Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 26, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-38143 | ||
Entity Registrant Name | Baker Hughes Company | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-4403168 | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, Address Line One | 575 N. Dairy Ashford Rd., | ||
Entity Address, City or Town | Houston, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77079-1121 | ||
City Area Code | 713 | ||
Local Phone Number | 439-8600 | ||
Title of 12(b) Security | Class A Common Stock, $0.0001 Par Value per Share | ||
Trading Symbol | BKR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 31,860,362,416 | ||
Entity Common Stock, Shares Outstanding | 1,000,881,406 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of Registrant's Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001701605 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Revenues | $ 25,506 | $ 21,156 | $ 20,502 |
Costs and expenses: | |||
Selling, general and administrative | 2,611 | 2,510 | 2,470 |
Restructuring, impairment and other | 323 | 705 | 269 |
Total costs and expenses | 23,189 | 19,971 | 19,192 |
Operating income | 2,317 | 1,185 | 1,310 |
Other non-operating income (loss), net | 554 | (911) | (583) |
Interest expense, net | (216) | (252) | (299) |
Income before income taxes | 2,655 | 22 | 428 |
Provision for income taxes | (685) | (600) | (758) |
Net income (loss) | 1,970 | (578) | (330) |
Less: Net income (loss) attributable to noncontrolling interests | 27 | 23 | (111) |
Net income (loss) attributable to Baker Hughes Company | $ 1,943 | $ (601) | $ (219) |
Per share amounts: | |||
Basic income (loss) per Class A common share (in dollars per share) | $ 1.93 | $ (0.61) | $ (0.27) |
Diluted income (loss) per Class A common share (in dollars per share) | 1.91 | (0.61) | (0.27) |
Class A Common Stock | |||
Per share amounts: | |||
Basic income (loss) per Class A common share (in dollars per share) | 1.93 | (0.61) | (0.27) |
Diluted income (loss) per Class A common share (in dollars per share) | 1.91 | (0.61) | (0.27) |
Cash dividends per Class A common share (in dollars per share) | $ 0.78 | $ 0.73 | $ 0.72 |
Sales of goods | |||
Revenue: | |||
Revenues | $ 15,617 | $ 12,236 | $ 12,248 |
Costs and expenses: | |||
Cost | 13,309 | 10,445 | 10,458 |
Sales of services | |||
Revenue: | |||
Revenues | 9,889 | 8,920 | 8,254 |
Costs and expenses: | |||
Cost | $ 6,946 | $ 6,311 | $ 5,995 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,970 | $ (578) | $ (330) |
Less: Net income (loss) attributable to noncontrolling interests | 27 | 23 | (111) |
Net income (loss) attributable to Baker Hughes Company | 1,943 | (601) | (219) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 153 | (269) | (305) |
Cash flow hedges | 3 | 2 | (16) |
Benefit plans | 19 | (14) | 170 |
Other comprehensive income (loss) | 175 | (281) | (151) |
Less: Other comprehensive loss attributable to noncontrolling interests | 0 | (3) | (16) |
Other comprehensive income (loss) attributable to Baker Hughes Company | 175 | (278) | (135) |
Comprehensive income (loss) | 2,145 | (859) | (481) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 27 | 20 | (127) |
Comprehensive income (loss) attributable to Baker Hughes Company | $ 2,118 | $ (879) | $ (354) |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 2,646 | $ 2,488 |
Current receivables, net | 7,075 | 5,958 |
Inventories, net | 5,094 | 4,587 |
All other current assets | 1,486 | 1,559 |
Total current assets | 16,301 | 14,592 |
Property, plant and equipment, less accumulated depreciation | 4,893 | 4,538 |
Goodwill | 6,137 | 5,930 |
Other intangible assets, net | 4,093 | 4,180 |
Contract and other deferred assets | 1,756 | 1,503 |
All other assets | 3,043 | 2,781 |
Deferred income taxes | 722 | 657 |
Total assets | 36,945 | 34,181 |
Current Liabilities: | ||
Accounts payable | 4,471 | 4,298 |
Short-term and current portion of long-term debt | 148 | 677 |
Progress collections and deferred income | 5,542 | 3,822 |
All other current liabilities | 2,830 | 2,278 |
Total current liabilities | 12,991 | 11,075 |
Long-term debt | 5,872 | 5,980 |
Deferred income taxes | 176 | 229 |
Liabilities for pensions and other postretirement benefits | 978 | 960 |
All other liabilities | 1,409 | 1,412 |
Equity: | ||
Capital in excess of par value | 26,983 | 28,126 |
Retained loss | (8,819) | (10,761) |
Accumulated other comprehensive loss | (2,796) | (2,971) |
Baker Hughes Company equity | 15,368 | 14,394 |
Noncontrolling interests | 151 | 131 |
Total equity | 15,519 | 14,525 |
Total liabilities and equity | 36,945 | 34,181 |
Class A Common Stock | ||
Equity: | ||
Common stock | 0 | 0 |
Class B Common Stock | ||
Equity: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Common stock par value (in dollars per share) | $ 0.0001 | ||
Class A Common Stock | |||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Common stock issued (in shares) | 998,000,000 | 1,006,000,000 | |
Common stock outstanding (in shares) | 997,709,000 | 1,005,960,000 | 909,142,000 |
Class B Common Stock | |||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock authorized (in shares) | 1,250,000,000 | 1,250,000,000 | |
Common stock issued (in shares) | 0 | 0 | |
Common stock outstanding (in shares) | 0 | 0 | 116,548,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings (Loss) | Accumulated Other Comprehensive Loss | Non-controlling Interests |
Beginning balance at Dec. 31, 2020 | $ 18,242 | $ 0 | $ 24,613 | $ (9,942) | $ (1,778) | $ 5,349 |
Comprehensive income (loss): | ||||||
Net income (loss) | (330) | (219) | (111) | |||
Other comprehensive income (loss) | (151) | (135) | (16) | |||
Dividends on Class A Common Stock | (592) | (592) | ||||
Distributions to GE | (157) | (157) | ||||
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock | 0 | 3,584 | (477) | (3,107) | ||
Repurchase and cancellation of Class A common stock | (434) | (418) | 5 | (21) | ||
Stock-based compensation cost | 205 | 205 | ||||
Other | (37) | (17) | 1 | (21) | ||
Ending balance at Dec. 31, 2021 | 16,746 | 0 | 27,375 | (10,160) | (2,385) | 1,916 |
Comprehensive income (loss): | ||||||
Net income (loss) | (578) | (601) | 23 | |||
Other comprehensive income (loss) | (281) | (278) | (3) | |||
Dividends on Class A Common Stock | (726) | (726) | ||||
Distributions to GE | (17) | (17) | ||||
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock | 0 | 2,060 | (309) | (1,751) | ||
Repurchase and cancellation of Class A common stock | (828) | (823) | 1 | (6) | ||
Stock-based compensation cost | 207 | 207 | ||||
Other | 2 | 33 | (31) | |||
Ending balance at Dec. 31, 2022 | 14,525 | 0 | 28,126 | (10,761) | (2,971) | 131 |
Comprehensive income (loss): | ||||||
Net income (loss) | 1,970 | 1,943 | 27 | |||
Other comprehensive income (loss) | 175 | 175 | ||||
Dividends on Class A Common Stock | (786) | (786) | ||||
Repurchase and cancellation of Class A common stock | (538) | (538) | ||||
Stock-based compensation cost | 197 | 197 | ||||
Other | (24) | (16) | (1) | (7) | ||
Ending balance at Dec. 31, 2023 | $ 15,519 | $ 0 | $ 26,983 | $ (8,819) | $ (2,796) | $ 151 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class A Common Stock | |||
Cash dividends per share (in dollars per share) | $ 0.78 | $ 0.73 | $ 0.72 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 1,970 | $ (578) | $ (330) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 1,087 | 1,061 | 1,105 |
(Gain) loss on business dispositions | (40) | 451 | 0 |
(Gain) loss on equity securities | (555) | 265 | 845 |
Stock-based compensation cost | 197 | 207 | 205 |
Property, plant and equipment impairment, net | (1) | 166 | 7 |
(Benefit) provision for deferred income taxes | (59) | 105 | 133 |
Inventory impairment | 35 | 31 | 0 |
Changes in operating assets and liabilities: | |||
Current receivables | (986) | (625) | (126) |
Inventories | (461) | (885) | 170 |
Accounts payable | 61 | 605 | 246 |
Progress collections and deferred income | 1,639 | 1,103 | (72) |
Contract and other deferred assets | (211) | (76) | 262 |
Other operating items, net | 386 | 58 | (71) |
Net cash flows from operating activities | 3,062 | 1,888 | 2,374 |
Cash flows from investing activities: | |||
Expenditures for capital assets | (1,224) | (989) | (856) |
Proceeds from disposal of assets | 208 | 217 | 315 |
Proceeds from sale of equity securities | 372 | 26 | 147 |
Proceeds from business dispositions | 293 | 0 | 70 |
Net cash paid for acquisitions | (301) | (767) | (87) |
Other investing items, net | (165) | (51) | (52) |
Net cash flows used in investing activities | (817) | (1,564) | (463) |
Cash flows from financing activities: | |||
Repayment of long-term debt | (651) | 0 | (1,313) |
Proceeds from the issuance of long-term debt | 0 | 0 | 1,250 |
Repayment of commercial paper | 0 | 0 | (832) |
Dividends paid | (786) | (726) | (592) |
Repurchase of Class A common stock | (538) | (828) | (434) |
Distributions to GE | 0 | (17) | (157) |
Other financing items, net | (53) | (21) | (65) |
Net cash flows used in financing activities | (2,028) | (1,592) | (2,143) |
Effect of currency exchange rate changes on cash and cash equivalents | (59) | (97) | (47) |
Increase (decrease) in cash and cash equivalents | 158 | (1,365) | (279) |
Cash and cash equivalents, beginning of period | 2,488 | 3,853 | 4,132 |
Cash and cash equivalents, end of period | $ 2,646 | $ 2,488 | $ 3,853 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF THE BUSINESS Baker Hughes Company ("Baker Hughes," "the Company," "we," "us," or "our") is an energy technology company with a diversified portfolio of technologies and services that span the energy and industrial value chain. BASIS OF PRESENTATION The accompanying 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 annual financial information. The consolidated financial statements include the accounts of Baker Hughes and all of its subsidiaries and affiliates which it controls or variable interest entities for which we have determined that we are the primary beneficiary. All intercompany accounts and transactions have been eliminated. In the Company's consolidated financial statements and notes, certain amounts have been reclassified to conform with the current year presentation. In the notes to the consolidated financial statements, all dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of any contingent assets or liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We base our estimates and judgments on historical experience and on various other assumptions and information that we believe to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty, and accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. While we believe that the estimates and assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. Estimates are used for, but are not limited to, determining the following: allowance for credit losses and inventory valuation reserves; recoverability of long-lived assets; revenue recognition on long-term contracts; valuation of goodwill; useful lives used in depreciation and amortization; income taxes and related valuation allowances; accruals for contingencies; actuarial assumptions to determine costs and liabilities related to employee benefit plans; stock-based compensation expense; valuation of derivatives; and the fair value of assets acquired and liabilities assumed in acquisitions. Foreign Currency Assets and liabilities of non-U.S. operations with a functional currency other than the U.S. dollar have been translated into U.S. dollars using our period end exchange rates, and revenue, expenses, and cash flows have been translated at average rates for the respective periods. Any resulting translation gains and losses are included in other comprehensive income (loss). The impact of remeasurement of monetary assets and liabilities denominated in currencies other than the functional currency of the Company or its subsidiaries is included in the consolidated statements of income (loss). Revenue from Sale of Equipment Performance Obligations Satisfied Over Time We recognize revenue on agreements for sales of equipment manufactured to unique customer specifications including long-term construction projects, on an over time basis, utilizing cost inputs as the measurement criteria in assessing the progress toward completion. Our estimate of costs to be incurred to fulfill our promise to a customer is based on our history of manufacturing similar assets for customers and is updated routinely to reflect changes in quantity or pricing of the inputs. We begin to recognize revenue on these contracts when the contract specific inventory becomes customized for a customer, which is reflective of our initial transfer of control of the incurred costs. We provide for potential losses on any of these agreements when it is probable that we will incur the loss. Our billing terms for these over time contracts vary, but are generally based on achieving specified milestones. The differences between the timing of our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract asset or contract liability positions. Performance Obligations Satisfied at a Point In Time We recognize revenue for non-customized equipment at the point in time that the customer obtains control of the good. Equipment for which we recognize revenue at a point in time includes equipment we manufacture on a standardized basis for sale to the market. We use proof of delivery for certain large equipment with more complex logistics associated with the shipment, whereas the delivery of other equipment is generally determined based on historical data of transit times between regions. On occasion we sell equipment with a right of return. We use our accumulated experience to estimate and provide for such returns when we record the sale. In situations where arrangements include customer acceptance provisions based on seller or customer-specified objective criteria, we recognize revenue when we have concluded that the customer has control of the equipment and that acceptance has or is likely to occur. Our billing terms for these point in time equipment contracts vary, but are generally based on shipment of the equipment to the customer. Revenue from Sale of Services Performance Obligations Satisfied Over Time We sell product services under long-term product maintenance or extended warranty agreements in our Industrial & Energy Technology segment. These agreements require us to maintain the customers' assets over the service agreement contract terms, which generally range from 10 to 20 years. In general, these are contractual arrangements to provide services, repairs, and maintenance of a covered unit (gas turbines for mechanical drive or power generation, primarily on liquefied natural gas ("LNG") applications). These services are performed at various times during the life of the contract, thus the costs of performing services are incurred on an other than straight-line basis. We recognize related sales based on the extent of our progress toward completion measured by actual costs incurred in relation to total expected costs. We provide for any loss that we expect to incur on any of these agreements when that loss becomes probable. The Company utilizes historical customer data, prior product performance data, statistical analysis, third-party data, and internal management estimates to calculate contract-specific margins. In certain contracts, the total transaction price is variable based on customer utilization, which is excluded from the contract margin until the period that the customer has utilized to appropriately reflect the revenue activity in the period earned. In addition, revenue for certain oilfield services is recognized on an over time basis as performed. Our billing terms for these contracts are generally based on asset utilization (i.e. usage per hour) or the occurrence of a major maintenance event within the contract. The differences between the timing of our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract asset or contract liability positions. Performance Obligations Satisfied at a Point In Time We sell certain tangible products, largely spare equipment, through our services business. We recognize revenue for this equipment at the point in time that the customer obtains control of the good, which is at the point in time we deliver the spare part to the customer. Our billing terms for these point in time service contracts vary, but are generally based on shipment of the equipment to the customer. Research and Development Research and development costs are expensed as incurred and relate to the research and development of new products and services. These costs amounted to $658 million, $556 million and $492 million for the years ended December 31, 2023, 2022 and 2021, respectively. Research and development expenses were reported in "Cost of goods sold" and "Cost of services sold" in the consolidated statements of income (loss). Cash and Cash Equivalents Short-term investments with original maturities of three months or less are included in cash equivalents unless designated as available-for-sale and classified as investment securities. Allowance for Credit Losses We monitor our customers' payment history and current credit worthiness to determine that collectability of the related financial assets is reasonably assured. We also consider the overall business climate in which our customers operate. For accounts receivable, a loss allowance matrix is utilized to measure lifetime expected credit losses. The matrix contemplates historical credit losses by age of receivables, adjusted for any forward-looking information and management expectations. Concentration of Credit Risk Our current receivables are spread over a broad and diverse group of customers across many countries. We grant credit to our customers and perform periodic credit evaluations of our customers' financial conditions, including monitoring our customers' payment history and current credit worthiness to manage this risk. We do not generally require collateral in support of our current receivables, but we may require payment in advance or security in the form of a letter of credit or a bank guarantee. Inventories All inventories are stated at the lower of cost or net realizable values and they are measured on a first-in, first-out ("FIFO") basis or average cost basis. As necessary, we record provisions and maintain reserves for excess, slow moving and obsolete inventory. To determine these reserve amounts, we regularly review inventory quantities on hand and compare them to estimates of future product demand, market conditions, production requirements and technological developments. Property, Plant and Equipment Property, plant and equipment ("PP&E") is initially stated at cost and is depreciated over its estimated economic life. Subsequently, PP&E is measured at cost less accumulated depreciation, which is generally provided by using the straight-line method over the estimated economic lives of the individual assets, and impairment losses. We manufacture a substantial portion of our tools and equipment in our OFSE segment and the cost of these items, which includes direct and indirect manufacturing costs, is capitalized in inventory and subsequently moved to PP&E. Other Intangible Assets We amortize the cost of other intangible assets over their estimated useful lives unless such lives are deemed indefinite. The cost of intangible assets is generally amortized on a straight-line basis over the asset's estimated economic life. Finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In these circumstances, they are tested for impairment based on undiscounted cash flows and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested annually for impairment and written down to fair value as required. Refer to the Impairment of Goodwill and Other Long-Lived Assets accounting policy. Impairment of Goodwill and Other Long-lived Assets We perform an annual impairment test of goodwill on a qualitative or quantitative basis for each of our reporting units as of July 1, in conjunction with our annual strategic planning process, or more frequently when circumstances indicate an impairment may exist at the reporting unit level. When performing the annual impairment test we have the option of first performing a qualitative assessment to determine the existence of events and circumstances that would lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If such a conclusion is reached, we would then be required to perform a quantitative impairment assessment of goodwill. However, if the assessment leads to a determination that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then no further assessments are required. A quantitative assessment for the determination of impairment is made by comparing the carrying amount of each reporting unit with its fair value, which is generally calculated using a combination of market, comparable transaction and discounted cash flow approaches. Potential impairment indicators include, but are not limited to, (i) the results of our most recent annual or interim impairment testing, in particular the magnitude of the excess of fair value over carrying value observed, (ii) downward revisions to internal forecasts, and the magnitude thereof, if any, and (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, if any. We review PP&E, intangible assets and certain other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable and at least annually for indefinite-lived intangible assets. When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group). The determination of recoverability is made based upon the estimated undiscounted future net cash flows. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flow analysis, with the carrying value of the related assets. Financial Instruments Our financial instruments include cash and equivalents, current receivables, investments, accounts payables, short and long-term debt, and derivative financial instruments. We monitor our exposure to various business risks including commodity prices, interest rates, and foreign currency exchange rates, and we regularly use derivative financial instruments to manage these risks. At the inception of a new derivative, we designate the derivative as a hedge, or we determine the derivative to be undesignated as a hedging instrument. We document the relationships between the hedging instruments and the hedged items, as well as our risk management objectives and strategy for undertaking various hedge transactions. We assess whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item at both the inception of the hedge and on an ongoing basis. We record all derivatives as of the end of our reporting period in our consolidated statements of financial position at fair value. For the forward contracts held as undesignated hedging instruments, we record the changes in fair value in our consolidated statements of income (loss) along with the change in the fair value, related to foreign exchange movements, of the hedged item. Changes in the fair value of forward contracts designated as cash flow hedging instruments are recognized in other comprehensive income until the hedged item is recognized in earnings. Fair Value Measurements For financial assets and liabilities measured at fair value on a recurring basis, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: • Level 1 - Quoted prices for identical instruments in active markets. • Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3 - Significant inputs to the valuation model are unobservable. We maintain policies and procedures to value instruments using the best and most relevant data available. In addition, we perform reviews to assess the reasonableness of the valuations. With regard to Level 3 valuations (including instruments valued by third parties), we perform a variety of procedures to assess the reasonableness of the valuations. Such reviews include an evaluation of instruments whose fair value change exceeds predefined thresholds (and/or does not change) and consider the current interest rate, currency and credit environment, as well as other published data, such as rating agency market reports and current appraisals. Recurring Fair Value Measurements Derivatives When we have Level 1 derivatives, which are traded either on exchanges or liquid markets, we use closing prices for valuation. The majority of our derivatives are valued using internal models and are included in Level 2. These internal models maximize the use of market observable inputs including interest rate curves and both forward and spot prices for currencies and commodities. Derivative assets and liabilities included in Level 2 primarily represent foreign currency and commodity forward contracts for the Company. Investments in Debt and Equity Securities When available, we use quoted market prices to determine the fair value of investment securities, and they are included in Level 1. Level 1 securities primarily include publicly traded equity securities. For investment securities for which market prices are observable for identical or similar investment securities but not readily accessible for each of those investments individually (that is, it is difficult to obtain pricing information for each individual investment security at the measurement date), we use pricing models and observable inputs that are consistent with what other market participants would use and these are included in Level 2. The inputs and assumptions to the models are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data. When we use valuations that are based on significant unobservable inputs, we classify the investment securities in Level 3. Non-Recurring Fair Value Measurements Certain assets are measured at fair value on a non-recurring basis and are subject to fair value adjustments only in certain circumstances. These assets can include long-lived assets that have been reduced to fair value when they are held for sale, equity securities without readily determinable fair value, equity method investments and long-lived assets that are written down to fair value when they are impaired, and the remeasurement of retained investments in formerly consolidated subsidiaries upon a change in control that results in a deconsolidation of a subsidiary, if we sell a controlling interest and retain a noncontrolling stake in the entity. Investments in Equity Securities Investments in equity securities (in which we do not have a controlling financial interest or significant influence, most often because we hold a voting interest of 0% to 20%) with readily determinable fair values are measured at fair value with changes recognized in earnings and reported in "Other non-operating income (loss), net" in the consolidated statements of income (loss). Equity securities that do not have readily determinable fair values are recorded at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar equity securities of the same issuer. These changes are recorded in "Other non-operating income (loss), net" in the consolidated statements of income (loss). Equity method investments are equity holdings in entities in which we do not have a controlling financial interest, but over which we have significant influence, most often because we hold a voting interest of 20% to 50%. At December 31, 2023 and 2022, the aggregate carrying amount of our equity method investments was $979 million and $919 million, respectively. The results of our equity method investments are presented in the consolidated statements of income (loss) as follows: (i) if the investment is integral to our operations, their results are included in "Selling, general and administrative," and (ii) if the investment is not integral to our operations, their results are included in "Other non-operating income (loss), net." Investments in, and advances to, equity method investments are presented on a one-line basis in "All other assets" in the consolidated statements of financial position. Income Taxes We file U.S. federal and state income tax returns which primarily includes our distributive share of items of income, gain, loss, and deduction of Baker Hughes Holdings LLC ("BHH LLC"), our primary operating company and a wholly owned subsidiary of the Company since December 2022, which was treated as a partnership for U.S. tax purposes until December 30, 2023. Effective December 30, 2023, the Company and various subsidiaries completed a reorganization that resulted in BHH LLC no longer being treated as a partnership for U.S. tax purposes. As a partnership, BHH LLC was not subject to U.S. federal income tax under current U.S. tax laws. However, as of December 31, 2023, BHH LLC will be included and taxed as part of the Company's consolidated U.S. tax return. Non-U.S. current and deferred income taxes owed by the subsidiaries of BHH LLC are reflected in the Company's financial statements. We account for taxes under the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial statement and the tax base of assets and liabilities based on enacted tax rates expected to be in effect when taxes are actually paid or recovered, as well as for net operating losses and tax credit carryforwards. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes is not more likely than not to be realized. Significant judgment is required in determining our tax expense and in evaluating our tax positions, including evaluating uncertainties. Our tax filings are subject to audit by the tax authorities in the jurisdictions where we conduct business. These audits may result in assessments of additional taxes that are resolved with the tax authorities or through the courts. We have provided for the amounts that we believe will ultimately result from these proceedings. We recognize uncertain tax positions that are "more likely than not" to be sustained if the relevant tax authority were to audit the position with full knowledge of all the relevant facts and other information. For those tax positions that meet this threshold, we measure the amount of tax benefit based on the largest amount of tax benefit that has a greater than 50% chance of being realized in a final settlement with the relevant authority. We classify interest and penalties associated with uncertain tax positions as income tax expense. The effects of tax adjustments and settlements from taxing authorities are presented in the financial statements in the period they are finalized. Supply Chain Finance Programs On January 1, 2023, we adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. ASU 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which enhances the transparency of supplier finance programs and requires certain disclosures for a buyer in a supplier finance program. Under the supply chain finance ("SCF") programs, administered by a third party, our suppliers are given the opportunity to sell receivables from us to participating financial institutions at their sole discretion at a rate that leverages our credit rating and thus might be more beneficial to our suppliers. Our responsibility is limited to making payment on the terms originally negotiated with our supplier, regardless of whether the supplier sells its receivable to a financial institution. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the program. As of December 31, 2023 and 2022, $332 million and $275 million of SCF program liabilities are recorded in " Accounts payable NEW ACCOUNTING STANDARDS TO BE ADOPTED In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for the Company prospectively to all annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which enhances the disclosures required for operating segments in the Company's annual and interim consolidated financial statements. ASU 2023-07 is effective retrospectively for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. All other 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. |
CURRENT RECEIVABLES
CURRENT RECEIVABLES | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
CURRENT RECEIVABLES | CURRENT RECEIVABLES Current receivables consist of the following at December 31: 2023 2022 Customer receivables $ 6,033 $ 5,083 Other 1,392 1,216 Total current receivables 7,425 6,299 Less: Allowance for credit losses (350) (341) Total current receivables, net $ 7,075 $ 5,958 Customer receivables are recorded at the invoiced amount. The "Other" category consists primarily of advance payments to suppliers, indirect taxes, and customer retentions. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
Inventory, Net [Abstract] | |
INVENTORIES | INVENTORIES Inventories, net of reserves of $389 million and $396 million in 2023 and 2022, respectively, consist of the following at December 31: 2023 2022 Finished goods $ 2,626 $ 2,419 Work in process and raw materials 2,468 2,168 Total inventories, net $ 5,094 $ 4,587 For the year ended December 31, 2023, we recorded inventory impairments of $35 million primarily in our Oilfield Services & Equipment segment ("OFSE"). For the year ended December 31, 2022, we recorded inventory impairments of $31 million, primarily in our Industrial & Energy Technology ("IET") segment. See "Note 20. Restructuring, Impairment, and Other" for further information. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following at December 31: Useful Life 2023 2022 Land and improvements (1) 8 - 10 years (1) $ 332 $ 347 Buildings, structures and related equipment 5 - 40 years 2,264 2,120 Machinery, equipment and other 1 - 20 years 7,974 7,192 Total cost 10,570 9,659 Less: Accumulated depreciation (5,678) (5,121) Property, plant and equipment, less accumulated depreciation $ 4,893 $ 4,538 (1) Useful life excludes land. Depreciation expense relating to property, plant and equipment was $830 million, $839 million and $852 million for the years ended December 31, 2023, 2022 and 2021, respectively. See "Note 20. Restructuring, Impairment and Other" for additional information on property, plant and equipment impairments. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS GOODWILL The changes in the carrying value of goodwill are detailed below by segment: Oilfield Services & Equipment Industrial & Energy Technology Total Balance at December 31, 2021, gross $ 19,825 $ 4,661 $ 24,486 Accumulated impairment at December 31, 2021 (18,273) (254) (18,527) Balance at December 31, 2021 1,552 4,407 5,959 Disposition (161) — (161) Acquisitions 41 417 458 Currency exchange and other — (96) (96) Total 1,432 4,728 6,160 Classified as held for sale (1) — (230) (230) Balance at December 31, 2022 1,432 4,498 5,930 Acquisitions 95 43 138 Currency exchange and other 14 55 69 Balance at December 31, 2023 $ 1,541 $ 4,596 $ 6,137 (1) The reduction in IET goodwill reflects a transfer of goodwill to business held for sale related to our Nexus Controls business. See "Note 21. Business Dispositions and Acquisitions" for further information. As a result of our goodwill impairment assessment performed in the year ended December 31, 2023, there were no goodwill impairments deemed necessary. OTHER INTANGIBLE ASSETS Intangible assets consist of the following at December 31: 2023 2022 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,945 $ (818) $ 1,127 $ 1,917 $ (729) $ 1,189 Technology 1,253 (899) 354 1,212 (803) $ 409 Trade names and trademarks 290 (186) 104 287 (175) 112 Capitalized software 1,413 (1,107) 306 1,308 (1,040) 268 Finite-lived intangible assets 4,901 (3,010) 1,891 4,725 (2,747) 1,978 Indefinite-lived intangible assets 2,202 — 2,202 2,202 — 2,202 Total intangible assets $ 7,103 $ (3,010) $ 4,093 $ 6,927 $ (2,747) $ 4,180 Finite-lived intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 1 to 35 years. Amortization expense was $257 million, $222 million and $253 million for the years ended December 31, 2023, 2022 and 2021, respectively. No impairment for indefinite-lived intangible assets were recorded in 2023. Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows: Year Estimated Amortization Expense 2024 $ 243 2025 201 2026 156 2027 134 2028 115 |
CONTRACT AND OTHER DEFERRED ASS
CONTRACT AND OTHER DEFERRED ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
CONTRACT AND OTHER DEFERRED ASSETS | CONTRACT AND OTHER DEFERRED ASSETS Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, provide long-term product service and maintenance or extended warranty arrangements and other deferred contract related costs. Our long-term product service agreements are provided by our IET segment. Our long-term equipment contracts are provided by both our IET and OFSE segments. Contract assets consist of the following at December 31: 2023 2022 Long-term product service agreements $ 418 $ 392 Long-term equipment contracts and certain other service agreements 1,184 955 Contract assets (total revenue in excess of billings) 1,602 1,347 Deferred inventory costs 126 125 Other costs to fulfill or obtain a contract (1) 28 31 Contract and other deferred assets $ 1,756 $ 1,503 (1) Other costs to fulfill or obtain a contract consist primarily of non-recurring engineering costs incurred and expected to be recovered. Revenue recognized during the years ended December 31, 2023 and 2022 from performance obligations satisfied (or partially satisfied) in previous years related to our long-term service agreements was $15 million and $20 million, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract's total estimated profitability resulting in an adjustment of earnings. |
PROGRESS COLLECTIONS AND DEFERR
PROGRESS COLLECTIONS AND DEFERRED INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
PROGRESS COLLECTIONS AND DEFERRED INCOME | PROGRESS COLLECTIONS AND DEFERRED INCOME 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 consist of the following at December 31: 2023 2022 Progress collections $ 5,405 $ 3,713 Deferred income 137 109 Progress collections and deferred income (contract liabilities) $ 5,542 $ 3,822 Revenue recognized during the years ended December 31, 2023 and 2022 that was included in the contract liabilities at the beginning of the year was $2,999 million and $2,185 million, respectively. DISAGGREGATED REVENUE We disaggregate our revenue from contracts with customers by product line for both our OFSE and IET segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. In addition, management views revenue from contracts with customers for OFSE by geography based on the location to where the product is shipped or the services are performed. Effective October 1, 2023, IET began operating through five product lines - Gas Technology Equipment , which will now include the Pumps business; Gas Technology Services ; Industrial Solutions , which brings together the Condition Monitoring and PSI businesses, along with IET Digital initiatives; Industrial Products , which brings together the Inspection business merging with the Valves and Gears businesses; and a newly formed product line, Climate Technology Solutions , which will combine our carbon capture, utilization and storage ("CCUS"), hydrogen, clean power and emissions abatement capabilities, that previously was reported in each of the individual IET product lines, into one business focused on serving the energy transition. The financial information for 2022 and 2021 have been recast to conform to the new product line presentation. The series of tables below present our revenue disaggregated by these categories. Total Revenue 2023 2022 2021 Well Construction $ 4,387 $ 3,854 $ 3,301 Completions, Intervention & Measurements 4,170 3,559 3,106 Production Solutions 3,854 3,587 3,135 Subsea & Surface Pressure Systems 2,950 2,230 2,486 Oilfield Services & Equipment 15,361 13,229 12,028 Gas Technology Equipment 4,232 2,599 3,039 Gas Technology Services 2,600 2,440 2,696 Total Gas Technology 6,832 5,039 5,735 Industrial Products 1,962 1,697 1,598 Industrial Solutions 983 884 880 Controls (1) 41 208 217 Total Industrial Technology 2,987 2,789 2,695 Climate Technology Solutions 326 98 43 Industrial & Energy Technology 10,145 7,926 8,473 Total $ 25,506 $ 21,156 $ 20,502 (1) The sale of Nexus Controls business was completed in April 2023. Oilfield Services & Equipment Geographic Revenue 2023 2022 2021 North America $ 4,116 $ 3,764 $ 2,904 Latin America 2,761 2,099 1,681 Europe/CIS/Sub-Saharan Africa 2,655 2,483 2,865 Middle East/Asia 5,829 4,883 4,579 Oilfield Services & Equipment $ 15,361 $ 13,229 $ 12,028 REMAINING PERFORMANCE OBLIGATIONS As of December 31, 2023, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $33.5 billion. As of December 31, 2023, we expect to recognize revenue of approximately 61%, 74% and 90% 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. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
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. The following table presents operating lease expense: Operating Lease Expense 2023 2022 2021 Long-term fixed lease $ 276 $ 254 $ 255 Long-term variable lease 73 48 32 Short-term lease (1) 503 477 440 Total operating lease expense $ 852 $ 779 $ 727 (1) Leases with a term of one year or less, including leases with a term of one month or less. Cash flows used in operating activities for operating leases approximates our expense for the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023, maturities of our operating lease liabilities are as follows: Year Operating Leases 2024 $ 244 2025 178 2026 122 2027 79 2028 57 Thereafter 234 Total lease payments 914 Less: imputed interest 145 Total $ 769 Amounts recognized in the consolidated statements of financial position for operating leases consist of the following: 2023 2022 All other current liabilities $ 220 $ 189 All other liabilities 549 552 Total $ 769 $ 741 Right-of-use assets of $769 million and $757 million as of December 31, 2023 and 2022, respectively, are included in " All other assets |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The carrying value of our short-term and long-term debt consist of the following at December 31: 2023 2022 Amount Effective Interest Rate (1) Amount Effective Interest Rate (1) Short-term and current portion of long-term debt 1.231% Senior Notes due December 2023 $ — — % $ 649 1.5 % 8.55% Debentures due June 2024 (2) 109 4.1 % — — % Other debt 39 4.9 % 29 2.9 % Total short-term and current portion of long-term debt 148 677 Long-term debt 8.55% Debentures due June 2024 (2) — — % 114 4.1 % 2.061% Senior Notes due December 2026 598 2.4 % 597 2.4 % 3.337% Senior Notes due December 2027 1,294 5.3 % 1,277 3.8 % 6.875% Notes due January 2029 (2) 268 3.9 % 273 3.9 % 3.138% Senior Notes due November 2029 523 3.2 % 523 3.2 % 4.486% Senior Notes due May 2030 498 4.6 % 497 4.6 % 5.125% Senior Notes due September 2040 (2) 1,281 4.2 % 1,286 4.2 % 4.080% Senior Notes due December 2047 1,338 4.1 % 1,338 4.1 % Other long-term debt 73 6.3 % 75 4.2 % Total long-term debt 5,872 5,980 Total debt $ 6,020 $ 6,658 (1) Effective interest rate is based on the carrying value including issuance costs, interest rate swaps, and step-up adjustments from the Baker Hughes Incorporated ("BHI") acquisition recorded for certain Senior Notes and Debentures. (2) Represents long-term fixed rate debt obligations assumed in connection with the acquisition of BHI. The carrying value of our short-term and long-term debt includes issuance costs, changes in fair value of the debt instrument hedged by interest rate swaps, and step-up adjustments for the BHI acquisition. At December 31, 2023 and 2022, these adjustments resulted in a net increase to the carrying value of our debt totaling $95 million and $91 million, respectively. The estimated fair value of total debt at December 31, 2023 and 2022 was $5,571 million and $5,863 million, respectively. For a majority of our debt 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. Maturities of debt for each of the five years in the period ending December 31, 2028, and in the aggregate thereafter, are listed in the table below: 2024 2025 2026 2027 2028 Thereafter Total debt $ 148 $ 4 $ 614 $ 1,308 $ — $ 3,946 In November 2023, BHH LLC entered into a $3 billion committed unsecured revolving credit facility ("the New Credit Agreement") with commercial banks maturing in November 2028. The New Credit Agreement contains certain representations and warranties, certain affirmative covenants and negative covenants, in each case we consider customary. Upon the occurrence of certain events of default, our obligations under the New Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the New Credit Agreement and other customary defaults. No such events of default have occurred. The New Credit Agreement is fully and unconditionally guaranteed on a senior unsecured basis by Baker Hughes. In addition, we have authorization to issue up to $3 billion of commercial paper. At December 31, 2023 and 2022, there were no borrowings under the New Credit Agreement and no outstanding commercial paper. 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 December 31, 2023, Baker Hughes Co-Obligor, Inc. is a co-obligor of our long-term debt securities totaling $5,908 million. Certain Senior Notes contain covenants that restrict our 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 December 31, 2023, we were in compliance with all debt covenants. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS DEFINED BENEFIT PLANS We maintain Company sponsored pension plans for certain of our employees. We also maintain unfunded end-of-service benefit plans that are mandated in certain countries in which we operate. Our primary plans disclosed in 2023 included four U.S. plans and eight non-U.S. plans, primarily in the United Kingdom and Germany, all with plan assets or obligations greater than $20 million. These defined benefit plans generally provide benefits to employees based on formulas recognizing length of service and earnings; however, the majority of these plans are either frozen or closed to new entrants. We also provide certain postretirement health care benefits, through unfunded plans, to a closed group of U.S. employees who retire and meet certain age and service requirements. The accumulated postretirement benefit obligation related to these plans was $33 million and $37 million at December 31, 2023 and 2022, respectively. Funded Status The funded status position represents the difference between the benefit obligation and the plan assets. Our primary plans consist of seven funded plans and five unfunded plans. The projected benefit obligation ("PBO") for pension benefits represents the actuarial present value of benefits attributed to employee services and compensation and includes an assumption about future compensation levels. The accumulated benefit obligation ("ABO") is the actuarial present value of pension benefits attributed to employee service to date at present compensation levels. The ABO differs from the PBO in that the ABO does not include any assumptions about future compensation levels. Below is the reconciliation of the beginning and ending balances of benefit obligations, fair value of plan assets and the funded status of our defined benefit plans ("Pension Benefits"). Pension Benefits 2023 2022 Change in benefit obligation: Benefit obligation at beginning of year $ 2,634 $ 3,550 Service cost 15 23 Interest cost 116 78 Actuarial gain (1) (4) (928) Benefits paid (126) (119) Settlements (4) (24) Settlement due to plan termination (2) (246) — Acquisition — 202 Foreign currency translation adjustments 58 (148) Benefit obligation at end of year 2,443 2,634 Change in plan assets: Fair value of plan assets at beginning of year 2,266 3,147 Actual return on plan assets 121 (850) Employer contributions 18 32 Benefits paid (126) (119) Settlements (4) (24) Settlement due to plan termination (2) (246) — Acquisition — 214 Foreign currency translation adjustments 51 (134) Fair value of plan assets at end of year 2,080 2,266 Funded status - underfunded at end of year $ (363) $ (368) Accumulated benefit obligation $ 2,399 $ 2,595 (1) The actuarial gain in 2022 was primarily related to a change in the discount rate used to measure the benefit obligation for our plans. (2) Plan termination relates to the termination of one of our fully funded frozen U.S. defined benefit plans that was initiated in April 2022. The amounts recognized in the consolidated statements of financial position consist of the following at December 31: Pension Benefits 2023 2022 Noncurrent assets $ 78 $ 58 Current liabilities (17) (15) Noncurrent liabilities (424) (411) Net amount recognized $ (363) $ (368) Information for the plans with ABOs and PBOs in excess of plan assets consist of the following at December 31: Pension Benefits 2023 2022 Projected benefit obligation $ 1,410 $ 1,143 Accumulated benefit obligation $ 1,366 $ 1,103 Fair value of plan assets $ 968 $ 717 We have a U.S. non-qualified supplemental pension plan ("BH SPP") for certain employees which is included in the benefit obligations and funded status in the tables above. In order to meet a portion of our obligations of the BH SPP, we established a trust comprised primarily of mutual fund assets. The value of these assets was $36 million and $34 million as of December 31, 2023 and 2022, respectively. These assets are not included as plan assets or in the funded status amounts in the tables above and below. Net Periodic Cost The components of net periodic cost consist of the following: Pension Benefits 2023 2022 2021 Service cost $ 15 $ 23 $ 27 Interest cost 116 78 64 Expected return on plan assets (102) (114) (130) Amortization of prior service credit 1 1 1 Amortization of net actuarial loss 19 27 40 Curtailment / settlement loss (16) 2 2 Net periodic cost $ 33 $ 17 $ 4 The service cost component of the net periodic cost is included in "Operating income (loss)" and all other components are included in "Other non-operating income (loss), net" in the consolidated statements of income (loss). Assumptions Used in Benefit Calculations Accounting requirements necessitate the use of assumptions to reflect the uncertainties and the length of time over which the pension obligations will be paid. The actual amount of future benefit payments will depend upon when participants retire, the amount of their benefit at retirement and how long they live. To reflect the obligation in today's dollars, we discount the future payments using a rate that matches the time frame over which the payments are expected to be made. We also need to assume a long-term rate of return that will be earned on investments used to fund these payments. Another assumption used is the interest crediting rate for our U.S. qualified cash balance plan. Under the provisions of this pension plan, a hypothetical cash balance account has been established for each participant. Such accounts receive quarterly interest credits based on a prescribed formula. Weighted average assumptions used to determine benefit obligations for these plans are as follows: Pension Benefits 2023 2022 Discount rate 4.54 % 4.89 % Rate of compensation increase 3.26 % 3.30 % Interest crediting rate 3.98 % 4.31 % Weighted average assumptions used to determine net periodic cost for these plans are as follows: Pension Benefits 2023 2022 2021 Discount rate 4.89 % 2.15 % 1.66 % Expected long-term return on plan assets 5.05 % 3.85 % 4.07 % Interest crediting rate 4.31 % 2.60 % 2.60 % We determine the discount rate using a bond matching model, whereby the weighted average yields on high-quality fixed-income securities have maturities consistent with the timing of benefit payments. Lower discount rates increase the size of the benefit obligations while higher discount rates reduce the size of the benefit obligation. The compensation assumption is used in our active plans to estimate the annual rate at which the pay for plan participants will grow. If the rate of growth assumed increases, the size of the pension obligations will increase. The expected return on plan assets is the estimated long-term rate of return that will be earned on the investments used to fund the pension obligations. To determine this rate, we consider the current and target composition of plan investments, our historical returns earned, and our expectations about the future. Accumulated Other Comprehensive Loss The amount recorded before-tax in accumulated other comprehensive loss related to our defined benefit plans consists of the following at December 31: Pension Benefits 2023 2022 Net actuarial loss $ 333 $ 348 Net prior service cost 15 15 Total $ 348 $ 363 Plan Assets We have investment committees that meet regularly to review portfolio returns and to determine asset-mix targets based on asset/liability studies. Third-party investment consultants assist these committees in developing asset allocation strategies to determine our expected rates of return and expected risk for various investment portfolios. The investment committees considered these strategies in the formal establishment of the current asset-mix targets based on the projected risk and return levels for all major asset classes. The table below presents the fair value of the plan assets at December 31: 2023 2022 Debt securities Fixed income and cash investment funds $ 1,122 $ 1,482 Equity securities Global equity securities (1) 227 180 U.S. equity securities (1) 157 102 Insurance contracts 103 100 Real estate 34 53 Private equities 35 37 Other investments (2) 402 313 Total plan assets $ 2,080 $ 2,266 (1) Include direct investments and investment funds. (2) Consists primarily of asset allocation fund investments. Plan assets valued using Net Asset Value ("NAV") as a practical expedient amounted to $1,967 million and $2,157 million as of December 31, 2023 and 2022, respectively. The percentages of plan assets valued using NAV by investment fund type for equity securities, fixed income and cash, and alternative investments were 20%, 57%, and 23% as of December 31, 2023, respectively, and 13%, 69%, and 18% as of December 31, 2022, respectively. Those investments that were measured at fair value using NAV as a practical expedient were excluded from the fair value hierarchy. The practical expedient was not applied for investments with a fair value of $113 million and $109 million as of December 31, 2023 and 2022, respectively. There were investments classified within Level 3 of $103 million and $100 million for non U.S. insurance contracts as of December 31, 2023 and 2022, respectively. Funding Policy The funding policy for our Pension Benefits is to contribute amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws plus such additional amounts as we may determine to be appropriate. In 2023, we contributed approximately $18 million, which includes benefit payments made directly to the employee for our unfunded plans. We anticipate we will contribute between approximately $40 million to $45 million to our pension plans in 2024. The following table presents the expected benefit payments for Pension Benefits over the next 10 years. For funded Company sponsored plans, the benefit payments are made by the respective pension trust funds. Year Pension Benefits 2024 $ 164 2025 127 2026 132 2027 135 2028 136 2029-2033 717 DEFINED CONTRIBUTION PLANS Our primary defined contribution plan during 2023 was the Company-sponsored U.S. 401(k) plan ("401(k) Plan"). The 401(k) Plan allows eligible employees to contribute portions of their eligible compensation to an investment trust. The Company matches employee contributions at the rate of $1.00 per $1.00 employee contribution for the first 5% of the employee's eligible compensation, and such contributions vest immediately. In addition, we make cash contributions for all eligible employees of 4% of their eligible compensation and such contributions are fully vested after three years of employment. The 401(k) Plan provides several investment options, for which the employee has sole investment discretion; however, the 401(k) Plan does not offer the Company's common stock as an investment option. Our costs for the 401(k) Plan and several other U.S. and non-U.S. defined contribution plans amounted to $217 million and $212 million in 2023 and 2022, respectively. We have two non-qualified defined contribution plans that are invested through trusts. The assets and corresponding liabilities were $281 million and $256 million at December 31, 2023 and 2022, respectively, and are included in "All other assets" and "Liabilities for pensions and other postretirement benefits," respectively, in the consolidated statements of financial position. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes consists of the following: 2023 2022 2021 Current: U.S. $ 33 $ 6 $ 11 Foreign 711 489 614 Total current 744 495 625 Deferred: U.S. (27) 40 (24) Foreign (32) 65 157 Total deferred (59) 105 133 Provision for income taxes $ 685 $ 600 $ 758 On August 16, 2022, the U.S. enacted The Inflation Reduction Act which included a number of additional credits and deductions for businesses and individuals. The Inflation Reduction Act also included the adoption of the Corporate Alternative Minimum Tax in 2023, which is based on financial statement book income of large corporations. In 2023, the Company is not subject to the Corporate Alternative Minimum Tax. The geographic sources of income before income taxes consist of the following: 2023 2022 2021 U.S. $ 882 $ (698) $ (724) Foreign 1,773 720 1,152 Income before income taxes $ 2,655 $ 22 $ 428 The provision for income taxes differs from the amount computed by applying the U.S. statutory income tax rate to the income before income taxes for the reasons set forth below for the years ended December 31: 2023 2022 2021 Income before income taxes $ 2,655 $ 22 $ 428 Taxes at the U.S. federal statutory income tax rate 558 5 90 Effect of foreign operations (2) 112 338 216 Tax impact of partnership structure (103) 6 137 Change in valuation allowances (1) 53 164 70 Tax expense (benefit) due to unrecognized tax benefits (5) (7) 201 Other - net 70 94 44 Provision for income taxes (3) $ 685 $ 600 $ 758 Actual income tax rate 25.8 % 2,727.3 % 177.1 % (1) For December 31, 2023, this amount was reduced by $81 million that is related to the release of a valuation allowance for certain deferred tax assets. (2) For December 31, 2022, $140 million of this amount relates to the charges associated with the sale and suspension of our Russia operations. (3) For December 31, 2021, $121 million of this amount was previously indemnified under the Tax Matters Agreement with General Electric ("GE") of which $119 million was included in tax expense due to unrecognized tax benefits. In December 2022, the Company and GE entered into an agreement to terminate the Tax Matters Agreement. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss and tax credit carryforwards. As a result of an internal reorganization completed on December 30, 2023, BHH LLC became a single member LLC thereby terminating the partnership for U.S. income tax purposes. As of December 31, 2023, U.S. deferred tax assets and liabilities are now recorded based on the inside book basis versus tax basis difference and are no longer recorded based on the Company's outside basis difference in the BHH LLC partnership. As a result, in 2023 the deferred tax asset related to the investment in partnership has been adjusted accordingly and other deferred tax assets and liabilities, including PP&E, intangible assets, and lower tier investment in partnerships & subsidiaries, have been increased to reflect the tax effect of the inside basis difference of those respective assets and liabilities. The tax effects of differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities as of December 31 consist of the following: 2023 2022 Deferred tax assets: Operating & capital loss carryforwards $ 3,332 $ 2,074 Tax credit & other carryforwards 936 1,087 Investment in partnerships & subsidiaries 286 846 Property, plant and equipment 169 128 Employee benefits 241 62 Goodwill and other intangible assets 137 46 Receivables 111 94 Inventory 73 52 Other 181 163 Total deferred income tax asset 5,466 4,552 Valuation allowances (4,416) (4,090) Total deferred income tax asset after valuation allowance 1,050 462 Deferred tax liabilities: Indefinite-lived intangible assets (380) — Fair value of derivative financial instruments (90) — Other (34) (34) Total deferred income tax liability (504) (34) Net deferred tax asset $ 546 $ 428 At December 31, 2023, we had approximately $417 million of non-U.S. tax credits which may be carried forward indefinitely under applicable foreign law, $366 million of U.S. foreign tax credits and $153 million of other U.S. Federal and state tax credits and other carryforwards, the majority of which will expire after tax year 2027 under U.S. Federal and state tax law. Additionally, we had $3,299 million of net operating loss carryforwards ("NOLs"), of which approximately $252 million will expire within five years, $1,862 million will expire between six years and 20 years, and the remainder can be carried forward indefinitely. Lastly, we had $33 million of capital loss carryforwards, the majority of which can be carried forward indefinitely. We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future and in the appropriate taxing jurisdictions. At December 31, 2023, $4,416 million of valuation allowances are recorded against various deferred tax assets, primarily related to foreign operating and capital losses of $2,987 million and U.S. foreign and non-U.S. tax credit carryforwards of $770 million. Indefinite reinvestment is determined by management’s intentions concerning the future operations of the Company. In cases where repatriation would otherwise incur significant withholding or income taxes, these earnings have been indefinitely reinvested in the Company's active non-U.S. business operations. As of December 31, 2023, the cumulative amount of undistributed foreign earnings is approximately $3,708 million. Computation of the potential deferred tax liability associated with these undistributed earnings and any other basis differences is not practicable. At December 31, 2023, we had $467 million of tax liabilities for total gross unrecognized tax benefits related to uncertain tax positions. In addition to these uncertain tax positions, we had $83 million and $79 million related to interest and penalties, respectively, for total liabilities of $629 million for uncertain positions. If we were to prevail on all uncertain positions, the net effect would result in an income tax benefit of approximately $559 million. The remaining $71 million is comprised of $41 million for deferred tax assets that represent tax benefits that would be received in different taxing jurisdictions or in a different character and $30 million increased valuation allowances. The following table presents the changes in our gross unrecognized tax benefits included in the consolidated statements of financial position. Asset / (Liability) 2023 2022 Balance at beginning of year $ (496) $ (531) Additions for tax positions of the current year (15) (19) Additions for tax positions of prior years (50) (99) Reductions for tax positions of prior years 32 100 Settlements with tax authorities 26 24 Lapse of statute of limitations 36 29 Balance at end of year $ (467) $ (496) It is expected that the amount of unrecognized tax benefits will change in the next twelve months due to expiring statutes, audit activity, tax payments, and competent authority proceedings related to transfer pricing or final decisions in matters that are the subject of litigation in various taxing jurisdictions in which we operate. At December 31, 2023, we had approximately $40 million of tax liabilities related to uncertain tax positions, each of which are individually insignificant, and each of which are reasonably possible of being settled within the next twelve months. We conduct business in more than 120 countries and are subject to income taxes in most taxing jurisdictions in which we operate, each of which may have multiple open years subject to examination. All Internal Revenue Service examinations have been completed and closed through 2015 for the most significant U.S. returns. We believe that we have made adequate provision for all income tax uncertainties in all jurisdictions. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has the Long-Term Incentive Plan ("LTI Plan") under which we may grant restricted stock units ("RSU"), performance share units ("PSU"), stock options and other equity-based awards to employees and non-employee directors providing services to the Company and our subsidiaries. The Company also provides an Employee Stock Purchase Plan for eligible employees. A total of up to 29.5 million shares of Class A common stock are reserved and available for issuance pursuant to awards granted under the LTI Plan over its term which expires on the date of the annual meeting of the Company in 2031. A total of 25.1 million shares of Class A common stock are available for issuance as of December 31, 2023. Stock-based compensation cost was $197 million, $207 million and $205 million for the years ended December 31, 2023, 2022 and 2021, respectively. Stock-based compensation cost is measured at the date of grant based on the calculated fair value of the award and is generally recognized on a straight-line basis over the vesting period of the equity grant. The compensation cost is determined based on awards ultimately expected to vest; therefore, we have reduced the cost for estimated forfeitures based on historical forfeiture rates. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods to reflect actual forfeitures. There were no stock-based compensation costs capitalized as the amounts were not material. Restricted Stock We may grant to our officers, directors and key employees RSUs, where each unit represents the right to receive, at the end of a stipulated period, one unrestricted share of stock with no exercise price. Certain RSUs are subject to cliff or graded vesting, generally ranging over a period of three years. Non-employee directors are granted RSUs that immediately vest on the grant date. Cash dividend equivalents are accumulated on RSUs and are payable upon vesting of the awards. We determine the fair value of RSUs based on the market price of our common stock on the date of grant. The following table presents the changes in RSUs outstanding and related information (in thousands, except per unit prices): Number of Weighted Average Unvested balance at December 31, 2022 14,342 $ 24.31 Granted 6,404 30.20 Vested (7,351) 23.60 Forfeited (1,282) 26.43 Unvested balance at December 31, 2023 12,113 $ 27.70 In 2023, the total intrinsic value of RSUs vested (defined as the value of shares awarded based on the price of our common stock at vesting date) was $227 million and unvested RSUs was $414 million. The total grant date fair value of RSUs vested in 2023 was $173 million. As of December 31, 2023, there was $178 million of total unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted average period of 1.76 years. Performance Share Units We may grant PSUs to certain officers and key employees. The PSUs are stock-based awards tied to predefined company metrics and contain a payout modifier based on total shareholder return ("TSR"). PSUs generally cliff vest after a service period of three years. Cash dividend equivalents are accumulated on PSUs and are payable upon vesting of the awards. The fair value of the awards determined for the predefined company metrics are based on the market price of our common stock on the date of grant. The fair value of the PSU awards is determined based on a Monte Carlo simulation method. The following table presents the changes in PSUs outstanding and related information (in thousands, except per unit prices): Number of Weighted Average Unvested balance at December 31, 2022 3,525 $ 25.56 Granted 1,222 30.17 Vested (827) 20.61 Cancelled (1) (563) 21.85 Forfeited (529) 29.06 Unvested balance at December 31, 2023 2,828 $ 28.70 (1) Includes adjustments based on achievement of predefined company metrics. The total intrinsic value of PSUs vested and unvested, (defined as the value of the shares awarded at the year-end market price) was $23 million and $97 million, respectively, as of December 31, 2023. The total grant date fair value of PSUs vested in 2023 was $17 million. Total unrecognized compensation cost related to unvested PSUs, which is expected to be recognized over a weighted average period of 1.89 years , was $28 million as of December 31, 2023. Stock Options We previously granted stock options to our officers, directors and key employees. Stock options generally vest in equal amounts over a vesting period of three years provided that the employee has remained continuously employed by the Company through such vesting date. We have not granted stock options to officers, directors, or key employees since 2019. The following table presents the changes in stock options outstanding and related information (in thousands, except per option prices): Number of Weighted Average Outstanding at December 31, 2022 2,907 $ 33.02 Exercised (492) 26.44 Expired (174) 39.79 Outstanding and exercisable at December 31, 2023 2,241 $ 33.92 The weighted average remaining contractual term for options outstanding and options exercisable at December 31, 2023 was 3.4 years. The maximum contractual term of options outstanding is 5.1 years. There were nil, 530 thousand and 850 thousand options that vested in 2023, 2022 and 2021, respectively. The total fair value of options vested was nil, $3 million and $7 million, in 2023, 2022 and 2021, respectively. Unrecognized compensation cost related to unvested stock options was immaterial as of December 31, 2023. The total intrinsic value of stock options exercised (defined as the amount by which the market price of our common stock on the date of exercise exceeds the exercise price of the option) in 2023 was $3 million. The total intrinsic value of stock options outstanding and options exercisable at December 31, 2023 was $6 million. The intrinsic value of stock options outstanding is calculated as the amount by which the quoted price of $34.18 of our common stock as of the end of 2023 exceeds the exercise price of the options. Employee Stock Purchase Plan The employee stock purchase plan provides for eligible employees to purchase shares of Class A common stock quarterly on an after-tax basis in an amount between 1% and 20% of their annual pay at a 15% discount of the fair market value of our Class A common stock at the end of each quarterly offering period. An employee may not purchase more than $3,000 in any of the three-month measurement periods described above or $12,000 annually. A total of 21.5 million shares of Class A common stock are authorized for issuance, and at December 31, 2023, there were 8.7 million shares of Class A common stock reserved for future issuance. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
EQUITY | EQUITY COMMON STOCK We are authorized to issue 2 billion shares of Class A common stock, 1.25 billion shares of Class B common stock and 50 million shares of preferred stock each of which have a par value of $0.0001 per share. The number of shares outstanding of Class A and Class B common stock at December 31, 2023 is 998 million and nil, respectively. We have not issued any preferred stock. Each share of Class B common stock and the associated member units of BHH LLC form a paired interest. While each share of Class B common stock has equal voting rights to a share of Class A common stock, it has no economic rights, meaning holders of Class B common stock have no right to dividends or any assets in the event of liquidation of the Company. Our Class B common stock was previously held by GE. As of December 31, 2023 and 2022, there were no shares of Class B common stock issued and outstanding. We have a share repurchase program which we expect to fund from cash generated from operations, and we expect to make share repurchases from time to time subject to the Company's capital plan, market conditions, and other factors, including regulatory restrictions. The repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. In 2023 and 2022, the Company repurchased and canceled 16.3 million and 29.7 million shares of Class A common stock, each for $538 million and $828 million, representing an average price per share of $33.09 and $27.91, respectively. As of December 31, 2023, the Company had authorization remaining to repurchase up to approximately $2.2 billion of its Class A common stock. The following table presents the changes in the number of shares outstanding (in thousands): 2023 2022 Class A Common Stock Class B Common Stock Class A Common Stock Class B Common Stock Balance at beginning of year 1,005,960 — 909,142 116,548 Issue of shares upon vesting of restricted stock units (1) 5,738 — 6,316 — Issue of shares on exercise of stock options (1) 434 — 1,632 — Issue of shares for employee stock purchase plan 1,846 — 2,017 — Exchange of Class B common stock for Class A common stock (2) — — 116,548 (116,548) Repurchase and cancellation of Class A common stock (16,269) — (29,694) — Balance at end of year 997,709 — 1,005,960 — (1) Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation. (2) When shares of Class B common stock, together with associated BHH LLC member units ("LLC Units"), were exchanged for shares of Class A common stock, such shares of Class B common stock were canceled . During 2023 and 2022, the Company declared and paid aggregate regular dividends of $0.78 and $0.73 per share, respectively, to holders of record of the Company's Class A common stock. ACCUMULATED OTHER COMPREHENSIVE LOSS ("AOCL") The following tables present the changes in accumulated other comprehensive loss, net of tax: Foreign Currency Translation Adjustments Cash Flow Hedges Benefit Plans Accumulated Other Comprehensive Loss Balance at December 31, 2021 $ (2,125) $ (10) $ (250) $ (2,385) Other comprehensive income (loss) before reclassifications (294) (1) 2 (293) Amounts reclassified from accumulated other comprehensive loss 25 3 27 55 Deferred taxes — — (43) (43) Other comprehensive income (loss) (269) 2 (14) (281) Less: Other comprehensive loss attributable to noncontrolling interests (3) — — (3) Less: Reallocation of AOCL based on change in ownership of BHH LLC Units 275 1 32 308 Balance at December 31, 2022 (2,666) (9) (296) (2,971) Other comprehensive income (loss) before reclassifications 153 12 (14) 151 Amounts reclassified from accumulated other comprehensive loss — (8) 28 20 Deferred taxes — (1) 5 4 Other comprehensive income (loss) 153 3 19 175 Balance at December 31, 2023 $ (2,513) $ (6) $ (277) $ (2,796) The amounts reclassified from accumulated other comprehensive loss during the years ended December 31, 2023 and 2022 represent (i) gains (losses) reclassified on cash flow hedges when the hedged transaction occurs, (ii) the amortization of net actuarial gain (loss), prior service credit, settlements, and curtailments which are included in the computation of net periodic pension cost (see "Note 10. Employee Benefit Plans" for additional details), and (iii) the release of foreign currency translation adjustments. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted net income (loss) per share of Class A common stock is presented below: (In millions, except per share amounts) 2023 2022 2021 Net income (loss) $ 1,970 $ (578) $ (330) Less: Net income (loss) attributable to noncontrolling interests 27 23 (111) Net income (loss) attributable to Baker Hughes Company $ 1,943 $ (601) $ (219) Weighted average shares outstanding: Class A basic 1,008 987 824 Class A diluted 1,015 987 824 Net income (loss) per share attributable to common stockholders: Class A basic $ 1.93 $ (0.61) $ (0.27) Class A diluted $ 1.91 $ (0.61) $ (0.27) Shares of our Class B common stock do not share in earnings or losses of the Company and are not considered in the calculation of basic or diluted earnings per share ("EPS") above. As such, separate presentation of basic and diluted EPS of Class B under the two class method has not been presented. The basic weighted average shares outstanding for our Class B common stock were nil, 30 million, and 215 million for the years ended December 31, 2023, 2022 and 2021, respectively. The basic weighted average shares outstanding for both our Class A and Class B common stock combined were 1,008 million, 1,017 million, and 1,039 million for the years ended December 31, 2023, 2022 and 2021, respectively. For the year ended December 31, 2023, Class A diluted shares include the dilutive impact of equity awards except for approximately 2 million options that were excluded because the exercise price exceeded the average market price of our Class A common stock and is therefore antidilutive. For the years ended December 31, 2022, and 2021, we excluded all outstanding equity awards from the computation of diluted net loss per share because their effect is antidilutive. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
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 consist of derivative instruments and investment securities. 2023 2022 Level 1 Level 2 Level 3 Net Balance Level 1 Level 2 Level 3 Net Balance Assets Derivatives $ — $ 34 $ — $ 34 $ — $ 18 $ — $ 18 Investment securities 1,040 — 2 1,042 748 — — 748 Total assets 1,040 34 2 1,076 748 18 — 766 Liabilities Derivatives — (76) — (76) — (86) — (86) Total liabilities $ — $ (76) $ — $ (76) $ — $ (86) $ — $ (86) 2023 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investment securities (1) Non-U.S. debt securities (2) $ 66 $ 1 $ — $ 67 $ — $ — $ — $ — Equity securities 527 451 (3) 975 557 191 — 748 Total $ 593 $ 452 $ (3) $ 1,042 $ 557 $ 191 $ — $ 748 (1) Gains (losses) recorded to earnings related to these securities were $405 million, $(271) million and $(843) million for the years ended December 31, 2023, 2022, and 2021, respectively. (2) As of December 31, 2023, our non-U.S. debt securities are classified as available for sale securities and mature within two years. As of December 31, 2023 and 2022, the balance of our equity securities with readily determinable fair values is $975 million and $748 million, respectively, and is comprised mainly of our investment in ADNOC Drilling, and is recorded primarily in "All other current assets" in the consolidated statements of financial position. We measured our investments at fair value based on quoted prices in active markets. Gains (losses) recorded to earnings for our equity securities with readily determinable fair values were $435 million, $(264) million, and $(843) million for the years ended December 31, 2023, 2022 and 2021, respectively. Gains (losses) related to our equity securities with readily determinable fair values are reported in "Other non-operating income (loss), net" in the consolidated statements of income (loss). OTHER EQUITY INVESTMENTS During the second quarter of 2023, certain equity securities without a readily determinable fair value were remeasured as of the date that an observable transaction occurred, which resulted in the Company recording a gain of $118 million. Gains (losses) related to our equity securities without readily determinable fair values are reported in "Other non-operating income (loss), net" in the consolidated statements of income (loss) . FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS Our financial instruments include cash and 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 at December 31, 2023 and 2022 approximates their carrying value as reflected in our consolidated financial statements. For further information on the fair value of our debt, see "Note 9. Debt." 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. 2023 2022 Assets (Liabilities) Assets (Liabilities) Derivatives accounted for as hedges Currency exchange contracts $ 10 $ (3) $ 1 $ — Interest rate swap contracts — (52) — (69) Derivatives not accounted for as hedges Currency exchange contracts and other 24 (21) 17 (17) Total derivatives $ 34 $ (76) $ 18 $ (86) Derivatives are classified in the consolidated statements of financial position depending on their respective maturity date. As of December 31, 2023 and 2022, $31 million and $17 million of derivative assets are recorded in " All other current assets All other assets All other current liabilities All other liabilities FORMS OF HEDGING Cash Flow Hedges We use cash flow hedging primarily to mitigate 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 long-term debt that we issue from time to time to fund our operations. 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 13. Equity" for further information on activity in AOCI for cash flow hedges. The maximum term of cash flow hedges that hedge forecasted transactions was approximately two years and one year at December 31, 2023 and 2022, respectively. 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 December 31, 2023 and 2022, 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. As of July 1, 2023, the interest rate changed to be based on a Secured Overnight Financing Rate index. 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. NOTIONAL AMOUNT OF DERIVATIVES The notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. We disclose the derivative notional amounts on a gross basis to indicate the total counterparty risk but it does not generally represent amounts exchanged by us and the counterparties. A substantial majority of the outstanding notional amount of $4.2 billion and $3.8 billion at December 31, 2023 and 2022, 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. 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. |
REVENUE RELATED TO CONTRACTS WI
REVENUE RELATED TO CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RELATED TO CONTRACTS WITH CUSTOMERS | PROGRESS COLLECTIONS AND DEFERRED INCOME 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 consist of the following at December 31: 2023 2022 Progress collections $ 5,405 $ 3,713 Deferred income 137 109 Progress collections and deferred income (contract liabilities) $ 5,542 $ 3,822 Revenue recognized during the years ended December 31, 2023 and 2022 that was included in the contract liabilities at the beginning of the year was $2,999 million and $2,185 million, respectively. DISAGGREGATED REVENUE We disaggregate our revenue from contracts with customers by product line for both our OFSE and IET segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. In addition, management views revenue from contracts with customers for OFSE by geography based on the location to where the product is shipped or the services are performed. Effective October 1, 2023, IET began operating through five product lines - Gas Technology Equipment , which will now include the Pumps business; Gas Technology Services ; Industrial Solutions , which brings together the Condition Monitoring and PSI businesses, along with IET Digital initiatives; Industrial Products , which brings together the Inspection business merging with the Valves and Gears businesses; and a newly formed product line, Climate Technology Solutions , which will combine our carbon capture, utilization and storage ("CCUS"), hydrogen, clean power and emissions abatement capabilities, that previously was reported in each of the individual IET product lines, into one business focused on serving the energy transition. The financial information for 2022 and 2021 have been recast to conform to the new product line presentation. The series of tables below present our revenue disaggregated by these categories. Total Revenue 2023 2022 2021 Well Construction $ 4,387 $ 3,854 $ 3,301 Completions, Intervention & Measurements 4,170 3,559 3,106 Production Solutions 3,854 3,587 3,135 Subsea & Surface Pressure Systems 2,950 2,230 2,486 Oilfield Services & Equipment 15,361 13,229 12,028 Gas Technology Equipment 4,232 2,599 3,039 Gas Technology Services 2,600 2,440 2,696 Total Gas Technology 6,832 5,039 5,735 Industrial Products 1,962 1,697 1,598 Industrial Solutions 983 884 880 Controls (1) 41 208 217 Total Industrial Technology 2,987 2,789 2,695 Climate Technology Solutions 326 98 43 Industrial & Energy Technology 10,145 7,926 8,473 Total $ 25,506 $ 21,156 $ 20,502 (1) The sale of Nexus Controls business was completed in April 2023. Oilfield Services & Equipment Geographic Revenue 2023 2022 2021 North America $ 4,116 $ 3,764 $ 2,904 Latin America 2,761 2,099 1,681 Europe/CIS/Sub-Saharan Africa 2,655 2,483 2,865 Middle East/Asia 5,829 4,883 4,579 Oilfield Services & Equipment $ 15,361 $ 13,229 $ 12,028 REMAINING PERFORMANCE OBLIGATIONS As of December 31, 2023, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $33.5 billion. As of December 31, 2023, we expect to recognize revenue of approximately 61%, 74% and 90% 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company's segments are determined as those operations whose results are reviewed regularly by the chief operating decision maker ("CODM"), who is our Chief Executive Officer, in deciding how to allocate resources and assess performance. We report our operating results through two operating segments, OFSE and IET. Each segment is organized and managed based upon the nature of our markets and customers and consists of similar products and services. These products and services operate across upstream oil and gas and broader energy and industrial markets. The following is a description of each segment's business operations: Oilfield Services & Equipment provides products and services for onshore and offshore oilfield operations across the lifecycle of a well, ranging from exploration, appraisal, and development, to production, rejuvenation, and decommissioning. OFSE is organized into four product lines: Well Construction, which encompasses drilling services, drill bits, and drilling & completions fluids; Completions, Intervention, and Measurements , which encompasses well completions, pressure pumping, and wireline services; Production Solutions , which spans artificial lift systems and oilfield & industrial chemicals; and Subsea & Surface Pressure Systems , which encompasses subsea projects services and drilling systems, surface pressure control, and flexible pipe systems. Beyond its traditional oilfield concentration, OFSE is expanding its capabilities and technology portfolio to meet the challenges of a net-zero future. These efforts include expanding into new energy areas such as geothermal and CCUS, strengthening its digital architecture and addressing key energy market themes. Industrial & Energy Technology provides technology solutions and services for mechanical-drive, compression and power-generation applications across the energy industry, including oil and gas, LNG operations, downstream refining and petrochemical markets, as well as lower carbon solutions to broader energy and industrial sectors. IET also provides equipment, software, and services that serve a wide range of industries including petrochemical and refining, nuclear, aviation, automotive, mining, cement, metals, pulp and paper, and food and beverage. IET is organized into five product lines - Gas Technology Equipment, Gas Technology Services, Industrial Products, Industrial Solutions, and Climate Technology Solutions. Revenue and operating income for each segment are used by the CODM to assess the performance of each segment in a financial period. 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, and certain gains and losses not allocated to the operating segments. Consistent accounting policies have been applied by all segments within the Company, for all reporting periods. Intercompany revenue and expense amounts have been eliminated within each segment to report on the basis that management uses internally for evaluating segment performance. Summarized financial information for the Company's segments is shown in the following tables. Revenue 2023 2022 2021 Oilfield Services & Equipment $ 15,361 $ 13,229 $ 12,028 Industrial & Energy Technology 10,145 7,926 8,473 Total $ 25,506 $ 21,156 $ 20,502 Income before income taxes 2023 2022 2021 Oilfield Services & Equipment $ 1,746 $ 1,201 $ 830 Industrial & Energy Technology 1,310 1,135 1,177 Total segment 3,055 2,336 2,006 Corporate (380) (416) (429) Inventory impairment (1) (35) (31) — Restructuring, impairment and other (323) (705) (269) Other non-operating income (loss), net 554 (911) (583) Interest expense, net (216) (252) (299) Income (loss) before income taxes $ 2,655 $ 22 $ 428 (1) Charges for inventory impairments are reported in "Cost of goods sold" in the consolidated statements of income (loss). The following table presents total assets at December 31: Assets 2023 2022 Oilfield Services & Equipment $ 17,925 $ 17,181 Industrial & Energy Technology 13,781 12,286 Total segment 31,706 29,467 Corporate and eliminations (1) 5,239 4,714 Total $ 36,945 $ 34,181 (1) The assets in Corporate and eliminations consist primarily of the Baker Hughes trade name, cash, and tax assets. It also includes adjustments to eliminate intercompany investments and receivables reflected within the total assets of each of our reportable segments. The following table presents depreciation and amortization: Depreciation and amortization 2023 2022 2021 Oilfield Services & Equipment $ 849 $ 845 $ 874 Industrial & Energy Technology 217 197 208 Total segment 1,066 1,042 1,082 Corporate 21 19 23 Total $ 1,087 $ 1,061 $ 1,105 The following table presents capital expenditures: Capital expenditures 2023 2022 2021 Oilfield Services & Equipment $ 960 $ 791 $ 659 Industrial & Energy Technology 229 183 182 Total segment 1,189 974 841 Corporate 35 15 15 Total $ 1,224 $ 989 $ 856 The following table presents consolidated revenue based on the location to where the product is shipped or the services are performed. Other than the U.S., no other country accounted for more than 10% of our consolidated revenue during the periods presented. Revenue 2023 2022 2021 U.S. $ 6,557 $ 4,942 $ 4,497 Non-U.S. 18,949 16,214 16,005 Total $ 25,506 $ 21,156 $ 20,502 The following table presents net property, plant and equipment by its geographic location at December 31: Property, plant and equipment - net 2023 2022 U.S. $ 1,579 $ 1,554 Non-U.S. 3,314 2,984 Total $ 4,893 $ 4,538 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS We have an aeroderivative joint venture ("Aero JV") we formed with GE in 2019. The Aero JV is jointly controlled by GE and us, each with ownership interest of 50%, and therefore, we do not consolidate the Aero JV. We had purchases from the Aero JV of $517 million, $528 million, and $603 million during the years ended December 31, 2023, 2022 and 2021, respectively. We have $71 million and $110 million of accounts payable at December 31, 2023 and 2022, respectively, for products and services provided by the Aero JV in the ordinary course of business. Sales of products and services and related receivables with the Aero JV were immaterial for the years ended December 31, 2023, 2022 and 2021. During the second quarter of 2022, GE's ownership interest in the Company and BHH LLC was reduced to less than 5%. As a result, considering all aspects of our relationship with GE, as of June 30, 2022, we no longer considered GE a related party. We had purchases with GE and its affiliates of $293 million during the six months ended June 30, 2022, and $716 million during the year ended December 31, 2021, respectively. In addition, we sold products and services to GE and its affiliates for $83 million during the six months ended June 30, 2022, and $185 million during the year ended December 31, 2021, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
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. 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. On November 16, 2021, the court granted the Company's petition to confirm the award and denied IEC's petition to vacate. During the second quarter of 2022, IEC paid the amounts owed under the arbitration award, which had an immaterial impact on the Company's financial statements. On February 3, 2022, IEC initiated another arbitration proceeding in New York administered by the ICDR against certain of the Company's subsidiaries arising out of the same project which formed the basis of the first arbitration. On March 25, 2022, the Company's subsidiaries initiated a separate demand for ICDR arbitration against IEC for claims of additional costs and amounts due; such claims against IEC have now been resolved, with any consideration having an immaterial impact on the Company's financial statements. At this time, we are not able to predict the outcome of the proceeding which is pending against the Company's subsidiaries. On March 15, 2019 and March 18, 2019, the City of Riviera Beach Pension Fund and Richard Schippnick, respectively, filed in the Delaware Court of Chancery shareholder derivative lawsuits for and on the Company's behalf against GE, the then-current members of the Board of Directors of the Company and the Company as a nominal defendant, related to the decision to (i) terminate the contractual prohibition barring GE from selling any of the Company's shares before July 3, 2019; (ii) repurchase $1.5 billion in the Company's stock from GE; (iii) permit GE to sell approximately $2.5 billion in the Company's stock through a secondary offering; and (iv) enter into a series of other agreements and amendments that will govern the ongoing relationship between the Company and GE (collectively, the "2018 Transactions"). The complaints in both lawsuits allege, among other things, that GE, as the Company's controlling stockholder, and the members of the Company's Board of Directors breached their fiduciary duties by entering into the 2018 Transactions. The relief sought in the complaints includes a request for a declaration that the defendants breached their fiduciary duties, that GE was unjustly enriched, disgorgement of profits, an award of damages sustained by the Company, pre- and post-judgment interest, and attorneys' fees and costs. On March 21, 2019, the Chancery Court entered an order consolidating the Schippnick and City of Riviera Beach complaints under consolidated C.A. No. 2019-0201-AGB, styled in re Baker Hughes, a GE company derivative litigation. On May 10, 2019, Plaintiffs voluntarily dismissed their claims against the members of the Company's Conflicts Committee, and on May 15, 2019, Plaintiffs voluntarily dismissed their claims against former Baker Hughes director Martin Craighead. On June 7, 2019, the defendants and nominal defendant filed a motion to dismiss the lawsuit on the ground that the derivative plaintiffs failed to make a demand on the Company's Board of Directors to pursue the claims itself, and GE and the Company's Board of Directors filed a motion to dismiss the lawsuit on the ground that the complaint failed to state a claim on which relief can be granted. The Chancery Court denied the motions on October 8, 2019, except granted GE's motion to dismiss the unjust enrichment claim against it. On October 31, 2019, the Company's Board of Directors designated a Special Litigation Committee and empowered it with full authority to investigate and evaluate the allegations and issues raised in the derivative litigation. The Special Litigation Committee filed a motion to stay the derivative litigation during its investigation. On December 3, 2019, the Chancery Court granted the motion and stayed the derivative litigation until June 1, 2020. On May 20, 2020, the Chancery Court granted an extension of the stay to October 1, 2020, and on September 29, 2020, the Court granted a further extension of the stay to October 15, 2020. On October 13, 2020, the Special Litigation Committee filed its report with the Court. On April 17, 2023, the Court granted the Special Litigation Committee's motion to terminate the litigation. On May 16, 2023, the plaintiffs filed a notice of appeal. On February 1, 2024, the Supreme Court of the State of Delaware affirmed the judgment of the Court of Chancery. On or around February 15, 2023, the lead plaintiff and three additional named plaintiffs in a putative securities class action styled The Reckstin Family Trust, et al., v. C3.ai, Inc., et al ., No. 4:22-cv-01413-HSG, filed an amended class action complaint (the "Amended Complaint") in the United States District Court for the Northern District of California. The Amended Complaint names the following as defendants: (i) C3.ai., Inc. ("C3 AI"), (ii) certain of C3 AI's current and/or former officers and directors, (iii) certain underwriters for the C3 AI initial public offering (the "IPO"), and (iv) the Company, and its President and CEO (who formerly served as a director on the board of C3 AI). The Amended Complaint alleges violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 (the "Exchange Act") in connection with the IPO and the subsequent period between December 9, 2020 and December 2, 2021, during which BHH LLC held equity investments in C3 AI. The action seeks unspecified damages and the award of costs and expenses, including reasonable attorneys' fees. At this time, we are not able to predict the outcome of these proceedings. 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. ENVIRONMENTAL MATTERS Item 103 of SEC Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Company reasonably believes will exceed a specified threshold. The Company uses a threshold of $1 million for such proceedings. Applying this threshold, there are no environmental matters to disclose for this period. Estimated remediation costs are accrued using currently available facts, existing environmental permits, technology and enacted laws and regulations. Our cost estimates are developed based on internal evaluations and are not discounted. Accruals are recorded when it is probable that we will be obligated to pay for environmental site evaluation, remediation or related activities, and such costs can be reasonably estimated. As additional information becomes available, accruals are adjusted to reflect current cost estimates. 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 a guarantee to GE Capital on behalf of a customer who entered into a financing arrangement with GE Capital. Total off-balance sheet arrangements were approximately $5.1 billion at December 31, 2023. It is not practicable to estimate the fair value of these financial instruments. As of December 31, 2023, 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 also had commitments outstanding for purchase obligations for each of the five years in the period ending December 31, 2028 of $1,871 million, $366 million, $220 million, $215 million and $47 million, respectively, and $27 million in the aggregate thereafter. We sometimes enter into consortium or similar arrangements for certain projects primarily in our OFSE 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 | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING, IMPAIRMENT AND OTHER | RESTRUCTURING, IMPAIRMENT AND OTHER We recorded restructuring, impairment and other charges of $323 million, $705 million, and $269 million during the years ended December 31, 2023, 2022 and 2021, respectively. RESTRUCTURING AND IMPAIRMENT CHARGES In 2023, we recorded restructuring and impairment charges of $313 million. In 2022, we announced a corporate restructuring plan in conjunction with a change in our operating segments (the "2022 Plan"). We continued to incur charges in 2023 related to our 2022 Plan primarily for employee termination expenses. Restructuring charges for 2023 also include costs under a new plan (the "2023 Plan") primarily for employee termination expenses related to exit activities at specific locations in our segments to align with our market outlook and rationalize our manufacturing supply chain footprint. These actions also included inventory impairments of $35 million in 2023, recorded in "Cost of goods sold" in the consolidated statements of income (loss). In the fourth quarter of 2023, we incurred additional costs related to a planned workforce reduction, primarily in OFSE. In 2022, we recorded restructuring and impairment charges of $196 million. The charges are related to our 2022 Plan and are primarily for employee termination expenses driven by actions taken by the Company to facilitate the reorganization into two segments and corporate restructuring. In addition, PP&E impairments and other costs were recorded related to exit activities at specific locations in the OFSE segment. In 2021, we recorded restructuring and impairment charges totaling $138 million. Charges incurred were primarily related to the continuation of our overall strategy to restructure our business, which was designed to optimize our structural costs for the year-over-year change in activity levels and market conditions. The following table presents the restructuring and impairment charges by the impacted segment; however, these net charges are not included in the reported segment results. 2023 2022 2021 Oilfield Services & Equipment $ 148 $ 121 $ 121 Industrial & Energy Technology 98 36 11 Corporate 67 39 6 Total $ 313 $ 196 $ 138 The following table presents restructuring and impairment charges by type, and includes gains on the dispositions of certain property, plant and equipment as a consequence of exit activities: 2023 2022 2021 Property, plant and equipment $ (2) $ 58 $ 7 Employee-related termination expenses 270 121 99 Asset relocation costs 5 3 20 Contract termination fees 1 1 2 Other incremental costs 39 13 10 Total $ 313 $ 196 $ 138 OTHER CHARGES Other charges included in "Restructuring, impairment and other" in the consolidated statements of income (loss) were $10 million, $509 million, and $131 million for the years ended December 31, 2023, 2022 and 2021, respectively. In 2022, other charges were primarily associated with the discontinuation of our Russia operations. As a result of the conflict between Russia and Ukraine, we took actions to suspend substantially all of our operational activities related to Russia. These actions resulted in other charges of $334 million recorded in the second quarter of 2022 primarily associated with the suspension of contracts including all our IET LNG contracts, and the impairment of assets consisting primarily of contract assets, PP&E and reserve for accounts receivable. In addition to these charges, we recorded inventory impairments of $31 million primarily in IET as a result of suspending our Russia operations, which are reported in "Cost of goods sold" in the consolidated statements of income (loss). In 2022, we also recorded other charges of $84 million in our OFSE segment primarily related to the impairment of PP&E and intangibles for the subsea production systems business due to a decrease in the estimated future cash flows driven by a decline in our long-term market outlook for this business, and $68 million in our IET segment primarily related to a write-off of an equity method investment and the release of foreign currency translation adjustments. In 2021, other charges were primarily related to certain litigation matters in our IET segment and the release of foreign currency translation adjustments for certain restructured product lines in our IET segment. The 2022 and 2021 charges also include separation related costs. |
BUSINESS DISPOSITIONS AND ACQUI
BUSINESS DISPOSITIONS AND ACQUISITIONS | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
BUSINESS DISPOSITIONS AND ACQUISITIONS | BUSINESS DISPOSITIONS AND ACQUISITIONS DISPOSITIONS We completed several business dispositions over the past three years as described below. Any gain or loss on a business disposition is reported in " Other non-operating income (loss), net During 2023, we completed the sale of businesses and received total cash consideration $293 million. The dispositions consisted primarily of the sale of our Nexus Controls business in the IET segment to GE in April 2023, which resulted in an immaterial gain. Nexus Controls specializes in scalable industrial controls systems, safety systems, hardware, and software cybersecurity solutions and services. GE will continue to provide Baker Hughes with GE's MarkTM controls products currently in the Nexus Controls portfolio, and we will be the exclusive supplier and service provider of such GE products for our oil and gas customers' control needs. The following table presents financial information related to the assets and liabilities of our Nexus Controls business classified as held for sale and reported in "All other current assets" and "All other current liabilities" in the consolidated statements of financial position as of December 31, 2022. Assets and liabilities of business held for sale Nexus Controls Assets Current receivables $ 59 Inventories 36 Property, plant and equipment 2 Goodwill 230 Other assets 10 Total assets of business held for sale 337 Liabilities Accounts payable 30 All other current liabilities 56 Other liabilities 7 Total liabilities of business held for sale 93 Total net assets of business held for sale $ 244 During 2022, we sold part of our OFSE Russia business to local management for a nominal amount, which resulted in a loss before income taxes of $451 million. During 2021, we closed a transaction with Akastor ASA to create a joint venture company ("JV Company") to deliver global offshore drilling solutions. We contributed our subsea drilling systems business, a division of our OFSE segment, to the JV Company and received as consideration 50% of the shares of the JV Company, cash of $70 million, and a promissory note of $80 million. The transaction resulted in an immaterial gain. ACQUISITIONS During 2023, we completed the acquisition of businesses for total cash consideration of $301 million, net of cash acquired, which consisted primarily of the acquisition of Altus Intervention in the OFSE segment in April 2023. Altus Intervention is a leading international provider of well intervention services and downhole technology. The assets acquired and liabilities assumed in these acquisitions were recorded based on preliminary estimates of their fair values as of the acquisition date. As a result of these acquisitions, we recorded $138 million of goodwill and $58 million of intangible assets, subject to final fair value adjustments. Pro forma results of operations for these acquisitions have not been presented because the effects of these acquisitions were not material to our consolidated financial statements. During 2022, we completed several acquisitions for total cash consideration of $767 million, net of cash acquired of $50 million, subject to the finalization of post-closing working capital adjustments. The transactions have been accounted for using the acquisition method of accounting and accordingly, assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. As a result of these acquisitions, we recorded $458 million of goodwill and $211 million of intangible assets. Pro forma results of operations for these acquisitions have not been presented because the effects of these acquisitions were not material to our consolidated financial statements. |
SUPPLEMENTARY INFORMATION
SUPPLEMENTARY INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
SUPPLEMENTARY INFORMATION | SUPPLEMENTARY INFORMATION ALL OTHER CURRENT LIABILITIES All other current liabilities as of December 31, 2023 and 2022 include $1,346 million and $837 million, respectively, of employee related liabilities. ALLOWANCE FOR CREDIT LOSSES The following table presents the change in allowance for credit losses: 2023 2022 Balance at beginning of year $ 341 $ 400 Provision 79 69 Write-offs (26) (34) Prior year recoveries (31) (44) Other (13) (50) Balance at end of year $ 350 $ 341 CASH FLOW DISCLOSURES Supplemental cash flow disclosures consist of the following: 2023 2022 2021 Income taxes paid, net of refunds $ 595 $ 498 $ 314 Interest paid $ 309 $ 291 $ 305 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) Attributable to Parent | $ 1,943 | $ (601) | $ (219) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the three months ended December 31, 2023, certain of our officers or directors listed below adopted or terminated trading arrangements for the sale of shares of our Class A common stock in amounts and prices determined in accordance with a formula set forth in each such plan: Plans Name and Title Action Date Rule 10b5-1 (1) Non-Rule 10b5-1 (2) Number of Shares to be Sold Expiration James E. Apostolides, Senior Vice President, Enterprise Operational Excellence Adoption November 22, 2023 X 15,000 Earlier of when all shares under plan are sold and April 8, 2024 (1) Intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (2) Not intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
James E. Apostolides [Member] | ||
Trading Arrangements, by Individual | ||
Name | James E. Apostolides | |
Title | Senior Vice President, Enterprise Operational Excellence | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 22, 2023 | |
Arrangement Duration | 138 days | |
Aggregate Available | 15,000 | 15,000 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION |
Consolidation | The consolidated financial statements include the accounts of Baker Hughes and all of its subsidiaries and affiliates which it controls or variable interest entities for which we have determined that we are the primary beneficiary. All intercompany accounts and transactions have been eliminated. |
Reclassification | In the Company's consolidated financial statements and notes, certain amounts have been reclassified to conform with the current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of any contingent assets or liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We base our estimates and judgments on historical experience and on various other assumptions and information that we believe to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty, and accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. While we believe that the estimates and assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. Estimates are used for, but are not limited to, determining the following: allowance for credit losses and inventory valuation reserves; recoverability of long-lived assets; revenue recognition on long-term contracts; valuation of goodwill; useful lives used in depreciation and amortization; income taxes and related valuation allowances; accruals for contingencies; actuarial assumptions to determine costs and liabilities related to employee benefit plans; stock-based compensation expense; valuation of derivatives; and the fair value of assets acquired and liabilities assumed in acquisitions. |
Foreign Currency | Foreign Currency Assets and liabilities of non-U.S. operations with a functional currency other than the U.S. dollar have been translated into U.S. dollars using our period end exchange rates, and revenue, expenses, and cash flows have been translated at average rates for the respective periods. Any resulting translation gains and losses are included in other comprehensive income (loss). The impact of remeasurement of monetary assets and liabilities denominated in currencies other than the functional currency of the Company or its subsidiaries is included in the consolidated statements of income (loss). |
Revenue from Sale of Equipment | Revenue from Sale of Equipment Performance Obligations Satisfied Over Time We recognize revenue on agreements for sales of equipment manufactured to unique customer specifications including long-term construction projects, on an over time basis, utilizing cost inputs as the measurement criteria in assessing the progress toward completion. Our estimate of costs to be incurred to fulfill our promise to a customer is based on our history of manufacturing similar assets for customers and is updated routinely to reflect changes in quantity or pricing of the inputs. We begin to recognize revenue on these contracts when the contract specific inventory becomes customized for a customer, which is reflective of our initial transfer of control of the incurred costs. We provide for potential losses on any of these agreements when it is probable that we will incur the loss. Our billing terms for these over time contracts vary, but are generally based on achieving specified milestones. The differences between the timing of our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract asset or contract liability positions. Performance Obligations Satisfied at a Point In Time We recognize revenue for non-customized equipment at the point in time that the customer obtains control of the good. Equipment for which we recognize revenue at a point in time includes equipment we manufacture on a standardized basis for sale to the market. We use proof of delivery for certain large equipment with more complex logistics associated with the shipment, whereas the delivery of other equipment is generally determined based on historical data of transit times between regions. On occasion we sell equipment with a right of return. We use our accumulated experience to estimate and provide for such returns when we record the sale. In situations where arrangements include customer acceptance provisions based on seller or customer-specified objective criteria, we recognize revenue when we have concluded that the customer has control of the equipment and that acceptance has or is likely to occur. Our billing terms for these point in time equipment contracts vary, but are generally based on shipment of the equipment to the customer. Revenue from Sale of Services Performance Obligations Satisfied Over Time We sell product services under long-term product maintenance or extended warranty agreements in our Industrial & Energy Technology segment. These agreements require us to maintain the customers' assets over the service agreement contract terms, which generally range from 10 to 20 years. In general, these are contractual arrangements to provide services, repairs, and maintenance of a covered unit (gas turbines for mechanical drive or power generation, primarily on liquefied natural gas ("LNG") applications). These services are performed at various times during the life of the contract, thus the costs of performing services are incurred on an other than straight-line basis. We recognize related sales based on the extent of our progress toward completion measured by actual costs incurred in relation to total expected costs. We provide for any loss that we expect to incur on any of these agreements when that loss becomes probable. The Company utilizes historical customer data, prior product performance data, statistical analysis, third-party data, and internal management estimates to calculate contract-specific margins. In certain contracts, the total transaction price is variable based on customer utilization, which is excluded from the contract margin until the period that the customer has utilized to appropriately reflect the revenue activity in the period earned. In addition, revenue for certain oilfield services is recognized on an over time basis as performed. Our billing terms for these contracts are generally based on asset utilization (i.e. usage per hour) or the occurrence of a major maintenance event within the contract. The differences between the timing of our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract asset or contract liability positions. Performance Obligations Satisfied at a Point In Time We sell certain tangible products, largely spare equipment, through our services business. We recognize revenue for this equipment at the point in time that the customer obtains control of the good, which is at the point in time we deliver the spare part to the customer. Our billing terms for these point in time service contracts vary, but are generally based on shipment of the equipment to the customer. |
Research and Development | Research and Development Research and development costs are expensed as incurred and relate to the research and development of new products and services. These costs amounted to $658 million, $556 million and $492 million for the years ended December 31, 2023, 2022 and 2021, respectively. Research and development expenses were reported in "Cost of goods sold" and "Cost of services sold" in the consolidated statements of income (loss). |
Cash and Cash Equivalents | Cash and Cash Equivalents Short-term investments with original maturities of three months or less are included in cash equivalents unless designated as available-for-sale and classified as investment securities. |
Allowance for Credit Losses | Allowance for Credit Losses We monitor our customers' payment history and current credit worthiness to determine that collectability of the related financial assets is reasonably assured. We also consider the overall business climate in which our customers operate. For accounts receivable, a loss allowance matrix is utilized to measure lifetime expected credit losses. The matrix contemplates historical credit losses by age of receivables, adjusted for any forward-looking information and management expectations. |
Concentration of Credit Risk | Concentration of Credit Risk Our current receivables are spread over a broad and diverse group of customers across many countries. We grant credit to our customers and perform periodic credit evaluations of our customers' financial conditions, including monitoring our customers' payment history and current credit worthiness to manage this risk. We do not generally require collateral in support of our current receivables, but we may require payment in advance or security in the form of a letter of credit or a bank guarantee. |
Inventories | Inventories All inventories are stated at the lower of cost or net realizable values and they are measured on a first-in, first-out ("FIFO") basis or average cost basis. As necessary, we record provisions and maintain reserves for excess, slow moving and obsolete inventory. To determine these reserve amounts, we regularly review inventory quantities on hand and compare them to estimates of future product demand, market conditions, production requirements and technological developments. |
Property, Plant and Equipment (PP&E) | Property, Plant and Equipment Property, plant and equipment ("PP&E") is initially stated at cost and is depreciated over its estimated economic life. Subsequently, PP&E is measured at cost less accumulated depreciation, which is generally provided by using the straight-line method over the estimated economic lives of the individual assets, and impairment losses. We manufacture a substantial portion of our tools and equipment in our OFSE segment and the cost of these items, which includes direct and indirect manufacturing costs, is capitalized in inventory and subsequently moved to PP&E. |
Other Intangible Assets | Other Intangible Assets |
Impairment of Goodwill | We perform an annual impairment test of goodwill on a qualitative or quantitative basis for each of our reporting units as of July 1, in conjunction with our annual strategic planning process, or more frequently when circumstances indicate an impairment may exist at the reporting unit level. When performing the annual impairment test we have the option of first performing a qualitative assessment to determine the existence of events and circumstances that would lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If such a conclusion is reached, we would then be required to perform a quantitative impairment assessment of goodwill. However, if the assessment leads to a determination that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then no further assessments are required. A quantitative assessment for the determination of impairment is made by comparing the carrying amount of each reporting unit with its fair value, which is generally calculated using a combination of market, comparable transaction and discounted cash flow approaches. Potential impairment indicators include, but are not limited to, (i) the results of our most recent annual or interim impairment testing, in particular the magnitude of the excess of fair value over carrying value observed, (ii) downward revisions to internal forecasts, and the magnitude thereof, if any, and (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, if any. |
Impairment of Other Long-Lived Assets | We review PP&E, intangible assets and certain other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable and at least annually for indefinite-lived intangible assets. When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group). The determination of recoverability is made based upon the estimated undiscounted future net cash flows. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flow analysis, with the carrying value of the related assets. |
Financial Instruments | Financial Instruments Our financial instruments include cash and equivalents, current receivables, investments, accounts payables, short and long-term debt, and derivative financial instruments. We monitor our exposure to various business risks including commodity prices, interest rates, and foreign currency exchange rates, and we regularly use derivative financial instruments to manage these risks. At the inception of a new derivative, we designate the derivative as a hedge, or we determine the derivative to be undesignated as a hedging instrument. We document the relationships between the hedging instruments and the hedged items, as well as our risk management objectives and strategy for undertaking various hedge transactions. We assess whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item at both the inception of the hedge and on an ongoing basis. We record all derivatives as of the end of our reporting period in our consolidated statements of financial position at fair value. For the forward contracts held as undesignated hedging instruments, we record the changes in fair value in our consolidated statements of income (loss) along with the change in the fair value, related to foreign exchange movements, of the hedged item. Changes in the fair value of forward contracts designated as cash flow hedging instruments are recognized in other comprehensive income until the hedged item is recognized in earnings. |
Fair Value Measurements | Fair Value Measurements For financial assets and liabilities measured at fair value on a recurring basis, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: • Level 1 - Quoted prices for identical instruments in active markets. • Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3 - Significant inputs to the valuation model are unobservable. We maintain policies and procedures to value instruments using the best and most relevant data available. In addition, we perform reviews to assess the reasonableness of the valuations. With regard to Level 3 valuations (including instruments valued by third parties), we perform a variety of procedures to assess the reasonableness of the valuations. Such reviews include an evaluation of instruments whose fair value change exceeds predefined thresholds (and/or does not change) and consider the current interest rate, currency and credit environment, as well as other published data, such as rating agency market reports and current appraisals. Recurring Fair Value Measurements Derivatives When we have Level 1 derivatives, which are traded either on exchanges or liquid markets, we use closing prices for valuation. The majority of our derivatives are valued using internal models and are included in Level 2. These internal models maximize the use of market observable inputs including interest rate curves and both forward and spot prices for currencies and commodities. Derivative assets and liabilities included in Level 2 primarily represent foreign currency and commodity forward contracts for the Company. Investments in Debt and Equity Securities When available, we use quoted market prices to determine the fair value of investment securities, and they are included in Level 1. Level 1 securities primarily include publicly traded equity securities. For investment securities for which market prices are observable for identical or similar investment securities but not readily accessible for each of those investments individually (that is, it is difficult to obtain pricing information for each individual investment security at the measurement date), we use pricing models and observable inputs that are consistent with what other market participants would use and these are included in Level 2. The inputs and assumptions to the models are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data. When we use valuations that are based on significant unobservable inputs, we classify the investment securities in Level 3. Non-Recurring Fair Value Measurements Certain assets are measured at fair value on a non-recurring basis and are subject to fair value adjustments only in certain circumstances. These assets can include long-lived assets that have been reduced to fair value when they are held for sale, equity securities without readily determinable fair value, equity method investments and long-lived assets that are written down to fair value when they are impaired, and the remeasurement of retained investments in formerly consolidated subsidiaries upon a change in control that results in a deconsolidation of a subsidiary, if we sell a controlling interest and retain a noncontrolling stake in the entity. |
Investments in Equity Securities | Investments in Equity Securities Investments in equity securities (in which we do not have a controlling financial interest or significant influence, most often because we hold a voting interest of 0% to 20%) with readily determinable fair values are measured at fair value with changes recognized in earnings and reported in "Other non-operating income (loss), net" in the consolidated statements of income (loss). Equity securities that do not have readily determinable fair values are recorded at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar equity securities of the same issuer. These changes are recorded in "Other non-operating income (loss), net" in the consolidated statements of income (loss). Equity method investments are equity holdings in entities in which we do not have a controlling financial interest, but over which we have significant influence, most often because we hold a voting interest of 20% to 50%. At December 31, 2023 and 2022, the aggregate carrying amount of our equity method investments was $979 million and $919 million, respectively. The results of our equity method investments are presented in the consolidated statements of income (loss) as follows: (i) if the investment is integral to our operations, their results are included in "Selling, general and administrative," and (ii) if the investment is not integral to our operations, their results are included in "Other non-operating income (loss), net." Investments in, and advances to, equity method investments are presented on a one-line basis in "All other assets" in the consolidated statements of financial position. |
Income Taxes | Income Taxes We file U.S. federal and state income tax returns which primarily includes our distributive share of items of income, gain, loss, and deduction of Baker Hughes Holdings LLC ("BHH LLC"), our primary operating company and a wholly owned subsidiary of the Company since December 2022, which was treated as a partnership for U.S. tax purposes until December 30, 2023. Effective December 30, 2023, the Company and various subsidiaries completed a reorganization that resulted in BHH LLC no longer being treated as a partnership for U.S. tax purposes. As a partnership, BHH LLC was not subject to U.S. federal income tax under current U.S. tax laws. However, as of December 31, 2023, BHH LLC will be included and taxed as part of the Company's consolidated U.S. tax return. Non-U.S. current and deferred income taxes owed by the subsidiaries of BHH LLC are reflected in the Company's financial statements. We account for taxes under the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial statement and the tax base of assets and liabilities based on enacted tax rates expected to be in effect when taxes are actually paid or recovered, as well as for net operating losses and tax credit carryforwards. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes is not more likely than not to be realized. Significant judgment is required in determining our tax expense and in evaluating our tax positions, including evaluating uncertainties. Our tax filings are subject to audit by the tax authorities in the jurisdictions where we conduct business. These audits may result in assessments of additional taxes that are resolved with the tax authorities or through the courts. We have provided for the amounts that we believe will ultimately result from these proceedings. We recognize uncertain tax positions that are "more likely than not" to be sustained if the relevant tax authority were to audit the position with full knowledge of all the relevant facts and other information. For those tax positions that meet this threshold, we measure the amount of tax benefit based on the largest amount of tax benefit that has a greater than 50% chance of being realized in a final settlement with the relevant authority. We classify interest and penalties associated with uncertain tax positions as income tax expense. The effects of tax adjustments and settlements from taxing authorities are presented in the financial statements in the period they are finalized. |
Supply Chain Finance Programs and New Accounting Standards To Be Adopted | Supply Chain Finance Programs On January 1, 2023, we adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. ASU 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which enhances the transparency of supplier finance programs and requires certain disclosures for a buyer in a supplier finance program. Under the supply chain finance ("SCF") programs, administered by a third party, our suppliers are given the opportunity to sell receivables from us to participating financial institutions at their sole discretion at a rate that leverages our credit rating and thus might be more beneficial to our suppliers. Our responsibility is limited to making payment on the terms originally negotiated with our supplier, regardless of whether the supplier sells its receivable to a financial institution. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the program. As of December 31, 2023 and 2022, $332 million and $275 million of SCF program liabilities are recorded in " Accounts payable NEW ACCOUNTING STANDARDS TO BE ADOPTED In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for the Company prospectively to all annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which enhances the disclosures required for operating segments in the Company's annual and interim consolidated financial statements. ASU 2023-07 is effective retrospectively for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our disclosures. All other 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. |
CURRENT RECEIVABLES (Tables)
CURRENT RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Current Receivables | Current receivables consist of the following at December 31: 2023 2022 Customer receivables $ 6,033 $ 5,083 Other 1,392 1,216 Total current receivables 7,425 6,299 Less: Allowance for credit losses (350) (341) Total current receivables, net $ 7,075 $ 5,958 The following table presents the change in allowance for credit losses: 2023 2022 Balance at beginning of year $ 341 $ 400 Provision 79 69 Write-offs (26) (34) Prior year recoveries (31) (44) Other (13) (50) Balance at end of year $ 350 $ 341 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory, Net [Abstract] | |
Schedule of Inventories, Net of Reserves | Inventories, net of reserves of $389 million and $396 million in 2023 and 2022, respectively, consist of the following at December 31: 2023 2022 Finished goods $ 2,626 $ 2,419 Work in process and raw materials 2,468 2,168 Total inventories, net $ 5,094 $ 4,587 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following at December 31: Useful Life 2023 2022 Land and improvements (1) 8 - 10 years (1) $ 332 $ 347 Buildings, structures and related equipment 5 - 40 years 2,264 2,120 Machinery, equipment and other 1 - 20 years 7,974 7,192 Total cost 10,570 9,659 Less: Accumulated depreciation (5,678) (5,121) Property, plant and equipment, less accumulated depreciation $ 4,893 $ 4,538 (1) Useful life excludes land. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying value of goodwill are detailed below by segment: Oilfield Services & Equipment Industrial & Energy Technology Total Balance at December 31, 2021, gross $ 19,825 $ 4,661 $ 24,486 Accumulated impairment at December 31, 2021 (18,273) (254) (18,527) Balance at December 31, 2021 1,552 4,407 5,959 Disposition (161) — (161) Acquisitions 41 417 458 Currency exchange and other — (96) (96) Total 1,432 4,728 6,160 Classified as held for sale (1) — (230) (230) Balance at December 31, 2022 1,432 4,498 5,930 Acquisitions 95 43 138 Currency exchange and other 14 55 69 Balance at December 31, 2023 $ 1,541 $ 4,596 $ 6,137 (1) The reduction in IET goodwill reflects a transfer of goodwill to business held for sale related to our Nexus Controls business. See "Note 21. Business Dispositions and Acquisitions" for further information. |
Schedule of Finite-lived Intangible Assets | Intangible assets consist of the following at December 31: 2023 2022 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,945 $ (818) $ 1,127 $ 1,917 $ (729) $ 1,189 Technology 1,253 (899) 354 1,212 (803) $ 409 Trade names and trademarks 290 (186) 104 287 (175) 112 Capitalized software 1,413 (1,107) 306 1,308 (1,040) 268 Finite-lived intangible assets 4,901 (3,010) 1,891 4,725 (2,747) 1,978 Indefinite-lived intangible assets 2,202 — 2,202 2,202 — 2,202 Total intangible assets $ 7,103 $ (3,010) $ 4,093 $ 6,927 $ (2,747) $ 4,180 |
Schedule of Indefinite-lived Intangible Assets | Intangible assets consist of the following at December 31: 2023 2022 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 1,945 $ (818) $ 1,127 $ 1,917 $ (729) $ 1,189 Technology 1,253 (899) 354 1,212 (803) $ 409 Trade names and trademarks 290 (186) 104 287 (175) 112 Capitalized software 1,413 (1,107) 306 1,308 (1,040) 268 Finite-lived intangible assets 4,901 (3,010) 1,891 4,725 (2,747) 1,978 Indefinite-lived intangible assets 2,202 — 2,202 2,202 — 2,202 Total intangible assets $ 7,103 $ (3,010) $ 4,093 $ 6,927 $ (2,747) $ 4,180 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows: Year Estimated Amortization Expense 2024 $ 243 2025 201 2026 156 2027 134 2028 115 |
CONTRACT AND OTHER DEFERRED A_2
CONTRACT AND OTHER DEFERRED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets | Contract assets consist of the following at December 31: 2023 2022 Long-term product service agreements $ 418 $ 392 Long-term equipment contracts and certain other service agreements 1,184 955 Contract assets (total revenue in excess of billings) 1,602 1,347 Deferred inventory costs 126 125 Other costs to fulfill or obtain a contract (1) 28 31 Contract and other deferred assets $ 1,756 $ 1,503 (1) Other costs to fulfill or obtain a contract consist primarily of non-recurring engineering costs incurred and expected to be recovered. 2023 2022 Progress collections $ 5,405 $ 3,713 Deferred income 137 109 Progress collections and deferred income (contract liabilities) $ 5,542 $ 3,822 |
PROGRESS COLLECTIONS AND DEFE_2
PROGRESS COLLECTIONS AND DEFERRED INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities | Contract assets consist of the following at December 31: 2023 2022 Long-term product service agreements $ 418 $ 392 Long-term equipment contracts and certain other service agreements 1,184 955 Contract assets (total revenue in excess of billings) 1,602 1,347 Deferred inventory costs 126 125 Other costs to fulfill or obtain a contract (1) 28 31 Contract and other deferred assets $ 1,756 $ 1,503 (1) Other costs to fulfill or obtain a contract consist primarily of non-recurring engineering costs incurred and expected to be recovered. 2023 2022 Progress collections $ 5,405 $ 3,713 Deferred income 137 109 Progress collections and deferred income (contract liabilities) $ 5,542 $ 3,822 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Lease Expense | The following table presents operating lease expense: Operating Lease Expense 2023 2022 2021 Long-term fixed lease $ 276 $ 254 $ 255 Long-term variable lease 73 48 32 Short-term lease (1) 503 477 440 Total operating lease expense $ 852 $ 779 $ 727 (1) Leases with a term of one year or less, including leases with a term of one month or less. |
Schedule of Maturities of Operating Leases Liabilities | As of December 31, 2023, maturities of our operating lease liabilities are as follows: Year Operating Leases 2024 $ 244 2025 178 2026 122 2027 79 2028 57 Thereafter 234 Total lease payments 914 Less: imputed interest 145 Total $ 769 |
Schedule of Liabilities | Amounts recognized in the consolidated statements of financial position for operating leases consist of the following: 2023 2022 All other current liabilities $ 220 $ 189 All other liabilities 549 552 Total $ 769 $ 741 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value of Short-term and Long-term Debt | The carrying value of our short-term and long-term debt consist of the following at December 31: 2023 2022 Amount Effective Interest Rate (1) Amount Effective Interest Rate (1) Short-term and current portion of long-term debt 1.231% Senior Notes due December 2023 $ — — % $ 649 1.5 % 8.55% Debentures due June 2024 (2) 109 4.1 % — — % Other debt 39 4.9 % 29 2.9 % Total short-term and current portion of long-term debt 148 677 Long-term debt 8.55% Debentures due June 2024 (2) — — % 114 4.1 % 2.061% Senior Notes due December 2026 598 2.4 % 597 2.4 % 3.337% Senior Notes due December 2027 1,294 5.3 % 1,277 3.8 % 6.875% Notes due January 2029 (2) 268 3.9 % 273 3.9 % 3.138% Senior Notes due November 2029 523 3.2 % 523 3.2 % 4.486% Senior Notes due May 2030 498 4.6 % 497 4.6 % 5.125% Senior Notes due September 2040 (2) 1,281 4.2 % 1,286 4.2 % 4.080% Senior Notes due December 2047 1,338 4.1 % 1,338 4.1 % Other long-term debt 73 6.3 % 75 4.2 % Total long-term debt 5,872 5,980 Total debt $ 6,020 $ 6,658 (1) Effective interest rate is based on the carrying value including issuance costs, interest rate swaps, and step-up adjustments from the Baker Hughes Incorporated ("BHI") acquisition recorded for certain Senior Notes and Debentures. (2) Represents long-term fixed rate debt obligations assumed in connection with the acquisition of BHI. |
Schedule of Maturities of Debt | Maturities of debt for each of the five years in the period ending December 31, 2028, and in the aggregate thereafter, are listed in the table below: 2024 2025 2026 2027 2028 Thereafter Total debt $ 148 $ 4 $ 614 $ 1,308 $ — $ 3,946 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plan Funded Status of Defined Benefit Plan (Pension Benefits) | Below is the reconciliation of the beginning and ending balances of benefit obligations, fair value of plan assets and the funded status of our defined benefit plans ("Pension Benefits"). Pension Benefits 2023 2022 Change in benefit obligation: Benefit obligation at beginning of year $ 2,634 $ 3,550 Service cost 15 23 Interest cost 116 78 Actuarial gain (1) (4) (928) Benefits paid (126) (119) Settlements (4) (24) Settlement due to plan termination (2) (246) — Acquisition — 202 Foreign currency translation adjustments 58 (148) Benefit obligation at end of year 2,443 2,634 Change in plan assets: Fair value of plan assets at beginning of year 2,266 3,147 Actual return on plan assets 121 (850) Employer contributions 18 32 Benefits paid (126) (119) Settlements (4) (24) Settlement due to plan termination (2) (246) — Acquisition — 214 Foreign currency translation adjustments 51 (134) Fair value of plan assets at end of year 2,080 2,266 Funded status - underfunded at end of year $ (363) $ (368) Accumulated benefit obligation $ 2,399 $ 2,595 (1) The actuarial gain in 2022 was primarily related to a change in the discount rate used to measure the benefit obligation for our plans. (2) Plan termination relates to the termination of one of our fully funded frozen U.S. defined benefit plans that was initiated in April 2022. |
Schedule of Amounts Recognized in the Consolidated Balance Sheets | The amounts recognized in the consolidated statements of financial position consist of the following at December 31: Pension Benefits 2023 2022 Noncurrent assets $ 78 $ 58 Current liabilities (17) (15) Noncurrent liabilities (424) (411) Net amount recognized $ (363) $ (368) |
Schedule of Accumulated Benefit Obligations in Excess of Plan Assets | Information for the plans with ABOs and PBOs in excess of plan assets consist of the following at December 31: Pension Benefits 2023 2022 Projected benefit obligation $ 1,410 $ 1,143 Accumulated benefit obligation $ 1,366 $ 1,103 Fair value of plan assets $ 968 $ 717 |
Schedule of Projected Benefit Obligation in Excess of Plan Assets | Information for the plans with ABOs and PBOs in excess of plan assets consist of the following at December 31: Pension Benefits 2023 2022 Projected benefit obligation $ 1,410 $ 1,143 Accumulated benefit obligation $ 1,366 $ 1,103 Fair value of plan assets $ 968 $ 717 |
Schedule of Net Period Cost | The components of net periodic cost consist of the following: Pension Benefits 2023 2022 2021 Service cost $ 15 $ 23 $ 27 Interest cost 116 78 64 Expected return on plan assets (102) (114) (130) Amortization of prior service credit 1 1 1 Amortization of net actuarial loss 19 27 40 Curtailment / settlement loss (16) 2 2 Net periodic cost $ 33 $ 17 $ 4 |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations | Weighted average assumptions used to determine benefit obligations for these plans are as follows: Pension Benefits 2023 2022 Discount rate 4.54 % 4.89 % Rate of compensation increase 3.26 % 3.30 % Interest crediting rate 3.98 % 4.31 % |
Schedule of Weighted Average Assumptions Used to Determine Net Periodic Cost | Weighted average assumptions used to determine net periodic cost for these plans are as follows: Pension Benefits 2023 2022 2021 Discount rate 4.89 % 2.15 % 1.66 % Expected long-term return on plan assets 5.05 % 3.85 % 4.07 % Interest crediting rate 4.31 % 2.60 % 2.60 % |
Schedule of Accumulated Other Comprehensive Loss | The amount recorded before-tax in accumulated other comprehensive loss related to our defined benefit plans consists of the following at December 31: Pension Benefits 2023 2022 Net actuarial loss $ 333 $ 348 Net prior service cost 15 15 Total $ 348 $ 363 |
Schedule of Fair Values of the Assets in U.S. Plan | The table below presents the fair value of the plan assets at December 31: 2023 2022 Debt securities Fixed income and cash investment funds $ 1,122 $ 1,482 Equity securities Global equity securities (1) 227 180 U.S. equity securities (1) 157 102 Insurance contracts 103 100 Real estate 34 53 Private equities 35 37 Other investments (2) 402 313 Total plan assets $ 2,080 $ 2,266 (1) Include direct investments and investment funds. (2) Consists primarily of asset allocation fund investments. |
Schedule of Expected Future Benefit Payments | The following table presents the expected benefit payments for Pension Benefits over the next 10 years. For funded Company sponsored plans, the benefit payments are made by the respective pension trust funds. Year Pension Benefits 2024 $ 164 2025 127 2026 132 2027 135 2028 136 2029-2033 717 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: 2023 2022 2021 Current: U.S. $ 33 $ 6 $ 11 Foreign 711 489 614 Total current 744 495 625 Deferred: U.S. (27) 40 (24) Foreign (32) 65 157 Total deferred (59) 105 133 Provision for income taxes $ 685 $ 600 $ 758 |
Schedule of Geographic Sources of Income (Loss) Before Income Taxes | The geographic sources of income before income taxes consist of the following: 2023 2022 2021 U.S. $ 882 $ (698) $ (724) Foreign 1,773 720 1,152 Income before income taxes $ 2,655 $ 22 $ 428 |
Schedule of Difference Between Provision and U.S. Statutory Tax Rate | The provision for income taxes differs from the amount computed by applying the U.S. statutory income tax rate to the income before income taxes for the reasons set forth below for the years ended December 31: 2023 2022 2021 Income before income taxes $ 2,655 $ 22 $ 428 Taxes at the U.S. federal statutory income tax rate 558 5 90 Effect of foreign operations (2) 112 338 216 Tax impact of partnership structure (103) 6 137 Change in valuation allowances (1) 53 164 70 Tax expense (benefit) due to unrecognized tax benefits (5) (7) 201 Other - net 70 94 44 Provision for income taxes (3) $ 685 $ 600 $ 758 Actual income tax rate 25.8 % 2,727.3 % 177.1 % (1) For December 31, 2023, this amount was reduced by $81 million that is related to the release of a valuation allowance for certain deferred tax assets. (2) For December 31, 2022, $140 million of this amount relates to the charges associated with the sale and suspension of our Russia operations. (3) For December 31, 2021, $121 million of this amount was previously indemnified under the Tax Matters Agreement with General Electric ("GE") of which $119 million was included in tax expense due to unrecognized tax benefits. In December 2022, the Company and GE entered into an agreement to terminate the Tax Matters Agreement. |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities as of December 31 consist of the following: 2023 2022 Deferred tax assets: Operating & capital loss carryforwards $ 3,332 $ 2,074 Tax credit & other carryforwards 936 1,087 Investment in partnerships & subsidiaries 286 846 Property, plant and equipment 169 128 Employee benefits 241 62 Goodwill and other intangible assets 137 46 Receivables 111 94 Inventory 73 52 Other 181 163 Total deferred income tax asset 5,466 4,552 Valuation allowances (4,416) (4,090) Total deferred income tax asset after valuation allowance 1,050 462 Deferred tax liabilities: Indefinite-lived intangible assets (380) — Fair value of derivative financial instruments (90) — Other (34) (34) Total deferred income tax liability (504) (34) Net deferred tax asset $ 546 $ 428 |
Schedule of Changes in Gross Unrecognized Tax Benefits | The following table presents the changes in our gross unrecognized tax benefits included in the consolidated statements of financial position. Asset / (Liability) 2023 2022 Balance at beginning of year $ (496) $ (531) Additions for tax positions of the current year (15) (19) Additions for tax positions of prior years (50) (99) Reductions for tax positions of prior years 32 100 Settlements with tax authorities 26 24 Lapse of statute of limitations 36 29 Balance at end of year $ (467) $ (496) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Changes of RSUs Outstanding and Related Information | The following table presents the changes in RSUs outstanding and related information (in thousands, except per unit prices): Number of Weighted Average Unvested balance at December 31, 2022 14,342 $ 24.31 Granted 6,404 30.20 Vested (7,351) 23.60 Forfeited (1,282) 26.43 Unvested balance at December 31, 2023 12,113 $ 27.70 |
Schedule of Changes of PSUs Outstanding and Related Information | The following table presents the changes in PSUs outstanding and related information (in thousands, except per unit prices): Number of Weighted Average Unvested balance at December 31, 2022 3,525 $ 25.56 Granted 1,222 30.17 Vested (827) 20.61 Cancelled (1) (563) 21.85 Forfeited (529) 29.06 Unvested balance at December 31, 2023 2,828 $ 28.70 (1) Includes adjustments based on achievement of predefined company metrics. |
Schedule of Changes in Stock Options Outstanding | The following table presents the changes in stock options outstanding and related information (in thousands, except per option prices): Number of Weighted Average Outstanding at December 31, 2022 2,907 $ 33.02 Exercised (492) 26.44 Expired (174) 39.79 Outstanding and exercisable at December 31, 2023 2,241 $ 33.92 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Number of Shares Outstanding | The following table presents the changes in the number of shares outstanding (in thousands): 2023 2022 Class A Common Stock Class B Common Stock Class A Common Stock Class B Common Stock Balance at beginning of year 1,005,960 — 909,142 116,548 Issue of shares upon vesting of restricted stock units (1) 5,738 — 6,316 — Issue of shares on exercise of stock options (1) 434 — 1,632 — Issue of shares for employee stock purchase plan 1,846 — 2,017 — Exchange of Class B common stock for Class A common stock (2) — — 116,548 (116,548) Repurchase and cancellation of Class A common stock (16,269) — (29,694) — Balance at end of year 997,709 — 1,005,960 — (1) Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation. (2) When shares of Class B common stock, together with associated BHH LLC member units ("LLC Units"), were exchanged for shares of Class A common stock, such shares of Class B common stock were canceled . |
Schedule of Accumulated Other Comprehensive Loss | The following tables present the changes in accumulated other comprehensive loss, net of tax: Foreign Currency Translation Adjustments Cash Flow Hedges Benefit Plans Accumulated Other Comprehensive Loss Balance at December 31, 2021 $ (2,125) $ (10) $ (250) $ (2,385) Other comprehensive income (loss) before reclassifications (294) (1) 2 (293) Amounts reclassified from accumulated other comprehensive loss 25 3 27 55 Deferred taxes — — (43) (43) Other comprehensive income (loss) (269) 2 (14) (281) Less: Other comprehensive loss attributable to noncontrolling interests (3) — — (3) Less: Reallocation of AOCL based on change in ownership of BHH LLC Units 275 1 32 308 Balance at December 31, 2022 (2,666) (9) (296) (2,971) Other comprehensive income (loss) before reclassifications 153 12 (14) 151 Amounts reclassified from accumulated other comprehensive loss — (8) 28 20 Deferred taxes — (1) 5 4 Other comprehensive income (loss) 153 3 19 175 Balance at December 31, 2023 $ (2,513) $ (6) $ (277) $ (2,796) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income (Loss) per Share | Basic and diluted net income (loss) per share of Class A common stock is presented below: (In millions, except per share amounts) 2023 2022 2021 Net income (loss) $ 1,970 $ (578) $ (330) Less: Net income (loss) attributable to noncontrolling interests 27 23 (111) Net income (loss) attributable to Baker Hughes Company $ 1,943 $ (601) $ (219) Weighted average shares outstanding: Class A basic 1,008 987 824 Class A diluted 1,015 987 824 Net income (loss) per share attributable to common stockholders: Class A basic $ 1.93 $ (0.61) $ (0.27) Class A diluted $ 1.91 $ (0.61) $ (0.27) |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Our assets and liabilities measured at fair value on a recurring basis consist of derivative instruments and investment securities. 2023 2022 Level 1 Level 2 Level 3 Net Balance Level 1 Level 2 Level 3 Net Balance Assets Derivatives $ — $ 34 $ — $ 34 $ — $ 18 $ — $ 18 Investment securities 1,040 — 2 1,042 748 — — 748 Total assets 1,040 34 2 1,076 748 18 — 766 Liabilities Derivatives — (76) — (76) — (86) — (86) Total liabilities $ — $ (76) $ — $ (76) $ — $ (86) $ — $ (86) |
Schedule of Investment Securities Classified as Available for Sale | 2023 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investment securities (1) Non-U.S. debt securities (2) $ 66 $ 1 $ — $ 67 $ — $ — $ — $ — Equity securities 527 451 (3) 975 557 191 — 748 Total $ 593 $ 452 $ (3) $ 1,042 $ 557 $ 191 $ — $ 748 (1) Gains (losses) recorded to earnings related to these securities were $405 million, $(271) million and $(843) million for the years ended December 31, 2023, 2022, and 2021, respectively. (2) As of December 31, 2023, our non-U.S. debt securities are classified as available for sale securities and mature within two years. |
Schedule of Derivatives | The table below summarizes the fair value of all derivatives, including hedging instruments and embedded derivatives. 2023 2022 Assets (Liabilities) Assets (Liabilities) Derivatives accounted for as hedges Currency exchange contracts $ 10 $ (3) $ 1 $ — Interest rate swap contracts — (52) — (69) Derivatives not accounted for as hedges Currency exchange contracts and other 24 (21) 17 (17) Total derivatives $ 34 $ (76) $ 18 $ (86) |
REVENUE RELATED TO CONTRACTS _2
REVENUE RELATED TO CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Segment Revenue | The series of tables below present our revenue disaggregated by these categories. Total Revenue 2023 2022 2021 Well Construction $ 4,387 $ 3,854 $ 3,301 Completions, Intervention & Measurements 4,170 3,559 3,106 Production Solutions 3,854 3,587 3,135 Subsea & Surface Pressure Systems 2,950 2,230 2,486 Oilfield Services & Equipment 15,361 13,229 12,028 Gas Technology Equipment 4,232 2,599 3,039 Gas Technology Services 2,600 2,440 2,696 Total Gas Technology 6,832 5,039 5,735 Industrial Products 1,962 1,697 1,598 Industrial Solutions 983 884 880 Controls (1) 41 208 217 Total Industrial Technology 2,987 2,789 2,695 Climate Technology Solutions 326 98 43 Industrial & Energy Technology 10,145 7,926 8,473 Total $ 25,506 $ 21,156 $ 20,502 (1) The sale of Nexus Controls business was completed in April 2023. |
Schedule of Revenue by Geographic Region | Oilfield Services & Equipment Geographic Revenue 2023 2022 2021 North America $ 4,116 $ 3,764 $ 2,904 Latin America 2,761 2,099 1,681 Europe/CIS/Sub-Saharan Africa 2,655 2,483 2,865 Middle East/Asia 5,829 4,883 4,579 Oilfield Services & Equipment $ 15,361 $ 13,229 $ 12,028 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information | Summarized financial information for the Company's segments is shown in the following tables. Revenue 2023 2022 2021 Oilfield Services & Equipment $ 15,361 $ 13,229 $ 12,028 Industrial & Energy Technology 10,145 7,926 8,473 Total $ 25,506 $ 21,156 $ 20,502 Income before income taxes 2023 2022 2021 Oilfield Services & Equipment $ 1,746 $ 1,201 $ 830 Industrial & Energy Technology 1,310 1,135 1,177 Total segment 3,055 2,336 2,006 Corporate (380) (416) (429) Inventory impairment (1) (35) (31) — Restructuring, impairment and other (323) (705) (269) Other non-operating income (loss), net 554 (911) (583) Interest expense, net (216) (252) (299) Income (loss) before income taxes $ 2,655 $ 22 $ 428 (1) Charges for inventory impairments are reported in "Cost of goods sold" in the consolidated statements of income (loss). |
Schedule of Assets and Segment Depreciation and Amortization | The following table presents total assets at December 31: Assets 2023 2022 Oilfield Services & Equipment $ 17,925 $ 17,181 Industrial & Energy Technology 13,781 12,286 Total segment 31,706 29,467 Corporate and eliminations (1) 5,239 4,714 Total $ 36,945 $ 34,181 (1) The assets in Corporate and eliminations consist primarily of the Baker Hughes trade name, cash, and tax assets. It also includes adjustments to eliminate intercompany investments and receivables reflected within the total assets of each of our reportable segments. The following table presents depreciation and amortization: Depreciation and amortization 2023 2022 2021 Oilfield Services & Equipment $ 849 $ 845 $ 874 Industrial & Energy Technology 217 197 208 Total segment 1,066 1,042 1,082 Corporate 21 19 23 Total $ 1,087 $ 1,061 $ 1,105 The following table presents capital expenditures: Capital expenditures 2023 2022 2021 Oilfield Services & Equipment $ 960 $ 791 $ 659 Industrial & Energy Technology 229 183 182 Total segment 1,189 974 841 Corporate 35 15 15 Total $ 1,224 $ 989 $ 856 |
Schedule of Revenues and Property, Plant and Equipment, Net | The following table presents consolidated revenue based on the location to where the product is shipped or the services are performed. Other than the U.S., no other country accounted for more than 10% of our consolidated revenue during the periods presented. Revenue 2023 2022 2021 U.S. $ 6,557 $ 4,942 $ 4,497 Non-U.S. 18,949 16,214 16,005 Total $ 25,506 $ 21,156 $ 20,502 The following table presents net property, plant and equipment by its geographic location at December 31: Property, plant and equipment - net 2023 2022 U.S. $ 1,579 $ 1,554 Non-U.S. 3,314 2,984 Total $ 4,893 $ 4,538 |
RESTRUCTURING, IMPAIRMENT AND_2
RESTRUCTURING, IMPAIRMENT AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Impairment Charges | The following table presents the restructuring and impairment charges by the impacted segment; however, these net charges are not included in the reported segment results. 2023 2022 2021 Oilfield Services & Equipment $ 148 $ 121 $ 121 Industrial & Energy Technology 98 36 11 Corporate 67 39 6 Total $ 313 $ 196 $ 138 The following table presents restructuring and impairment charges by type, and includes gains on the dispositions of certain property, plant and equipment as a consequence of exit activities: 2023 2022 2021 Property, plant and equipment $ (2) $ 58 $ 7 Employee-related termination expenses 270 121 99 Asset relocation costs 5 3 20 Contract termination fees 1 1 2 Other incremental costs 39 13 10 Total $ 313 $ 196 $ 138 |
BUSINESS DISPOSITIONS AND ACQ_2
BUSINESS DISPOSITIONS AND ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities of Businesses Held for Sale and All Other Current Assets and All Other Current Liabilities | The following table presents financial information related to the assets and liabilities of our Nexus Controls business classified as held for sale and reported in "All other current assets" and "All other current liabilities" in the consolidated statements of financial position as of December 31, 2022. Assets and liabilities of business held for sale Nexus Controls Assets Current receivables $ 59 Inventories 36 Property, plant and equipment 2 Goodwill 230 Other assets 10 Total assets of business held for sale 337 Liabilities Accounts payable 30 All other current liabilities 56 Other liabilities 7 Total liabilities of business held for sale 93 Total net assets of business held for sale $ 244 |
SUPPLEMENTARY INFORMATION (Tabl
SUPPLEMENTARY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Allowance for Credit Losses | Current receivables consist of the following at December 31: 2023 2022 Customer receivables $ 6,033 $ 5,083 Other 1,392 1,216 Total current receivables 7,425 6,299 Less: Allowance for credit losses (350) (341) Total current receivables, net $ 7,075 $ 5,958 The following table presents the change in allowance for credit losses: 2023 2022 Balance at beginning of year $ 341 $ 400 Provision 79 69 Write-offs (26) (34) Prior year recoveries (31) (44) Other (13) (50) Balance at end of year $ 350 $ 341 |
Schedule of Cash Flow Supplemental Disclosures | Supplemental cash flow disclosures consist of the following: 2023 2022 2021 Income taxes paid, net of refunds $ 595 $ 498 $ 314 Interest paid $ 309 $ 291 $ 305 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Performance obligations expected to be satisfied, expected timing | We sell product services under long-term product maintenance or extended warranty agreements in our Industrial & Energy Technology segment. These agreements require us to maintain the customers' assets over the service agreement contract terms, which generally range from 10 to 20 years. | ||
Research and development expenses | $ 658 | $ 556 | $ 492 |
Equity method investment | 979 | 919 | |
SCF program liabilities | $ 332 | $ 275 | |
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable |
CURRENT RECEIVABLES (Details)
CURRENT RECEIVABLES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables, gross | $ 7,425 | $ 6,299 |
Less: Allowance for credit losses | (350) | (341) |
Total current receivables, net | 7,075 | 5,958 |
Customer receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables, gross | 6,033 | 5,083 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables, gross | $ 1,392 | $ 1,216 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory, Net [Abstract] | |||
Inventory valuation reserves | $ 389 | $ 396 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |||
Finished goods | 2,626 | 2,419 | |
Work in process and raw materials | 2,468 | 2,168 | |
Total inventories, net | 5,094 | 4,587 | |
Inventory impairment | $ 35 | $ 31 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 10,570 | $ 9,659 | |
Less: Accumulated depreciation | (5,678) | (5,121) | |
Property, plant and equipment, less accumulated depreciation | 4,893 | 4,538 | |
Depreciation expense | 830 | 839 | $ 852 |
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 332 | 347 | |
Buildings, structures and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 2,264 | 2,120 | |
Machinery, equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 7,974 | $ 7,192 | |
Minimum | Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 8 years | ||
Minimum | Buildings, structures and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 5 years | ||
Minimum | Machinery, equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 1 year | ||
Maximum | Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 10 years | ||
Maximum | Buildings, structures and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 40 years | ||
Maximum | Machinery, equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 20 years |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | |||
Balance at December 31, 2021, gross | $ 24,486 | ||
Accumulated impairment at December 31, 2021 | (18,527) | ||
Goodwill [Roll Forward] | |||
Goodwill, net, beginning balance | $ 5,930 | $ 5,959 | |
Disposition | (161) | ||
Acquisitions | 138 | 458 | |
Currency exchange and other | 69 | (96) | |
Total | 6,160 | ||
Classified as held for sale | (230) | ||
Goodwill, net, ending balance | 6,137 | 5,930 | |
Oilfield Services & Equipment | |||
Goodwill [Line Items] | |||
Balance at December 31, 2021, gross | 19,825 | ||
Accumulated impairment at December 31, 2021 | (18,273) | ||
Goodwill [Roll Forward] | |||
Goodwill, net, beginning balance | 1,432 | 1,552 | |
Disposition | (161) | ||
Acquisitions | 95 | 41 | |
Currency exchange and other | 14 | 0 | |
Total | 1,432 | ||
Classified as held for sale | 0 | ||
Goodwill, net, ending balance | 1,541 | 1,432 | |
Industrial & Energy Technology | |||
Goodwill [Line Items] | |||
Balance at December 31, 2021, gross | 4,661 | ||
Accumulated impairment at December 31, 2021 | $ (254) | ||
Goodwill [Roll Forward] | |||
Goodwill, net, beginning balance | 4,498 | 4,407 | |
Disposition | 0 | ||
Acquisitions | 43 | 417 | |
Currency exchange and other | 55 | (96) | |
Total | 4,728 | ||
Classified as held for sale | (230) | ||
Goodwill, net, ending balance | $ 4,596 | $ 4,498 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense for intangible assets | $ 257 | $ 222 | $ 253 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated weighted average life (years) | 1 year | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated weighted average life (years) | 35 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets by Type (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 4,901 | $ 4,725 |
Accumulated Amortization | (3,010) | (2,747) |
Net | 1,891 | 1,978 |
Indefinite-lived intangible assets | 2,202 | 2,202 |
Total intangible assets | 7,103 | 6,927 |
Total intangible assets | 4,093 | 4,180 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 1,945 | 1,917 |
Accumulated Amortization | (818) | (729) |
Net | 1,127 | 1,189 |
Technology | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 1,253 | 1,212 |
Accumulated Amortization | (899) | (803) |
Net | 354 | 409 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 290 | 287 |
Accumulated Amortization | (186) | (175) |
Net | 104 | 112 |
Capitalized software | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 1,413 | 1,308 |
Accumulated Amortization | (1,107) | (1,040) |
Net | $ 306 | $ 268 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Future Estimated Amortization Expense (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Estimated Amortization Expense | |
2024 | $ 243 |
2025 | 201 |
2026 | 156 |
2027 | 134 |
2028 | $ 115 |
CONTRACT AND OTHER DEFERRED A_3
CONTRACT AND OTHER DEFERRED ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract assets (total revenue in excess of billings) | $ 1,602 | $ 1,347 |
Deferred inventory costs | 126 | 125 |
Other costs to fulfill or obtain a contract | 28 | 31 |
Contract and other deferred assets | 1,756 | 1,503 |
Revenue recognized from performance obligations satisfied in previous periods | 15 | 20 |
Long-term product service agreements | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract assets (total revenue in excess of billings) | 418 | 392 |
Long-term equipment contracts and certain other service agreements | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract assets (total revenue in excess of billings) | $ 1,184 | $ 955 |
PROGRESS COLLECTIONS AND DEFE_3
PROGRESS COLLECTIONS AND DEFERRED INCOME (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Progress collections and deferred income (contract liabilities) | $ 5,542 | $ 3,822 |
Revenue recognized, included in contract liability | 2,999 | 2,185 |
Progress collections | ||
Disaggregation of Revenue [Line Items] | ||
Progress collections and deferred income (contract liabilities) | 5,405 | 3,713 |
Deferred income | ||
Disaggregation of Revenue [Line Items] | ||
Progress collections and deferred income (contract liabilities) | $ 137 | $ 109 |
LEASES - Operating Lease Expens
LEASES - Operating Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Lease Expense | |||
Long-term fixed lease | $ 276 | $ 254 | $ 255 |
Long-term variable lease | 73 | 48 | 32 |
Short-term lease | 503 | 477 | 440 |
Total operating lease expense | $ 852 | $ 779 | $ 727 |
LEASES - Operating Lease Liabil
LEASES - Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 244 | |
2025 | 178 | |
2026 | 122 | |
2027 | 79 | |
2028 | 57 | |
Thereafter | 234 | |
Total lease payments | 914 | |
Less: imputed interest | 145 | |
Total | $ 769 | $ 741 |
LEASES - Lease Liabilities Stat
LEASES - Lease Liabilities Statement of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | All other current liabilities | All other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | All other liabilities | All other liabilities |
All other current liabilities | $ 220 | $ 189 |
All other liabilities | 549 | 552 |
Total | $ 769 | $ 741 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease assets | $ 769 | $ 757 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | All other assets | All other assets |
Weighted-average remaining lease term | 7 years | 7 years |
Weighted-average discount rate | 3.30% | 3.10% |
DEBT - Schedule of Carrying Val
DEBT - Schedule of Carrying Value of Short-term and Long-term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term borrowings | ||
Total short-term and current portion of long-term debt | $ 148 | $ 677 |
Effective Interest Rate | 6.30% | 4.20% |
Long-term borrowings | ||
Other long-term debt | $ 73 | $ 75 |
Total long-term debt | 5,872 | 5,980 |
Total debt | $ 6,020 | $ 6,658 |
3.337% Senior Notes due December 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.337% | 3.337% |
Debentures | 8.55% Debentures due June 2024 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.55% | |
Short-term borrowings | ||
Effective Interest Rate | 0% | 4.10% |
Long-term borrowings | ||
Long-term borrowings | $ 0 | $ 114 |
Senior Notes | 2.061% Senior Notes due December 2026 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.061% | |
Short-term borrowings | ||
Effective Interest Rate | 2.40% | 2.40% |
Long-term borrowings | ||
Long-term borrowings | $ 598 | $ 597 |
Senior Notes | 3.337% Senior Notes due December 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.337% | |
Short-term borrowings | ||
Effective Interest Rate | 5.30% | 3.80% |
Long-term borrowings | ||
Long-term borrowings | $ 1,294 | $ 1,277 |
Senior Notes | 6.875% Notes due January 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.875% | |
Short-term borrowings | ||
Effective Interest Rate | 3.90% | 3.90% |
Long-term borrowings | ||
Long-term borrowings | $ 268 | $ 273 |
Senior Notes | 3.138% Senior Notes due November 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.138% | |
Short-term borrowings | ||
Effective Interest Rate | 3.20% | 3.20% |
Long-term borrowings | ||
Long-term borrowings | $ 523 | $ 523 |
Senior Notes | 4.486% Senior Notes due May 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.486% | |
Short-term borrowings | ||
Effective Interest Rate | 4.60% | 4.60% |
Long-term borrowings | ||
Long-term borrowings | $ 498 | $ 497 |
Senior Notes | 5.125% Senior Notes due September 2040 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.125% | |
Short-term borrowings | ||
Effective Interest Rate | 4.20% | 4.20% |
Long-term borrowings | ||
Long-term borrowings | $ 1,281 | $ 1,286 |
Senior Notes | 4.080% Senior Notes due December 2047 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.08% | |
Short-term borrowings | ||
Effective Interest Rate | 4.10% | 4.10% |
Long-term borrowings | ||
Long-term borrowings | $ 1,338 | $ 1,338 |
Senior Notes | 1.231% Senior Notes due December 2023 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.231% | |
Short-term borrowings | ||
Total short-term and current portion of long-term debt | $ 0 | $ 649 |
Effective Interest Rate | 0% | 1.50% |
Other debt | ||
Short-term borrowings | ||
Total short-term and current portion of long-term debt | $ 39 | $ 29 |
Effective Interest Rate | 4.90% | 2.90% |
Debentures | 8.55% Debentures due June 2024 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.55% | |
Short-term borrowings | ||
Total short-term and current portion of long-term debt | $ 109 | $ 0 |
Effective Interest Rate | 4.10% | 0% |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2023 | |
Line of Credit Facility [Line Items] | |||
Net increase to carrying value | $ 95,000,000 | $ 91,000,000 | |
Estimated fair value of debt | $ 5,571,000,000 | 5,863,000,000 | |
Commercial Paper | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 3,000,000,000 | ||
BHH LLC | Baker Hughes Co-Obligor, Inc. | |||
Line of Credit Facility [Line Items] | |||
Ownership percentage | 100% | ||
BHH LLC | Senior Notes | Baker Hughes Co-Obligor, Inc. | |||
Line of Credit Facility [Line Items] | |||
Long-term borrowings | $ 5,908,000,000 | ||
Revolving Credit Facility | Credit Agreement | BHH LLC | |||
Line of Credit Facility [Line Items] | |||
Borrowings | $ 0 | $ 0 | |
Revolving Credit Facility | Credit Agreement | BHH LLC | Unsecured | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 3,000,000,000 |
DEBT - Maturities of Debt Sched
DEBT - Maturities of Debt Schedule (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt | |
2024 | $ 148 |
2025 | 4 |
2026 | 614 |
2027 | 1,308 |
2028 | 0 |
Thereafter | $ 3,946 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution per dollar | $ 1 | ||
Defined contribution plan, employer matching contribution | 5% | ||
Defined contribution plan, employers matching contribution for vesting plan | 4% | ||
Defined contribution plan, employers matching contribution for vesting, period | 3 years | ||
Defined contribution plans, cost | $ 217,000,000 | $ 212,000,000 | |
Number of non-qualified defined contribution plans | plan | 2 | ||
Defined contribution plan, assets and liabilities | $ 281,000,000 | 256,000,000 | |
Pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of retirement plans | plan | 1 | ||
Pension assets or obligations, threshold, per plan | $ 20,000,000 | ||
Accumulated postretirement benefit obligation | 2,443,000,000 | 2,634,000,000 | $ 3,550,000,000 |
Fair values of the plan assets | 2,080,000,000 | 2,266,000,000 | $ 3,147,000,000 |
Employer contributions | 18,000,000 | 32,000,000 | |
Pension plan | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimated future employer contributions in next fiscal year | 40,000,000 | ||
Pension plan | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimated future employer contributions in next fiscal year | 45,000,000 | ||
Pension plan | Fixed income and cash investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets | $ 1,122,000,000 | 1,482,000,000 | |
Pension plan | Funded plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of retirement plans | plan | 7 | ||
Pension plan | Underfunded plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of retirement plans | plan | 5 | ||
Pension plan | Fair value measured at Net Asset Value per share | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets | $ 1,967,000,000 | $ 2,157,000,000 | |
Pension plan | Fair value measured at Net Asset Value per share | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of plan assets valued using NAV | 20% | 13% | |
Pension plan | Fair value measured at Net Asset Value per share | Fixed income and cash investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of plan assets valued using NAV | 57% | 69% | |
Pension plan | Fair value measured at Net Asset Value per share | Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent of plan assets valued using NAV | 23% | 18% | |
Pension plan | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets | $ 113,000,000 | $ 109,000,000 | |
Pension plan | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets | $ 103,000,000 | 100,000,000 | |
Pension plan | UNITED STATES | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of retirement plans | plan | 4 | ||
Pension plan | Foreign | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of retirement plans | plan | 8 | ||
Postretirement Health Care Benefits | UNITED STATES | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated postretirement benefit obligation | $ 33,000,000 | 37,000,000 | |
Supplemental Pension Plan | UNITED STATES | BH SPP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Trust assets | $ 36,000,000 | $ 34,000,000 |
EMPLOYEE BENEFIT PLANS - Benefi
EMPLOYEE BENEFIT PLANS - Benefit Obligation and Plan Assets (Details) - Pension Benefits $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 2,634 | $ 3,550 | |
Service cost | 15 | 23 | $ 27 |
Interest cost | 116 | 78 | 64 |
Actuarial gain | (4) | (928) | |
Benefits paid | (126) | (119) | |
Settlements | (4) | (24) | |
Settlement due to plan termination | (246) | 0 | |
Acquisition | 0 | 202 | |
Foreign currency translation adjustments | 58 | (148) | |
Benefit obligation at end of year | 2,443 | 2,634 | 3,550 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 2,266 | 3,147 | |
Actual return on plan assets | 121 | (850) | |
Employer contributions | 18 | 32 | |
Benefits paid | (126) | (119) | |
Settlements | (4) | (24) | |
Settlement due to plan termination | (246) | 0 | |
Acquisition | 0 | 214 | |
Foreign currency translation adjustments | 51 | (134) | |
Fair value of plan assets at end of year | 2,080 | 2,266 | $ 3,147 |
Funded status - underfunded at end of year | (363) | (368) | |
Accumulated benefit obligation | $ 2,399 | $ 2,595 | |
Number of retirement plans | plan | 1 |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amounts Recognized in the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure | ||
Noncurrent liabilities | $ (978) | $ (960) |
Pension Benefits | ||
Defined Benefit Plan Disclosure | ||
Noncurrent assets | 78 | 58 |
Current liabilities | (17) | (15) |
Noncurrent liabilities | (424) | (411) |
Net amount recognized | $ (363) | $ (368) |
EMPLOYEE BENEFIT PLANS - Inform
EMPLOYEE BENEFIT PLANS - Information for Plans with ABOs and PBOs in Excess of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 1,410 | $ 1,143 |
Accumulated benefit obligation | 1,366 | 1,103 |
Fair value of plan assets | 968 | 717 |
Projected benefit obligation | 1,410 | 1,143 |
Accumulated benefit obligation | 1,366 | 1,103 |
Fair value of plan assets | $ 968 | $ 717 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Cost (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 15 | $ 23 | $ 27 |
Interest cost | 116 | 78 | 64 |
Expected return on plan assets | (102) | (114) | (130) |
Amortization of prior service credit | 1 | 1 | 1 |
Amortization of net actuarial loss | 19 | 27 | 40 |
Curtailment / settlement loss | (16) | 2 | 2 |
Net periodic cost | $ 33 | $ 17 | $ 4 |
EMPLOYEE BENEFIT PLANS - Assump
EMPLOYEE BENEFIT PLANS - Assumptions Used for Benefit Obligation (Details) - Pension Benefits | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.54% | 4.89% |
Rate of compensation increase | 3.26% | 3.30% |
Interest crediting rate | 3.98% | 4.31% |
EMPLOYEE BENEFIT PLANS - Assu_2
EMPLOYEE BENEFIT PLANS - Assumptions Used for Net Periodic Cost (Details) - Pension Benefits | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.89% | 2.15% | 1.66% |
Expected long-term return on plan assets | 5.05% | 3.85% | 4.07% |
Interest crediting rate | 4.31% | 2.60% | 2.60% |
EMPLOYEE BENEFIT PLANS - Reconc
EMPLOYEE BENEFIT PLANS - Reconciliation to Accumulated Other Comprehensive Loss (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss | $ 333 | $ 348 |
Net prior service cost | 15 | 15 |
Total | $ 348 | $ 363 |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Value of the Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets by asset category and by levels of fair value | $ 2,080 | $ 2,266 | $ 3,147 |
Fixed income and cash investment funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets by asset category and by levels of fair value | 1,122 | 1,482 | |
Global equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets by asset category and by levels of fair value | 227 | 180 | |
U.S. equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets by asset category and by levels of fair value | 157 | 102 | |
Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets by asset category and by levels of fair value | 103 | 100 | |
Real estate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets by asset category and by levels of fair value | 34 | 53 | |
Private equities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets by asset category and by levels of fair value | 35 | 37 | |
Other investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets by asset category and by levels of fair value | $ 402 | $ 313 |
EMPLOYEE BENEFIT PLANS - Future
EMPLOYEE BENEFIT PLANS - Future Expected Benefit Payments (Details) - Pension Benefits $ in Millions | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure | |
2024 | $ 164 |
2025 | 127 |
2026 | 132 |
2027 | 135 |
2028 | 136 |
2029-2033 | $ 717 |
INCOME TAXES - Provision or Ben
INCOME TAXES - Provision or Benefit for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
U.S. | $ 33 | $ 6 | $ 11 |
Foreign | 711 | 489 | 614 |
Total current | 744 | 495 | 625 |
Deferred: | |||
U.S. | (27) | 40 | (24) |
Foreign | (32) | 65 | 157 |
Total deferred | (59) | 105 | 133 |
Provision for income taxes | $ 685 | $ 600 | $ 758 |
INCOME TAXES - Geographic Sourc
INCOME TAXES - Geographic Sources of Income (Loss) before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 882 | $ (698) | $ (724) |
Foreign | 1,773 | 720 | 1,152 |
Income before income taxes | $ 2,655 | $ 22 | $ 428 |
INCOME TAXES - Difference betwe
INCOME TAXES - Difference between Provision and U.S. Statutory Income Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total Gross Unrecognized Tax Benefits | |||
Income before income taxes | $ 2,655 | $ 22 | $ 428 |
Taxes at the U.S. federal statutory income tax rate | 558 | 5 | 90 |
Effect of foreign operations | 112 | 338 | 216 |
Tax impact of partnership structure | (103) | 6 | 137 |
Change in valuation allowances | 53 | 164 | 70 |
Tax expense (benefit) due to unrecognized tax benefits | (5) | (7) | 201 |
Other - net | 70 | 94 | 44 |
Provision for income taxes | $ 685 | $ 600 | $ 758 |
Actual income tax rate | 25.80% | 2,727.30% | 177.10% |
Release of a valuation allowance for certain deferred tax assets | $ 81 | ||
Charges associated with the sale and suspension of Russia operations | $ 140 | ||
GE | GE | |||
Total Gross Unrecognized Tax Benefits | |||
Tax expense (benefit) due to unrecognized tax benefits | $ 121 | ||
Tax expense due to unrecognized tax benefits | $ 119 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Operating & capital loss carryforwards | $ 3,332 | $ 2,074 |
Tax credit & other carryforwards | 936 | 1,087 |
Investment in partnerships & subsidiaries | 286 | 846 |
Property, plant and equipment | 169 | 128 |
Employee benefits | 241 | 62 |
Goodwill and other intangible assets | 137 | 46 |
Receivables | 111 | 94 |
Inventory | 73 | 52 |
Other | 181 | 163 |
Total deferred income tax asset | 5,466 | 4,552 |
Valuation allowances | (4,416) | (4,090) |
Total deferred income tax asset after valuation allowance | 1,050 | 462 |
Deferred tax liabilities: | ||
Indefinite-lived intangible assets | (380) | 0 |
Fair value of derivative financial instruments | (90) | 0 |
Other | (34) | (34) |
Total deferred income tax liability | (504) | (34) |
Net deferred tax asset | $ 546 | $ 428 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) country | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Total Gross Unrecognized Tax Benefits | |||
NOLs | $ 3,299 | ||
Valuation allowances | 4,416 | $ 4,090 | |
Cumulative amount of undistributed foreign earnings | 3,708 | ||
Tax liabilities for gross unrecognized tax benefits | 467 | $ 496 | $ 531 |
Interest accrued on income taxes for unrecognized tax benefits | 83 | ||
Penalties accrued on income taxes for unrecognized tax benefits | 79 | ||
Uncertain tax positions | 629 | ||
Unrecognized tax benefits that would impact effective tax rate | 559 | ||
Deferred tax asset that we did not prevail on all uncertain tax position | 71 | ||
Deferred tax asset that we did not prevail on all uncertain tax position, foreign taxing jurisdiction | 41 | ||
Deferred tax asset that we did not prevail on all uncertain tax position, increased valuation allowances | 30 | ||
Uncertain tax positions liabilities | $ 40 | ||
Number of countries | country | 120 | ||
Foreign operating and capital losses | |||
Total Gross Unrecognized Tax Benefits | |||
Valuation allowances | $ 2,987 | ||
U.S. foreign and non-U.S. tax credit carryforwards | |||
Total Gross Unrecognized Tax Benefits | |||
Valuation allowances | 770 | ||
Five years | |||
Total Gross Unrecognized Tax Benefits | |||
Expiring operating loss carryforwards | 252 | ||
Six to 20 years | |||
Total Gross Unrecognized Tax Benefits | |||
Expiring operating loss carryforwards | 1,862 | ||
Indefinitely | |||
Total Gross Unrecognized Tax Benefits | |||
Capital loss carryforwards | 33 | ||
Indefinite Foreign Tax | |||
Total Gross Unrecognized Tax Benefits | |||
Non-U.S. tax credits | 417 | ||
Definite Foreign Tax | |||
Total Gross Unrecognized Tax Benefits | |||
Non-U.S. tax credits | 366 | ||
Other Tax | |||
Total Gross Unrecognized Tax Benefits | |||
Other credits | $ 153 |
INCOME TAXES - Changes in Gross
INCOME TAXES - Changes in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ (496) | $ (531) |
Additions for tax positions of the current year | (15) | (19) |
Additions for tax positions of prior years | (50) | (99) |
Reductions for tax positions of prior years | 32 | 100 |
Settlements with tax authorities | 26 | 24 |
Lapse of statute of limitations | 36 | 29 |
Balance at end of year | $ (467) | $ (496) |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation cost | $ 197,000,000 | $ 207,000,000 | $ 205,000,000 |
Weighted average remaining contractual term for options outstanding | 3 years 4 months 24 days | ||
Weighted average remaining contractual term for options exercisable | 3 years 4 months 24 days | ||
Options vested (in shares) | 0 | 530,000 | 850,000 |
Fair value of options vested | $ 0 | $ 3,000,000 | $ 7,000,000 |
Total intrinsic value of stock options exercised | 3,000,000 | ||
Total intrinsic value of stock options outstanding | 6,000,000 | ||
Total intrinsic value of stock options exercisable | $ 6,000,000 | ||
Share price (in dollars per share) | $ 34.18 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award of common stock, right to receive (in shares) | 1 | ||
Stock-based compensation, service period | 3 years | ||
Vested intrinsic value | $ 227,000,000 | ||
Intrinsic value, outstanding | 414,000,000 | ||
Fair value options vested in period | 173,000,000 | ||
Unrecognized compensation cost, unvested | $ 178,000,000 | ||
Weighted average period of recognition for unrecognized compensation cost | 1 year 9 months 3 days | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation, service period | 3 years | ||
Vested intrinsic value | $ 23,000,000 | ||
Fair value options vested in period | 17,000,000 | ||
Unrecognized compensation cost, unvested | $ 28,000,000 | ||
Weighted average period of recognition for unrecognized compensation cost | 1 year 10 months 20 days | ||
Unvested intrinsic value | $ 97,000,000 | ||
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum contractual term | 5 years 1 month 6 days | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee purchase, maximum per quarter | $ 3,000 | ||
Employee purchase, maximum | $ 12,000 | ||
Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vested (in shares) | 5,738,000 | 6,316,000 | |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Class A Common Stock | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discount of the fair market value | 15% | ||
Common stock authorized (in shares) | 21,500,000 | ||
Common stock reserved for future issuance (in shares) | 8,700,000 | ||
Class A Common Stock | Employee Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
After-tax basis | 1% | ||
Class A Common Stock | Employee Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
After-tax basis | 20% | ||
LTI Plan | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 29,500,000 | ||
Number of shares available for issuance (in shares) | 25,100,000 |
STOCK-BASED COMPENSATION - RSUs
STOCK-BASED COMPENSATION - RSUs (Details) - RSUs shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Units | |
Outstanding, beginning balance (in shares) | shares | 14,342 |
Granted (in shares) | shares | 6,404 |
Vested (in shares) | shares | (7,351) |
Forfeited (in shares) | shares | (1,282) |
Outstanding, ending balance (in shares) | shares | 12,113 |
Weighted Average Grant Date Fair Value Per Unit | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 24.31 |
Granted (in dollars per share) | $ / shares | 30.20 |
Vested (in dollars per share) | $ / shares | 23.60 |
Forfeited (in dollars per share) | $ / shares | 26.43 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 27.70 |
STOCK-BASED COMPENSATION - PSU
STOCK-BASED COMPENSATION - PSU (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Units | |
Cancelled (in shares) | shares | (563) |
Weighted Average Grant Date Fair Value Per Unit | |
Cancelled (in dollars per share) | $ / shares | $ 21.85 |
PSUs | |
Number of Units | |
Outstanding, beginning balance (in shares) | shares | 3,525 |
Granted (in shares) | shares | 1,222 |
Vested (in shares) | shares | 827 |
Forfeited (in shares) | shares | (529) |
Outstanding, ending balance (in shares) | shares | 2,828 |
Weighted Average Grant Date Fair Value Per Unit | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 25.56 |
Granted (in dollars per share) | $ / shares | 30.17 |
Vested (in dollars per share) | $ / shares | 20.61 |
Forfeited (in dollars per share) | $ / shares | 29.06 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 28.70 |
STOCK-BASED COMPENSATION - Chan
STOCK-BASED COMPENSATION - Changes in Stock Options Outstanding (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Options | |
Outstanding, beginning balance (in shares) | shares | 2,907 |
Exercised (in shares) | shares | (492) |
Expired (in shares) | shares | (174) |
Outstanding, ending balance (in shares) | shares | 2,241 |
Exercisable, ending balance (in shares) | shares | 2,241 |
Weighted Average Exercise Price Per Option | |
Outstanding, beginning (in dollars per share) | $ / shares | $ 33.02 |
Exercised (in dollars per share) | $ / shares | 26.44 |
Expired (in dollars per share) | $ / shares | 39.79 |
Outstanding, ending (in dollars per share) | $ / shares | 33.92 |
Exercisable, ending (in dollars per share) | $ / shares | $ 33.92 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Preferred stock authorized (in shares) | 50,000,000 | ||
Common stock par value (in dollars per share) | $ 0.0001 | ||
Stock repurchased and canceled (in shares) | 16,300,000 | 29,700,000 | |
Repurchase and cancellation of Class A common stock | $ 538 | $ 828 | $ 434 |
Treasury stock acquired, average cost (in dollars per share) | $ 33.09 | $ 27.91 | |
Remaining authorized repurchase amount | $ 2,200 | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock outstanding (in shares) | 997,709,000 | 1,005,960,000 | 909,142,000 |
Common stock issued (in shares) | 998,000,000 | 1,006,000,000 | |
Cash dividends per share (in dollars per share) | $ 0.78 | $ 0.73 | $ 0.72 |
Class A Common Stock | Cash dividend | |||
Class of Stock [Line Items] | |||
Cash dividends per share (in dollars per share) | $ 0.78 | $ 0.73 | |
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Common stock authorized (in shares) | 1,250,000,000 | 1,250,000,000 | |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Preferred stock par value (in dollars per share) | $ 0.0001 | ||
Common stock outstanding (in shares) | 0 | 0 | 116,548,000 |
Common stock issued (in shares) | 0 | 0 |
EQUITY - Changes in Number of S
EQUITY - Changes in Number of Shares Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Issue of shares upon vesting of restricted stock units (in shares) | 0 | 530,000 | 850,000 |
Issue of shares on exercises of stock options (in shares) | 492,000 | ||
Class A Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 1,005,960,000 | 909,142,000 | |
Issue of shares upon vesting of restricted stock units (in shares) | 5,738,000 | 6,316,000 | |
Issue of shares on exercises of stock options (in shares) | 434,000 | 1,632,000 | |
Issue of shares for employee stock purchase plan (in shares) | 1,846,000 | 2,017,000 | |
Exchange of Class B common stock for Class A common stock (in shares) | 0 | 116,548,000 | |
Repurchase and cancellation of Class A common stock (in shares) | (16,269,000) | (29,694,000) | |
Ending balance (in shares) | 997,709,000 | 1,005,960,000 | 909,142,000 |
Class B Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 0 | 116,548,000 | |
Issue of shares upon vesting of restricted stock units (in shares) | 0 | 0 | |
Issue of shares on exercises of stock options (in shares) | 0 | 0 | |
Issue of shares for employee stock purchase plan (in shares) | 0 | 0 | |
Exchange of Class B common stock for Class A common stock (in shares) | 0 | (116,548,000) | |
Repurchase and cancellation of Class A common stock (in shares) | 0 | 0 | |
Ending balance (in shares) | 0 | 0 | 116,548,000 |
EQUITY - Accumulated Other Comp
EQUITY - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 14,525 | $ 16,746 | $ 18,242 |
Other comprehensive income (loss) before reclassifications | 151 | (293) | |
Amounts reclassified from accumulated other comprehensive loss | 20 | 55 | |
Deferred taxes | 4 | (43) | |
Other comprehensive income (loss) | 175 | (281) | (151) |
Less: Other comprehensive loss attributable to noncontrolling interests | 0 | (3) | (16) |
Less: Reallocation of AOCL based on change in ownership of BHH LLC Units | 308 | ||
Ending balance | 15,519 | 14,525 | 16,746 |
Foreign Currency Translation Adjustment, Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2,666) | (2,125) | |
Other comprehensive income (loss) before reclassifications | 153 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||
Deferred taxes | 0 | ||
Other comprehensive income (loss) | 153 | ||
Ending balance | (2,513) | (2,666) | (2,125) |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications | (294) | ||
Amounts reclassified from accumulated other comprehensive loss | 25 | ||
Deferred taxes | 0 | ||
Other comprehensive income (loss) | (269) | ||
Foreign Currency Translation Adjustment, Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Less: Other comprehensive loss attributable to noncontrolling interests | (3) | ||
Less: Reallocation of AOCL based on change in ownership of BHH LLC Units | 275 | ||
Cash Flow Hedges, Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (9) | (10) | |
Other comprehensive income (loss) before reclassifications | 12 | ||
Amounts reclassified from accumulated other comprehensive loss | (8) | ||
Deferred taxes | (1) | ||
Other comprehensive income (loss) | 3 | ||
Ending balance | (6) | (9) | (10) |
Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications | (1) | ||
Amounts reclassified from accumulated other comprehensive loss | 3 | ||
Deferred taxes | 0 | ||
Other comprehensive income (loss) | 2 | ||
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 | ||
Less: Reallocation of AOCL based on change in ownership of BHH LLC Units | 1 | ||
Benefit Plans, Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (296) | (250) | |
Other comprehensive income (loss) before reclassifications | (14) | ||
Amounts reclassified from accumulated other comprehensive loss | 28 | ||
Deferred taxes | 5 | ||
Other comprehensive income (loss) | 19 | ||
Ending balance | (277) | (296) | (250) |
Benefit Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications | 2 | ||
Amounts reclassified from accumulated other comprehensive loss | 27 | ||
Deferred taxes | (43) | ||
Other comprehensive income (loss) | (14) | ||
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 | ||
Less: Reallocation of AOCL based on change in ownership of BHH LLC Units | 32 | ||
Accumulated Other Comprehensive Loss | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2,971) | (2,385) | (1,778) |
Other comprehensive income (loss) | 175 | (278) | (135) |
Ending balance | $ (2,796) | $ (2,971) | $ (2,385) |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share | |||
Net income (loss) | $ 1,970 | $ (578) | $ (330) |
Less: Net income (loss) attributable to noncontrolling interests | 27 | 23 | (111) |
Net income (loss) attributable to Baker Hughes Company | $ 1,943 | $ (601) | $ (219) |
Net income (loss) per share attributable to common stockholders: | |||
Class A basic (in dollars per share) | $ 1.93 | $ (0.61) | $ (0.27) |
Class A diluted (in dollars per share) | $ 1.91 | $ (0.61) | $ (0.27) |
Class A Common Stock | |||
Weighted average shares outstanding: | |||
Class A basic (in shares) | 1,008 | 987 | 824 |
Class A diluted (in shares) | 1,015 | 987 | 824 |
Net income (loss) per share attributable to common stockholders: | |||
Class A basic (in dollars per share) | $ 1.93 | $ (0.61) | $ (0.27) |
Class A diluted (in dollars per share) | $ 1.91 | $ (0.61) | $ (0.27) |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Basic weighted average shares outstanding (in shares) | 0 | 30,000,000 | 215,000,000 |
Common Class A and B | |||
Class of Stock [Line Items] | |||
Basic weighted average shares outstanding (in shares) | 1,008,000,000 | 1,017,000,000 | 1,039,000,000 |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Basic weighted average shares outstanding (in shares) | 1,008,000,000 | 987,000,000 | 824,000,000 |
Class A Common Stock | Employee Stock | |||
Class of Stock [Line Items] | |||
Antidilutive securities excluded from diluted EPS calculation (in shares) | 2,000,000 |
FINANCIAL INSTRUMENTS - Recurri
FINANCIAL INSTRUMENTS - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Derivatives | $ 34 | $ 18 |
Investment securities | 1,042 | 748 |
Liabilities | ||
Derivatives | (76) | (86) |
Recurring | ||
Assets | ||
Derivatives | 34 | 18 |
Investment securities | 1,042 | 748 |
Total assets | 1,076 | 766 |
Liabilities | ||
Derivatives | (76) | (86) |
Total liabilities | (76) | (86) |
Recurring | Level 1 | ||
Assets | ||
Derivatives | 0 | 0 |
Investment securities | 1,040 | 748 |
Total assets | 1,040 | 748 |
Liabilities | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Derivatives | 34 | 18 |
Investment securities | 0 | 0 |
Total assets | 34 | 18 |
Liabilities | ||
Derivatives | (76) | (86) |
Total liabilities | (76) | (86) |
Recurring | Level 3 | ||
Assets | ||
Derivatives | 0 | 0 |
Investment securities | 2 | 0 |
Total assets | 2 | 0 |
Liabilities | ||
Derivatives | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Investm
FINANCIAL INSTRUMENTS - Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||
Equity securities, amortized cost | $ 527 | $ 557 | |
Equity securities, gross unrealized gain | 451 | 191 | |
Equity securities, gross unrealized losses | (3) | 0 | |
Equity securities, estimated fair value | 975 | 748 | |
Total, amortized cost | 593 | 557 | |
Total , gross unrealized gains | 452 | 191 | |
Total , gross unrealized losses | (3) | 0 | |
Total, estimated fair value | 1,042 | 748 | |
Gains (losses) recorded to earnings | 405 | (271) | $ (843) |
Non-U.S. debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, amortized cost | 66 | 0 | |
Debt securities, gross unrealized gains | 1 | 0 | |
Debt securities, gross unrealized losses | 0 | 0 | |
Debt securities, estimated fair value | $ 67 | $ 0 | |
Available for sale securities maturity | 2 years |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Equity securities, estimated fair value | $ 975,000,000 | $ 748,000,000 | ||
Gains (losses) recorded to earnings for our equity securities | 435,000,000 | (264,000,000) | $ (843,000,000) | |
Equity securities, unrealized gain | $ 118,000,000 | |||
Current derivative asset | $ 31,000,000 | $ 17,000,000 | ||
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | All other current assets | All other current assets | ||
Noncurrent derivative asset | $ 3,000,000 | $ 1,000,000 | ||
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | All other assets | All other assets | ||
Current derivative liability | $ 23,000,000 | $ 17,000,000 | ||
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | All other current liabilities | All other current liabilities | ||
Noncurrent derivative liability | $ 53,000,000 | $ 69,000,000 | ||
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | All other liabilities | All other liabilities | ||
Notional amount | $ 4,200,000,000 | $ 3,800,000,000 | ||
3.337% Senior Notes due December 2027 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Stated interest rate | 3.337% | 3.337% | ||
3.337% Senior Notes due December 2027 | Senior Notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Aggregate principal amount | $ 1,350,000,000 | $ 1,350,000,000 | ||
Stated interest rate | 3.337% | |||
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 | 2 years | 1 year |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives and Hedging (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 34 | $ 18 |
(Liabilities) | $ (76) | $ (86) |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | All other current assets, All other assets | All other current assets, All other assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | All other current liabilities, All other liabilities | All other current liabilities, All other liabilities |
Currency exchange contracts and other | Derivatives accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Assets | $ 10 | $ 1 |
(Liabilities) | (3) | 0 |
Currency exchange contracts and other | Derivatives not accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 24 | 17 |
(Liabilities) | (21) | (17) |
Interest rate swap contracts | Derivatives accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
(Liabilities) | $ (52) | $ (69) |
REVENUE RELATED TO CONTRACTS _3
REVENUE RELATED TO CONTRACTS WITH CUSTOMERS - Narrative (Details) $ in Billions | Dec. 31, 2023 USD ($) | Oct. 01, 2023 product_line |
Revenue from Contract with Customer [Abstract] | ||
Performance obligations expected to be satisfied | $ | $ 33.5 | |
Within 2 years | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Disaggregation of Revenue [Line Items] | ||
Performance obligations expected to be satisfied, percentage | 61% | |
Performance obligations expected to be satisfied, expected timing | 2 years | |
Within 5 years | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Disaggregation of Revenue [Line Items] | ||
Performance obligations expected to be satisfied, percentage | 74% | |
Performance obligations expected to be satisfied, expected timing | 5 years | |
Within 15 years | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Disaggregation of Revenue [Line Items] | ||
Performance obligations expected to be satisfied, percentage | 90% | |
Performance obligations expected to be satisfied, expected timing | 15 years | |
Industrial & Energy Technology | ||
Disaggregation of Revenue [Line Items] | ||
Number Of Product Lines | product_line | 5 |
REVENUE RELATED TO CONTRACTS _4
REVENUE RELATED TO CONTRACTS WITH CUSTOMERS - Schedule of Disaggregated Segment Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 25,506 | $ 21,156 | $ 20,502 |
Oilfield Services & Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 15,361 | 13,229 | 12,028 |
Oilfield Services & Equipment | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,116 | 3,764 | 2,904 |
Oilfield Services & Equipment | Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,761 | 2,099 | 1,681 |
Oilfield Services & Equipment | Europe/CIS/Sub-Saharan Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,655 | 2,483 | 2,865 |
Oilfield Services & Equipment | Middle East/Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 5,829 | 4,883 | 4,579 |
Oilfield Services & Equipment | Well Construction | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,387 | 3,854 | 3,301 |
Oilfield Services & Equipment | Completions, Intervention & Measurements | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,170 | 3,559 | 3,106 |
Oilfield Services & Equipment | Production Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,854 | 3,587 | 3,135 |
Oilfield Services & Equipment | Subsea & Surface Pressure Systems | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,950 | 2,230 | 2,486 |
Industrial & Energy Technology | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 10,145 | 7,926 | 8,473 |
Industrial & Energy Technology | Gas Technology Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,232 | 2,599 | 3,039 |
Industrial & Energy Technology | Gas Technology Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,600 | 2,440 | 2,696 |
Industrial & Energy Technology | Total Gas Technology | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 6,832 | 5,039 | 5,735 |
Industrial & Energy Technology | Industrial Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,962 | 1,697 | 1,598 |
Industrial & Energy Technology | Industrial Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 983 | 884 | 880 |
Industrial & Energy Technology | Controls | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 41 | 208 | 217 |
Industrial & Energy Technology | Climate Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 326 | 98 | 43 |
Industrial & Energy Technology | Climate Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 2,987 | $ 2,789 | $ 2,695 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 segment product_line | Dec. 31, 2022 segment | |
Segment Reporting Information | ||
Number of operating segments | segment | 2 | 2 |
Oilfield Services & Equipment | ||
Segment Reporting Information | ||
Number of product line | 4 | |
Industrial & Energy Technology | ||
Segment Reporting Information | ||
Number of product line | 5 |
SEGMENT INFORMATION - Operating
SEGMENT INFORMATION - Operating Profit (Loss) by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information | |||
Revenues | $ 25,506 | $ 21,156 | $ 20,502 |
Income before income taxes | |||
Income (loss) before income taxes | 2,655 | 22 | 428 |
Inventory impairment | (35) | (31) | 0 |
Restructuring, impairment and other | (323) | (705) | (269) |
Other non-operating income (loss), net | 554 | (911) | (583) |
Interest expense, net | (216) | (252) | (299) |
Operating segments | |||
Income before income taxes | |||
Income (loss) before income taxes | 3,055 | 2,336 | 2,006 |
Corporate | |||
Income before income taxes | |||
Income (loss) before income taxes | (380) | (416) | (429) |
Segment reconciling items | |||
Income before income taxes | |||
Inventory impairment | (35) | (31) | 0 |
Restructuring, impairment and other | (323) | (705) | (269) |
Other non-operating income (loss), net | 554 | (911) | (583) |
Interest expense, net | (216) | (252) | (299) |
Oilfield Services & Equipment | |||
Segment Reporting Information | |||
Revenues | 15,361 | 13,229 | 12,028 |
Oilfield Services & Equipment | Operating segments | |||
Income before income taxes | |||
Income (loss) before income taxes | 1,746 | 1,201 | 830 |
Industrial & Energy Technology | |||
Segment Reporting Information | |||
Revenues | 10,145 | 7,926 | 8,473 |
Industrial & Energy Technology | Operating segments | |||
Income before income taxes | |||
Income (loss) before income taxes | $ 1,310 | $ 1,135 | $ 1,177 |
SEGMENT INFORMATION - Assets by
SEGMENT INFORMATION - Assets by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 36,945 | $ 34,181 | |
Depreciation and amortization | 1,087 | 1,061 | $ 1,105 |
Capital expenditures | 1,224 | 989 | 856 |
Operating segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 31,706 | 29,467 | |
Depreciation and amortization | 1,066 | 1,042 | 1,082 |
Capital expenditures | 1,189 | 974 | 841 |
Operating segments | Oilfield Services & Equipment | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 17,925 | 17,181 | |
Depreciation and amortization | 849 | 845 | 874 |
Capital expenditures | 960 | 791 | 659 |
Operating segments | Industrial & Energy Technology | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 13,781 | 12,286 | |
Depreciation and amortization | 217 | 197 | 208 |
Capital expenditures | 229 | 183 | 182 |
Corporate | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 5,239 | 4,714 | |
Depreciation and amortization | 21 | 19 | 23 |
Capital expenditures | $ 35 | $ 15 | $ 15 |
SEGMENT INFORMATION - Revenue b
SEGMENT INFORMATION - Revenue based on the Location of Product and Services and Net Property, Plant and Equipment by Geographic Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from geographic segments | |||
Revenue | $ 25,506 | $ 21,156 | $ 20,502 |
Property, plant and equipment - net | 4,893 | 4,538 | |
U.S. | |||
Revenue from geographic segments | |||
Revenue | 6,557 | 4,942 | 4,497 |
Property, plant and equipment - net | 1,579 | 1,554 | |
Non-U.S. | |||
Revenue from geographic segments | |||
Revenue | 18,949 | 16,214 | $ 16,005 |
Property, plant and equipment - net | $ 3,314 | $ 2,984 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Accounts payable | $ 4,471 | $ 4,298 | |||
JV aero-derivative gas turbine products and services | |||||
Related Party Transaction [Line Items] | |||||
Related party purchases | 517 | 528 | $ 603 | ||
Accounts payable | $ 71 | $ 110 | |||
JV aero-derivative gas turbine products and services | Aeroderivative Joint venture | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 50% | ||||
Affiliated Entity | Purchases, GE and its affiliates | |||||
Related Party Transaction [Line Items] | |||||
Related party purchases | $ 293 | 716 | |||
Affiliated Entity | Sales of products and services, GE and its affiliates | |||||
Related Party Transaction [Line Items] | |||||
Related party sold | $ 83 | $ 185 | |||
GE | JV aero-derivative gas turbine products and services | Aeroderivative Joint venture | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 50% | ||||
GE | Affiliated Entity | Baker Hughes Company | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 5% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | May 29, 2020 | Mar. 03, 2020 | Mar. 18, 2019 | Mar. 15, 2019 | Dec. 31, 2023 |
Loss Contingencies [Line Items] | |||||
Environmental loss contingencies | $ 1 | ||||
Total, off-balance sheet liability | 5,100 | ||||
Purchase obligations, within next twelve months | 1,871 | ||||
Purchase obligations, year two | 366 | ||||
Purchase obligations, year three | 220 | ||||
Purchase obligations, year four | 215 | ||||
Purchase obligations, year five | 47 | ||||
Purchase obligations, thereafter | $ 27 | ||||
Pending litigation | IEC | Lost profits and various costs | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | $ 235 | $ 244.9 | $ 591 | ||
Pending litigation | IEC | Loss of cash flow | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | 700 | ||||
Pending litigation | IEC | Liquidated damages | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | 4.8 | ||||
Pending litigation | IEC | Take-or-pay future obligations | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | $ 58.6 | ||||
Pending litigation | IEC | Legal fees | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | $ 14.2 | ||||
Pending litigation | City of Riviera Beach Pension Fund and Richard Schippnick | |||||
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) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, impairment and other | $ 323 | $ 705 | $ 269 | |
Restructuring charges | 313 | 196 | 138 | |
Inventory impairment | $ 35 | $ 31 | 0 | |
Number of operating segments | segment | 2 | 2 | ||
Other charges | $ 10 | $ 509 | $ 131 | |
Sale | Oilfield Services and Equipment Russia business | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other impairment charges | $ 334 | |||
Sale | Industrial & Energy Technology | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory impairment | $ 31 | |||
Oilfield Services & Equipment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other charges | 84 | |||
Industrial & Energy Technology | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other charges | $ 68 |
RESTRUCTURING, IMPAIRMENT AND_4
RESTRUCTURING, IMPAIRMENT AND OTHER - Schedule of Restructuring and Impairment Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | $ 313 | $ 196 | $ 138 |
Property, plant and equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | (2) | 58 | 7 |
Employee-related termination expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 270 | 121 | 99 |
Asset relocation costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 5 | 3 | 20 |
Contract termination fees | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 1 | 1 | 2 |
Other incremental costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 39 | 13 | 10 |
Operating segments | Oilfield Services & Equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 148 | 121 | 121 |
Operating segments | Industrial & Energy Technology | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 98 | 36 | 11 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | $ 67 | $ 39 | $ 6 |
BUSINESS DISPOSITIONS AND ACQ_3
BUSINESS DISPOSITIONS AND ACQUISITIONS - Schedule of Assets and Liabilities of Businesses Held for Sale and All Other Current Assets and All Other Current Liabilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Assets | |
Goodwill | $ 230 |
Sale | Nexus Controls | |
Assets | |
Current receivables | 59 |
Inventories | 36 |
Property, plant and equipment | 2 |
Goodwill | 230 |
Other assets | 10 |
Total assets of business held for sale | 337 |
Liabilities | |
Accounts payable | 30 |
All other current liabilities | 56 |
Other liabilities | 7 |
Total liabilities of business held for sale | 93 |
Total net assets of business held for sale | $ 244 |
BUSINESS DISPOSITIONS AND ACQ_4
BUSINESS DISPOSITIONS AND ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating Income (Loss) | ||
Proceeds from business dispositions | $ 293 | $ 0 | $ 70 |
(Gain) loss on business dispositions | (40) | 451 | 0 |
Goodwill | 6,137 | 5,930 | $ 5,959 |
Joint Venture Company | |||
Business Acquisition [Line Items] | |||
Approximate interest to be acquired | 50% | ||
Payments to acquire membership interest | $ 70 | ||
Promissory note | $ 80 | ||
Several acquisitions | |||
Business Acquisition [Line Items] | |||
Total purchase consideration | 301 | 767 | |
Goodwill | 138 | 458 | |
Intangible assets | 58 | 211 | |
Cash acquired from acquisition | $ 50 | ||
Sale | Businesses Including Nexus Controls | |||
Business Acquisition [Line Items] | |||
Proceeds from business dispositions | $ 293 |
SUPPLEMENTARY INFORMATION - Nar
SUPPLEMENTARY INFORMATION - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Employee-related liabilities | $ 1,346 | $ 837 |
SUPPLEMENTARY INFORMATION - All
SUPPLEMENTARY INFORMATION - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance for doubtful accounts | ||
Balance at beginning of year | $ 341 | $ 400 |
Provision | 79 | 69 |
Write-offs | (26) | (34) |
Prior year recoveries | (31) | (44) |
Other | (13) | (50) |
Balance at end of year | $ 350 | $ 341 |
SUPPLEMENTARY INFORMATION - Sup
SUPPLEMENTARY INFORMATION - Supplemental cash flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |||
Income taxes paid, net of refunds | $ 595 | $ 498 | $ 314 |
Interest paid | $ 309 | $ 291 | $ 305 |