment Information - Capital Expenditures and Depreciation and Amortization by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 262 | $ 315 | $ 832 | $ 1,010 |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 257 | 309 | 815 | 988 |
Operating segments | Oilfield Services | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 183 | 217 | 578 | 714 |
Operating segments | Oilfield Equipment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 22 | 35 | 81 | 114 |
Operating segments | Turbo- machinery & Process Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 30 | 33 | 90 | 87 |
Operating segments | Digital Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 22 | 24 | 66 | 73 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 5 | $ 6 | $ 17 | $ 22 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)people | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||
Total current receivables, gross | $ 5,790 | $ 5,790 | $ 6,073 | ||
Investment securities held on behalf of GE | 411 | 411 | 1,532 | ||
C3.ai | Related Party Transactions with C3.ai | |||||
Related Party Transaction [Line Items] | |||||
Purchase commitment, to be paid, year one | 75 | 75 | |||
Purchase commitment, to be paid, year two | 125 | 125 | |||
Purchase commitment, to be paid, year three | 150 | 150 | |||
Subscription fee | $ 28 | ||||
GE | |||||
Related Party Transaction [Line Items] | |||||
Voting power threshold | 20.00% | ||||
Board of directors nomination, upon triggering event | people | 1 | ||||
GE | Related parties | |||||
Related Party Transaction [Line Items] | |||||
Total current receivables, gross | 439 | $ 439 | 507 | ||
GE | Purchases, GE and its affiliates | |||||
Related Party Transaction [Line Items] | |||||
Total current receivables, gross | 77 | 77 | 78 | ||
GE | Accounts Payable, GE and its affiliates | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable, related party | 300 | 300 | 356 | ||
GE | Related party amount, due to related party | |||||
Related Party Transaction [Line Items] | |||||
Cash and cash equivalents held on behalf of GE | $ 11 | $ 11 | 45 | ||
Cash held on behalf of GE | 44 | ||||
Investment securities held on behalf of GE | $ 1 | ||||
GE | GE | BHH LLC | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 17.20% | 17.20% | 30.10% | ||
GE | GE | Baker Hughes | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 20.60% | 20.60% | |||
Areo JV | Purchases, GE and its affiliates | |||||
Related Party Transaction [Line Items] | |||||
Related party purchases | $ 366 | $ 384 | $ 988 | $ 993 | |
Areo JV | Sales of products and services, GE and its affiliates | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 48 | $ 46 | 136 | $ 150 | |
GE | Related parties | |||||
Related Party Transaction [Line Items] | |||||
Total current receivables, gross | $ 362 | $ 362 | $ 429 |
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 | Sep. 30, 2021EUR (€)companysubsidiary | Sep. 30, 2021USD ($) | Mar. 18, 2019USD ($) |
Loss Contingencies [Line Items] | ||||||||
Off-balance sheet arrangements | $ 4,500 | |||||||
Pending litigation | INOES and Naphtachimie | Damage from fire | ||||||||
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 | International Engineering & Construction S.A. (IEC) | Lost profits and various costs | ||||||||
Loss Contingencies [Line Items] | ||||||||
Value of alleged damages sought | $ 235 | $ 244.9 | $ 591 | |||||
Pending litigation | International Engineering & Construction S.A. (IEC) | Loss of cash flow | ||||||||
Loss Contingencies [Line Items] | ||||||||
Value of alleged damages sought | 700 | |||||||
Pending litigation | International Engineering & Construction S.A. (IEC) | Liquidated damages | ||||||||
Loss Contingencies [Line Items] | ||||||||
Value of alleged damages sought | 4.8 | |||||||
Pending litigation | International Engineering & Construction S.A. (IEC) | Take-or-pay future obligations | ||||||||
Loss Contingencies [Line Items] | ||||||||
Value of alleged damages sought | $ 58.6 | |||||||
Pending litigation | International Engineering & Construction S.A. (IEC) | Legal fees | ||||||||
Loss Contingencies [Line Items] | ||||||||
Value of alleged damages sought | $ 14.2 | |||||||
Pending litigation | 2018 Transactions | Breach of fiduciary duties | ||||||||
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, impairment and other | $ 14 | $ 209 | $ 219 | $ 1,637 |
Intangible assets impairment | 0 | 729 | ||
Property, plant and equipment impairment, net | 21 | 290 | ||
Litigation and impairment of equity method investment | 73 | |||
OFS | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Intangible assets impairment | 605 | |||
OFE | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Intangible assets impairment | 124 | |||
Other long-lived asset impairments | 216 | |||
Property, plant and equipment impairment, net | 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 | $ 0 | $ 18 | $ 75 | $ 969 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other - Schedule of Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ 14 | $ 191 | $ 144 | $ 668 |
Property, plant & equipment, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | (1) | 65 | 21 | 214 |
Employee-related termination expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 1 | 108 | 94 | 406 |
Contract termination fees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 3 | 1 | 4 | 23 |
Other incremental costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 11 | 17 | 25 | 25 |
Operating segments | Oilfield Services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 14 | 144 | 119 | 453 |
Operating segments | Oilfield Equipment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 3 | 21 | 4 | 121 |
Operating segments | Turbo- machinery & Process Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | (3) | 7 | 11 | 27 |
Operating segments | Digital Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 0 | 18 | 3 | 52 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ 0 | $ 1 | $ 7 | $ 15 |
Assets and Liabilities of Bus_3
Assets and Liabilities of Business Held for Sale - Narrative (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Mar. 31, 2021 |
SDS | Held for sale | Subsequent Event | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash consideration | $ 200 | |
Cash consideration paid | 120 | |
Balance of consideration | $ 80 | |
JV Company | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Joint venture ownership percentage | 50.00% | |
JV Company | SDS | Held for sale | Subsequent Event | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
JV ownership received as consideration | 50.00% | |
JV 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 - SDS $ in Millions | Sep. 30, 2021USD ($) |
Assets | |
Current assets | $ 122 |
Property, plant and equipment | 108 |
Intangible assets | 122 |
All other assets | 56 |
Total assets | 408 |
Liabilities | |
Current liabilities | 48 |
All other liabilities | 6 |
Total liabilities | 54 |
Total carrying amount of net assets contributed | $ 354 |