Cover Page
Cover Page - USD ($) shares in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | |
Entity Information [Line Items] | ||||
Document Type | 10-K | |||
Document Annual Report | true | |||
Document Period End Date | Dec. 31, 2020 | |||
Current Fiscal Year End Date | --12-31 | |||
Document Transition Report | false | |||
Entity File Number | 1-09397 | |||
Entity Registrant Name | Baker Hughes Holdings LLC | |||
Entity Incorporation, State or Country Code | DE | |||
Entity Tax Identification Number | 76-0207995 | |||
Entity Address, Address Line One | 17021 Aldine Westfield Road | |||
Entity Address, City or Town | Houston, | |||
Entity Address, State or Province | TX | |||
Entity Address, Postal Zip Code | 77073-5101 | |||
City Area Code | 713 | |||
Local Phone Number | 439-8600 | |||
Title of 12(b) Security | 5.125% Senior Notes due 2040 | |||
Trading Symbol | - | |||
Security Exchange Name | NYSE | |||
Entity Well-known Seasoned Issuer | Yes | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Non-accelerated Filer | |||
Entity Small Business | false | |||
Entity Emerging Growth Company | false | |||
ICFR Auditor Attestation Flag | true | |||
Entity Shell Company | false | |||
Entity Central Index Key | 0000808362 | |||
Document Fiscal Year Focus | 2020 | |||
Document Fiscal Period Focus | FY | |||
Amendment Flag | false | |||
Entity Common Stock, Shares Outstanding | 0 | |||
Common Unit, Outstanding | 1,035,000 | 1,027,000 | ||
Entity Public Float | $ 0 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | |||
Revenues | $ 20,705 | $ 23,838 | $ 22,877 |
Costs and expenses: | |||
Selling, general and administrative | 2,404 | 2,832 | 2,699 |
Goodwill impairment | 14,717 | 0 | 0 |
Other Restructuring Costs | 1,866 | 342 | 433 |
Separation and merger related | 134 | 184 | 153 |
Operating Costs and Expenses | 36,627 | 22,764 | 22,176 |
Operating income (loss) | (15,922) | 1,074 | 701 |
Other non-operating income (loss), net | 1,040 | (84) | 202 |
Interest expense, net | (264) | (237) | (223) |
Income (loss) before income taxes and equity in loss of affiliate | (15,146) | 753 | 680 |
Equity in loss of affiliate | 0 | 0 | (139) |
Provision for income taxes | (650) | (476) | (402) |
Net income (loss) | (15,796) | 277 | 139 |
Less: Net income attributable to noncontrolling interests | 29 | 36 | 19 |
Less: Net income attributable to noncontrolling interests | $ (15,825) | $ 241 | $ 120 |
Class A | |||
Costs and expenses: | |||
Dividends per share (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 |
Sales of goods | |||
Revenue: | |||
Revenues | $ 12,846 | $ 13,689 | $ 13,113 |
Costs and expenses: | |||
Cost | 11,383 | 11,798 | 11,524 |
Sales of services | |||
Revenue: | |||
Revenues | 7,859 | 10,149 | 9,764 |
Costs and expenses: | |||
Cost | $ 6,123 | $ 7,608 | $ 7,367 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (15,796) | $ 277 | $ 139 |
Less: Net income attributable to noncontrolling interests | 29 | 36 | 19 |
Less: Net income attributable to noncontrolling interests | (15,825) | 241 | 120 |
Other comprehensive income (loss): | |||
Investment securities | (2) | 2 | (3) |
Foreign currency translation adjustments | 175 | 53 | (502) |
Cash flow hedges | (5) | 12 | |
Cash flow hedges | (4) | ||
Benefit plans | (124) | (75) | (64) |
Other comprehensive income (loss) | 44 | (8) | (573) |
Less: Other comprehensive loss attributable to noncontrolling interests | (3) | 0 | 0 |
Other comprehensive income (loss) attributable to Baker Hughes Holdings LLC | 47 | (8) | (573) |
Comprehensive income (loss) | (15,752) | 269 | (434) |
Less: Comprehensive income attributable to noncontrolling interests | 26 | 36 | 19 |
Comprehensive income (loss) attributable to Baker Hughes Holdings LLC | $ (15,778) | $ 233 | $ (453) |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) shares in Thousands, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Current Assets: | |||
Cash and cash equivalents | [1] | $ 4,125 | $ 3,245 |
Current receivables, net | 5,700 | 6,491 | |
Inventories, net | 4,421 | 4,608 | |
All other current assets | 2,280 | 949 | |
Total current assets | 16,526 | 15,293 | |
Property, plant and equipment, less accumulated depreciation | 5,358 | 6,240 | |
Goodwill | 5,739 | 20,396 | |
Other intangible assets, net | 4,397 | 5,381 | |
Contract and other deferred assets | 2,001 | 1,881 | |
All other assets | 2,955 | 3,058 | |
Deferred income taxes | 953 | 964 | |
Total assets | [1] | 37,929 | 53,213 |
Current Liabilities: | |||
Accounts payable | 3,532 | 4,268 | |
Short-term debt and current portion of long-term debt | [1] | 889 | 321 |
Progress collections and deferred income | 3,454 | 2,870 | |
All other current liabilities | 2,431 | 2,535 | |
Total current liabilities | 10,306 | 9,994 | |
Long-term debt | 6,744 | 6,301 | |
Deferred income taxes | 108 | 0 | |
Liabilities for pensions and other employee benefits | 1,217 | 1,079 | |
All other liabilities | 1,391 | 1,425 | |
Members' Equity: | |||
Retained loss | (15,939) | (110) | |
Accumulated other comprehensive loss | (2,542) | (2,589) | |
Baker Hughes Holdings LLC equity | 18,031 | 34,299 | |
Noncontrolling interests | 132 | 115 | |
Total equity | 18,163 | 34,414 | |
Total liabilities and equity | $ 37,929 | $ 53,213 | |
Common Unit, Outstanding | 1,035,000 | 1,027,000 | |
Class A | |||
Members' Equity: | |||
Common stock | $ 36,512 | $ 36,998 | |
[1] | Total assets include $45 million and $273 million of assets held on behalf of GE, of which $44 million and $162 million is cash and cash equivalents and $1 million and $111 million is investment securities at December 31, 2020 and 2019, respectively, and a corresponding amount of liability is reported in short-term borrowings. See "Note 16. Related Party Transactions" for further details. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investment securities | $ 1,532 | $ 283 |
Related party amount, due to related party | Principal Owner | ||
Assets held on behalf of GE | 45 | 273 |
Cash and cash equivalents held on behalf of GE | 44 | 162 |
Investment securities | $ 1 | $ 111 |
Class A | ||
Common stock issued (in shares) | 723,999 | 650,065 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Class A | Cumulative Effect, Period of Adoption, Adjustment | Members' Capital | Retained Loss | Retained LossCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Non-controlling Interests | Non-controlling InterestsCumulative Effect, Period of Adoption, Adjustment |
Beginning balance at Dec. 31, 2017 | $ 38,396 | $ 67 | $ 40,678 | $ (541) | $ 67 | $ (1,881) | $ 140 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 139 | 120 | 19 | ||||||
Other comprehensive loss | (573) | (573) | |||||||
Dividend | (787) | (787) | |||||||
Other cash distribution to members | (37) | 37 | |||||||
Repurchase of common units | (2,461) | (2,461) | |||||||
Baker Hughes Stock-based compensation cost | 121 | 121 | |||||||
Other | 11 | 68 | (8) | (49) | |||||
Ending balance at Dec. 31, 2018 | 34,876 | 37,582 | (354) | (2,462) | 110 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends per share (in dollars per share) | $ 0.72 | ||||||||
Net income (loss) | 277 | 241 | 36 | ||||||
Other comprehensive loss | (8) | (8) | |||||||
Dividend | (745) | (745) | |||||||
Repurchase of common units | (250) | (250) | |||||||
Baker Hughes Stock-based compensation cost | 187 | 187 | |||||||
Other | 77 | 224 | 3 | (119) | (31) | ||||
Ending balance at Dec. 31, 2019 | 34,414 | 36,998 | (110) | (2,589) | 115 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends per share (in dollars per share) | 0.72 | ||||||||
Net income (loss) | (15,796) | (15,825) | 29 | ||||||
Other comprehensive loss | 44 | 47 | (3) | ||||||
Dividend | (744) | (744) | |||||||
Baker Hughes Stock-based compensation cost | 210 | 210 | |||||||
Other | 35 | 48 | (4) | (9) | |||||
Ending balance at Dec. 31, 2020 | $ 18,163 | $ 36,512 | $ (15,939) | $ (2,542) | $ 132 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends per share (in dollars per share) | $ 0.72 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class A | |||
Dividends (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Cash flows from operating activities: | |||||
Net income (loss) | $ (15,796,000,000) | $ 277,000,000 | $ 139,000,000 | ||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||
Depreciation and amortization | 1,317,000,000 | 1,418,000,000 | 1,486,000,000 | ||
Goodwill impairment | 14,717,000,000 | 0 | 0 | ||
Intangible assets impairment | 729,000,000 | 0 | 0 | ||
Property, plant and equipment impairment | 461,000,000 | 107,000,000 | 80,000,000 | ||
Inventory impairment | 246,000,000 | 0 | 105,000,000 | ||
Loss (gain) on business dispositions | 353,000,000 | 138,000,000 | (171,000,000) | ||
Provision (benefit) for deferred income taxes | 143,000,000 | 51,000,000 | (98,000,000) | ||
Equity in loss of affiliate | 0 | 0 | 139,000,000 | ||
Equity Securities, FV-NI, Unrealized Gain (Loss) | (1,417,000,000) | 0 | 0 | ||
Changes in operating assets and liabilities: | |||||
Current receivables | 676,000,000 | (521,000,000) | (160,000,000) | ||
Inventories | (80,000,000) | (200,000,000) | (339,000,000) | ||
Accounts payable | (711,000,000) | 261,000,000 | 738,000,000 | ||
Progress collections and deferred income | 396,000,000 | 1,147,000,000 | (27,000,000) | ||
Contract and other deferred assets | (69,000,000) | (60,000,000) | 129,000,000 | ||
Other operating items, net | 336,000,000 | (450,000,000) | (283,000,000) | ||
Net cash flows from operating activities | 1,301,000,000 | 2,168,000,000 | 1,738,000,000 | ||
Cash flows from investing activities: | |||||
Expenditures for capital assets | (974,000,000) | (1,240,000,000) | (995,000,000) | ||
Proceeds from disposal of assets | 187,000,000 | 264,000,000 | 458,000,000 | ||
Proceeds from business dispositions | 187,000,000 | 77,000,000 | 453,000,000 | ||
Net cash paid for business interests | (26,000,000) | (176,000,000) | (530,000,000) | ||
Other investing items, net | 8,000,000 | 30,000,000 | 36,000,000 | ||
Net cash flows used in investing activities | (618,000,000) | (1,045,000,000) | (578,000,000) | ||
Cash flows from financing activities: | |||||
Proceeds from (Repayments of) Other Debt | (204,000,000) | (542,000,000) | (376,000,000) | ||
Proceeds from the issuance of long-term debt | 500,000,000 | 525,000,000 | 0 | ||
Proceeds from issuance of commercial paper | 737,000,000 | 0 | 0 | ||
Repayments of long-term debt | (42,000,000) | (570,000,000) | (684,000,000) | ||
Distributions to members | (744,000,000) | (745,000,000) | (824,000,000) | ||
Repurchase of common units | 0 | (250,000,000) | (2,486,000,000) | ||
Other financing items, net | (22,000,000) | 48,000,000 | (11,000,000) | ||
Net cash flows from (used in) financing activities | 225,000,000 | (1,534,000,000) | (4,381,000,000) | ||
Effect of currency exchange rate changes on cash and cash equivalents | (28,000,000) | (21,000,000) | (128,000,000) | ||
Increase (decrease) in cash and cash equivalents | 880,000,000 | (432,000,000) | (3,349,000,000) | ||
Cash and cash equivalents, beginning of period | 3,245,000,000 | [1] | 3,677,000,000 | 7,026,000,000 | |
Cash and cash equivalents, end of period | $ 4,125,000,000 | [1] | $ 3,245,000,000 | [1] | $ 3,677,000,000 |
[1] | Total assets include $45 million and $273 million of assets held on behalf of GE, of which $44 million and $162 million is cash and cash equivalents and $1 million and $111 million is investment securities at December 31, 2020 and 2019, respectively, and a corresponding amount of liability is reported in short-term borrowings. See "Note 16. Related Party Transactions" for further details. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF THE BUSINESS Baker Hughes Holdings LLC, a Delaware limited liability company (the Company, BHH LLC, we, us, or our), and the successor to Baker Hughes Incorporated, a Delaware corporation (BHI) is an energy technology company with a diversified portfolio of technologies and services that span the entire energy value chain. The partnership was formed as the result of a combination between BHI and the oil and gas business (GE O&G) of General Electric Company (GE). On April 15, 2020, the Company changed its name from Baker Hughes, a GE company, LLC to Baker Hughes Holdings LLC. As of December 31, 2020, GE owns approximately 30.1% of our common units and Baker Hughes Company (Baker Hughes) owns approximately 69.9% of our common units. 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 SEC for annual financial information. All intercompany accounts and transactions have been eliminated. In connection with the Transactions, we entered into and are governed by an Amended & Restated Limited Liability Company Agreement, dated as of July 3, 2017, as further amended and restated on April 15, 2020 (the BHH LLC Agreement). Under the BHH LLC Agreement, EHHC Newco, LLC (EHHC), a wholly owned subsidiary of Baker Hughes, is our sole managing member and Baker Hughes is the sole managing member of EHHC. As our managing member, EHHC conducts, directs and exercises full control over all our activities, including our day-to-day business affairs and decision-making, without the approval of any other member. As such, EHHC is responsible for all our operational and administrative decisions and the day-to-day management of our business. 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 common unit amounts in tabulations are in millions of dollars and units, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers. 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, including 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; and expense allocations for certain corporate functions and shared services provided by GE. 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). Gains and losses from foreign currency transactions, such as those resulting from the settlement of receivables or payables in the non-functional currency and those resulting from remeasurements of monetary items, are 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 goods 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 include goods 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 products 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 goods and that acceptance is likely to occur. Our billing terms for these point in time equipment contracts vary, but are generally based on shipment of the goods 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 Turbomachinery & Process Solutions and Oilfield Equipment segments. 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 LNG applications, drilling rigs). These services are performed at various times during the life of the contract, thus the costs of performing services are incurred on other than a 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 is 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 goods 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 $595 million, $687 million and $700 million for the years ended December 31, 2020, 2019 and 2018, respectively. Research and development expenses were reported in cost of goods sold and cost of services sold. Separation and Merger Related In 2020 and 2019, separation and merger related costs primarily include costs incurred in connection with the separation from GE and the finalization of the Master Agreement Framework and Omnibus Agreement. Prior to 2019, separation and merger related costs primarily include costs associated with the combination of BHI and GE O&G. 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. As of December 31, 2020 and 2019, we had $687 million and $1,102 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions and we do not currently anticipate a need to transfer these funds to the U.S. Included in these amounts are $42 million and $142 million, as of December 31, 2020 and 2019, respectively, held on behalf of GE. Cash and cash equivalents includes a total of $44 million and $162 million of cash at December 31, 2020 and 2019, respectively, held on behalf of GE, and a corresponding liability is reported in short-term borrowings. See "Note 16. Related Party Transactions" for further details. Allowance for Credit Losses We monitor our customers' payment history and current credit worthiness to determine that collectability of the related financial assets are 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 We grant credit to our customers who primarily operate in the oil and natural gas industry. Although this concentration affects our overall exposure to credit risk, our current receivables are spread over a diverse group of customers across many countries, which mitigates this risk. We 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 (PP&E) Property, plant and equipment is initially stated at cost and is depreciated over its estimated economic life. Subsequently, property, plant and equipment 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 OFS 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. Amortizable 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, 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. See "Note 6. Goodwill and Other Intangible Assets" for further information on valuation methodology and impairment of goodwill. 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 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 have a program that utilizes foreign currency forward contracts to reduce the risks associated with the effects of certain foreign currency exposures. Under this program, our strategy is to have gains or losses on the foreign currency forward contracts mitigate the foreign currency transaction and translation gains or losses to the extent practical. These foreign currency exposures typically arise from changes in the value of assets (for example, current receivables) and liabilities (for example, current payables) which are denominated in currencies other than the functional currency of the respective entity. We record all derivatives as of the end of our reporting period in our consolidated statement of financial position at fair value. For the forward contracts held as undesignated hedging instruments, we record the changes in fair value of the forward contracts 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 over-the-counter 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 that are consistent with what other market participants would use. 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. Thus, certain securities may not be priced using quoted prices, but rather determined from market observable information. These investments are included in Level 2. 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. These assets are not measured at fair value on an ongoing basis, but 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 and 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. Assets that are written down to fair value when impaired and retained investments are not subsequently adjusted to fair value unless further impairment occurs. Investments in Equity Securities Investments in equity securities (of entities in which we do not have either 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 in fair value 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). Associated companies are 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%. Associated companies are accounted for as equity method investments. The results of associated companies are presented in the consolidated statements of income (loss) as follows: (i) if the associated company is integral to our operations, their results are included in "Selling, general and administrative," (ii) if the associated company is not integral to our operations, their results are included in "Other non-operating income (loss), net," and (iii) our equity method investment in BJ Services, which was a Delaware limited liability company, is presented in "Equity in loss of affiliate." Investments in, and advances to, associated companies are presented on a one-line basis in the caption "All other assets" in our consolidated statement of financial position. Income Taxes We are treated as a partnership for U.S. federal income tax purposes. As such, except for certain U.S. corporations owned by the Company, we are not subject to U.S. federal income tax under current U.S. tax laws. Our members will each be required to take into account for U.S. federal income tax purposes their distributive share of our items of income, gain, loss and deduction, which generally will include the U.S. operations of both Baker Hughes and GE O&G. Baker Hughes and GE will each be taxed on their distributive share of income and gain, whether or not a corresponding amount of cash or other property is distributed to them. For assets held indirectly by us through subsidiaries, including both foreign and U.S., the taxes attributable to those subsidiaries will be reflected in our consolidated 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 tax return bases of assets and liabilities as well as from net operating losses and tax credit carryforwards, based on enacted tax rates expected to be in effect when taxes actually are paid or recovered and other provisions of the tax law. 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 may not more likely than not be realized. Indefinite reinvestment is determined by management’s judgment and intentions concerning the future operations of the Company. In cases where repatriation would otherwise incur significant withholding or income taxes, these foreign earnings have been indefinitely reinvested in the Company’s active non-U.S. business operations. Computation of the potential deferred tax liability associated with these undistributed earnings and any other basis difference is not practicable. Significant judgment is required in determining our tax expense and in evaluating our tax positions, including evaluating uncertainties. We operate in more than 120 countries and 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 financial statements in the period they are recorded. Additionally, as part of U.S. tax reform, the U.S. has enacted a tax on "base eroding" payments from the U.S. and a minimum tax on foreign earnings (global intangible low-taxed income). In 2018, we made an accounting policy election to account for these taxes as period costs. Environmental Liabilities We are involved in numerous remediation actions to clean up hazardous waste as required by federal and state laws. Liabilities for remediation costs exclude possible insurance recoveries and, when dates and amounts of such costs are not known, are not discounted. When there appears to be a range of possible costs with equal likelihood, liabilities are based on the low end of such range. It is reasonably possible that our environmental remediation exposure will exceed amounts accrued. However, due to uncertainties about the status of laws, regulations, technology and information related to individual sites, such amounts are not reasonably estimable. The determination of the required accruals for remediation costs is subject to uncertainty, including the evolving nature of environmental regulations and the difficulty in estimating the extent and type of remediation activity that is necessary. NEW ACCOUNTING STANDARDS ADOPTED Financial Instruments - Credit Losses On January 1, 2020, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses. The ASU introduces a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models previously used under U.S. GAAP, which generally require that a loss be incurred before it is recognized. The new standard also applies to financial assets arising from revenue transactions such as contract assets and accounts receivables. The adoption did not have a material impact on our consolidated financial statements. Intangibles - Goodwill and Other On January 1, 2020, we adopted FASB ASU No. 2017-04, Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the fair value of the individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the new ASU, when required to test goodwill for recoverability, an entity will perform its goodwill impairment test by comparing the fair value of the reporting unit with its carrying value and should recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. We have applied this ASU on a prospective basis. See "Note 6. Goodwill and Other Intangible Assets" for further details. NEW ACCOUNTING STANDARDS TO BE ADOPTED 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. |
Revenue Related to Contracts Wi
Revenue Related to Contracts With Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Related to Contracts with Customers | REVENUE RELATED TO CONTRACTS WITH CUSTOMERS DISAGGREGATED REVENUE We disaggregate our revenue from contracts with customers by primary geographic markets. Total Revenue 2020 2019 2018 U.S. $ 4,638 $ 6,188 $ 6,576 Non-U.S. 16,067 17,650 16,301 Total $ 20,705 $ 23,838 $ 22,877 REMAINING PERFORMANCE OBLIGATIONS As of December 31, 2020 and 2019, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.4 billion and $22.9 billion, respectively. As of December 31, 2020, we expect to recognize revenue of approximately 51%, 67% 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. Contract liabilities include progress collections, which reflects billings in excess of revenue, and deferred income on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities are comprised of the following at December 31: 2020 2019 Progress collections $ 3,352 $ 2,760 Deferred income 102 110 Progress collections and deferred income (contract liabilities) $ 3,454 $ 2,870 Revenue recognized during the year ended December 31, 2020 and 2019 that was included in the contract liabilities at the beginning of the year was $1,962 million and $1,239 million, respectively. |
Current Receivables
Current Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Current Receivables | CURRENT RECEIVABLES Current receivables are comprised of the following at December 31: 2020 2019 Customer receivables $ 4,676 $ 5,448 Related parties 507 570 Other 890 796 Total current receivables 6,073 6,814 Less: Allowance for credit losses (373) (323) Total current receivables, net $ 5,700 $ 6,491 Customer receivables are recorded at the invoiced amount. Related parties consists primarily of amounts owed to us by GE. The "Other" category consists primarily of indirect taxes, advance payments to suppliers, other tax receivables and customer retentions. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Inventories, net of reserves of $421 million and $429 million in 2020 and 2019, respectively, are comprised of the following at December 31: 2020 2019 Finished goods $ 2,337 $ 2,546 Work in process and raw materials 2,084 2,062 Total inventories, net $ 4,421 $ 4,608 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are comprised of the following at December 31: Useful Life 2020 2019 Land and improvements (1) 8 - 20 years (1) $ 404 $ 430 Buildings, structures and related equipment 5 - 40 years 2,618 2,870 Machinery, equipment and other 2 - 20 years 7,451 7,324 Total cost 10,473 10,624 Less: Accumulated depreciation (5,115) (4,384) Property, plant and equipment, less accumulated depreciation $ 5,358 $ 6,240 (1) Useful life excludes land. Depreciation expense relating to property, plant and equipment was $1,009 million, $1,053 million and $1,031 million for the years ended December 31, 2020, 2019 and 2018, respectively. See "Note 18. 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, 2020 | |
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 Oilfield Equipment Turbo-machinery & Process Solutions Digital Solutions Total Balance at December 31, 2018, gross $ 15,382 $ 4,177 $ 2,186 $ 2,432 $ 24,177 Accumulated impairment at December 31, 2018 (2,633) (867) — (254) (3,754) Balance at December 31, 2018 12,749 3,310 2,186 2,178 20,423 Currency exchange and others — 9 (15) (21) (27) Balance at December 31, 2019 12,749 3,319 2,171 2,157 20,396 Impairment (11,428) (3,289) — — (14,717) Currency exchange and others (20) (24) 63 41 60 Balance at December 31, 2020 $ 1,301 $ 6 $ 2,234 $ 2,198 $ 5,739 We perform our annual goodwill impairment test for each of our reporting units as of July 1 of each fiscal year, in conjunction with our annual strategic planning process. Our reporting units are the same as our four reportable segments. In addition to our annual impairment test, we also test goodwill for impairment between annual impairment dates whenever events or circumstances occur which, in our judgment, could more likely than not reduce the fair value of one or more reporting units below its carrying value. Potential impairment indicators include, but are not limited to, (i) the results of our most recent annual or interim impairment testing, in particular the magnitude of the excess of fair value over carrying value observed, (ii) downward revisions to internal forecasts, and the magnitude thereof, if any, and (iii) declines in Baker Hughes' market capitalization below our book value, and the magnitude and duration of those declines, if any. During the first quarter of 2020, Baker Hughes' market capitalization declined significantly compared to the fourth quarter of 2019. Baker Hughes closing stock price fell to a historic low of $9.33 on March 23, 2020. Over the same period, the equity value of our peer group companies and the overall U.S. stock market also declined significantly amid market volatility. In addition, the Oilfield Services Index (OSX), an indicator of investors’ view of the earnings prospects and cost of capital of the oil and gas services industry, traded at prices that were the lowest in its history. These declines were driven by the uncertainty surrounding the outbreak of the coronavirus (COVID-19) and other macroeconomic events such as the geopolitical tensions between OPEC and Russia, which also resulted in a significant drop in oil prices. Based on these factors, we concluded that a triggering event occurred and, accordingly, an interim quantitative impairment test was performed as of March 31, 2020 (“testing date”). In performing the interim quantitative impairment test as of March 31, 2020 and consistent with our prior practice, we determined the fair value of each of our reporting units using a combination of the income approach and the market approach by assessing each of these valuation methodologies based upon availability and relevance of comparable company data and determining the appropriate weighting. Under the income approach, the fair value for each of our reporting units was determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. We used our internal forecasts, updated for recent events, to estimate future cash flows with cash flows beyond the specific operating plans estimated using a terminal value calculation, which incorporates historical and forecasted trends, including an estimate of long-term future growth rates, based on our most recent views of the long-term outlook for each reporting unit. Our internal forecasts include assumptions about future commodity pricing and expected demand for our goods and services. Due to the inherent uncertainties involved in making estimates and assumptions, actual results may differ from those assumed in our forecasts. We derived our discount rates using a capital asset pricing model and analyzing published rates for industries relevant to our reporting units to estimate the cost of equity financing. We used discount rates that are commensurate with the risks and uncertainties inherent in the respective businesses and in our internally developed forecasts, updated for recent events. Valuations using the market approach were derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses was based on the markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services. Based upon the results of our interim quantitative impairment test performed as of March 31, 2020, we concluded that the carrying value of the Oilfield Services (OFS) and Oilfield Equipment (OFE) reporting units exceeded their estimated fair value as of the testing date, which resulted in goodwill impairment charges of $11,428 million and $3,289 million, respectively. The goodwill impairment was calculated as the amount that the carrying value of the reporting unit, including any goodwill, exceeded its fair value. During the third quarter of 2020, we completed our annual impairment test for each reporting unit and determined it was more likely than not that the fair value of our reporting units exceeded their carrying amounts. Between our annual test date of July 1, 2020 and December 31, 2020, we did not identify any indicators that would lead to a determination that it is more likely than not that the fair value of any of our reporting units is less than its carrying value. There can be no assurances that future sustained declines in macroeconomic or business conditions affecting our industry will not occur, which could result in goodwill impairment charges in future periods. OTHER INTANGIBLE ASSETS Intangible assets are comprised of the following at December 31: 2020 2019 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 2,261 $ (916) $ 1,345 $ 3,027 $ (1,045) $ 1,982 Technology 1,127 (696) 431 1,075 (626) $ 449 Trade names and trademarks 326 (181) 145 696 (254) 442 Capitalized software 1,294 (1,041) 253 1,193 (928) 265 Other — — — 3 (2) 1 Finite-lived intangible assets (1) 5,008 (2,834) 2,174 5,994 (2,855) 3,139 Indefinite-lived intangible assets 2,223 — 2,223 2,242 — 2,242 Total intangible assets $ 7,231 $ (2,834) $ 4,397 $ 8,236 $ (2,855) $ 5,381 (1) For the year ended December 31, 2020, we recorded intangible asset impairments to customer relationships of $481 million, technology of $8 million, trade names and trademarks of $237 million, and capitalized software of $3 million. See "Note 18. Restructuring, Impairment and Other" for further discussion. Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from one Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows: Year Estimated Amortization Expense 2021 $ 255 2022 214 2023 200 2024 182 2025 142 |
Contract and Other Deferred Ass
Contract and Other Deferred Assets | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract and Other Deferred Assets | CONTRACT AND OTHER DEFERRED ASSETS The majority of our long-term product service agreements relate to our Turbomachinery & Process Solutions segment. Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements and other deferred contract related costs. Contract assets are comprised of the following at December 31: 2020 2019 Long-term product service agreements $ 660 $ 603 Long-term equipment contracts (1) 1,160 1,097 Contract assets (total revenue in excess of billings) 1,820 1,700 Deferred inventory costs 138 130 Non-recurring engineering costs 43 51 Contract and other deferred assets $ 2,001 $ 1,881 (1) Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements. Revenue recognized during the year ended December 31, 2020 and 2019 from performance obligations satisfied (or partially satisfied) in previous years related to our long-term service agreements was $17 million and $(1) 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, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Progress Collections and Deferred Income | REVENUE RELATED TO CONTRACTS WITH CUSTOMERS DISAGGREGATED REVENUE We disaggregate our revenue from contracts with customers by primary geographic markets. Total Revenue 2020 2019 2018 U.S. $ 4,638 $ 6,188 $ 6,576 Non-U.S. 16,067 17,650 16,301 Total $ 20,705 $ 23,838 $ 22,877 REMAINING PERFORMANCE OBLIGATIONS As of December 31, 2020 and 2019, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.4 billion and $22.9 billion, respectively. As of December 31, 2020, we expect to recognize revenue of approximately 51%, 67% 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. Contract liabilities include progress collections, which reflects billings in excess of revenue, and deferred income on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities are comprised of the following at December 31: 2020 2019 Progress collections $ 3,352 $ 2,760 Deferred income 102 110 Progress collections and deferred income (contract liabilities) $ 3,454 $ 2,870 Revenue recognized during the year ended December 31, 2020 and 2019 that was included in the contract liabilities at the beginning of the year was $1,962 million and $1,239 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Long-term fixed lease $ 288 $ 233 Long-term variable lease 25 48 Short-term lease (1) 477 706 Total operating lease expense $ 790 $ 987 (1) Leases with a term of one year or less, including leases with a term of one month or less. For the year ended December 31, 2018, total operating lease expense was $783 million. Cash flows used in operating activities for operating leases approximates our expense for the years ended December 31, 2020, 2019 and 2018. As of December 31, 2020, maturities of our operating lease liabilities are as follows: Year Operating Leases 2021 $ 235 2022 172 2023 114 2024 78 2025 60 Thereafter 313 Total lease payments 972 Less: imputed interest 163 Total $ 809 Amounts recognized in the consolidated statement of financial position for operating leases are as follows: 2020 2019 All other current liabilities $ 218 $ 201 All other liabilities 591 641 Total $ 809 $ 842 Right-of-use assets of $802 million and $829 million as of December 31, 2020 and 2019, respectively, were included in "All other assets" in our consolidated statements of financial position. The weighted-average remaining lease term for our operating leases was approximately 8 years for both years ended December 31, 2020 and 2019. The weighted-average discount rate used to determine the operating lease liability as of December 31, 2020 and 2019 was 3.7% and 4.1%, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Short-term and long-term borrowings are comprised of the following at December 31: 2020 2019 Amount Weighted Average Rate (1) Amount Weighted Average Rate (1) Short-term borrowings Commercial paper $ 801 0.5 % $ — n/a Short-term borrowings from GE 45 n/a 273 n/a Other borrowings 43 4.2 % 48 4.8 % Total short-term borrowings 889 321 Long-term borrowings 2.773% Senior Notes due December 2022 1,247 2.9 % 1,246 2.9 % 8.55% Debentures due June 2024 (2) 123 4.1 % 127 4.1 % 3.337% Senior Notes due December 2027 1,344 3.4 % 1,343 3.4 % 6.875% Notes due January 2029 (2) 284 3.9 % 289 3.9 % 3.138% Senior Notes due November 2029 522 3.2 % 522 3.2 % 4.486% Senior Notes due May 2030 497 4.6 % — n/a 5.125% Senior Notes due September 2040 (2) 1,297 4.2 % 1,301 4.2 % 4.080% Senior Notes due December 2047 1,337 4.1 % 1,337 4.1 % Other long-term borrowings 93 3.0 % 136 3.4 % Total long-term borrowings 6,744 6,301 Total borrowings $ 7,633 $ 6,622 (1) Weighted average effective interest rate is based on the carrying value including step-up adjustments, as applicable, recorded upon the acquisition of BHI. See "Note 1. Summary of Significant Accounting Policies" for further discussion. (2) Represents long-term fixed rate debt obligations assumed in connection with the acquisition of BHI, net of amounts repurchased subsequent to the closing of the Transactions. In May 2020, BHH LLC issued $500 million aggregate principal amount of 4.486% Senior Notes due May 2030. In November 2019, BHH LLC issued $525 million aggregate principal amount of 3.138% Senior Notes due November 2029. We used the proceeds from the November 2019 offering to repurchase all of our outstanding 3.2% Senior Notes due August 2021. The total cash consideration paid for this repurchase excluding interest was $526 million, resulting in a loss of $7 million which was recorded in the "Interest expense, net" caption of the consolidated statements of income (loss). These Senior Notes are presented net of issuance costs in our consolidated statements of financial position. The estimated fair value of total borrowings at December 31, 2020 and 2019 was $8,502 million and $6,847 million, respectively. For a majority of our borrowings the fair value was determined using quoted period-end market prices. Where market prices are not available, we estimate fair values based on valuation methodologies using current market interest rate data adjusted for our non-performance risk. Maturities of debt for each of the five years in the period ending December 31, 2025, and in the aggregate thereafter, are listed in the table below: 2021 2022 2023 2024 2025 Thereafter Total debt $ 889 $ 1,254 $ 4 $ 173 $ 19 $ 5,294 In December 2019, BHH LLC entered into a $3 billion committed unsecured revolving credit facility (the 2019 Credit Agreement) with commercial banks maturing in December 2024. The 2019 Credit Agreement contains certain customary representations and warranties, certain customary affirmative covenants and certain customary negative covenants. Upon the occurrence of certain events of default, BHH LLC's obligations under the 2019 Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the 2019 Credit Agreement and other customary defaults. No such events of default have occurred. In connection with BHH LLC’s entry into the 2019 Credit Agreement, BHH LLC terminated its then-existing five-year committed $3 billion revolving credit agreement dated as of July 3, 2017 (the 2017 Credit Agreement). During 2020 and 2019, there were no borrowings under the 2019 Credit Agreement or the 2017 Credit Agreement. We have a commercial paper program under which we may issue from time to time commercial paper with maturities of no more than 397 days. During the second quarter of 2020, we increased our commercial paper program from $3 billion to approximately $3.8 billion. Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with BHH LLC on our long-term debt securities. This co-obligor is a 100%-owned finance subsidiary of BHH LLC that was incorporated for the sole purpose of serving as a corporate co-obligor of long-term debt securities and has no assets or operations other than those related to its sole purpose. As of 2020, Baker Hughes Co-Obligor, Inc. is a co-obligor of our long-term debt securities totaling $6,650 million. Certain Senior Notes contain covenants that restrict BHH LLC's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits. At December 31, 2020, we were in compliance with all debt covenants. See "Note 16. Related Party Transactions" for additional information on the short-term borrowings with GE. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS DEFINED BENEFIT PLANS Certain of our employees are covered by company sponsored pension plans. Our primary pension plans in 2020 included four U.S. plans and seven non-U.S. pension plans, primarily in the UK, Germany, and Canada, all with pension assets or obligations greater than $20 million. We use a December 31 measurement date for these plans. These defined benefit plans generally provide benefits to employees based on formulas recognizing length of service and earnings; however, over half of these plans are either frozen or closed to new entrants. We also provide certain postretirement health care benefits (Other Postretirement Benefits), through an unfunded plan, to a closed group of U.S. employees who retire and meet certain age and service requirements. Funded Status The funded status position represents the difference between the benefit obligation and the plan assets. 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 plans. Pension Benefits Other Postretirement 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 3,451 $ 2,261 $ 80 $ 107 Service cost 27 21 — 1 Interest cost 77 90 2 4 Plan amendment 1 — (18) — Actuarial loss (gain) (1) 393 301 17 (16) Benefits paid (101) (102) (19) (16) Curtailments (3) (21) — — Settlements (79) (36) — — Transfer from GE - UK Plan — 837 — — Other — 15 — — Foreign currency translation adjustments 40 85 — — Benefit obligation at end of year 3,806 3,451 62 80 Change in plan assets: Fair value of plan assets at beginning of year 3,004 1,866 — — Actual return on plan assets 347 314 — — Employer contributions 20 23 19 16 Benefits paid (101) (102) (19) (16) Settlements (79) (36) — — Transfer from GE - UK Plan — 851 — — Foreign currency translation adjustments 11 88 — — Fair value of plan assets at end of year 3,202 3,004 — — Funded status - underfunded at end of year $ (604) $ (447) $ (62) $ (80) Accumulated benefit obligation $ 3,755 $ 3,401 $ 62 $ 80 (1) The actuarial loss (gain) was primarily related to a change in the discount rate used to measure the benefit obligation for our plans in 2020 and 2019. The amounts recognized in the consolidated statements of financial position consist of the following at December 31: Pension Benefits Other Postretirement 2020 2019 2020 2019 Noncurrent assets $ 14 $ 78 $ — $ — Current liabilities (18) (17) (9) (11) Noncurrent liabilities (600) (508) (53) (69) Net amount recognized $ (604) $ (447) $ (62) $ (80) Information for the plans with ABOs and PBOs in excess of plan assets is as follows at December 31: Pension Benefits Other Postretirement 2020 2019 2020 2019 Projected benefit obligation $ 3,390 $ 1,814 n/a n/a Accumulated benefit obligation $ 3,340 $ 1,763 $ 62 $ 80 Fair value of plan assets $ 2,772 $ 1,288 n/a n/a Net Periodic Cost (Income) The components of net periodic cost (income) are as follows: Pension Benefits Other Postretirement 2020 2019 2018 2020 2019 2018 Service cost $ 27 $ 21 $ 21 $ — $ 1 $ 2 Interest cost 77 90 71 2 4 5 Expected return on plan assets (121) (122) (121) — — — Amortization of prior service credit 1 1 — (3) (3) (5) Amortization of net actuarial loss (gain) 34 17 10 (3) (7) (2) Curtailment / settlement loss (gain) 10 9 2 — — (5) Net periodic cost (income) $ 28 $ 16 $ (17) $ (4) $ (5) $ (5) The service cost component of the net periodic cost (benefit) is included in "operating income (loss)" and all other components are included in "Other non-operating income, net" caption of 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 will 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 Other Postretirement 2020 2019 2020 2019 Discount rate 1.66 % 2.34 % 1.67 % 2.89 % Rate of compensation increase 3.25 % 3.11 % n/a n/a Interest crediting rate 2.60 % 2.60 % n/a n/a Weighted average assumptions used to determine net periodic cost for these plans are as follows: Pension Benefits Other Postretirement 2020 2019 2018 2020 2019 2018 Discount rate 2.34 % 3.43 % 2.99 % 2.35 % 3.92 % 3.32 % Expected long-term return on plan assets 4.20 % 5.48 % 5.94 % n/a n/a n/a Interest crediting rate 2.60 % 3.15 % 2.60 % n/a n/a n/a 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 and pension expense in the following year; higher discount rates reduce the size of the benefit obligation and subsequent-year pension expense. 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. Assumed health care cost trend rates can have a significant effect on the amounts reported for Other Postretirement Benefits. As of December 31, 2020, the health care cost trend rate was 6.5%, declining gradually each successive year until it reaches 4.5%. Accumulated Other Comprehensive Loss The amount recorded before-tax in accumulated other comprehensive loss related to employee benefit plans consists of the following at December 31: Pension Benefits Other Postretirement 2020 2019 2020 2019 Net actuarial loss (gain) $ 527 $ 395 $ (30) $ (38) Net prior service cost (credit) 18 19 (17) (15) Total $ 545 $ 414 $ (47) $ (53) Plan Assets We have investment committees that meet regularly to review the portfolio returns and to determine asset-mix targets based on asset/liability studies. Third-party investment consultants assist such 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 pension assets at December 31: 2020 2019 Debt securities Fixed income and cash investment funds $ 1,807 $ 1,858 Equity securities Global equity securities (1) 346 333 U.S. equity securities (1) 299 258 Insurance contracts 120 — Real estate 85 84 Private equities 52 51 Other investments (2) 493 420 Total plan assets $ 3,202 $ 3,004 (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 $3,072 million and $2,988 million as of December 31, 2020 and 2019, respectively. The percentages of plan assets valued using NAV by investment fund type for equity securities, fixed income and cash, and alternative investments were 21%, 59%, and 20% as of December 31, 2020, respectively, and 20%, 62%, and 18% as of December 31, 2019, respectively. Those investments that were measured at fair value using NAV as practical expedient were excluded from the fair value hierarchy. The practical expedient was not applied for investments with a fair value of $130 million and $16 million as of December 31, 2020 and 2019, respectively. There were investments classified within Level 3 of $120 million as of December 31, 2020 for non U.S. insurance contracts. These contracts consisted of purchases of $124 million, reduced by $4 million of unrealized losses. There were no investments classified within Level 3 in 2019. The remaining investments were considered Level 2. 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 2020, we contributed approximately $20 million. We anticipate we will contribute between approximately $20 million to $35 million to our pension plans in 2021. We fund our Other Postretirement Benefits on a pay-as-you-go basis. In 2020, we funded $19 million and in 2021, we expect to fund approximately $10 million to such benefits. The following table presents the expected benefit payments over the next 10 years. The U.S. and non-U.S. pension benefit payments are made by the respective pension trust funds. Year Pension Other Postretirement 2021 $ 173 $ 10 2022 131 7 2023 130 6 2024 135 5 2025 136 5 2026-2030 743 18 GE MULTI-EMPLOYER PLANS Historically, we were allocated relevant participation costs for certain employees who participated in GE employee benefit plans as part of multi-employer plans. Certain of our U.S. employees were covered under various U.S. GE employee benefit plans, including GE's retirement plans (pension, retiree health and life insurance, and savings benefit plans). From January 1, 2019, these U.S. employees ceased to participate in the GE U.S. plans. In addition, certain United Kingdom (UK) employees participated in the GE UK Pension Plan. From May 1, 2019, these UK employees ceased to participate in the GE UK Pension Plan. In May 2019, the assets and liabilities of the GE UK Pension Plan related to the oil & gas businesses were transferred to us on a fully funded basis. Expenses associated with our participation in these plans were $3 million and $158 million in the years ended December 31, 2019 and 2018, respectively. We incurred no expenses associated with GE multi-employer plans in 2020. DEFINED CONTRIBUTION PLANS Our primary defined contribution plan during 2020 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 Baker Hughes' 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 $236 million and $235 million, in 2020 and 2019, respectively. OTHER We have two non-qualified defined contribution plans that are invested through trusts. The assets and corresponding liabilities were $314 million and $276 million at December 31, 2020 and 2019, respectively, and are included in "All other assets" and "Liabilities for pensions and other employee benefits" captions in our consolidated statements of financial position. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES In response to the COVID-19 pandemic, many governments have enacted or are contemplating measures to provide aid and economic stimulus. These measures may include deferring the due dates of tax payments or other changes to their income and non-income-based tax laws. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was enacted on March 27, 2020 in the U.S., includes measures to assist companies. For the year ended December 31, 2020, there were no material tax impacts to our consolidated financial statements as it relates to COVID-19 measures. The provision or benefit for income taxes is comprised of the following: 2020 2019 2018 Current: U.S. $ 49 $ (18) $ 55 Foreign 458 443 445 Total current 507 425 500 Deferred: U.S. (6) (12) (60) Foreign 149 63 (38) Total deferred 143 51 (98) Provision for income taxes $ 650 $ 476 $ 402 The geographic sources of income (loss) before income taxes, inclusive of equity in loss of affiliate, are as follows: 2020 2019 2018 U.S. $ (14,232) $ (693) $ (672) Foreign (914) 1,446 1,213 Income (loss) before income taxes, inclusive of equity in loss of affiliate $ (15,146) $ 753 $ 541 The provision for income taxes differs from the amount computed by applying the U.S. statutory income tax rate to the loss or income before income taxes for the reasons set forth below for the years ended December 31: 2020 2019 2018 Income (loss) before income taxes, inclusive of equity in loss of affiliate $ (15,146) $ 753 $ 541 Taxes at the U.S. federal statutory income tax rate (3,181) 158 114 Impact of goodwill impairment 3,090 — — Effect of foreign operations 183 85 103 Tax impact of partnership structure 38 124 109 Change in valuation allowances 423 135 59 Tax Cuts and Jobs Act enactment — — 25 Other - net 97 (26) (8) Provision for income taxes $ 650 $ 476 $ 402 Actual income tax rate (4.3)% 63.2% 74.3% 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. The tax effects of our temporary differences and carryforwards are as follows at December 31: 2020 2019 Deferred tax assets: Operating loss carryforwards $ 2,006 $ 1,591 Tax credit carryforwards 437 398 Goodwill and other intangibles 143 117 Employee benefits 138 98 Property 127 137 Receivables 53 79 Inventory 51 91 Other 233 317 Total deferred income tax asset 3,188 2,828 Valuation allowances (2,342) (1,835) Total deferred income tax asset after valuation allowance 846 993 Deferred tax liabilities: Other (1) (29) Total deferred income tax liability (1) (29) Net deferred tax asset $ 845 $ 964 At December 31, 2020, we had approximately $402 million of non-U.S. tax credits which may be carried forward indefinitely under applicable foreign law and $35 million of other credits, the majority of which will expire after tax year 2027 under U.S. tax law. Additionally, we had $2,006 million of net operating loss carryforwards, of which approximately $347 million will expire within five years, $960 million will expire between 6 years and 20 years, and the remainder 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, 2020, $2,342 million of valuation allowances are recorded against various deferred tax assets, including foreign net operating losses (NOL) of $1,657 million, U.S. federal and foreign tax credit carryforwards of $402 million, other U.S. NOL's and tax credit carryforwards of $55 million, and certain other U.S. and foreign deferred tax assets of $228 million. There are $319 million of deferred tax assets related to foreign net operating loss carryforwards without a valuation allowance as we expect that the deferred tax assets will be realized within the carryforward period. 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, 2020, the cumulative amount of undistributed foreign earnings is approximately $6 billion. Computation of the potential deferred tax liability associated with these undistributed earnings and any other basis differences is not practicable. At December 31, 2020, we had $454 million of tax liabilities for total gross unrecognized tax benefits related to uncertain tax positions. In addition to these uncertain tax positions, we had $95 million and $23 million related to interest and penalties, respectively, for total liabilities of $572 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 $523 million. The remaining $48 million comprised of $24 million for deferred tax assets that represent tax benefits that would be received in different taxing jurisdictions or in a different character in the event that we did not prevail on all uncertain tax positions and increased valuation allowances of $24 million. The following table presents the changes in our gross unrecognized tax benefits included in the consolidated statements of financial position. Asset / (Liability) 2020 2019 Balance at beginning of year $ (451) $ (472) Additions for tax positions of the current year (42) (25) Additions for tax positions of prior years (31) (27) Reductions for tax positions of prior years 35 55 Settlements with tax authorities 12 6 Lapse of statute of limitations 23 12 Balance at end of year $ (454) $ (451) 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, 2020, we had approximately $57 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 2016 for the most significant U.S. returns. We believe that we have made adequate provision for all income tax uncertainties. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Equity | EQUITY The BHH LLC Agreement provides that initially there is one class of common units (Units), which are currently held directly or indirectly by Baker Hughes and GE (collectively, the Members). If Baker Hughes issues a share of Class A common stock, including in connection with an equity incentive or similar plan, we will also issue a corresponding Unit to Baker Hughes or one of its direct subsidiaries. For the year ended December 31, 2020 and 2019, we issued 7,939 thousand and 4,416 thousand Units, respectively, to Baker Hughes or one of its direct subsidiaries in connection with the issuance of its Class A common stock. The Members are entitled through their Units to receive distributions on an equal amount of any dividend paid by Baker Hughes to its Class A shareholders. In 2019, GE’s interest in us was reduced from approximately 50.4% to approximately 36.7% primarily as a result of the exchange of 132 million shares of Class B common stock, and corresponding Units, in a secondary offering and our repurchase and cancellation of 12 million shares of Class B common stock. In 2020, GE’s interest in us was reduced to approximately 30.1% primarily as a result of the exchange of 66 million shares of Class B common stock, and corresponding Units. The following table presents the changes in the number of Units outstanding (in thousands): 2020 2019 Units Held by Baker Hughes Units Held by GE Units Held by Baker Hughes Units Held by GE Balance at beginning of year 650,065 377,428 513,399 521,543 Issue of Units to Baker Hughes under equity incentive plan 7,939 — 4,416 — Exchange of Units (2) 65,995 (65,995) 132,250 (132,250) Repurchase program (3) — — — (11,865) Balance at end of year 723,999 311,433 650,065 377,428 (1) Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation. (2) In 2020, GE exchanged 66 million shares of Class B common stock and paired Units for Class A common stock. In 2019, we completed underwritten secondary public offerings in which GE and its affiliates sold 132 million shares of our Class A common stock. We did not receive any proceeds from the shares sold by GE and its affiliates in these offerings. The offerings included the exchange by GE and its affiliates of Units, together with the corresponding shares of our Class B common stock, for Class A common stock. When shares of Class B common stock, together with associated Units, are exchanged for shares of Class A common stock pursuant to the Exchange Agreement, such shares of Class B common stock are canceled. (3) In 2019, we repurchased and canceled 12 million Units of Class B common stock, together with an equal number of associated Units, from GE and its affiliates for an aggregate of $250 million, or $21.07 per Unit, which is the same per Unit price paid by the underwriters to GE and its affiliates in the concurrent underwritten secondary public offering. ACCUMULATED OTHER COMPREHENSIVE LOSS (AOCL) The following table presents the changes in accumulated other comprehensive loss, net of tax: Investment Securities Foreign Currency Translation Adjustments Cash Flow Hedges Benefit Plans Accumulated Other Comprehensive Loss Balance at December 31, 2018 $ — $ (2,327) $ (2) $ (133) $ (2,462) Other comprehensive income (loss) before reclassifications 2 53 13 (122) (54) Amounts reclassified from accumulated other comprehensive loss — — 1 26 27 Deferred taxes — — (2) 21 19 Other comprehensive income (loss) 2 53 12 (75) (8) Less: Other adjustments — — — 119 119 Balance at December 31, 2019 2 (2,274) 10 (327) (2,589) Other comprehensive income (loss) before reclassifications (2) 175 (2) (181) (10) Amounts reclassified from accumulated other comprehensive income (loss) — — (4) 52 48 Deferred taxes — — 1 5 6 Other comprehensive income (loss) (2) 175 (5) (124) 44 Less: Other comprehensive (loss) attributable to noncontrolling interests — (3) — — (3) Balance at December 31, 2020 $ — $ (2,096) $ 5 $ (451) $ (2,542) The amounts reclassified from accumulated other comprehensive loss during the years ended December 31, 2020 and 2019 represent (i) gains (losses) reclassified on cash flow hedges when the hedged transaction occurs and (ii) the amortization of net actuarial loss and prior service credit, and curtailments which are included in the computation of net periodic pension cost (see "Note 11. Employee Benefit Plans" for additional details). Net periodic pension cost is recorded across the various cost and expense line items in the consolidated statements of income (loss). |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS RECURRING FAIR VALUE MEASUREMENTS Our assets and liabilities measured at fair value on a recurring basis consists of derivative instruments and investment securities. 2020 2019 Level 1 Level 2 Level 3 Net Balance Level 1 Level 2 Level 3 Net Balance Assets Derivatives $ — $ 118 $ — $ 118 $ — $ 58 $ — $ 58 Investment securities 1,502 — 30 1,532 24 — 259 283 Total assets 1,502 118 30 1,650 24 58 259 341 Liabilities Derivatives — (52) — (52) — (27) — (27) Total liabilities $ — $ (52) $ — $ (52) $ — $ (27) $ — $ (27) There were no transfers between Level 1, 2 and 3 during 2020. The following table provides a reconciliation of recurring Level 3 fair value measurements for investment securities: 2020 2019 Balance at beginning of year $ 259 $ 288 Purchases 12 7 Proceeds at maturity (239) (38) Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) (2) 2 Balance at end of year $ 30 $ 259 The most significant unobservable input used in the valuation of our Level 3 instruments is the discount rate. Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value of our investment securities. There are no unrealized gains or losses recognized in the consolidated statement of income (loss) on account of any Level 3 instrument still held at the reporting date. We held $1 million and $111 million of these investment securities on behalf of GE at December 31, 2020 and 2019, respectively. 2020 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investment securities Non-U.S. debt securities (1) $ 30 $ — $ — $ 30 $ 257 $ 2 $ — $ 259 Equity securities (2) 76 1,431 (5) 1,502 17 8 (1) 24 Total $ 106 $ 1,431 $ (5) $ 1,532 $ 274 $ 10 $ (1) $ 283 (1) All of our investment securities are classified as available for sale instruments. Non-U.S. debt securities mature within two years. (2) Gains (losses) recorded to earnings related to these securities were $1.4 billion, $2 million and $(25) million for the years ended December 31, 2020, 2019, and 2018, respectively. At December 31, 2020, our equity securities consist primarily of our investment in C3.ai. In June 2019, we entered into a stock purchase agreement and certain other related agreements with C3.ai, a company with a suite of artificial intelligence (AI) software that resulted in us acquiring an economic interest in C3.ai of approximately 15%. Our investment in C3.ai did not have a recurring readily determinable fair value until December 9, 2020 when C3.ai stock began trading publicly. At December 31, 2020, we owned 10,813,095 shares of C3.ai Class A common stock, an economic interest of approximately 11%, with a fair value of $1,500 million. For the year ended December 31, 2020, we recorded a mark-to-market unrealized gain of $1,417 million on our investment in C3.ai, which is reported in the “Non-operating income (loss)” caption in our consolidated statement of income (loss). See “Note 16. Related Party Transactions” for further details on our agreements with C3.ai. As of December 31, 2020, $1,514 million of total investment securities are recorded in "All other current assets" of the consolidated statements of financial position, with the remaining $18 million in "All other assets." As of December 31, 2019, $254 million of equity securities are recorded in "All other current assets" of the consolidated statements of financial position, with the remaining $29 million in "All other assets." FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS Our financial instruments include cash and equivalents, current receivables, 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, 2020 and 2019 approximates their carrying value as reflected in our consolidated financial statements. For further information on the fair value of our debt, see "Note 10. Borrowings." DERIVATIVES AND HEDGING We use derivatives to manage our risks and do not use derivatives for speculation. The table below summarizes the fair value of all derivatives, including hedging instruments and embedded derivatives. 2020 2019 Assets (Liabilities) Assets (Liabilities) Derivatives accounted for as hedges Currency exchange contracts $ 5 $ — $ 11 $ — Derivatives not accounted for as hedges Currency exchange contracts and other 113 (52) 47 (27) Total derivatives $ 118 $ (52) $ 58 $ (27) Derivatives are classified in the consolidated statements of financial position depending on their respective maturity date. As of December 31, 2020 and 2019, $115 million and $52 million of derivative assets are recorded in "All other current assets" and $3 million and $6 million are recorded in "All other assets" of the consolidated statements of financial position, respectively. As of December 31, 2020 and 2019, $48 million and $24 million of derivative liabilities are recorded in "All other current liabilities" and $4 million and $3 million are recorded in "All other liabilities" of the consolidated statements of financial position, respectively. FORMS OF HEDGING Cash flow hedges We use cash flow hedging primarily to reduce or eliminate the effects of foreign exchange rate changes on purchase and sale contracts. Accordingly, the vast majority of our derivative activity in this category consists of currency exchange contracts. We also use commodity derivatives to reduce or eliminate price risk on raw materials purchased for use in manufacturing. Changes in the fair value of cash flow hedges are recorded in a separate component of equity (referred to below as Accumulated Other Comprehensive Income, or AOCI) and are recorded in earnings in the period in which the hedged transaction occurs. The table below summarizes our hedging instrument activity for currency exchange contracts. 2020 2019 2018 Gain (loss) recognized in AOCI $ (2) $ 13 $ (6) Gain (loss) reclassified from AOCI to earnings $ 4 $ (1) $ (1) We expect to transfer $5 million to earnings as a gain in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. The maximum term of derivative instruments that hedge forecasted transactions was one year at December 31, 2020 and 2019. Economic Hedges These derivatives are not designated as hedges from an accounting standpoint (and therefore we do not apply hedge accounting to the relationship) but otherwise serve the same economic purpose as other hedging arrangements. These derivatives are marked to fair value through earnings each period. The following table summarizes the gains (losses) from derivatives not designated as hedges on the consolidated statements of income (loss): Derivatives not designated as hedging instruments Consolidated statement of income caption 2020 2019 2018 Currency exchange contracts (1) Cost of goods sold $ 59 $ (13) $ (35) Currency exchange contracts Cost of services sold 62 (15) 32 Commodity derivatives Cost of goods sold 2 2 (1) Other derivatives Other non-operating income (loss), net 8 2 — Total (2) $ 131 $ (24) $ (4) (1) Excludes losses on embedded derivatives of $14 million, $7 million and $3 million for the years ended December 31, 2020, 2019 and 2018, respectively, as embedded derivatives are not considered to be hedging instruments in our economic hedges. (2) The effect on earnings from changes in fair value of derivatives not designated as hedges is substantially offset by the earnings effect of the economically hedged items in the same income statement caption in current and future periods. NOTIONAL AMOUNT OF DERIVATIVES The notional amount of a derivative is the number of units of the underlying. A substantial majority of the outstanding notional amount of $7.0 billion and $5.7 billion at December 31, 2020 and 2019, respectively, is related to hedges of anticipated sales and purchases in foreign currency, commodity purchases, and contractual terms in contracts that are considered embedded derivatives and for intercompany borrowings in foreign currencies. We generally disclose derivative notional amounts on a gross basis to indicate the total counterparty risk. Where we have gross purchase and sale derivative contracts for a particular currency, we look to execute these contracts with the same counterparty to reduce our exposure. The notional amount of these derivative instruments do not generally represent cash amounts exchanged by us and the counterparties, but rather the nominal amount upon which changes in the value of the derivatives are measured. COUNTERPARTY CREDIT RISK Fair values of our derivatives can change significantly from period to period based on, among other factors, market movements and changes in our positions. We manage counterparty credit risk (the risk that counterparties will default and not make payments to us according to the terms of our agreements) on an individual counterparty basis. OTHER EQUITY INVESTMENTS As of December 31, 2020 and 2019, the carrying amount of equity securities without readily determinable fair values was $554 million and $637 million, respectively. In 2019, certain of these equity securities were remeasured to fair value as of the date that an observable transaction occurred, which resulted in the Company recording an unrealized gain of $19 million. During 2018, we discontinued applying the equity method on our investment in BJ Services, as required under U.S. GAAP, as previous losses had reduced our investment to zero, and we have no requirements to advance any additional funds. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Our reportable segments, which are the same as our operating segments, are organized based on the nature of markets and customers. We report our operating results through our four operating segments that consist of similar products and services within each segment as described below. Our operating results are reviewed regularly by the chief operating decision maker, who is our Chief Executive Officer, in deciding how to allocate resources and assess performance. OILFIELD SERVICES Oilfield Services provides products and services for onshore and offshore operations across the lifecycle of a well, ranging from drilling, evaluation, completion, production and intervention. Products and services include diamond and tri-cone drill bits, drilling services, including directional drilling technology, measurement while drilling & logging while drilling, downhole completion tools and systems, wellbore intervention tools and services, wireline services, drilling and completions fluids, oilfield and industrial chemicals, pressure pumping, and artificial lift technologies, including electrical submersible pumps. OILFIELD EQUIPMENT Oilfield Equipment provides a broad portfolio of products and services required to facilitate the safe and reliable flow of hydrocarbons from the wellhead to the production facilities. The Oilfield Equipment portfolio has solutions for the subsea, offshore surface, and onshore operating environments. Products and services include subsea and surface pressure control and production systems and services, capital drilling equipment and services, flexible pipe systems for offshore and onshore applications, and life-of-field solutions including well intervention, covering the entire life cycle of a field. TURBOMACHINERY & PROCESS SOLUTIONS Turbomachinery & Process Solutions provides equipment and related services for mechanical-drive, compression and power-generation applications across the oil and gas industry as well as products and services to serve the downstream segments of the industry including refining, petrochemical, distributed gas, flow and process control and other industrial applications. The Turbomachinery & Process Solutions portfolio includes drivers (aero-derivative gas turbines, heavy-duty gas turbines and synchronous and induction electric motors), compressors (centrifugal and axial, direct drive high speed, integrated, subsea compressors, turbo expanders and reciprocating), turn-key solutions (industrial modules and waste heat recovery), pumps, valves, and compressed natural gas (CNG) and small-scale liquefied natural gas (LNG) solutions used primarily for shale oil and gas field development. DIGITAL SOLUTIONS Digital Solutions provides equipment, software, and services for a wide range of industries, including oil & gas, power generation, aerospace, metals, and transportation. The offerings include sensor-based process measurement, non-destructive testing and inspection, turbine, generator and plant controls and condition monitoring, as well as pipeline integrity solutions. SEGMENT RESULTS Summarized financial information is shown in the following tables. Consistent accounting policies have been applied by all segments within the Company, for all reporting periods. Segment revenue 2020 2019 2018 Oilfield Services $ 10,140 $ 12,889 $ 11,617 Oilfield Equipment 2,844 2,921 2,641 Turbomachinery & Process Solutions 5,705 5,536 6,015 Digital Solutions 2,015 2,492 2,604 Total $ 20,705 $ 23,838 $ 22,877 The performance of our operating segments is evaluated based on segment operating income (loss), which is defined as income (loss) before income taxes and equity in loss of affiliate and before the following: net interest expense, net other non-operating income (loss), corporate expenses, restructuring, impairment and other charges, inventory impairments, separation and merger related costs, goodwill impairment and certain gains and losses not allocated to the operating segments. Segment income (loss) before income taxes 2020 2019 2018 Oilfield Services $ 487 $ 917 $ 785 Oilfield Equipment 19 55 — Turbomachinery & Process Solutions 805 719 621 Digital Solutions 193 343 390 Total segment 1,504 2,035 1,796 Corporate (464) (433) (405) Inventory impairment and related charges (1) (246) — (105) Goodwill impairment (14,717) — — Restructuring, impairment and other (1,866) (342) (433) Separation and merger related (134) (184) (153) Other non-operating income (loss), net 1,040 (84) 202 Interest expense, net (264) (237) (223) Total $ (15,146) $ 753 $ 680 (1) Inventory impairments and related charges are reported in "Cost of goods sold" of the consolidated statements of income (loss). The following table presents total assets by segment at December 31: Segment assets 2020 2019 Oilfield Services $ 15,244 $ 30,317 Oilfield Equipment 3,344 7,645 Turbomachinery & Process Solutions 8,951 8,365 Digital Solutions 3,948 3,983 Total segment 31,487 50,310 Corporate and eliminations (1) 6,442 2,903 Total $ 37,929 $ 53,213 (1) The assets in Corporate and eliminations consist primarily of cash, the Baker Hughes trade name, our investment in C3.ai, certain facilities, and certain other noncurrent 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 by segment: Segment depreciation and amortization 2020 2019 2018 Oilfield Services $ 926 $ 985 $ 1,003 Oilfield Equipment 146 175 173 Turbomachinery & Process Solutions 118 116 156 Digital Solutions 98 103 112 Total Segment 1,288 1,379 1,444 Corporate 29 39 42 Total $ 1,317 $ 1,418 $ 1,486 The following table presents net property, plant and equipment by its geographic location at December 31: Property, plant and equipment - net 2020 2019 2018 U.S. $ 2,007 $ 2,594 $ 2,654 Non-U.S. 3,351 3,646 3,574 Total $ 5,358 $ 6,240 $ 6,228 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS WITH GE Our most significant related party transactions are transactions that we have entered into with our members and their affiliates. We have continuing involvement with GE primarily through their remaining interest in us, ongoing purchases and sales of products and services, transition services that they provide, as well as an aeroderivative joint venture (Aero JV) we formed with GE in the fourth quarter of 2019. We also enter into certain transactions with Baker Hughes as provided in the BHH LLC Agreement. On September 16, 2019, GE's ownership in us was reduced from approximately 50.3% to approximately 36.8%, (the Trigger Date). Following the Trigger Date and until GE and its affiliates own less than 20% of the voting power of our outstanding common stock, GE is entitled to designate one person for nomination to our board of directors. At December 31, 2020, GE's ownership interest was 30.1%. The Aero JV is jointly controlled by GE and us, and therefore, we do not consolidate the JV. In 2020, we had purchases with GE and its affiliates, including the Aero JV, of $1,446 million, $1,498 million and $1,791 million during the years ended December 31, 2020, 2019 and 2018, respectively. In addition, we sold products and services to GE and its affiliates for $216 million, $337 million and $363 million during the years ended December 31, 2020, 2019 and 2018, respectively. The Company has $356 million and $536 million of accounts payable at December 31, 2020 and 2019, respectively, for goods and services provided by GE in the ordinary course of business. The Company has $429 million and $495 million of current receivables at December 31, 2020 and 2019, respectively, for goods and services provided to GE in the ordinary course of business. Additionally, the Company has $78 million and $75 million of current receivables at December 31, 2020 and 2019, respectively, from Baker Hughes. On July 3, 2017, we executed a promissory note with GE that represents certain cash that we are holding on GE's behalf due to the restricted nature of the cash. The restriction arises as the majority of the cash cannot be released, transferred or otherwise converted into a non-restricted market currency due to the lack of market liquidity, capital controls or similar monetary or exchange limitations by a government entity of the jurisdiction in which such cash is situated. There is no maturity date on the promissory note, but we remain obligated to repay GE, therefore, this obligation is reflected as short-term debt. As of December 31, 2020, of the $45 million due to GE, $44 million was held in the form of cash and $1 million was held in the form of investment securities. As of December 31, 2019, of the $273 million due to GE, $162 million was held in the form of cash and $111 million was held in the form of investment securities. A corresponding liability is reported in short-term debt in the consolidated statements of financial position. We also provide guarantees to GE Capital on behalf of some customers who have entered into financing arrangements with GE Capital. RELATED PARTY TRANSACTIONS WITH C3.ai In June 2019, we entered into a stock purchase agreement and certain other related agreements with C3.ai, a company with a suite of artificial intelligence (AI) software that resulted in us acquiring approximately 15% economic interest in C3.ai. In April and June 2019, we also entered into agreements with C3.ai under which, among other things, we received a three-year subscription (which we refer to below as direct subscription fees) to use certain C3.ai offerings for internal use and the development of applications on the C3.ai AI Suite, as well as the right to resell C3.ai offerings worldwide on an exclusive basis in the oil and gas market and, with C3.ai's prior consent, non- |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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. During 2014, we received notification from a customer related to a possible equipment failure in a natural gas storage system in Northern Germany, which includes certain of our products. The customer initiated arbitration proceedings against us on June 19, 2015, under the rules of the German Institute of Arbitration e.V. (DIS). On August 3, 2016, the customer amended its claims and alleged damages of €202 million plus interest at an annual rate of prime + 5%. Hearings before the arbitration panel were held January 16, 2017 through January 23, 2017, and March 20, 2017 through March 21, 2017. In addition, on September 21, 2015, TRIUVA Kapitalverwaltungsgesellschaft mbH (TRIUVA) filed a lawsuit in the United States District Court for the Southern District of Texas, Houston Division against the Company and Baker Hughes Oilfield Operations, Inc. alleging that the plaintiff is the owner of gas storage caverns in Etzel, Germany in which the Company provided certain equipment in connection with the development of the gas storage caverns. The plaintiff further alleges that the Company supplied equipment that was either defectively designed or failed to warn of risks that the equipment posed, and that these alleged defects caused damage to the plaintiff's property. The plaintiff seeks recovery of alleged compensatory and punitive damages of an unspecified amount, in addition to reasonable attorneys' fees, court costs and pre-judgment and post-judgment interest. The allegations in this lawsuit are related to the claims made in the June 19, 2015 German arbitration referenced above. On June 7, 2018, the DIS arbitration panel issued a confidential Arbitration Ruling, which addressed all claims asserted by the customer. The estimated financial impact of the Arbitration Ruling has been reflected in the Company's financial statements and did not have a material impact. Further, on March 11, 2019, the customer initiated a second arbitral proceeding against us, under the rules of the German Institute of Arbitration e.V. (DIS). The customer alleged damages of €142 million plus interest at an annual rate of prime + 5% since June 20, 2015. The allegations in this second arbitration proceeding are related to the claims made in the June 19, 2015 German arbitration and Houston Federal Court proceedings referenced above. The Company is contesting the claims made by TRIUVA in the Houston Federal Court and the claims made by the customer in the second arbitration proceeding. In October 2020, the DIS notified the Company of a partial award in the second arbitration, which addressed certain of the claims asserted by the customer. At this time, we are not able to predict the outcome of the claims asserted in the Houston Federal Court or the claims that remain pending in the second arbitration. In January 2013, INEOS and Naphtachimie initiated expertise proceedings in Aix-en-Provence, France arising out of a fire at a chemical plant owned by INEOS in Lavera, France, which resulted in a 15-day plant shutdown and destruction of a steam turbine, which was part of a compressor train owned by Naphtachimie. The most recent quantification of the alleged damages is €250 million. Two of the Company's subsidiaries (and 17 other companies) were notified to participate in the proceedings. The proceedings are ongoing, and at this time, there is no indication that the Company's subsidiaries were involved in the incident. Although the outcome of the claims remains uncertain, our insurer has accepted coverage and is defending the Company in the expertise proceeding. On July 31, 2018, International Engineering & Construction S.A. (IEC) initiated arbitration proceedings in New York administered by the International Center for Dispute Resolution (ICDR) against the Company and its subsidiaries arising out of a series of sales and service contracts entered between IEC and the Company’s subsidiaries for the sale and installation of LNG plants and related power generation equipment in Nigeria (Contracts). Prior to the filing of the IEC Arbitration, the Company’s subsidiaries made demands for payment due under the Contracts. On August 15, 2018, the Company’s subsidiaries initiated a separate demand for ICDR arbitration against IEC for claims of additional costs and amounts due under the Contracts. On October 10, 2018, IEC filed a Petition to Compel Arbitration in the United States District Court for the Southern District of New York against the Company seeking to compel non-signatory Baker Hughes entities to participate in the arbitration filed by IEC. The complaint is captioned International Engineering & Construction S.A. et al. v. Baker Hughes, a GE company, LLC, et al. No. 18-cv-09241 (S.D.N.Y 2018); this action was dismissed by the Court on August 13, 2019. In the arbitration, IEC alleges breach of contract and other claims against the Company and its subsidiaries and seeks recovery of alleged compensatory damages, in addition to reasonable attorneys' fees, expenses and arbitration costs. On March 15, 2019, IEC amended its request for arbitration to alleged damages of $591 million of lost profits plus unspecified additional costs based on alleged non-performance of the contracts in dispute. The arbitration hearing was held from December 9, 2019 to December 20, 2019. On March 3, 2020, IEC amended their damages claim to $700 million of alleged loss cash flow or, in the alternative, $244.9 million of lost profits and various costs based on alleged non-performance of the contracts in dispute, and in addition $4.8 million of liquidated damages, $58.6 million in take-or-pay costs of feed gas, and unspecified additional costs of rectification and take-or-pay future obligations, plus unspecified interest and attorneys' fees. On May 3, 2020, the arbitration panel dismissed IEC's request for take-or-pay damages. On May 29, 2020, IEC quantified their claim for legal fees at $14.2 million and reduced their alternative claim from $244.9 million to approximately $235 million. The Company and its subsidiaries have contested IEC’s claims and are pursuing claims for compensation under the contracts. On October 31, 2020, the ICDR notified the arbitration panel’s final award, which dismissed the majority of IEC’s claims and awarded a portion of the Company’s claims. On January 27, 2021, IEC filed a petition to vacate the arbitral award in the Supreme Court of New York, County of New York. At this time, we are not able to predict the outcome of these proceedings. On March 15, 2019 and March 18, 2019, the City of Riviera Beach Pension Fund and Richard Schippnick, respectively, filed in the Delaware Court of Chancery shareholder derivative lawsuits for and on Baker Hughes’ behalf against GE, the then-current members of the Board of Directors of Baker Hughes and Baker Hughes as a nominal defendant, related to the decision to (i) terminate the contractual prohibition barring GE from selling any of Baker Hughes’ shares before July 3, 2019; (ii) repurchase $1.5 billion in Baker Hughes’ stock from GE; (iii) permit GE to sell approximately $2.5 billion in Baker Hughes’ stock through a secondary offering; and (iv) enter into a series of other agreements and amendments that will govern the ongoing relationship between Baker Hughes and GE (collectively, the “2018 Transactions”). The complaints in both lawsuits allege, among other things, that GE, as Baker Hughes’ controlling stockholder, and the members of Baker Hughes’ Board of Directors breached their fiduciary duties by entering into the 2018 Transactions. The relief sought in the complaints includes a request for a declaration that the defendants breached their fiduciary duties, that GE was unjustly enriched, disgorgement of profits, an award of damages sustained by 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 Baker Hughes Conflicts Committee, and on May 15, 2019, Plaintiffs voluntarily dismissed their claims against former Baker Hughes director Martin Craighead. On June 7, 2019, the defendants and nominal defendant filed a motion to dismiss the lawsuit on the ground that the derivative plaintiffs failed to make a demand on Baker Hughes’ Board of Directors to pursue the claims itself, and GE and Baker Hughes’ Board of Directors filed a motion to dismiss the lawsuit on the ground that the complaint failed to state a claim on which relief can be granted. The Chancery Court denied the motions on October 8, 2019, except granted GE’s motion to dismiss the unjust enrichment claim against it. On October 31, 2019, Baker Hughes’ Board of Directors designated a Special Litigation Committee and empowered it with full authority to investigate and evaluate the allegations and issues raised in the derivative litigation. The Special Litigation Committee filed a motion to stay the derivative litigation during its investigation. On December 3, 2019, the Chancery Court granted the motion and stayed the derivative litigation until June 1, 2020. On May 20, 2020, the Chancery Court granted an extension of the stay to October 1, 2020, and on September 29, 2020, the Court granted a further extension of the stay to October 15, 2020. On October 13, 2020, the Special Litigation Committee filed its report with the Court. At this time, we are not able to predict the outcome of these claims. In March 2019, Baker Hughes received a document request from the United States Department of Justice (the “DOJ”) related to certain of the Company's operations in Iraq and its dealings with Unaoil Limited and its affiliates. In December 2019, Baker Hughes received a similar document request from the Securities Exchange Commission (the "SEC"). Baker Hughes and the Company are cooperating with the DOJ and the SEC in connection with their requests and any related matters. In addition, Baker Hughes has agreed to toll any statute of limitations in connection with the matters subject to the DOJ’s document request. On August 13, 2019, Tri-State Joint Fund filed in the Delaware Court of Chancery, a shareholder class action lawsuit for and on the behalf of itself and all similarly situated public stockholders of Baker Hughes Incorporated (“BHI”) against the General Electric Company (GE), the former members of the Board of Directors of BHI, and certain former BHI Officers alleging breaches of fiduciary duty, aiding and abetting, and other claims in connection with the combination of BHI and the oil and gas business (GE O&G) of GE (the Transactions). On October 28, 2019, City of Providence filed in the Delaware Court of Chancery a shareholder class action lawsuit for and on behalf of itself and all similarly situated public shareholders of BHI against GE, the former members of the Board of Directors of BHI, and certain former BHI Officers alleging substantially the same claims in connection with the Transactions. The relief sought in these complaints include a request for a declaration that Defendants breached their fiduciary duties, an award of damages, pre- and post-judgment interest, and attorneys’ fees and costs. The lawsuits have been consolidated, and plaintiffs filed a consolidated class action complaint on December 17, 2019 against certain former BHI officers alleging breaches of fiduciary duty and against GE for aiding and abetting those breaches. The December 2019 complaint omitted the former members of the Board of Directors of BHI, except for Mr. Craighead who also served as President and CEO of BHI. Mr. Craighead and Ms. Ross, who served as Senior Vice President and Chief Financial Officer of BHI, remain named in the December 2019 complaint along with GE. The relief sought in the consolidated complaint includes a declaration that the former BHI officers breached their fiduciary duties and that GE aided and abetted those breaches, an award of damages, pre- and post-judgment interest, and attorneys’ fees and costs. On or around February 12, 2020, the defendants filed motions to dismiss the lawsuit on the grounds that the complaint failed to state a claim on which relief could be granted. On or around October 27, 2020, the Chancery Court granted GE’s motion to dismiss, and granted in part the motion to dismiss filed by Mr. Craighead and Ms. Ross, thereby dismissing all of the claims against GE and Ms. Ross, and all but one of the claims against Mr. Craighead. At this time, we are not able to predict the outcome of the remaining claim. On December 11, 2019, BMC Software, Inc. (“BMC”) filed a lawsuit in federal court in the Southern District of Texas against Baker Hughes, a GE company, LLC alleging trademark infringement, unfair competition, and unjust enrichment, arising out of the Company’s use of its new logo and affiliated branding. On January 1, 2020, BMC amended its complaint to add Baker Hughes Company. The relief sought in the complaint includes a request for injunctive relief, an award of damages (including punitive damages), pre- and post-judgment interest, and attorneys’ fees and costs. At this time, we are not able to predict the outcome of these claims. In December 2020, the Company received notice that the SEC is conducting a formal investigation that the Company understands is related to its books and records and internal controls regarding sales of its products and services in projects impacted by U.S. sanctions. The Company is cooperating with the SEC and providing requested information. The Company has also initiated an internal review with the assistance of external legal counsel regarding internal controls and compliance related to U.S. sanctions requirements. The SEC's investigation and the Company's internal review are ongoing, and the Company cannot anticipate the timing, outcome or possible impact of the investigation or review, financial or otherwise. We insure against risks arising from our business to the extent deemed prudent by our management and to the extent insurance is available, but no assurance can be given that the nature and amount of that insurance will be sufficient to fully indemnify us against liabilities arising out of pending or future legal proceedings or other claims. Most of our insurance policies contain deductibles or self-insured retentions in amounts we deem prudent and for which we are responsible for payment. In determining the amount of self-insurance, it is our policy to self-insure those losses that are predictable, measurable and recurring in nature, such as claims for automobile liability, general liability and workers compensation. 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. Pursuant to recent SEC amendments to this item, the Company will be using 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. Ongoing environmental compliance costs, such as obtaining or renewing environmental permits, installation of pollution control equipment and waste disposal are expensed as incurred. Where we have been identified as a potentially responsible party in a U.S. federal or state Comprehensive Environmental Response, Compensation and Liability Act (Superfund) site, we accrue our share, if known, of the estimated remediation costs of the site. This share is based on the ratio of the estimated volume of waste we contributed to the site to the total volume of waste disposed at the site. 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, which totaled approximately $4.1 billion at December 31, 2020. It is not practicable to estimate the fair value of these financial instruments. None of the off-balance sheet arrangements either has, or is likely to have, a material effect on our financial position, results of operations or cash flows. We also had commitments outstanding for purchase obligations for each of the five years in the period ending December 31, 2025 of $838 million, $86 million, $37 million, $8 million and $5 million, respectively, and $18 million in the aggregate thereafter. We sometimes enter into consortium or similar arrangements for certain projects primarily in our Oilfield Equipment segment. Under such arrangements, each party is responsible for performing a certain scope of work within the total scope of the contracted work, and the obligations expire when all contractual obligations are completed. The failure or inability, financially or otherwise, of any of the parties to perform their obligations could impose additional costs and obligations on us. These factors could result in unanticipated costs to complete the project, liquidated damages or contract disputes. |
Restructuring, Impairment and O
Restructuring, Impairment and Other | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment and Other | RESTRUCTURING, IMPAIRMENT AND OTHER In the first quarter of 2020, in response to the impact on our business from the COVID-19 pandemic and the significant decline in oil and gas prices, we approved a plan of $1.8 billion (the 2020 Plan) primarily associated with rationalizing certain product lines and restructuring our business, which is designed to, among other things, right-size our operations for anticipated activity levels and market conditions. During the remainder of the year, we incurred additional charges not originally contemplated by the 2020 Plan, primarily in our OFS segment to address the challenging market conditions in the upstream oil and gas market. We recorded restructuring, impairment and other charges totaling $1,866 million, and inventory impairments of $246 million in 2020. See "Note 4. Inventories" for further discussion. Substantially all of the activities and charges associated with the original 2020 Plan were completed by December 31, 2020. During the years ended December 31, 2019 and 2018, we recorded restructuring, impairment and other charges of $342 million, and $433 million, respectively. These charges are included in the "Restructuring, impairment and other" caption in the consolidated statements of income (loss). Details of all these charges are discussed below. RESTRUCTURING AND IMPAIRMENT CHARGES In the current and prior periods, we approved various restructuring plans globally, mainly to consolidate manufacturing and service facilities, rationalize product lines and rooftops, and reduce headcount across various functions. As a result, we recognized a charge of $903 million, $314 million and $304 million for the years ended December 31, 2020, 2019 and 2018, respectively. The following table presents the restructuring and impairment charges by the impacted segment, however, these charges are not included in the reported segment results. 2020 2019 2018 Oilfield Services $ 675 $ 211 $ 160 Oilfield Equipment 125 18 25 Turbomachinery & Process Solutions 35 48 71 Digital Solutions 54 15 17 Corporate 14 22 31 Total $ 903 $ 314 $ 304 Restructuring and impairment charges were primarily related to employee termination expenses from reducing our headcount in certain geographical locations, and product line rationalization, including plant closures and related expenses such as property, plant and equipment impairments, and other incremental costs that were a direct result of the restructuring plans. 2020 2019 2018 Property, plant & equipment, net $ 385 $ 107 $ 80 Employee-related termination expenses 464 179 123 Asset relocation costs 15 4 28 Contract termination fees 23 12 44 Other incremental costs 16 12 29 Total $ 903 $ 314 $ 304 OTHER CHARGES Other charges included in "Restructuring, impairment and other" caption in the consolidated statements of income (loss) were $963 million, $28 million, and $129 million for the years ended December 31, 2020, 2019 and 2018, respectively. In 2020, such charges consisted primarily of intangible asset impairments of $605 million driven by our decision to exit certain businesses primarily in our OFS segment, other long-lived asset impairments of $216 million ($124 million of intangible assets, $77 million of property, plant and equipment and $15 million of other assets) in our OFE segment, other charges of $73 million driven by certain litigation matters and the impairment of an equity method investment, and charges of $61 million related to corporate facility rationalization. In 2019, such charges primarily relate to currency devaluations in our OFS segment. In 2018, other charges consist primarily of accelerated amortization of $80 million related to trade names and technology in our OFS segment, litigation charges of $25 million in Corporate and costs of $13 million to exit certain operations that impacted our TPS and OFS segments. |
Business Dispositions
Business Dispositions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Dispositions | BUSINESS DISPOSITIONSWe completed several product line dispositions over the past three years as described below. Any gain or loss on a business disposition is reported in the "Other non-operating income (loss), net" caption of the consolidated statements of income (loss). • In October 2020, we completed the sale of our Surface Pressure Control Flow business, a non-strategic product line in our OFE segment that provided surface wellhead and surface tree systems for the onshore market. The sale resulted in a loss before income taxes of $137 million. • In June 2020, we completed the sale of our Rod Lift Systems (RLS) business. RLS was part of our OFS segment and provided rod lift products, technologies, services and solutions to the oil and gas industry. The sale resulted in a loss before income taxes of $216 million. • In July 2019, we completed the sale of our high-speed reciprocating compression (Recip) business. Recip was part of our TPS segment and provided high-speed reciprocating compression equipment and aftermarket parts and services for oil and gas production, gas processing, gas distribution and independent power industries. The sale resulted in a loss before income taxes of $138 million. • In October 2018, we completed the sale of our Natural Gas Solution (NGS) business. NGS was part of our TPS segment and provided commercial and industrial products such as gas meters, chemical injection pumps, pipeline repair products and electric actuators. The sale resulted in a gain before income taxes of $171 million. |
Supplementary Information
Supplementary Information | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Supplementary Information | SUPPLEMENTARY INFORMATION ALL OTHER CURRENT LIABILITIES All other current liabilities as of December 31, 2020 and 2019 include $907 million and $1,115 million, respectively, of employee related liabilities. PRODUCT WARRANTIES We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates are forecasts that are based on the best available information, primarily historical claims experience, claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties are as follows: 2020 2019 Balance at beginning of year $ 220 $ 236 Provisions 6 4 Expenditures (11) (14) Other 1 (6) Balance at end of year $ 216 $ 220 ALLOWANCE FOR CREDIT LOSSES The change in allowance for credit losses is as follows: 2020 2019 Balance at beginning of year $ 323 $ 327 Provision 66 48 Write-offs & other (16) (52) Balance at end of year $ 373 $ 323 CASH FLOW DISCLOSURES Supplemental cash flow disclosures are as follows for the years ended December 31: 2020 2019 2018 Income taxes paid, net of refunds $ 452 $ 446 $ 424 Interest paid $ 289 $ 285 $ 301 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
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 SEC for annual financial information. All intercompany accounts and transactions have been eliminated. In connection with the Transactions, we entered into and are governed by an Amended & Restated Limited Liability Company Agreement, dated as of July 3, 2017, as further amended and restated on April 15, 2020 (the BHH LLC Agreement). Under the BHH LLC Agreement, EHHC Newco, LLC (EHHC), a wholly owned subsidiary of Baker Hughes, is our sole managing member and Baker Hughes is the sole managing member of EHHC. As our managing member, EHHC conducts, directs and exercises full control over all our activities, including our day-to-day business affairs and decision-making, without the approval of any other member. As such, EHHC is responsible for all our operational and administrative decisions and the day-to-day management of our business. 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 common unit amounts in tabulations are in millions of dollars and units, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers. |
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, including 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; and expense allocations for certain corporate functions and shared services provided by GE. |
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). Gains and losses from foreign currency transactions, such as those resulting from the settlement of receivables or payables in the non-functional currency and those resulting from remeasurements of monetary items, are included in the consolidated statements of income (loss). |
Revenue from Sale of Equipment and Services | Revenue from Sale of Equipment Performance Obligations Satisfied Over Time We recognize revenue on agreements for sales of goods 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 include goods 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 products 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 goods and that acceptance is likely to occur. Our billing terms for these point in time equipment contracts vary, but are generally based on shipment of the goods 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 Turbomachinery & Process Solutions and Oilfield Equipment segments. 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 LNG applications, drilling rigs). These services are performed at various times during the life of the contract, thus the costs of performing services are incurred on other than a 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 is 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 goods 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 $595 million, $687 million and $700 million for the years ended December 31, 2020, 2019 and 2018, respectively. Research and development expenses were reported in cost of goods sold and cost of services sold. |
Separation and Merger Related | Separation and Merger Related In 2020 and 2019, separation and merger related costs primarily include costs incurred in connection with the separation from GE and the finalization of the Master Agreement Framework and Omnibus Agreement. Prior to 2019, separation and merger related costs primarily include costs associated with the combination of BHI and GE O&G. |
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 are 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 We grant credit to our customers who primarily operate in the oil and natural gas industry. Although this concentration affects our overall exposure to credit risk, our current receivables are spread over a diverse group of customers across many countries, which mitigates this risk. We 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 (PP&E) Property, plant and equipment is initially stated at cost and is depreciated over its estimated economic life. Subsequently, property, plant and equipment 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 OFS 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 AssetsWe 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. Amortizable 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. |
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, 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. See "Note 6. Goodwill and Other Intangible Assets" for further information on valuation methodology and impairment of goodwill. |
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 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 have a program that utilizes foreign currency forward contracts to reduce the risks associated with the effects of certain foreign currency exposures. Under this program, our strategy is to have gains or losses on the foreign currency forward contracts mitigate the foreign currency transaction and translation gains or losses to the extent practical. These foreign currency exposures typically arise from changes in the value of assets (for example, current receivables) and liabilities (for example, current payables) which are denominated in currencies other than the functional currency of the respective entity. We record all derivatives as of the end of our reporting period in our consolidated statement of financial position at fair value. For the forward contracts held as undesignated hedging instruments, we record the changes in fair value of the forward contracts 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 over-the-counter 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 that are consistent with what other market participants would use. 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. Thus, certain securities may not be priced using quoted prices, but rather determined from market observable information. These investments are included in Level 2. 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. These assets are not measured at fair value on an ongoing basis, but 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 and 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. Assets that are written down to fair value when impaired and retained investments are not subsequently adjusted to fair value unless further impairment occurs. |
Investments in Equity Securities | Investments in Equity Securities Investments in equity securities (of entities in which we do not have either 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 in fair value 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). Associated companies are 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%. Associated companies are accounted for as equity method investments. The results of associated companies are presented in the consolidated statements of income (loss) as follows: (i) if the associated company is integral to our operations, their results are included in "Selling, general and administrative," (ii) if the associated company is not integral to our operations, their results are included in "Other non-operating income (loss), net," and (iii) our equity method investment in BJ Services, which was a Delaware limited liability company, is presented in "Equity in loss of affiliate." Investments in, and advances to, associated companies are presented on a one-line basis in the caption "All other assets" in our consolidated statement of financial position. |
Income Taxes | Income Taxes We are treated as a partnership for U.S. federal income tax purposes. As such, except for certain U.S. corporations owned by the Company, we are not subject to U.S. federal income tax under current U.S. tax laws. Our members will each be required to take into account for U.S. federal income tax purposes their distributive share of our items of income, gain, loss and deduction, which generally will include the U.S. operations of both Baker Hughes and GE O&G. Baker Hughes and GE will each be taxed on their distributive share of income and gain, whether or not a corresponding amount of cash or other property is distributed to them. For assets held indirectly by us through subsidiaries, including both foreign and U.S., the taxes attributable to those subsidiaries will be reflected in our consolidated 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 tax return bases of assets and liabilities as well as from net operating losses and tax credit carryforwards, based on enacted tax rates expected to be in effect when taxes actually are paid or recovered and other provisions of the tax law. 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 may not more likely than not be realized. Indefinite reinvestment is determined by management’s judgment and intentions concerning the future operations of the Company. In cases where repatriation would otherwise incur significant withholding or income taxes, these foreign earnings have been indefinitely reinvested in the Company’s active non-U.S. business operations. Computation of the potential deferred tax liability associated with these undistributed earnings and any other basis difference is not practicable. Significant judgment is required in determining our tax expense and in evaluating our tax positions, including evaluating uncertainties. We operate in more than 120 countries and 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 financial statements in the period they are recorded. Additionally, as part of U.S. tax reform, the U.S. has enacted a tax on "base eroding" payments from the U.S. and a minimum tax on foreign earnings (global intangible low-taxed income). In 2018, we made an accounting policy election to account for these taxes as period costs. |
Environmental Liabilities | Environmental Liabilities We are involved in numerous remediation actions to clean up hazardous waste as required by federal and state laws. Liabilities for remediation costs exclude possible insurance recoveries and, when dates and amounts of such costs are not known, are not discounted. When there appears to be a range of possible costs with equal likelihood, liabilities are based on the low end of such range. It is reasonably possible that our environmental remediation exposure will exceed amounts accrued. However, due to uncertainties about the status of laws, regulations, technology and information related to individual sites, such amounts are not reasonably estimable. The determination of the required accruals for remediation costs is subject to uncertainty, including the evolving nature of environmental regulations and the difficulty in estimating the extent and type of remediation activity that is necessary. |
New Accounting Standards Adopted and To Be Adopted | NEW ACCOUNTING STANDARDS ADOPTED Financial Instruments - Credit Losses On January 1, 2020, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses. The ASU introduces a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models previously used under U.S. GAAP, which generally require that a loss be incurred before it is recognized. The new standard also applies to financial assets arising from revenue transactions such as contract assets and accounts receivables. The adoption did not have a material impact on our consolidated financial statements. Intangibles - Goodwill and Other On January 1, 2020, we adopted FASB ASU No. 2017-04, Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the fair value of the individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the new ASU, when required to test goodwill for recoverability, an entity will perform its goodwill impairment test by comparing the fair value of the reporting unit with its carrying value and should recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. We have applied this ASU on a prospective basis. See "Note 6. Goodwill and Other Intangible Assets" for further details. NEW ACCOUNTING STANDARDS TO BE ADOPTED 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. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy | 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. As of December 31, 2020 and 2019, we had $687 million and $1,102 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions and we do not currently anticipate a need to transfer these funds to the U.S. Included in these amounts are $42 million and $142 million, as of December 31, 2020 and 2019, respectively, held on behalf of GE. Cash and cash equivalents includes a total of $44 million and $162 million of cash at December 31, 2020 and 2019, respectively, held on behalf of GE, and a corresponding liability is reported in short-term borrowings. See "Note 16. Related Party Transactions" for further details. |
Revenue Related to Contracts _2
Revenue Related to Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenue from contracts with customers by primary geographical markets | We disaggregate our revenue from contracts with customers by primary geographic markets. Total Revenue 2020 2019 2018 U.S. $ 4,638 $ 6,188 $ 6,576 Non-U.S. 16,067 17,650 16,301 Total $ 20,705 $ 23,838 $ 22,877 |
Current Receivables (Tables)
Current Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Current receivables | Current receivables are comprised of the following at December 31: 2020 2019 Customer receivables $ 4,676 $ 5,448 Related parties 507 570 Other 890 796 Total current receivables 6,073 6,814 Less: Allowance for credit losses (373) (323) Total current receivables, net $ 5,700 $ 6,491 The change in allowance for credit losses is as follows: 2020 2019 Balance at beginning of year $ 323 $ 327 Provision 66 48 Write-offs & other (16) (52) Balance at end of year $ 373 $ 323 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory, Net [Abstract] | |
Inventories, net of reserves | Inventories, net of reserves of $421 million and $429 million in 2020 and 2019, respectively, are comprised of the following at December 31: 2020 2019 Finished goods $ 2,337 $ 2,546 Work in process and raw materials 2,084 2,062 Total inventories, net $ 4,421 $ 4,608 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment are comprised of the following at December 31: Useful Life 2020 2019 Land and improvements (1) 8 - 20 years (1) $ 404 $ 430 Buildings, structures and related equipment 5 - 40 years 2,618 2,870 Machinery, equipment and other 2 - 20 years 7,451 7,324 Total cost 10,473 10,624 Less: Accumulated depreciation (5,115) (4,384) Property, plant and equipment, less accumulated depreciation $ 5,358 $ 6,240 (1) Useful life excludes land. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying value of goodwill are detailed below by segment: Oilfield Services Oilfield Equipment Turbo-machinery & Process Solutions Digital Solutions Total Balance at December 31, 2018, gross $ 15,382 $ 4,177 $ 2,186 $ 2,432 $ 24,177 Accumulated impairment at December 31, 2018 (2,633) (867) — (254) (3,754) Balance at December 31, 2018 12,749 3,310 2,186 2,178 20,423 Currency exchange and others — 9 (15) (21) (27) Balance at December 31, 2019 12,749 3,319 2,171 2,157 20,396 Impairment (11,428) (3,289) — — (14,717) Currency exchange and others (20) (24) 63 41 60 Balance at December 31, 2020 $ 1,301 $ 6 $ 2,234 $ 2,198 $ 5,739 |
Schedule of finite-lived intangible assets | Intangible assets are comprised of the following at December 31: 2020 2019 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 2,261 $ (916) $ 1,345 $ 3,027 $ (1,045) $ 1,982 Technology 1,127 (696) 431 1,075 (626) $ 449 Trade names and trademarks 326 (181) 145 696 (254) 442 Capitalized software 1,294 (1,041) 253 1,193 (928) 265 Other — — — 3 (2) 1 Finite-lived intangible assets (1) 5,008 (2,834) 2,174 5,994 (2,855) 3,139 Indefinite-lived intangible assets 2,223 — 2,223 2,242 — 2,242 Total intangible assets $ 7,231 $ (2,834) $ 4,397 $ 8,236 $ (2,855) $ 5,381 (1) For the year ended December 31, 2020, we recorded intangible asset impairments to customer relationships of $481 million, technology of $8 million, trade names and trademarks of $237 million, and capitalized software of $3 million. See "Note 18. Restructuring, Impairment and Other" for further discussion. |
Schedule of indefinite-lived intangible assets | Intangible assets are comprised of the following at December 31: 2020 2019 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 2,261 $ (916) $ 1,345 $ 3,027 $ (1,045) $ 1,982 Technology 1,127 (696) 431 1,075 (626) $ 449 Trade names and trademarks 326 (181) 145 696 (254) 442 Capitalized software 1,294 (1,041) 253 1,193 (928) 265 Other — — — 3 (2) 1 Finite-lived intangible assets (1) 5,008 (2,834) 2,174 5,994 (2,855) 3,139 Indefinite-lived intangible assets 2,223 — 2,223 2,242 — 2,242 Total intangible assets $ 7,231 $ (2,834) $ 4,397 $ 8,236 $ (2,855) $ 5,381 (1) For the year ended December 31, 2020, we recorded intangible asset impairments to customer relationships of $481 million, technology of $8 million, trade names and trademarks of $237 million, and capitalized software of $3 million. See "Note 18. Restructuring, Impairment and Other" for further discussion. |
Schedule of finite-lived intangible assets, future amortization expense | Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows: Year Estimated Amortization Expense 2021 $ 255 2022 214 2023 200 2024 182 2025 142 |
Contract and Other Deferred A_2
Contract and Other Deferred Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract assets | Contract assets are comprised of the following at December 31: 2020 2019 Long-term product service agreements $ 660 $ 603 Long-term equipment contracts (1) 1,160 1,097 Contract assets (total revenue in excess of billings) 1,820 1,700 Deferred inventory costs 138 130 Non-recurring engineering costs 43 51 Contract and other deferred assets $ 2,001 $ 1,881 (1) Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements. 2020 2019 Progress collections $ 3,352 $ 2,760 Deferred income 102 110 Progress collections and deferred income (contract liabilities) $ 3,454 $ 2,870 |
Progress Collections and Defe_2
Progress Collections and Deferred Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Contract liabilities | Contract assets are comprised of the following at December 31: 2020 2019 Long-term product service agreements $ 660 $ 603 Long-term equipment contracts (1) 1,160 1,097 Contract assets (total revenue in excess of billings) 1,820 1,700 Deferred inventory costs 138 130 Non-recurring engineering costs 43 51 Contract and other deferred assets $ 2,001 $ 1,881 (1) Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements. 2020 2019 Progress collections $ 3,352 $ 2,760 Deferred income 102 110 Progress collections and deferred income (contract liabilities) $ 3,454 $ 2,870 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of operating lease expense | The following table presents operating lease expense: Operating Lease Expense 2020 2019 Long-term fixed lease $ 288 $ 233 Long-term variable lease 25 48 Short-term lease (1) 477 706 Total operating lease expense $ 790 $ 987 (1) Leases with a term of one year or less, including leases with a term of one month or less. |
Maturities of lease liabilities, operating leases | As of December 31, 2020, maturities of our operating lease liabilities are as follows: Year Operating Leases 2021 $ 235 2022 172 2023 114 2024 78 2025 60 Thereafter 313 Total lease payments 972 Less: imputed interest 163 Total $ 809 |
Schedule of liabilities | Amounts recognized in the consolidated statement of financial position for operating leases are as follows: 2020 2019 All other current liabilities $ 218 $ 201 All other liabilities 591 641 Total $ 809 $ 842 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-term and long-term borrowings | Short-term and long-term borrowings are comprised of the following at December 31: 2020 2019 Amount Weighted Average Rate (1) Amount Weighted Average Rate (1) Short-term borrowings Commercial paper $ 801 0.5 % $ — n/a Short-term borrowings from GE 45 n/a 273 n/a Other borrowings 43 4.2 % 48 4.8 % Total short-term borrowings 889 321 Long-term borrowings 2.773% Senior Notes due December 2022 1,247 2.9 % 1,246 2.9 % 8.55% Debentures due June 2024 (2) 123 4.1 % 127 4.1 % 3.337% Senior Notes due December 2027 1,344 3.4 % 1,343 3.4 % 6.875% Notes due January 2029 (2) 284 3.9 % 289 3.9 % 3.138% Senior Notes due November 2029 522 3.2 % 522 3.2 % 4.486% Senior Notes due May 2030 497 4.6 % — n/a 5.125% Senior Notes due September 2040 (2) 1,297 4.2 % 1,301 4.2 % 4.080% Senior Notes due December 2047 1,337 4.1 % 1,337 4.1 % Other long-term borrowings 93 3.0 % 136 3.4 % Total long-term borrowings 6,744 6,301 Total borrowings $ 7,633 $ 6,622 (1) Weighted average effective interest rate is based on the carrying value including step-up adjustments, as applicable, recorded upon the acquisition of BHI. See "Note 1. Summary of Significant Accounting Policies" for further discussion. (2) Represents long-term fixed rate debt obligations assumed in connection with the acquisition of BHI, net of amounts repurchased subsequent to the closing of the Transactions. |
Schedule of maturities of debt | Maturities of debt for each of the five years in the period ending December 31, 2025, and in the aggregate thereafter, are listed in the table below: 2021 2022 2023 2024 2025 Thereafter Total debt $ 889 $ 1,254 $ 4 $ 173 $ 19 $ 5,294 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Defined benefit plan funded status of plan | Below is the reconciliation of the beginning and ending balances of benefit obligations, fair value of plan assets and the funded status of our plans. Pension Benefits Other Postretirement 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 3,451 $ 2,261 $ 80 $ 107 Service cost 27 21 — 1 Interest cost 77 90 2 4 Plan amendment 1 — (18) — Actuarial loss (gain) (1) 393 301 17 (16) Benefits paid (101) (102) (19) (16) Curtailments (3) (21) — — Settlements (79) (36) — — Transfer from GE - UK Plan — 837 — — Other — 15 — — Foreign currency translation adjustments 40 85 — — Benefit obligation at end of year 3,806 3,451 62 80 Change in plan assets: Fair value of plan assets at beginning of year 3,004 1,866 — — Actual return on plan assets 347 314 — — Employer contributions 20 23 19 16 Benefits paid (101) (102) (19) (16) Settlements (79) (36) — — Transfer from GE - UK Plan — 851 — — Foreign currency translation adjustments 11 88 — — Fair value of plan assets at end of year 3,202 3,004 — — Funded status - underfunded at end of year $ (604) $ (447) $ (62) $ (80) Accumulated benefit obligation $ 3,755 $ 3,401 $ 62 $ 80 (1) The actuarial loss (gain) was primarily related to a change in the discount rate used to measure the benefit obligation for our plans in 2020 and 2019. |
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 Other Postretirement 2020 2019 2020 2019 Noncurrent assets $ 14 $ 78 $ — $ — Current liabilities (18) (17) (9) (11) Noncurrent liabilities (600) (508) (53) (69) Net amount recognized $ (604) $ (447) $ (62) $ (80) |
Accumulated benefit obligations in excess of plan assets | Information for the plans with ABOs and PBOs in excess of plan assets is as follows at December 31: Pension Benefits Other Postretirement 2020 2019 2020 2019 Projected benefit obligation $ 3,390 $ 1,814 n/a n/a Accumulated benefit obligation $ 3,340 $ 1,763 $ 62 $ 80 Fair value of plan assets $ 2,772 $ 1,288 n/a n/a |
Projected benefit obligation in excess of plan assets | Information for the plans with ABOs and PBOs in excess of plan assets is as follows at December 31: Pension Benefits Other Postretirement 2020 2019 2020 2019 Projected benefit obligation $ 3,390 $ 1,814 n/a n/a Accumulated benefit obligation $ 3,340 $ 1,763 $ 62 $ 80 Fair value of plan assets $ 2,772 $ 1,288 n/a n/a |
Schedule of net period cost (income) | The components of net periodic cost (income) are as follows: Pension Benefits Other Postretirement 2020 2019 2018 2020 2019 2018 Service cost $ 27 $ 21 $ 21 $ — $ 1 $ 2 Interest cost 77 90 71 2 4 5 Expected return on plan assets (121) (122) (121) — — — Amortization of prior service credit 1 1 — (3) (3) (5) Amortization of net actuarial loss (gain) 34 17 10 (3) (7) (2) Curtailment / settlement loss (gain) 10 9 2 — — (5) Net periodic cost (income) $ 28 $ 16 $ (17) $ (4) $ (5) $ (5) |
Weighted average assumptions used to determine benefit obligations | Weighted average assumptions used to determine benefit obligations for these plans are as follows: Pension Benefits Other Postretirement 2020 2019 2020 2019 Discount rate 1.66 % 2.34 % 1.67 % 2.89 % Rate of compensation increase 3.25 % 3.11 % n/a n/a Interest crediting rate 2.60 % 2.60 % n/a n/a |
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 Other Postretirement 2020 2019 2018 2020 2019 2018 Discount rate 2.34 % 3.43 % 2.99 % 2.35 % 3.92 % 3.32 % Expected long-term return on plan assets 4.20 % 5.48 % 5.94 % n/a n/a n/a Interest crediting rate 2.60 % 3.15 % 2.60 % n/a n/a n/a |
Accumulated other comprehensive loss | The amount recorded before-tax in accumulated other comprehensive loss related to employee benefit plans consists of the following at December 31: Pension Benefits Other Postretirement 2020 2019 2020 2019 Net actuarial loss (gain) $ 527 $ 395 $ (30) $ (38) Net prior service cost (credit) 18 19 (17) (15) Total $ 545 $ 414 $ (47) $ (53) |
Fair values of the assets in U.S. Plan | The table below presents the fair value of the pension assets at December 31: 2020 2019 Debt securities Fixed income and cash investment funds $ 1,807 $ 1,858 Equity securities Global equity securities (1) 346 333 U.S. equity securities (1) 299 258 Insurance contracts 120 — Real estate 85 84 Private equities 52 51 Other investments (2) 493 420 Total plan assets $ 3,202 $ 3,004 (1) Include direct investments and investment funds. (2) Consists primarily of asset allocation fund investments. |
Expected future benefit payments | The following table presents the expected benefit payments over the next 10 years. The U.S. and non-U.S. pension benefit payments are made by the respective pension trust funds. Year Pension Other Postretirement 2021 $ 173 $ 10 2022 131 7 2023 130 6 2024 135 5 2025 136 5 2026-2030 743 18 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Provision or benefit for income taxes | The provision or benefit for income taxes is comprised of the following: 2020 2019 2018 Current: U.S. $ 49 $ (18) $ 55 Foreign 458 443 445 Total current 507 425 500 Deferred: U.S. (6) (12) (60) Foreign 149 63 (38) Total deferred 143 51 (98) Provision for income taxes $ 650 $ 476 $ 402 |
Geographic sources of income before income taxes | The geographic sources of income (loss) before income taxes, inclusive of equity in loss of affiliate, are as follows: 2020 2019 2018 U.S. $ (14,232) $ (693) $ (672) Foreign (914) 1,446 1,213 Income (loss) before income taxes, inclusive of equity in loss of affiliate $ (15,146) $ 753 $ 541 |
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 loss or income before income taxes for the reasons set forth below for the years ended December 31: 2020 2019 2018 Income (loss) before income taxes, inclusive of equity in loss of affiliate $ (15,146) $ 753 $ 541 Taxes at the U.S. federal statutory income tax rate (3,181) 158 114 Impact of goodwill impairment 3,090 — — Effect of foreign operations 183 85 103 Tax impact of partnership structure 38 124 109 Change in valuation allowances 423 135 59 Tax Cuts and Jobs Act enactment — — 25 Other - net 97 (26) (8) Provision for income taxes $ 650 $ 476 $ 402 Actual income tax rate (4.3)% 63.2% 74.3% |
Deferred tax assets and liabilities | The tax effects of our temporary differences and carryforwards are as follows at December 31: 2020 2019 Deferred tax assets: Operating loss carryforwards $ 2,006 $ 1,591 Tax credit carryforwards 437 398 Goodwill and other intangibles 143 117 Employee benefits 138 98 Property 127 137 Receivables 53 79 Inventory 51 91 Other 233 317 Total deferred income tax asset 3,188 2,828 Valuation allowances (2,342) (1,835) Total deferred income tax asset after valuation allowance 846 993 Deferred tax liabilities: Other (1) (29) Total deferred income tax liability (1) (29) Net deferred tax asset $ 845 $ 964 |
Rollforward of unrecognized tax benefits and associated interest and penalties | The following table presents the changes in our gross unrecognized tax benefits included in the consolidated statements of financial position. Asset / (Liability) 2020 2019 Balance at beginning of year $ (451) $ (472) Additions for tax positions of the current year (42) (25) Additions for tax positions of prior years (31) (27) Reductions for tax positions of prior years 35 55 Settlements with tax authorities 12 6 Lapse of statute of limitations 23 12 Balance at end of year $ (454) $ (451) |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of changes in number of shares outstanding | The following table presents the changes in the number of Units outstanding (in thousands): 2020 2019 Units Held by Baker Hughes Units Held by GE Units Held by Baker Hughes Units Held by GE Balance at beginning of year 650,065 377,428 513,399 521,543 Issue of Units to Baker Hughes under equity incentive plan 7,939 — 4,416 — Exchange of Units (2) 65,995 (65,995) 132,250 (132,250) Repurchase program (3) — — — (11,865) Balance at end of year 723,999 311,433 650,065 377,428 (1) Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation. (2) In 2020, GE exchanged 66 million shares of Class B common stock and paired Units for Class A common stock. In 2019, we completed underwritten secondary public offerings in which GE and its affiliates sold 132 million shares of our Class A common stock. We did not receive any proceeds from the shares sold by GE and its affiliates in these offerings. The offerings included the exchange by GE and its affiliates of Units, together with the corresponding shares of our Class B common stock, for Class A common stock. When shares of Class B common stock, together with associated Units, are exchanged for shares of Class A common stock pursuant to the Exchange Agreement, such shares of Class B common stock are canceled. (3) In 2019, we repurchased and canceled 12 million Units of Class B common stock, together with an equal number of associated Units, from GE and its affiliates for an aggregate of $250 million, or $21.07 per Unit, which is the same per Unit price paid by the underwriters to GE and its affiliates in the concurrent underwritten secondary public offering. |
Schedule of accumulated other comprehensive loss | The following table presents the changes in accumulated other comprehensive loss, net of tax: Investment Securities Foreign Currency Translation Adjustments Cash Flow Hedges Benefit Plans Accumulated Other Comprehensive Loss Balance at December 31, 2018 $ — $ (2,327) $ (2) $ (133) $ (2,462) Other comprehensive income (loss) before reclassifications 2 53 13 (122) (54) Amounts reclassified from accumulated other comprehensive loss — — 1 26 27 Deferred taxes — — (2) 21 19 Other comprehensive income (loss) 2 53 12 (75) (8) Less: Other adjustments — — — 119 119 Balance at December 31, 2019 2 (2,274) 10 (327) (2,589) Other comprehensive income (loss) before reclassifications (2) 175 (2) (181) (10) Amounts reclassified from accumulated other comprehensive income (loss) — — (4) 52 48 Deferred taxes — — 1 5 6 Other comprehensive income (loss) (2) 175 (5) (124) 44 Less: Other comprehensive (loss) attributable to noncontrolling interests — (3) — — (3) Balance at December 31, 2020 $ — $ (2,096) $ 5 $ (451) $ (2,542) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | Our assets and liabilities measured at fair value on a recurring basis consists of derivative instruments and investment securities. 2020 2019 Level 1 Level 2 Level 3 Net Balance Level 1 Level 2 Level 3 Net Balance Assets Derivatives $ — $ 118 $ — $ 118 $ — $ 58 $ — $ 58 Investment securities 1,502 — 30 1,532 24 — 259 283 Total assets 1,502 118 30 1,650 24 58 259 341 Liabilities Derivatives — (52) — (52) — (27) — (27) Total liabilities $ — $ (52) $ — $ (52) $ — $ (27) $ — $ (27) |
Changes in the fair value of assets | The following table provides a reconciliation of recurring Level 3 fair value measurements for investment securities: 2020 2019 Balance at beginning of year $ 259 $ 288 Purchases 12 7 Proceeds at maturity (239) (38) Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) (2) 2 Balance at end of year $ 30 $ 259 |
Schedule of investment securities classified as available for sale | 2020 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investment securities Non-U.S. debt securities (1) $ 30 $ — $ — $ 30 $ 257 $ 2 $ — $ 259 Equity securities (2) 76 1,431 (5) 1,502 17 8 (1) 24 Total $ 106 $ 1,431 $ (5) $ 1,532 $ 274 $ 10 $ (1) $ 283 (1) All of our investment securities are classified as available for sale instruments. Non-U.S. debt securities mature within two years. (2) Gains (losses) recorded to earnings related to these securities were $1.4 billion, $2 million and $(25) million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Schedule of derivatives | The table below summarizes the fair value of all derivatives, including hedging instruments and embedded derivatives. 2020 2019 Assets (Liabilities) Assets (Liabilities) Derivatives accounted for as hedges Currency exchange contracts $ 5 $ — $ 11 $ — Derivatives not accounted for as hedges Currency exchange contracts and other 113 (52) 47 (27) Total derivatives $ 118 $ (52) $ 58 $ (27) |
Schedule of hedging instrument, currency exchange contract | The table below summarizes our hedging instrument activity for currency exchange contracts. 2020 2019 2018 Gain (loss) recognized in AOCI $ (2) $ 13 $ (6) Gain (loss) reclassified from AOCI to earnings $ 4 $ (1) $ (1) |
Schedule of gains (losses) from derivatives not designated as hedges | The following table summarizes the gains (losses) from derivatives not designated as hedges on the consolidated statements of income (loss): Derivatives not designated as hedging instruments Consolidated statement of income caption 2020 2019 2018 Currency exchange contracts (1) Cost of goods sold $ 59 $ (13) $ (35) Currency exchange contracts Cost of services sold 62 (15) 32 Commodity derivatives Cost of goods sold 2 2 (1) Other derivatives Other non-operating income (loss), net 8 2 — Total (2) $ 131 $ (24) $ (4) (1) Excludes losses on embedded derivatives of $14 million, $7 million and $3 million for the years ended December 31, 2020, 2019 and 2018, respectively, as embedded derivatives are not considered to be hedging instruments in our economic hedges. (2) The effect on earnings from changes in fair value of derivatives not designated as hedges is substantially offset by the earnings effect of the economically hedged items in the same income statement caption in current and future periods. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summarized financial information | Summarized financial information is shown in the following tables. Consistent accounting policies have been applied by all segments within the Company, for all reporting periods. Segment revenue 2020 2019 2018 Oilfield Services $ 10,140 $ 12,889 $ 11,617 Oilfield Equipment 2,844 2,921 2,641 Turbomachinery & Process Solutions 5,705 5,536 6,015 Digital Solutions 2,015 2,492 2,604 Total $ 20,705 $ 23,838 $ 22,877 The performance of our operating segments is evaluated based on segment operating income (loss), which is defined as income (loss) before income taxes and equity in loss of affiliate and before the following: net interest expense, net other non-operating income (loss), corporate expenses, restructuring, impairment and other charges, inventory impairments, separation and merger related costs, goodwill impairment and certain gains and losses not allocated to the operating segments. Segment income (loss) before income taxes 2020 2019 2018 Oilfield Services $ 487 $ 917 $ 785 Oilfield Equipment 19 55 — Turbomachinery & Process Solutions 805 719 621 Digital Solutions 193 343 390 Total segment 1,504 2,035 1,796 Corporate (464) (433) (405) Inventory impairment and related charges (1) (246) — (105) Goodwill impairment (14,717) — — Restructuring, impairment and other (1,866) (342) (433) Separation and merger related (134) (184) (153) Other non-operating income (loss), net 1,040 (84) 202 Interest expense, net (264) (237) (223) Total $ (15,146) $ 753 $ 680 (1) Inventory impairments and related charges are reported in "Cost of goods sold" of the consolidated statements of income (loss). |
Schedule of assets by segment | The following table presents total assets by segment at December 31: Segment assets 2020 2019 Oilfield Services $ 15,244 $ 30,317 Oilfield Equipment 3,344 7,645 Turbomachinery & Process Solutions 8,951 8,365 Digital Solutions 3,948 3,983 Total segment 31,487 50,310 Corporate and eliminations (1) 6,442 2,903 Total $ 37,929 $ 53,213 (1) The assets in Corporate and eliminations consist primarily of cash, the Baker Hughes trade name, our investment in C3.ai, certain facilities, and certain other noncurrent assets. It also includes adjustments to eliminate intercompany investments and receivables reflected within the total assets of each of our reportable segments. |
Schedule of segment depreciation and amortization | The following table presents depreciation and amortization by segment: Segment depreciation and amortization 2020 2019 2018 Oilfield Services $ 926 $ 985 $ 1,003 Oilfield Equipment 146 175 173 Turbomachinery & Process Solutions 118 116 156 Digital Solutions 98 103 112 Total Segment 1,288 1,379 1,444 Corporate 29 39 42 Total $ 1,317 $ 1,418 $ 1,486 |
Schedule of revenues and property, plant and equipment, net | The following table presents net property, plant and equipment by its geographic location at December 31: Property, plant and equipment - net 2020 2019 2018 U.S. $ 2,007 $ 2,594 $ 2,654 Non-U.S. 3,351 3,646 3,574 Total $ 5,358 $ 6,240 $ 6,228 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Impairment and restructuring charges | The following table presents the restructuring and impairment charges by the impacted segment, however, these charges are not included in the reported segment results. 2020 2019 2018 Oilfield Services $ 675 $ 211 $ 160 Oilfield Equipment 125 18 25 Turbomachinery & Process Solutions 35 48 71 Digital Solutions 54 15 17 Corporate 14 22 31 Total $ 903 $ 314 $ 304 Restructuring and impairment charges were primarily related to employee termination expenses from reducing our headcount in certain geographical locations, and product line rationalization, including plant closures and related expenses such as property, plant and equipment impairments, and other incremental costs that were a direct result of the restructuring plans. 2020 2019 2018 Property, plant & equipment, net $ 385 $ 107 $ 80 Employee-related termination expenses 464 179 123 Asset relocation costs 15 4 28 Contract termination fees 23 12 44 Other incremental costs 16 12 29 Total $ 903 $ 314 $ 304 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Changes in liability for product warranties | An analysis of changes in the liability for product warranties are as follows: 2020 2019 Balance at beginning of year $ 220 $ 236 Provisions 6 4 Expenditures (11) (14) Other 1 (6) Balance at end of year $ 216 $ 220 |
Allowance for credit losses | Current receivables are comprised of the following at December 31: 2020 2019 Customer receivables $ 4,676 $ 5,448 Related parties 507 570 Other 890 796 Total current receivables 6,073 6,814 Less: Allowance for credit losses (373) (323) Total current receivables, net $ 5,700 $ 6,491 The change in allowance for credit losses is as follows: 2020 2019 Balance at beginning of year $ 323 $ 327 Provision 66 48 Write-offs & other (16) (52) Balance at end of year $ 373 $ 323 |
Schedule of cash flow supplemental disclosures | Supplemental cash flow disclosures are as follows for the years ended December 31: 2020 2019 2018 Income taxes paid, net of refunds $ 452 $ 446 $ 424 Interest paid $ 289 $ 285 $ 301 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)country | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 16, 2016 | Sep. 15, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Performance obligations expected to be satisfied, expected timing | We sell product services under long-term product maintenance or extended warranty agreements in our Turbomachinery & Process Solutions and Oilfield Equipment segments. 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 | $ 595 | $ 687 | $ 700 | |||
Restricted cash and cash equivalents held in bank accounts | $ 1,102 | $ 687 | 1,102 | |||
Number of countries in which entity operates (more than) | country | 120 | |||||
General Electric Company | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Restricted cash and cash equivalents held in bank accounts | $ 142 | $ 42 | $ 142 | |||
General Electric Company | ||||||
Noncontrolling Interest [Line Items] | ||||||
GE's reduced ownership percentage | 30.10% | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 30.10% | |||||
Baker Hughes Company [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Approximate interest | 69.90% | |||||
Related party amount, due to related party | GE | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cash | $ 44 | |||||
General Electric Company | Baker Hughes Holdings LLC | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Approximate interest | 36.70% | 50.40% | ||||
General Electric Company | GE | Baker Hughes Incorporated | ||||||
Noncontrolling Interest [Line Items] | ||||||
GE's reduced ownership percentage | 36.80% | 50.30% | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 36.80% | 50.30% |
Revenue Related to Contracts _3
Revenue Related to Contracts With Customers - Disaggregated revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 20,705 | $ 23,838 | $ 22,877 |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,638 | 6,188 | 6,576 |
Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 16,067 | $ 17,650 | $ 16,301 |
Revenue Related to Contracts _4
Revenue Related to Contracts With Customers - Narrative (Details) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Performance obligations expected to be satisfied | $ 23.4 | $ 22.9 |
Period one | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Disaggregation of Revenue [Line Items] | ||
Performance obligations expected to be satisfied, percentage | 51.00% | |
Performance obligations expected to be satisfied, expected timing | 2 years | |
Period two | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Disaggregation of Revenue [Line Items] | ||
Performance obligations expected to be satisfied, percentage | 67.00% | |
Performance obligations expected to be satisfied, expected timing | 5 years | |
Period three | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Disaggregation of Revenue [Line Items] | ||
Performance obligations expected to be satisfied, percentage | 90.00% | |
Performance obligations expected to be satisfied, expected timing | 15 years |
Current Receivables (Details)
Current Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables, gross | $ 6,073 | $ 6,814 |
Less: Allowance for credit losses | (373) | (323) |
Total current receivables, net | 5,700 | 6,491 |
Customer receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables, gross | 4,676 | 5,448 |
Related parties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables, gross | 507 | 570 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total current receivables, gross | $ 890 | $ 796 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory, Net [Abstract] | |||
Inventory valuation reserves | $ 421,000,000 | $ 429,000,000 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |||
Finished goods | 2,337,000,000 | 2,546,000,000 | |
Work in process and raw materials | 2,084,000,000 | 2,062,000,000 | |
Total inventories, net | 4,421,000,000 | 4,608,000,000 | |
Inventory impairment | $ 246,000,000 | $ 0 | $ 105,000,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 10,473 | $ 10,624 | |
Less: Accumulated depreciation | (5,115) | (4,384) | |
Property, plant and equipment, less accumulated depreciation | 5,358 | 6,240 | $ 6,228 |
Depreciation on property, plant and equipment | 1,009 | 1,053 | $ 1,031 |
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 404 | 430 | |
Buildings, structures and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 2,618 | 2,870 | |
Machinery, equipment and other | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 7,451 | $ 7,324 | |
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 | 2 years | ||
Maximum | Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 20 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 - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||
Balance at December 31, 2018, gross | $ 24,177 | ||
Accumulated impairment at December 31, 2018 | (3,754) | ||
Goodwill [Roll Forward] | |||
Goodwill, net, beginning balance | $ 20,396 | $ 20,423 | |
Goodwill impairment | (14,717) | 0 | 0 |
Currency exchange and others | 60 | (27) | |
Goodwill, net, ending balance | 5,739 | 20,396 | 20,423 |
Oilfield Services | |||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||
Balance at December 31, 2018, gross | 15,382 | ||
Accumulated impairment at December 31, 2018 | (2,633) | ||
Goodwill [Roll Forward] | |||
Goodwill, net, beginning balance | 12,749 | 12,749 | |
Goodwill impairment | (11,428) | ||
Currency exchange and others | (20) | 0 | |
Goodwill, net, ending balance | 1,301 | 12,749 | 12,749 |
Oilfield Equipment | |||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||
Balance at December 31, 2018, gross | 4,177 | ||
Accumulated impairment at December 31, 2018 | (867) | ||
Goodwill [Roll Forward] | |||
Goodwill, net, beginning balance | 3,319 | 3,310 | |
Goodwill impairment | (3,289) | ||
Currency exchange and others | (24) | 9 | |
Goodwill, net, ending balance | 6 | 3,319 | 3,310 |
Turbo-machinery & Process Solutions | |||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||
Balance at December 31, 2018, gross | 2,186 | ||
Accumulated impairment at December 31, 2018 | 0 | ||
Goodwill [Roll Forward] | |||
Goodwill, net, beginning balance | 2,171 | 2,186 | |
Goodwill impairment | 0 | ||
Currency exchange and others | 63 | (15) | |
Goodwill, net, ending balance | 2,234 | 2,171 | 2,186 |
Digital Solutions | |||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||
Balance at December 31, 2018, gross | 2,432 | ||
Accumulated impairment at December 31, 2018 | (254) | ||
Goodwill [Roll Forward] | |||
Goodwill, net, beginning balance | 2,157 | 2,178 | |
Goodwill impairment | 0 | ||
Currency exchange and others | 41 | (21) | |
Goodwill, net, ending balance | $ 2,198 | $ 2,157 | $ 2,178 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) $ / shares in Units, $ in Millions | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 23, 2020$ / shares |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Number of operating segments | segment | 4 | ||||
Share price (in dollars per share) | $ / shares | $ 9.33 | ||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment | $ 14,717 | $ 0 | $ 0 | ||
Amortization expense for intangible assets | $ 308 | $ 365 | $ 455 | ||
Number of reportable segments | segment | 4 | ||||
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) | 30 years | ||||
Oilfield Services | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment | $ 11,428 | ||||
Oilfield Equipment | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment | $ 3,289 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets by Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-lived intangible assets, gross | $ 5,008 | $ 5,994 | |
Finite-lived intangible assets, accumulated amortization | (2,834) | (2,855) | |
Finite-lived intangible assets, net | 2,174 | 3,139 | |
Indefinite-lived intangible assets | 2,223 | 2,242 | |
Intangible assets, gross | 7,231 | 8,236 | |
Other intangible assets, net | 4,397 | 5,381 | |
Intangible assets impairment | 729 | 0 | $ 0 |
Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-lived intangible assets, gross | 2,261 | 3,027 | |
Finite-lived intangible assets, accumulated amortization | (916) | (1,045) | |
Finite-lived intangible assets, net | 1,345 | 1,982 | |
Intangible assets impairment | 481 | ||
Technology | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-lived intangible assets, gross | 1,127 | 1,075 | |
Finite-lived intangible assets, accumulated amortization | (696) | (626) | |
Finite-lived intangible assets, net | 431 | 449 | |
Intangible assets impairment | 8 | ||
Trade names and trademarks | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-lived intangible assets, gross | 326 | 696 | |
Finite-lived intangible assets, accumulated amortization | (181) | (254) | |
Finite-lived intangible assets, net | 145 | 442 | |
Intangible assets impairment | 237 | ||
Capitalized software | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-lived intangible assets, gross | 1,294 | 1,193 | |
Finite-lived intangible assets, accumulated amortization | (1,041) | (928) | |
Finite-lived intangible assets, net | 253 | 265 | |
Intangible assets impairment | 3 | ||
Other | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-lived intangible assets, gross | 0 | 3 | |
Finite-lived intangible assets, accumulated amortization | 0 | (2) | |
Finite-lived intangible assets, net | $ 0 | $ 1 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Future Estimated Amortization Expense (Details) $ in Millions | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 | $ 255 |
2022 | 214 |
2023 | 200 |
2024 | 182 |
2025 | $ 142 |
Contract and Other Deferred A_3
Contract and Other Deferred Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract assets (total revenue in excess of billings) | $ 1,820 | $ 1,700 |
Deferred inventory costs | 138 | 130 |
Non-recurring engineering costs | 43 | 51 |
Contract and other deferred assets | 2,001 | 1,881 |
Revenue recognized from performance obligations satisfied in previous periods | 17 | (1) |
Long-term product service agreements | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract assets (total revenue in excess of billings) | 660 | 603 |
Long-term equipment contract | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract assets (total revenue in excess of billings) | $ 1,160 | $ 1,097 |
Progress Collections and Defe_3
Progress Collections and Deferred Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Progress collections and deferred income (contract liabilities) | $ 3,454 | $ 2,870 |
Revenue recognized, included in contract liability | 1,962 | 1,239 |
Progress collections | ||
Disaggregation of Revenue [Line Items] | ||
Progress collections and deferred income (contract liabilities) | 3,352 | 2,760 |
Deferred income | ||
Disaggregation of Revenue [Line Items] | ||
Progress collections and deferred income (contract liabilities) | $ 102 | $ 110 |
Leases - Operating Lease Expens
Leases - Operating Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Long-term fixed lease | $ 288 | $ 233 |
Long-term variable lease | 25 | 48 |
Short-term lease | 477 | 706 |
Total operating lease expense | $ 790 | $ 987 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating leases | $ 783 | ||
Operating lease assets | $ 802 | $ 829 | |
Operating lease, weighted-average remaining lease term | 8 years | ||
Operating lease, weighted-average discount rate | 3.70% | 4.10% |
Leases - Operating Lease Liabil
Leases - Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 235 | |
2022 | 172 | |
2023 | 114 | |
2024 | 78 | |
2025 | 60 | |
Thereafter | 313 | |
Total lease payments | 972 | |
Less: imputed interest | 163 | |
Total | $ 809 | $ 842 |
Leases - Lease Liabilities Stat
Leases - Lease Liabilities Statement of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
All other current liabilities | $ 218 | $ 201 |
All other liabilities | 591 | 641 |
Total | $ 809 | $ 842 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Borrowings - Short-term and lon
Borrowings - Short-term and long-term borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Weighted average rate | 3.00% | 3.40% | |
Short-term borrowings | |||
Short-term debt and current portion of long-term debt | [1] | $ 889 | $ 321 |
Long-term borrowings | |||
Other long-term borrowings | 93 | 136 | |
Total long-term borrowings | 6,744 | 6,301 | |
Total debt | $ 7,633 | $ 6,622 | |
Senior Notes | 2.773% Senior Notes due December 2022 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 2.773% | ||
Weighted average rate | 2.90% | 2.90% | |
Long-term borrowings | |||
Long-term borrowings | $ 1,247 | $ 1,246 | |
Senior Notes | 3.337% Senior Notes due December 2027 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.337% | ||
Weighted average rate | 3.40% | 3.40% | |
Long-term borrowings | |||
Long-term borrowings | $ 1,344 | $ 1,343 | |
Senior Notes | 6.875% Notes due January 2029 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.875% | ||
Weighted average rate | 3.90% | 3.90% | |
Long-term borrowings | |||
Long-term borrowings | $ 284 | $ 289 | |
Senior Notes | 3.138% Senior Notes due November 2029 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.138% | ||
Weighted average rate | 3.20% | 3.20% | |
Long-term borrowings | |||
Long-term borrowings | $ 522 | $ 522 | |
Senior Notes | 4.486% Senior Notes due May 2030 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.486% | ||
Weighted average rate | 4.60% | ||
Long-term borrowings | |||
Long-term borrowings | $ 497 | $ 0 | |
Senior Notes | 5.125% Notes due September 2040 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.125% | ||
Weighted average rate | 4.20% | 4.20% | |
Long-term borrowings | |||
Long-term borrowings | $ 1,297 | $ 1,301 | |
Senior Notes | 4.080% Senior Notes due December 2047 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.08% | ||
Weighted average rate | 4.10% | 4.10% | |
Long-term borrowings | |||
Long-term borrowings | $ 1,337 | $ 1,337 | |
Debentures | 8.55% Debentures due June 2024 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 8.55% | ||
Weighted average rate | 4.10% | 4.10% | |
Long-term borrowings | |||
Long-term borrowings | $ 123 | $ 127 | |
Commercial paper | |||
Debt Instrument [Line Items] | |||
Weighted average rate | 0.50% | ||
Short-term borrowings | |||
Short-term debt and current portion of long-term debt | $ 801 | 0 | |
Short-term borrowings from GE | |||
Short-term borrowings | |||
Short-term debt and current portion of long-term debt | $ 45 | $ 273 | |
Other borrowings | |||
Debt Instrument [Line Items] | |||
Weighted average rate | 4.20% | 4.80% | |
Short-term borrowings | |||
Short-term debt and current portion of long-term debt | $ 43 | $ 48 | |
[1] | Total assets include $45 million and $273 million of assets held on behalf of GE, of which $44 million and $162 million is cash and cash equivalents and $1 million and $111 million is investment securities at December 31, 2020 and 2019, respectively, and a corresponding amount of liability is reported in short-term borrowings. See "Note 16. Related Party Transactions" for further details. |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | Jul. 03, 2017 | Nov. 30, 2019 | Dec. 31, 2020 | Jun. 30, 2020 | May 01, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||||||
Estimated fair value of debt | $ 8,502,000,000 | $ 6,847,000,000 | ||||
Commercial paper | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 3,800,000,000 | $ 3,000,000,000 | ||||
Debt instrument term | 397 days | |||||
Baker Hughes Holdings LLC | Baker Hughes Co-Obligor, Inc. | ||||||
Line of Credit Facility [Line Items] | ||||||
Ownership percentage | 100.00% | |||||
Baker Hughes Holdings LLC | 2019 Credit Agreement | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 3,000,000,000 | |||||
Line of credit outstanding | $ 0 | 0 | ||||
Baker Hughes Holdings LLC | 2017 Credit Agreement | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, term | 5 years | |||||
Line of credit outstanding | $ 0 | 0 | ||||
Senior Notes | 4.486% Senior Notes due May 2030 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate | 4.486% | |||||
Long-term borrowings | $ 497,000,000 | 0 | ||||
Senior Notes | 3.138% Senior Notes due November 2029 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate | 3.138% | |||||
Long-term borrowings | $ 522,000,000 | $ 522,000,000 | ||||
Senior Notes | 3.2% Senior Notes due August 2021 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate | 3.20% | |||||
Repayments of senior debt | $ 526,000,000 | |||||
Gain (loss) on repurchase of debt instrument | 7,000,000 | |||||
Senior Notes | Baker Hughes Holdings LLC | Baker Hughes Co-Obligor, Inc. | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term borrowings | $ 6,650,000,000 | |||||
Senior Notes | Baker Hughes Holdings LLC | 4.486% Senior Notes due May 2030 | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, principal | $ 500,000,000 | |||||
Stated interest rate | 4.486% | |||||
Senior Notes | Baker Hughes Holdings LLC | 3.138% Senior Notes due November 2029 | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, principal | $ 525,000,000 | |||||
Stated interest rate | 3.138% |
Borrowings - Maturities of Debt
Borrowings - Maturities of Debt Schedule (Details) $ in Millions | Dec. 31, 2020USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2021 | $ 889 |
2022 | 1,254 |
2023 | 4 |
2024 | 173 |
2025 | 19 |
Thereafter | $ 5,294 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Health care cost trend rate assumed next fiscal year | 6.50% | ||
Health care cost trend rate | 4.50% | ||
Multiemployer plan, contributions by employer | $ 0 | $ 3,000,000 | $ 158,000,000 |
Defined contribution plan, employer matching contribution per dollar | $ 1 | ||
Defined contribution plan, employer matching contribution | 5.00% | ||
Defined contribution plan, employers matching contribution for vesting plan | 4.00% | ||
Defined contribution plan, employers matching contribution for vesting, period | 3 years | ||
Defined contribution plans, cost | $ 236,000,000 | 235,000,000 | |
Number of non-qualified defined contribution plans | plan | 2 | ||
Defined contribution plan, assets and liabilities | $ 314,000,000 | 276,000,000 | |
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 | $ 3,072,000,000 | $ 2,988,000,000 | |
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 | 21.00% | 20.00% | |
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 | 59.00% | 62.00% | |
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 | 20.00% | 18.00% | |
Pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension assets or obligations, threshold, per plan | $ 20,000,000 | ||
Fair values of the plan assets | 3,202,000,000 | $ 3,004,000,000 | 1,866,000,000 |
Employer contributions | 20,000,000 | 23,000,000 | |
Actual return on plan assets | 347,000,000 | 314,000,000 | |
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 | 1,807,000,000 | 1,858,000,000 | |
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 | 130,000,000 | 16,000,000 | |
Pension plan | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets | 120,000,000 | 0 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase for Purchase | 124,000,000 | ||
Actual return on plan assets | 4,000,000 | ||
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair values of the plan assets | 0 | 0 | $ 0 |
Employer contributions | 19,000,000 | 16,000,000 | |
Estimated future employer contributions in next fiscal year | 10,000,000 | ||
Actual return on plan assets | $ 0 | $ 0 | |
Foreign | Pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of retirement plans | plan | 7 | ||
U.S. | Pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of retirement plans | plan | 4 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 3,451 | $ 2,261 | |
Service cost | 27 | 21 | $ 21 |
Interest cost | 77 | 90 | 71 |
Plan amendment | 1 | 0 | |
Actuarial loss (gain) | 393 | 301 | |
Benefits paid | (101) | (102) | |
Curtailments | (3) | (21) | |
Settlements | (79) | (36) | |
Transfer from GE - UK Plan | 0 | 837 | |
Other | 0 | 15 | |
Foreign currency translation adjustments | 40 | 85 | |
Benefit obligation at end of year | 3,806 | 3,451 | 2,261 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 3,004 | 1,866 | |
Actual return on plan assets | 347 | 314 | |
Employer contributions | 20 | 23 | |
Benefits paid | (101) | (102) | |
Settlements | (79) | (36) | |
Transfer from GE - UK Plan | 0 | 851 | |
Foreign currency translation adjustments | 11 | 88 | |
Fair value of plan assets at end of year | 3,202 | 3,004 | 1,866 |
Funded status - underfunded at end of year | (604) | (447) | |
Accumulated benefit obligation | 3,755 | 3,401 | |
Other Postretirement Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 80 | 107 | |
Service cost | 0 | 1 | 2 |
Interest cost | 2 | 4 | 5 |
Plan amendment | (18) | 0 | |
Actuarial loss (gain) | 17 | (16) | |
Benefits paid | (19) | (16) | |
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Transfer from GE - UK Plan | 0 | 0 | |
Other | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
Benefit obligation at end of year | 62 | 80 | 107 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 19 | 16 | |
Benefits paid | (19) | (16) | |
Settlements | 0 | 0 | |
Transfer from GE - UK Plan | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status - underfunded at end of year | (62) | (80) | |
Accumulated benefit obligation | $ 62 | $ 80 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Amounts Recognized in the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure | ||
Noncurrent liabilities | $ (1,217) | $ (1,079) |
Pension Benefits | ||
Defined Benefit Plan Disclosure | ||
Noncurrent assets | 14 | 78 |
Current liabilities | (18) | (17) |
Noncurrent liabilities | (600) | (508) |
Net amount recognized | (604) | (447) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (9) | (11) |
Noncurrent liabilities | (53) | (69) |
Net amount recognized | $ (62) | $ (80) |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Information for Plans with ABOs in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 3,390 | $ 1,814 |
Accumulated benefit obligation | 3,340 | 1,763 |
Fair value of plan assets | 2,772 | 1,288 |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 62 | $ 80 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Information for Plans with PBOs in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 3,390 | $ 1,814 |
Accumulated benefit obligation | 3,340 | 1,763 |
Fair value of plan assets | 2,772 | 1,288 |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 62 | $ 80 |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Components of Net Periodic Cost (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 27 | $ 21 | $ 21 |
Interest cost | 77 | 90 | 71 |
Expected return on plan assets | (121) | (122) | (121) |
Amortization of prior service credit | 1 | 1 | 0 |
Amortization of net actuarial loss (gain) | 34 | 17 | 10 |
Curtailment / settlement loss (gain) | 10 | 9 | 2 |
Net periodic cost (income) | 28 | 16 | (17) |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0 | 1 | 2 |
Interest cost | 2 | 4 | 5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credit | (3) | (3) | (5) |
Amortization of net actuarial loss (gain) | (3) | (7) | (2) |
Curtailment / settlement loss (gain) | 0 | 0 | (5) |
Net periodic cost (income) | $ (4) | $ (5) | $ (5) |
Employee Benefit Plans - Sche_6
Employee Benefit Plans - Schedule of Assumptions Used for Benefit Obligation (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 1.66% | 2.34% |
Rate of compensation increase | 3.25% | 3.11% |
Interest crediting rate | 2.60% | 2.60% |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 1.67% | 2.89% |
Employee Benefit Plans - Sche_7
Employee Benefit Plans - Schedule of Assumptions Used for Net Periodic Cost (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.34% | 3.43% | 2.99% |
Expected long-term return on plan assets | 4.20% | 5.48% | 5.94% |
Interest crediting rate | 2.60% | 3.15% | 2.60% |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.35% | 3.92% | 3.32% |
Employee Benefit Plans - Sche_8
Employee Benefit Plans - Schedule of Reconciliation to Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss (gain) | $ 527 | $ 395 |
Net prior service cost (credit) | 18 | 19 |
Total | 545 | 414 |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss (gain) | (30) | (38) |
Net prior service cost (credit) | (17) | (15) |
Total | $ (47) | $ (53) |
Employee Benefit Plans - Sche_9
Employee Benefit Plans - Schedule Fair Value of the Pension Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
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 | $ 3,202 | $ 3,004 | $ 1,866 |
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 | 299 | 258 | |
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 | 346 | 333 | |
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 | 1,807 | 1,858 | |
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 | 120 | 0 | |
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 | 52 | 51 | |
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 | 85 | 84 | |
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 | $ 493 | $ 420 |
Employee Benefit Plans - Sch_10
Employee Benefit Plans - Schedule of Future Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure | |
2021 | $ 173 |
2022 | 131 |
2023 | 130 |
2024 | 135 |
2025 | 136 |
2026-2030 | 743 |
Pension Benefits | Minimum | |
Defined Benefit Plan Disclosure | |
Estimated future employer contributions in next fiscal year | 20 |
Estimated future employer contributions in next fiscal year | 20 |
Pension Benefits | Maximum | |
Defined Benefit Plan Disclosure | |
Estimated future employer contributions in next fiscal year | 35 |
Estimated future employer contributions in next fiscal year | 35 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure | |
2021 | 10 |
2022 | 7 |
2023 | 6 |
2024 | 5 |
2025 | 5 |
2026-2030 | 18 |
Estimated future employer contributions in next fiscal year | 10 |
Estimated future employer contributions in next fiscal year | $ 10 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)country | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Total Gross Unrecognized Tax Benefits | |||
Valuation allowances | $ 2,342 | $ 1,835 | |
Deferred tax assets, operating loss carryforwards, foreign | 319 | ||
Deferred tax liability not provided for temporary difference | 6,000 | ||
Tax liabilities for gross unrecognized tax benefits | (454) | $ (451) | $ (472) |
Interest accrued on income taxes for unrecognized tax benefits | 95 | ||
Penalties accrued on income taxes for unrecognized tax benefits | 23 | ||
Uncertain tax positions | 572 | ||
Unrecognized tax benefits that would impact effective tax rate | 523 | ||
Deferred tax asset that we did not prevail on all uncertain tax position | 48 | ||
Deferred tax asset that we did not prevail on all uncertain tax position, foreign taxing jurisdiction | 24 | ||
Deferred tax asset that we did not prevail on all uncertain tax position, increased valuation allowances | 24 | ||
Uncertain tax positions, liabilities | $ 57 | ||
Number of countries in which entity operates (more than) | country | 120 | ||
Foreign Net Operating Loss | |||
Total Gross Unrecognized Tax Benefits | |||
Valuation allowances | $ 1,657 | ||
US And Foreign Tax Credit Carryforward | |||
Total Gross Unrecognized Tax Benefits | |||
Valuation allowances | 402 | ||
Other United States Net Operating Loss Tax Credit Carryforward | |||
Total Gross Unrecognized Tax Benefits | |||
Valuation allowances | 55 | ||
Other US And Foreign Deferred Tax Assets | |||
Total Gross Unrecognized Tax Benefits | |||
Valuation allowances | 228 | ||
Five year carryforward | |||
Total Gross Unrecognized Tax Benefits | |||
Operating loss carryforwards | $ 347 | ||
Expiration of operation loss carryforwards over the next 5 years | 5 years | ||
Six to twenty year carryforward | |||
Total Gross Unrecognized Tax Benefits | |||
Operating loss carryforwards | $ 960 | ||
Six to twenty year carryforward | Minimum | |||
Total Gross Unrecognized Tax Benefits | |||
Expiration of operation loss carryforwards over the next six to 20 years | 6 years | ||
Six to twenty year carryforward | Maximum | |||
Total Gross Unrecognized Tax Benefits | |||
Expiration of operation loss carryforwards over the next six to 20 years | 20 years | ||
Indefinite Foreign Tax | |||
Total Gross Unrecognized Tax Benefits | |||
Deferred tax assets, tax credit carryforwards, foreign | $ 402 | ||
Other Tax | |||
Total Gross Unrecognized Tax Benefits | |||
Deferred tax assets, tax credit carryforwards | $ 35 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
U.S. | $ 49 | $ (18) | $ 55 |
Foreign | 458 | 443 | 445 |
Total current | 507 | 425 | 500 |
Deferred: | |||
U.S. | (6) | (12) | (60) |
Foreign | 149 | 63 | (38) |
Total deferred | 143 | 51 | (98) |
Provision for income taxes | $ 650 | $ 476 | $ 402 |
Income Taxes - Schedule of Geog
Income Taxes - Schedule of Geographic Sources of Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (14,232) | $ (693) | $ (672) |
Foreign | (914) | 1,446 | 1,213 |
Income (loss) before income taxes, inclusive of equity in loss of affiliate | $ (15,146) | $ 753 | $ 541 |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Difference between Provision and U.S. Statutory Income Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes, inclusive of equity in loss of affiliate | $ (15,146) | $ 753 | $ 541 |
Taxes at the U.S. federal statutory income tax rate | (3,181) | 158 | 114 |
Effect of foreign operations | 183 | 85 | 103 |
Tax impact of partnership structure | 38 | 124 | 109 |
Change in valuation allowances | 423 | 135 | 59 |
Tax Cuts and Jobs Act enactment | 0 | 0 | 25 |
Other - net | 97 | (26) | (8) |
Provision for income taxes | $ 650 | $ 476 | $ 402 |
Actual income tax rate | (4.30%) | 63.20% | 74.30% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | $ 3,090 | $ 0 | $ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Receivables | $ 53 | $ 79 |
Inventory | 51 | 91 |
Other | 233 | 317 |
Total deferred income tax asset | 3,188 | 2,828 |
Valuation allowances | (2,342) | (1,835) |
Total deferred income tax asset after valuation allowance | 846 | 993 |
Deferred tax liabilities: | ||
Other | (1) | (29) |
Total deferred income tax liability | (1) | (29) |
Net deferred tax asset | 845 | 964 |
Deferred Tax Assets, Operating Loss Carryforwards | 2,006 | 1,591 |
Deferred Tax Assets, Tax Credit Carryforwards | 437 | 398 |
Deferred Tax Assets, Goodwill and Intangible Assets | 143 | 117 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 138 | 98 |
Deferred Tax Assets, Property, Plant and Equipment | $ 127 | $ 137 |
Income Taxes - Schedule of Gros
Income Taxes - Schedule of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ (451) | $ (472) |
Additions for tax positions of the current year | (42) | (25) |
Additions for tax positions of prior years | (31) | (27) |
Reductions for tax positions of prior years | 35 | 55 |
Settlements with tax authorities | 12 | 6 |
Lapse of statute of limitations | 23 | 12 |
Balance at end of year | $ (454) | $ (451) |
Equity - Narrative (Details)
Equity - Narrative (Details) - $ / shares shares in Millions | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
General Electric Company | Baker Hughes Holdings LLC | ||||
Class of Stock [Line Items] | ||||
Approximate interest | 36.70% | 50.40% | ||
Class A | ||||
Class of Stock [Line Items] | ||||
Dividends per share (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 | |
Class B | Baker Hughes Holdings LLC | ||||
Class of Stock [Line Items] | ||||
Exchange of Class B common stock | 66 | 132 |
Equity - Changes in Number of S
Equity - Changes in Number of Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Payments for repurchase of common stock | $ 0 | $ 250 | $ 2,486 |
Class A | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Dividends per share (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 |
Class A | BHGE LLC | General Electric Company | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Sale of stock, number of shares issued in transaction (in shares) | 132,000,000 | ||
Class B | BHGE LLC | General Electric Company | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stock repurchased (in shares) | 12,000,000 | ||
Payments for repurchase of common stock | $ 250 | ||
Dividends per share (in dollars per share) | $ 21.07 | ||
Common Stock | Class A | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 650,065,000 | 513,399,000 | |
Exchange of Class B common stock for Class A common stock | 65,995,000 | 132,250,000 | |
Stock repurchase program (in shares) | 0 | 0 | |
Ending balance (in shares) | 723,999,000 | 650,065,000 | 513,399,000 |
Common Stock | Class A | RSUs | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Issue of shares upon vesting of restricted stock units (in shares) | 7,939,000 | 4,416,000 | |
Common Stock | Class B | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 377,428,000 | 521,543,000 | |
Exchange of Class B common stock for Class A common stock | (65,995,000) | (132,250,000) | |
Stock repurchase program (in shares) | 0 | (11,865,000) | |
Ending balance (in shares) | 311,433,000 | 377,428,000 | 521,543,000 |
Common Stock | Class B | RSUs | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Issue of shares upon vesting of restricted stock units (in shares) | 0 | 0 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 34,414 | $ 34,876 | $ 38,396 |
Other comprehensive income (loss) before reclassifications | (10) | (54) | |
Amounts reclassified from accumulated other comprehensive loss | 48 | 27 | |
Deferred taxes | 6 | 19 | |
Other comprehensive income (loss) | 44 | (8) | (573) |
Less: Other comprehensive loss attributable to noncontrolling interests | (3) | 0 | 0 |
Less: Other adjustments | 119 | ||
Ending balance | 18,163 | 34,414 | 34,876 |
Investment Securities, Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 2 | 0 | |
Ending balance | 0 | 2 | 0 |
Investment Securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications | (2) | 2 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Deferred taxes | 0 | 0 | |
Other comprehensive income (loss) | (2) | 2 | |
Investment Securities, Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Less: Other comprehensive loss attributable to noncontrolling interests | 0 | ||
Less: Other adjustments | 0 | ||
Foreign Currency Translation Adjustment, Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2,274) | (2,327) | |
Ending balance | (2,096) | (2,274) | (2,327) |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications | 175 | 53 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Deferred taxes | 0 | 0 | |
Other comprehensive income (loss) | 175 | 53 | |
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: Other adjustments | 0 | ||
Cash Flow Hedges, Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 10 | (2) | |
Ending balance | 5 | 10 | (2) |
Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications | (2) | 13 | |
Amounts reclassified from accumulated other comprehensive loss | (4) | 1 | |
Deferred taxes | 1 | (2) | |
Other comprehensive income (loss) | (5) | 12 | |
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: Other adjustments | 0 | ||
Benefit Plans, Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (327) | (133) | |
Ending balance | (451) | (327) | (133) |
Benefit Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications | (181) | (122) | |
Amounts reclassified from accumulated other comprehensive loss | 52 | 26 | |
Deferred taxes | 5 | 21 | |
Other comprehensive income (loss) | (124) | (75) | |
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: Other adjustments | 119 | ||
Accumulated Other Comprehensive Loss | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2,589) | (2,462) | (1,881) |
Other comprehensive income (loss) | 47 | (8) | (573) |
Ending balance | $ (2,542) | $ (2,589) | $ (2,462) |
Equity - Non-Controlling Intere
Equity - Non-Controlling Interest (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 |
Noncontrolling Interest [Line Items] | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 115 | $ 115 | $ 132 | ||
Total equity | $ 34,414 | $ 34,414 | $ 18,163 | $ 34,876 | $ 38,396 |
Baker Hughes Holdings LLC | General Electric Company | |||||
Noncontrolling Interest [Line Items] | |||||
Approximate interest | 36.70% | 50.40% | |||
General Electric Company | |||||
Noncontrolling Interest [Line Items] | |||||
GE's reduced ownership percentage | 30.10% |
Financial Instruments - Recurri
Financial Instruments - Recurring fair value measurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Derivatives | $ 118 | $ 58 | |
Investment securities | 1,532 | 283 | |
Liabilities | |||
Derivatives | (52) | (27) | |
Debt and Equity Securities, Unrealized Gain (Loss) | 1,400 | 2 | $ (25) |
Fair value, measurements, recurring | |||
Assets | |||
Derivatives | 118 | 58 | |
Investment securities | 1,532 | 283 | |
Assets, fair value | 1,650 | 341 | |
Liabilities | |||
Derivatives | (52) | (27) | |
Total liabilities | (52) | (27) | |
Fair value, measurements, recurring | Level 1 | |||
Assets | |||
Derivatives | 0 | 0 | |
Investment securities | 1,502 | 24 | |
Assets, fair value | 1,502 | 24 | |
Liabilities | |||
Derivatives | 0 | 0 | |
Total liabilities | 0 | 0 | |
Fair value, measurements, recurring | Level 2 | |||
Assets | |||
Derivatives | 118 | 58 | |
Investment securities | 0 | 0 | |
Assets, fair value | 118 | 58 | |
Liabilities | |||
Derivatives | (52) | (27) | |
Total liabilities | (52) | (27) | |
Fair value, measurements, recurring | Level 3 | |||
Assets | |||
Derivatives | 0 | 0 | |
Investment securities | 30 | 259 | |
Assets, fair value | 30 | 259 | |
Liabilities | |||
Derivatives | 0 | 0 | |
Total liabilities | $ 0 | $ 0 |
Financial Instruments - Reconci
Financial Instruments - Reconciliation of recurring Level 3 fair value measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 259 | $ 288 |
Purchases | 12 | 7 |
Proceeds at maturity | (239) | (38) |
Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) | (2) | 2 |
Ending balance | $ 30 | $ 259 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investment securities held on behalf of GE | $ 1,532,000,000 | $ 283,000,000 | |
Investment securities | 1,532,000,000 | 283,000,000 | |
Equity securities, estimated fair value | 1,502,000,000 | 24,000,000 | |
Derivative asset | 118,000,000 | 58,000,000 | |
Derivative liability | 52,000,000 | 27,000,000 | |
Gain (loss) earnings effects of related forecast transactions | 5,000,000 | ||
Derivative, notional amount | 7,000,000,000 | 5,700,000,000 | |
Equity securities without readily determinable fair values | 554,000,000 | 637,000,000 | |
Equity securities, unrealized gain | $ 19,000,000 | ||
Equity method on our investment in BJ Services | $ 0 | ||
Cash flow hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, term | 1 year | ||
All other current assets | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investment securities held on behalf of GE | $ 1,514,000,000 | ||
Investment securities | 1,514,000,000 | ||
Equity securities, estimated fair value | 254,000,000 | ||
Derivative asset | 115,000,000 | 52,000,000 | |
All other assets | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investment securities held on behalf of GE | 18,000,000 | ||
Investment securities | 18,000,000 | ||
Equity securities, estimated fair value | 29,000,000 | ||
Derivative asset | 3,000,000 | 6,000,000 | |
All other current liabilities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative liability | 48,000,000 | 24,000,000 | |
All other liabilities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative liability | 4,000,000 | $ 3,000,000 | |
C3.ai | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Mark to market unrealized gain | $ 1,417,000,000 | ||
C3.ai | Class A | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Approximate interest to be acquired | 11.00% | ||
Investment shares owned (in shares) | 10,813,095 | ||
Equity securities economic interest fair value | $ 1,500,000,000 | ||
Corporate joint venture | C3.ai | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Approximate interest to be acquired | 15.00% | ||
Level 3 | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized gain (loss) on Level 3 instruments held at reporting date | $ 0 |
Financial Instruments - Investm
Financial Instruments - Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Equity securities, amortized cost | $ 76 | $ 17 | |
Equity securities, gross unrealized gain | 1,431 | 8 | |
Equity securities, gross unrealized loss | (5) | (1) | |
Equity securities, estimated fair value | 1,502 | 24 | |
Total, amortized cost | 106 | 274 | |
Debt and equity securities unrealized gain | 1,431 | 10 | |
Debt and equity securities, gross unrealized losses | (5) | (1) | |
Total, estimated fair value | 1,532 | 283 | |
Net unrealized gain (loss) | 1,417 | 0 | $ 0 |
Non-U.S. debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, amortized cost | 30 | 257 | |
Debt securities, gross unrealized gains | 0 | 2 | |
Debt securities, gross unrealized losses | 0 | 0 | |
Debt securities, estimated fair value | $ 30 | $ 259 | |
Debt securities, term | 2 years |
Financial Instruments - Derivat
Financial Instruments - Derivatives and hedging (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 118 | $ 58 |
Derivative liability | (52) | (27) |
Currency exchange contracts | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 5 | 11 |
Derivative liability | 0 | 0 |
Currency exchange contracts | Not designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 113 | 47 |
Derivative liability | $ (52) | $ (27) |
Financial Instruments - Cash fl
Financial Instruments - Cash flow hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | $ (5) | $ 12 | |
Gain (loss) recognized in AOCI | $ (4) | ||
Cash flow hedging | Currency exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | (2) | 13 | |
Gain (loss) recognized in AOCI | (6) | ||
Gain (loss) reclassified from AOCI to earnings | $ 4 | $ (1) | |
Gain (loss) reclassified from AOCI to earnings | $ (1) |
Financial Instruments - Economi
Financial Instruments - Economic Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Embedded derivatives, loss | $ 14 | $ 7 | $ 3 |
Derivatives not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Total | 131 | (24) | (4) |
Derivatives not designated as hedging instruments | Currency exchange contracts | Cost of goods sold | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gains (losses) from derivatives | 59 | (13) | (35) |
Derivatives not designated as hedging instruments | Currency exchange contracts | Cost of services sold | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gains (losses) from derivatives | 62 | (15) | 32 |
Derivatives not designated as hedging instruments | Commodity derivatives | Cost of goods sold | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gains (losses) from derivatives | 2 | 2 | (1) |
Derivatives not designated as hedging instruments | Other derivatives | Other non-operating income (loss), net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gains (losses) from derivatives | $ 8 | $ 2 | $ 0 |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment Information - Operating
Segment Information - Operating Profit (Loss) by Segment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||
Revenues | $ 20,705,000,000 | $ 23,838,000,000 | $ 22,877,000,000 |
Segment income (loss) before income taxes | |||
Income (loss) before income taxes | (15,146,000,000) | 753,000,000 | 680,000,000 |
Inventory impairment and related charges | (246,000,000) | 0 | (105,000,000) |
Goodwill impairment | (14,717,000,000) | 0 | 0 |
Separation and merger related | (134,000,000) | (184,000,000) | (153,000,000) |
Other non-operating income (loss), net | 1,040,000,000 | (84,000,000) | 202,000,000 |
Interest expense, net | (264,000,000) | (237,000,000) | (223,000,000) |
Operating segments | |||
Segment Reporting Information | |||
Revenues | 20,705,000,000 | 23,838,000,000 | 22,877,000,000 |
Segment income (loss) before income taxes | |||
Income (loss) before income taxes | 1,504,000,000 | 2,035,000,000 | 1,796,000,000 |
Corporate | |||
Segment income (loss) before income taxes | |||
Income (loss) before income taxes | (464,000,000) | (433,000,000) | (405,000,000) |
Segment reconciling items | |||
Segment income (loss) before income taxes | |||
Inventory impairment and related charges | (246,000,000) | 0 | (105,000,000) |
Goodwill impairment | (14,717,000,000) | 0 | 0 |
Restructuring, impairment and other | (1,866,000,000) | (342,000,000) | (433,000,000) |
Separation and merger related | (134,000,000) | (184,000,000) | (153,000,000) |
Other non-operating income (loss), net | 1,040,000,000 | (84,000,000) | 202,000,000 |
Interest expense, net | (264,000,000) | (237,000,000) | (223,000,000) |
Oilfield Services | |||
Segment income (loss) before income taxes | |||
Goodwill impairment | (11,428,000,000) | ||
Oilfield Services | Operating segments | |||
Segment Reporting Information | |||
Revenues | 10,140,000,000 | 12,889,000,000 | 11,617,000,000 |
Segment income (loss) before income taxes | |||
Income (loss) before income taxes | 487,000,000 | 917,000,000 | 785,000,000 |
Oilfield Equipment | |||
Segment income (loss) before income taxes | |||
Goodwill impairment | (3,289,000,000) | ||
Oilfield Equipment | Operating segments | |||
Segment Reporting Information | |||
Revenues | 2,844,000,000 | 2,921,000,000 | 2,641,000,000 |
Segment income (loss) before income taxes | |||
Income (loss) before income taxes | 19,000,000 | 55,000,000 | 0 |
Turbo-machinery & Process Solutions | |||
Segment income (loss) before income taxes | |||
Goodwill impairment | 0 | ||
Turbo-machinery & Process Solutions | Operating segments | |||
Segment Reporting Information | |||
Revenues | 5,705,000,000 | 5,536,000,000 | 6,015,000,000 |
Segment income (loss) before income taxes | |||
Income (loss) before income taxes | 805,000,000 | 719,000,000 | 621,000,000 |
Digital Solutions | |||
Segment income (loss) before income taxes | |||
Goodwill impairment | 0 | ||
Digital Solutions | Operating segments | |||
Segment Reporting Information | |||
Revenues | 2,015,000,000 | 2,492,000,000 | 2,604,000,000 |
Segment income (loss) before income taxes | |||
Income (loss) before income taxes | $ 193,000,000 | $ 343,000,000 | $ 390,000,000 |
Segment Information - Assets by
Segment Information - Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | [1] | $ 37,929 | $ 53,213 |
Operating segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 31,487 | 50,310 | |
Operating segments | Oilfield Services | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 15,244 | 30,317 | |
Operating segments | Oilfield Equipment | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 3,344 | 7,645 | |
Operating segments | Turbo-machinery & Process Solutions | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 8,951 | 8,365 | |
Operating segments | Digital Solutions | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 3,948 | 3,983 | |
Corporate and eliminations | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 6,442 | $ 2,903 | |
[1] | Total assets include $45 million and $273 million of assets held on behalf of GE, of which $44 million and $162 million is cash and cash equivalents and $1 million and $111 million is investment securities at December 31, 2020 and 2019, respectively, and a corresponding amount of liability is reported in short-term borrowings. See "Note 16. Related Party Transactions" for further details. |
Segment Information - Schedule
Segment Information - Schedule of Summarized Financial Information for CAPEX and DD&A (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||
Depreciation and Amortization | $ 1,317 | $ 1,418 | $ 1,486 |
Operating segments | |||
Segment Reporting Information | |||
Depreciation and Amortization | 1,288 | 1,379 | 1,444 |
Operating segments | Oilfield Services | |||
Segment Reporting Information | |||
Depreciation and Amortization | 926 | 985 | 1,003 |
Operating segments | Oilfield Equipment | |||
Segment Reporting Information | |||
Depreciation and Amortization | 146 | 175 | 173 |
Operating segments | Turbo-machinery & Process Solutions | |||
Segment Reporting Information | |||
Depreciation and Amortization | 118 | 116 | 156 |
Operating segments | Digital Solutions | |||
Segment Reporting Information | |||
Depreciation and Amortization | 98 | 103 | 112 |
Corporate | |||
Segment Reporting Information | |||
Depreciation and Amortization | $ 29 | $ 39 | $ 42 |
Segment Information - Schedul_2
Segment Information - Schedule of Net Property, Plant and Equipment by Geographic Location (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from geographic segments | |||
Property, plant and equipment - net | $ 5,358 | $ 6,240 | $ 6,228 |
U.S. | |||
Revenue from geographic segments | |||
Property, plant and equipment - net | 2,007 | 2,594 | 2,654 |
Non-U.S. | |||
Revenue from geographic segments | |||
Property, plant and equipment - net | $ 3,351 | $ 3,646 | $ 3,574 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Millions | Sep. 16, 2016person | Jun. 30, 2020USD ($) | Jun. 30, 2019 | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 15, 2016 |
Related Party Transaction [Line Items] | ||||||||
Current receivables | $ 6,073 | $ 6,814 | ||||||
Related parties | ||||||||
Related Party Transaction [Line Items] | ||||||||
Current receivables | 507 | 570 | ||||||
GE | Related parties | ||||||||
Related Party Transaction [Line Items] | ||||||||
Current receivables | 429 | 495 | ||||||
Joint venture, GE aero-derivative gas turbine products and services | Principal Owner | ||||||||
Related Party Transaction [Line Items] | ||||||||
Voting power of outstanding common stock | 20.00% | |||||||
Purchases, GE and its affiliates | GE | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party purchases | 1,446 | 1,498 | $ 1,791 | |||||
Purchases, GE and its affiliates | Principal Owner | ||||||||
Related Party Transaction [Line Items] | ||||||||
Current receivables | 78 | 75 | ||||||
Sales of products and services, GE and its affiliates | GE | ||||||||
Related Party Transaction [Line Items] | ||||||||
Revenue from related parties | 216 | 337 | $ 363 | |||||
Accounts Payable, GE and its affiliates | ||||||||
Related Party Transaction [Line Items] | ||||||||
Accounts payable, related party | 356 | 536 | ||||||
Related party amount, due to related party | GE | ||||||||
Related Party Transaction [Line Items] | ||||||||
Cash held on behalf of GE | 45 | |||||||
Cash | 44 | |||||||
Investment securities | 1 | |||||||
Related party amount, due to related party | Principal Owner | ||||||||
Related Party Transaction [Line Items] | ||||||||
Cash held on behalf of GE | $ 45 | $ 273 | ||||||
Corporate joint venture | Principal Owner | ||||||||
Related Party Transaction [Line Items] | ||||||||
Board of directors nomination, upon triggering event | person | 1 | |||||||
C3.ai | Corporate joint venture | ||||||||
Related Party Transaction [Line Items] | ||||||||
Approximate interest to be acquired | 15.00% | |||||||
Subscription term | 5 years | 3 years | ||||||
Purchase commitment, to be paid, year one | $ 53 | $ 53 | ||||||
Purchase commitment, to be paid, year two | 75 | 75 | ||||||
Purchase commitment, to be paid, year three | 125 | 125 | ||||||
Purchase commitment, to be paid, year four | $ 150 | 150 | ||||||
Subscription fee | $ 28 | |||||||
General Electric Company | ||||||||
Related Party Transaction [Line Items] | ||||||||
GE's reduced ownership percentage | 30.10% | |||||||
General Electric Company | Baker Hughes Incorporated | GE | ||||||||
Related Party Transaction [Line Items] | ||||||||
GE's reduced ownership percentage | 36.80% | 50.30% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions | May 29, 2020USD ($) | Mar. 03, 2020USD ($) | Mar. 15, 2019USD ($) | Mar. 11, 2019EUR (€) | Mar. 18, 2018USD ($) | Aug. 03, 2016EUR (€) | Jan. 31, 2013 | Dec. 31, 2020EUR (€)companysubsidiary | Dec. 31, 2020USD ($) | Mar. 18, 2019USD ($) |
Loss Contingencies [Line Items] | ||||||||||
Total, off-balance sheet liability | $ 4,100 | |||||||||
Purchase obligations, within next twelve months | 838 | |||||||||
Purchase obligations, year two | 86 | |||||||||
Purchase obligations, year three | 37 | |||||||||
Purchase obligations, year four | 8 | |||||||||
Purchase obligations, year five | 5 | |||||||||
Purchase obligations, thereafter | $ 18 | |||||||||
Equipment failure | Pending litigation | Natural Gas Storage System in Northern Germany | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought | € | € 142 | € 202 | ||||||||
Marginal rate on annual prime rate (percent) | 5.00% | 5.00% | ||||||||
Damage from fire | Pending litigation | INOES and Naphtachimie | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought | € | € 250 | |||||||||
Plant shutdown days | 15 days | |||||||||
Subsidiaries participating | subsidiary | 2 | |||||||||
Other companies participating | company | 17 | |||||||||
Damage from fire | Pending litigation | International Engineering & Construction S.A. (IEC) | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought | $ 591 | |||||||||
Loss of Cash Flow | Pending litigation | International Engineering & Construction S.A. (IEC) | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought | $ 700 | |||||||||
Take-or-pay Future Obligations | Pending litigation | International Engineering & Construction S.A. (IEC) | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought | 58.6 | |||||||||
Liquidated Damages | Pending litigation | International Engineering & Construction S.A. (IEC) | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought | 4.8 | |||||||||
Legal Fees | Pending litigation | International Engineering & Construction S.A. (IEC) | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought | $ 14.2 | |||||||||
Lost Profits and Various Costs | Pending litigation | International Engineering & Construction S.A. (IEC) | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought | $ 235 | $ 244.9 | ||||||||
Breach of fiduciary duties | Pending litigation | 2018 Transactions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Repurchase of stock from GE | $ 1,500 | |||||||||
GE sale of stock | $ 2,500 |
Restructuring, Impairment and_3
Restructuring, Impairment and Other - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | ||||
Approved restructuring plan | $ 1,800,000,000 | |||
Inventory impairment | $ 246,000,000 | $ 0 | $ 105,000,000 | |
Restructuring charges | 903,000,000 | 314,000,000 | 304,000,000 | |
Restructuring Cost and Reserve [Line Items] | ||||
Intangible assets impairment | 729,000,000 | 0 | 0 | |
Property, plant and equipment impairment | 461,000,000 | 107,000,000 | 80,000,000 | |
Litigation and impairment of equity method investment | 73,000,000 | |||
Corporate facility rationalization | 61,000,000 | |||
Amortization expense for intangible assets included in net income | 308,000,000 | 365,000,000 | 455,000,000 | |
Corporate | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | 14,000,000 | 22,000,000 | 31,000,000 | |
Trade names and trademarks | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Amortization expense for intangible assets included in net income | 80,000,000 | |||
Oilfield Services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Intangible assets impairment | 605,000,000 | |||
Oilfield Services | Operating segments | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | 675,000,000 | 211,000,000 | 160,000,000 | |
Oilfield Equipment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Intangible assets impairment | 124,000,000 | |||
Other long-lived asset impairments | 216,000,000 | |||
Property, plant and equipment impairment | 77,000,000 | |||
Other assets | 15,000,000 | |||
Oilfield Equipment | Operating segments | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | 125,000,000 | 18,000,000 | 25,000,000 | |
Restructuring, impairment and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other asset impairment charges and foreign currency translation gain (loss), realized | $ 963,000,000 | 28,000,000 | $ 129,000,000 | |
Restructuring, impairment and other | Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Legal fees | 25,000,000 | |||
Restructuring, impairment and other | Turbomachinery and Process Solutions and Oilfield Services | Operating segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business exit costs | $ 13,000,000 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other - Schedule of Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | $ 903 | $ 314 | $ 304 |
Property, plant & equipment, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 385 | 107 | 80 |
Employee-related termination expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 464 | 179 | 123 |
Asset relocation costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 15 | 4 | 28 |
Contract termination fees | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 23 | 12 | 44 |
Other incremental costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 16 | 12 | 29 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 14 | 22 | 31 |
Oilfield Services | Operating segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 675 | 211 | 160 |
Oilfield Equipment | Operating segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 125 | 18 | 25 |
Turbo-machinery & Process Solutions | Operating segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 35 | 48 | 71 |
Digital Solutions | Operating segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | $ 54 | $ 15 | $ 17 |
Business Dispositions - Narrati
Business Dispositions - Narrative (Details) - Disposal group, disposed of by sale, not discontinued operations - USD ($) $ in Millions | 1 Months Ended | |||
Oct. 31, 2020 | Jun. 30, 2020 | Jul. 31, 2019 | Oct. 31, 2018 | |
Surface Pressure Control Flow (SPC Flow) | ||||
Business Acquisition [Line Items] | ||||
Other non operating income (loss) | $ 137 | |||
Rod Lift Systems (RLS) | ||||
Business Acquisition [Line Items] | ||||
Other non operating income (loss) | $ 216 | |||
Recip | ||||
Business Acquisition [Line Items] | ||||
Other non operating income (loss) | $ 138 | |||
Natural Gas Solutions (NGS) | ||||
Business Acquisition [Line Items] | ||||
Other non operating income (loss) | $ 171 |
Supplementary Information - Oth
Supplementary Information - Other Current Liabilities and Product Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | ||
Other current liabilities, employee related | $ 907 | $ 1,115 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Product warranties, beginning balance | 220 | 236 |
Provisions | 6 | 4 |
Expenditures | (11) | (14) |
Other | 1 | (6) |
Product warranties, ending balance | $ 216 | $ 220 |
Supplementary Information - All
Supplementary Information - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | |||
Balance at beginning of year | $ 373 | $ 323 | $ 327 |
Provision | 66 | 48 | |
Write-offs & other | (16) | (52) | |
Balance at end of year | $ 373 | $ 323 |
Supplementary Information -Supp
Supplementary Information -Supplemental cash flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Guarantees and Product Warranties [Abstract] | |||
Income taxes paid, net of refunds | $ 452 | $ 446 | $ 424 |
Interest paid | $ 289 | $ 285 | $ 301 |