10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-38143

Baker Hughes Company

(Exact name of registrant as specified in its charter)

Delaware		81-4403168
(State or other jurisdiction		(I.R.S. Employer Identification No.)
of incorporation or organization)
17021 Aldine Westfield
Houston,	Texas	77073-5101
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (713) 439-8600

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per share	BKR	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer" "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

As of October 15, 2021, the registrant had outstanding 869,968,050 shares of Class A Common Stock, $0.0001 par value per share and 166,645,919 shares of Class B Common Stock, $0.0001 par value per share.

Baker Hughes Company

Table of Contents

		Page No.
PART I -	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Income (Loss) (Unaudited) - Three and nine months ended September 30, 2021 and 2020	1
	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - Three and nine months ended September 30, 2021 and 2020	2
	Condensed Consolidated Statements of Financial Position (Unaudited) - September 30, 2021 and December 31, 2020	3
	Condensed Consolidated Statements of Changes in Equity (Unaudited) - Three and nine months ended September 30, 2021 and 2020	4
	Condensed Consolidated Statements of Cash Flows (Unaudited) - Nine months ended September 30, 2021 and 2020	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41
PART II -	OTHER INFORMATION
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	42
Item 6.	Exhibits	43
	Signatures	44

Baker Hughes Company 2021 Third Quarter Form 10-Q | i

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

Baker Hughes Company

Condensed Consolidated Statements of Income (Loss)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share amounts)	2021		2020		2021		2020
Revenue:
Sales of goods	$	2,984	$	3,290	$	8,997	$	9,240
Sales of services	2,109		1,759		6,020		5,970
Total revenue	5,093		5,049		15,017		15,210
Costs and expenses:
Cost of goods sold	2,561		2,920		7,769		8,296
Cost of services sold	1,522		1,372		4,404		4,724
Selling, general and administrative	607		565		1,836		1,830
Goodwill impairment	—		—		—		14,773
Restructuring, impairment and other	14		209		219		1,637
Separation related	11		32		53		110
Total costs and expenses	4,715		5,098		14,281		31,370
Operating income (loss)	378		(49)		736		(16,160)
Other non-operating loss, net	(102)		(149)		(791)		(367)
Interest expense, net	(67)		(66)		(205)		(195)
Income (loss) before income taxes	209		(264)		(260)		(16,722)
Benefit (provision) for income taxes	(193)		(6)		(406)		10
Net income (loss)	16		(270)		(666)		(16,712)
Less: Net income (loss) attributable to noncontrolling interests	8		(100)		(154)		(6,120)
Net income (loss) attributable to Baker Hughes Company	$	8	$	(170)	$	(512)	$	(10,592)
Per share amounts:
Basic & diluted income (loss) per Class A common stock	$	0.01	$	(0.25)	$	(0.64)	$	(16.01)
Cash dividend per Class A common stock	$	0.18	$	0.18	$	0.54	$	0.54

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 1

Baker Hughes Company

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Net income (loss)	$	16	$	(270)	$	(666)	$	(16,712)
Less: Net income (loss) attributable to noncontrolling interests	8		(100)		(154)		(6,120)
Net income (loss) attributable to Baker Hughes Company	8		(170)		(512)		(10,592)
Other comprehensive income (loss):
Investment securities	—		—		—		(2)
Foreign currency translation adjustments	(158)		135		(51)		(101)
Cash flow hedges	(2)		2		(13)		(6)
Benefit plans	25		(54)		78		(24)
Other comprehensive income (loss)	(135)		83		14		(133)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(24)		29		4		(52)
Other comprehensive income (loss) attributable to Baker Hughes Company	(111)		54		10		(81)
Comprehensive loss	(119)		(187)		(652)		(16,845)
Less: Comprehensive loss attributable to noncontrolling interests	(16)		(71)		(150)		(6,172)
Comprehensive loss attributable to Baker Hughes Company	$	(103)	$	(116)	$	(502)	$	(10,673)

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 2

Baker Hughes Company

Condensed Consolidated Statements of Financial Position

(Unaudited)

(In millions, except par value)	September 30, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	3,926	$	4,132
Current receivables, net	5,326		5,622
Inventories, net	4,110		4,421
All other current assets	1,525		2,280
Total current assets	14,887		16,455
Property, plant and equipment (net of accumulated depreciation of $5,082 and $5,115)	4,982		5,358
Goodwill	6,015		5,977
Other intangible assets, net	4,151		4,397
Contract and other deferred assets	1,738		2,001
All other assets	3,025		2,866
Deferred income taxes	974		953
Total assets	$	35,772	$	38,007
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	3,514	$	3,532
Short-term debt and current portion of long-term debt	56		889
Progress collections and deferred income	3,263		3,454
All other current liabilities	2,521		2,352
Total current liabilities	9,354		10,227
Long-term debt	6,708		6,744
Deferred income taxes	157		186
Liabilities for pensions and other postretirement benefits	1,132		1,217
All other liabilities	1,385		1,391
Equity:
Class A Common Stock, $0.0001 par value - 2,000 authorized, 859 and 724 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	—		—
Class B Common Stock, $0.0001 par value - 1,250 authorized, 179 and 311 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	—		—
Capital in excess of par value	26,688		24,613
Retained loss	(10,454)		(9,942)
Accumulated other comprehensive loss	(2,092)		(1,778)
Baker Hughes Company equity	14,142		12,893
Noncontrolling interests	2,894		5,349
Total equity	17,036		18,242
Total liabilities and equity	$	35,772	$	38,007

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 3

Baker Hughes Company

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

(In millions, except per share amounts)	Class A and Class B Common Stock		Capital in Excess of Par Value		Retained Loss		Accumulated Other Comprehensive Loss		Non- controlling Interests		Total Equity
Balance at December 31, 2020	$	—	$	24,613	$	(9,942)	$	(1,778)	$	5,349	$	18,242
Comprehensive income (loss):
Net loss					(512)				(154)		(666)
Other comprehensive income							10		4		14
Dividends on Class A common stock ($0.54 per share)			(436)								(436)
Distributions to GE									(127)		(127)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock			2,484				(326)		(2,158)		—
Repurchase and cancellation of Class A common stock			(101)				2		(7)		(106)
Stock-based compensation cost			153								153
Other			(25)						(13)		(38)
Balance at September 30, 2021	$	—	$	26,688	$	(10,454)	$	(2,092)	$	2,894	$	17,036

(In millions, except per share amounts)	Class A and Class B Common Stock		Capital in Excess of Par Value		Retained Loss		Accumulated Other Comprehensive Loss		Non- controlling Interests		Total Equity
Balance at June 30, 2021	$	—	$	26,253	$	(10,462)	$	(1,901)	$	3,510	$	17,400
Comprehensive income (loss):
Net income					8				8		16
Other comprehensive loss							(111)		(24)		(135)
Dividends on Class A common stock ($0.18 per share)			(156)								(156)
Distributions to GE									(32)		(32)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock			639				(82)		(557)		—
Repurchase and cancellation of Class A common stock			(101)				2		(7)		(106)
Stock-based compensation cost			51								51
Other			2						(4)		(2)
Balance at September 30, 2021	$	—	$	26,688	$	(10,454)	$	(2,092)	$	2,894	$	17,036

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 4

Baker Hughes Company

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

(In millions, except per share amounts)	Class A and Class B Common Stock		Capital in Excess of Par Value		Retained Loss		Accumulated Other Comprehensive Loss		Non- controlling Interests		Total Equity
Balance at December 31, 2019	$	—	$	23,565	$	—	$	(1,636)	$	12,570	$	34,499
Comprehensive loss:
Net loss					(10,592)				(6,120)		(16,712)
Other comprehensive loss							(81)		(52)		(133)
Dividends on Class A common stock ($0.54 per share)			(359)								(359)
Distributions to GE									(199)		(199)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock			608				(84)		(524)		—
Stock-based compensation cost			164								164
Other			(1)		(2)				(8)		(11)
Balance at September 30, 2020	$	—	$	23,977	$	(10,594)	$	(1,801)	$	5,667	$	17,249

(In millions, except per share amounts)	Class A and Class B Common Stock		Capital in Excess of Par Value		Retained Loss		Accumulated Other Comprehensive Loss		Non- controlling Interests		Total Equity
Balance at June 30, 2020	$	—	$	23,432	$	(10,424)	$	(1,771)	$	6,328	$	17,565
Comprehensive loss:
Net loss					(170)				(100)		(270)
Other comprehensive income							54		29		83
Dividends on Class A common stock ($0.18 per share)			(123)								(123)
Distributions to GE									(63)		(63)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock			608				(84)		(524)		—
Stock-based compensation cost			52								52
Other			8						(3)		5
Balance at September 30, 2020	$	—	$	23,977	$	(10,594)	$	(1,801)	$	5,667	$	17,249

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 5

Baker Hughes Company

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
(In millions)	2021		2020
Cash flows from operating activities:
Net loss	$	(666)	$	(16,712)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization	832		1,010
Loss on equity securities	955		—
Provision (benefit) for deferred income taxes	24		(265)
Property, plant and equipment impairment, net	21		290
Goodwill impairment	—		14,773
Intangible assets impairment	—		729
Inventory impairment	—		218
Loss on sale of business	—		217
Write-down of assets held for sale	—		129
Changes in operating assets and liabilities:
Current receivables	308		579
Inventories	151		(183)
Accounts payable	(10)		(670)
Progress collections and deferred income	(157)		619
Contract and other deferred assets	178		(90)
Other operating items, net	(36)		283
Net cash flows from operating activities	1,600		927
Cash flows from investing activities:
Expenditures for capital assets	(590)		(801)
Proceeds from disposal of assets	178		141
Other investing items, net	200		109
Net cash flows used in investing activities	(212)		(551)
Cash flows from financing activities:
Net repayments of debt and other borrowings	(60)		(170)
Proceeds from (repayment of) commercial paper	(832)		737
Proceeds from issuance of long-term debt	—		500
Dividends paid	(436)		(359)
Distributions to GE	(127)		(199)
Repurchase of Class A common stock	(106)		—
Other financing items, net	(24)		(15)
Net cash flows from (used in) financing activities	(1,585)		494
Effect of currency exchange rate changes on cash and cash equivalents	(9)		(58)
Increase (decrease) in cash and cash equivalents	(206)		812
Cash and cash equivalents, beginning of period	4,132		3,249
Cash and cash equivalents, end of period	$	3,926	$	4,061
Supplemental cash flows disclosures:
Income taxes paid, net of refunds	$	181	$	317
Interest paid	$	204	$	188

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 6

Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF THE BUSINESS

Baker Hughes Company (Baker Hughes, the Company, we, us, or our) is an energy technology company with a diversified portfolio of technologies and services that span the entire energy value chain. We are a holding company and have no material assets other than our 82.8% ownership interest in Baker Hughes Holdings LLC (BHH LLC) and certain intercompany and tax related balances. BHH LLC is a Securities and Exchange Commission (SEC) Registrant with separate filing requirements with the SEC and its separate financial information can be obtained from www.sec.gov.

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. and such principles, U.S. GAAP) and pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report).

We hold a majority economic interest in BHH LLC and conduct and exercise full control over all activities of BHH LLC without the approval of any other member. Accordingly, we consolidate the financial results of BHH LLC and report a noncontrolling interest in our condensed consolidated financial statements for the economic interest held by General Electric (GE). As of September 30, 2021, GE's interest in BHH LLC was 17.2%. See "Note 12. Equity" for further information.

In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated.

In the Company's financial statements and notes, certain amounts have been reclassified to conform to the current year presentation. In the notes to unaudited condensed consolidated financial statements, all dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers.

Separation related costs as reflected in our condensed consolidated statements of income (loss) include costs incurred in connection with the ongoing activities related to our separation from GE. See "Note 16. Related Party Transactions" for further information.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Please refer to "Note 1. Basis of Presentation and Summary of Significant Accounting Policies," to our consolidated financial statements from our 2020 Annual Report for the discussion of our significant accounting policies.

Cash and Cash Equivalents

As of September 30, 2021 and December 31, 2020, we had $691 million and $687 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations

Baker Hughes Company 2021 Third Quarter Form 10-Q | 7

Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S.

NEW ACCOUNTING STANDARDS TO BE ADOPTED

All new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.

NOTE 2. REVENUE RELATED TO CONTRACTS WITH CUSTOMERS

DISAGGREGATED REVENUE

We disaggregate our revenue from contracts with customers by primary geographic markets.

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Revenue	2021		2020		2021		2020
U.S.	$	1,199	$	1,032	$	3,337	$	3,330
Non-U.S.	3,894		4,017		11,680		11,880
Total	$	5,093	$	5,049	$	15,017	$	15,210

REMAINING PERFORMANCE OBLIGATIONS

As of September 30, 2021 and 2020, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.5 billion and $23.0 billion, respectively. As of September 30, 2021, we expect to recognize revenue of approximately 50%, 67% and 89% of the total remaining performance obligations within 2, 5, and 15 years, respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations.

NOTE 3. CURRENT RECEIVABLES

Current receivables are comprised of the following:

	September 30, 2021		December 31, 2020
Customer receivables	$	4,569	$	4,676
Related parties	362		429
Other	782		890
Total current receivables	5,713		5,995
Less: Allowance for credit losses	(387)		(373)
Total current receivables, net	$	5,326	$	5,622

Customer receivables are recorded at the invoiced amount. Related parties consists of amounts owed to us by GE. The "Other" category consists primarily of indirect taxes, advance payments to suppliers, other tax receivables and customer retentions.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 8

Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 4. INVENTORIES

Inventories, net of reserves of $390 million and $421 million as of September 30, 2021 and December 31, 2020, respectively, are comprised of the following:

	September 30, 2021		December 31, 2020
Finished goods	$	2,255	$	2,337
Work in process and raw materials	1,855		2,084
Total inventories, net	$	4,110	$	4,421

During the three and nine months ended September 30, 2020, we recorded inventory impairments of $42 million, predominately in our Oilfield Equipment segment, and $218 million, predominately in our Oilfield Services segment, respectively, as a result of certain restructuring activities initiated by the Company. Charges for inventory impairments are predominantly reported in the "Cost of goods sold" caption of the condensed consolidated statements of income (loss).

NOTE 5. GOODWILL AND OTHER 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, 2019, gross	$	15,676	$	4,186	$	2,171	$	2,411	$	24,444
Accumulated impairment at December 31, 2019	(2,633)		(867)		—		(254)		(3,754)
Balance at December 31, 2019	13,043		3,319		2,171		2,157		20,690
Impairment	(11,484)		(3,289)		—		—		(14,773)
Currency exchange and others	(20)		(24)		63		41		60
Balance at December 31, 2020	1,539		6		2,234		2,198		5,977
Currency exchange and others	—		(3)		(20)		61		38
Balance at September 30, 2021	$	1,539	$	3	$	2,214	$	2,259	$	6,015

We perform our annual goodwill impairment test for each of our reporting units as of July 1 of each fiscal year, in conjunction with our annual strategic planning process. Our reporting units are the same as our four reportable segments. We also test goodwill for impairment whenever events or circumstances occur which, in our judgment, could more likely than not reduce the fair value of one or more reporting units below its carrying value. Potential impairment indicators include, but are not limited to, (i) the results of our most recent annual or interim impairment testing, in particular the magnitude of the excess of fair value over carrying value observed, (ii) downward revisions to internal forecasts, and the magnitude thereof, if any, and (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, if any.

During the third quarter of 2021, we completed our annual impairment test and determined that the fair value was substantially in excess of the carrying value for each reporting unit resulting in no goodwill impairment. There can be no assurances that future sustained declines in macroeconomic or business conditions affecting our industry will not occur, which could result in goodwill impairment charges in future periods.

During the first quarter of 2020, our market capitalization declined significantly. Our closing stock price fell to a historic low of $9.33 on March 23, 2020. Over the same period, the equity value of our peer group companies and the overall U.S. stock market also declined significantly amid market volatility. In addition, the Oilfield Services Index (OSX), an indicator of investors’ view of the earnings prospects and cost of capital of the oil and gas services industry, traded at prices that were the lowest in its history. These declines were driven by the uncertainty

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

surrounding the outbreak of the coronavirus (COVID-19) and other macroeconomic events such as the geopolitical tensions between the Organization of Petroleum Exporting Countries (OPEC) and Russia, which also resulted in a significant drop in oil prices. Based on these factors, we concluded that a triggering event occurred and, accordingly, an interim quantitative impairment test was performed as of March 31, 2020. Based upon the results of our interim quantitative impairment test, we concluded that the carrying value of the Oilfield Services and Oilfield Equipment reporting units exceeded their estimated fair value as of March 31, 2020, which resulted in goodwill impairment charges of $11,484 million and $3,289 million, respectively. The goodwill impairment was calculated as the amount that the carrying value of the reporting unit, including any goodwill, exceeded its fair value.

OTHER INTANGIBLE ASSETS

Intangible assets are comprised of the following:

	September 30, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	1,944	$	(749)	$	1,195	$	2,261	$	(916)	$	1,345
Technology	1,105		(741)		364		1,127		(696)		431
Trade names and trademarks	293		(168)		125		326		(181)		145
Capitalized software	1,306		(1,062)		244		1,294		(1,041)		253
Finite-lived intangible assets	4,648		(2,720)		1,928		5,008		(2,834)		2,174
Indefinite-lived intangible assets	2,223		—		2,223		2,223		—		2,223
Total intangible assets	$	6,871	$	(2,720)	$	4,151	$	7,231	$	(2,834)	$	4,397

Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 1 to 35 years. Amortization expense for the three months ended September 30, 2021 and 2020 was $59 million and $75 million, respectively, and $193 million and $231 million for the nine months ended September 30, 2021 and 2020, respectively.

Estimated amortization expense for the remainder of 2021 and each of the subsequent five fiscal years is expected to be as follows:

Year	Estimated Amortization Expense
Remainder of 2021	$	58
2022	213
2023	200
2024	182
2025	135
2026	92

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 6. CONTRACT AND OTHER DEFERRED ASSETS

A majority of our long-term product service agreements relate to our Turbomachinery & Process Solutions segment. Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements and other deferred contract related costs. Contract assets are comprised of the following:

	September 30, 2021		December 31, 2020
Long-term product service agreements	$	644	$	660
Long-term equipment contracts (1)	909		1,160
Contract assets (total revenue in excess of billings)	1,553		1,820
Deferred inventory costs	153		138
Non-recurring engineering costs	32		43
Contract and other deferred assets	$	1,738	$	2,001

(1)Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements.

Revenue recognized during the three months ended September 30, 2021 and 2020 from performance obligations satisfied (or partially satisfied) in previous periods related to our long-term service agreements was $9 million and $(8) million, respectively, and $18 million and $22 million during the nine months ended September 30, 2021 and 2020, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract’s total estimated profitability resulting in an adjustment of earnings.

NOTE 7. PROGRESS COLLECTIONS AND DEFERRED INCOME

Contract liabilities include progress collections, which reflects billings in excess of revenue, and deferred income on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities are comprised of the following:

	September 30, 2021		December 31, 2020
Progress collections	$	3,140	$	3,352
Deferred income	123		102
Progress collections and deferred income (contract liabilities)	$	3,263	$	3,454

Revenue recognized during the three months ended September 30, 2021 and 2020 that was included in the contract liabilities at the beginning of the period was $448 million and $501 million, respectively, and $2,033 million and $1,328 million during the nine months ended September 30, 2021 and 2020, respectively.

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 8. LEASES

Our leasing activities primarily consist of operating leases for administrative offices, manufacturing facilities, research centers, service centers, sales offices and certain equipment.

	Three Months Ended September 30,				Nine Months Ended September 30,
Operating Lease Expense	2021		2020		2021		2020
Long-term fixed lease	$	64	$	71	$	192	$	213
Long-term variable lease	7		3		24		23
Short-term lease	119		102		328		382
Total operating lease expense	$	190	$	176	$	544	$	618

Cash flows used in operating activities for operating leases approximates our expense for the three and nine months ended September 30, 2021 and 2020.

The weighted-average remaining lease term as of September 30, 2021 and December 31, 2020 was approximately nine years and eight years for our operating leases, respectively. The weighted-average discount rate used to determine the operating lease liability as of September 30, 2021 and December 31, 2020 was 3.5% and 3.7%, respectively.

NOTE 9. BORROWINGS

Short-term and long-term borrowings are comprised of the following:

	September 30, 2021		December 31, 2020
Short-term borrowings
Commercial paper	$	—	$	801
Short-term borrowings from GE	11		45
Other borrowings	45		43
Total short-term borrowings	56		889
Long-term borrowings
2.773% Senior Notes due December 2022	1,249		1,247
8.55% Debentures due June 2024	119		123
3.337% Senior Notes due December 2027	1,341		1,344
6.875% Notes due January 2029	280		284
3.138% Senior Notes due November 2029	522		522
4.486% Senior Notes due May 2030	497		497
5.125% Senior Notes due September 2040	1,293		1,297
4.08% Senior Notes due December 2047	1,337		1,337
Other long-term borrowings	70		93
Total long-term borrowings	6,708		6,744
Total borrowings	$	6,764	$	7,633

The estimated fair value of total borrowings at September 30, 2021 and December 31, 2020 was $7,498 million and $8,502 million, respectively. For a majority of our borrowings the fair value was determined using quoted period-end market prices. Where market prices are not available, we estimate fair values based on valuation methodologies using current market interest rate data adjusted for our non-performance risk.

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

BHH LLC has a $3 billion committed unsecured revolving credit facility (the Credit Agreement) with commercial banks maturing in December 2024. The Credit Agreement contains certain customary representations and warranties, certain customary affirmative covenants and certain customary negative covenants. Upon the occurrence of certain events of default, BHH LLC's obligations under the Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the Credit Agreement and other customary defaults. No such events of default have occurred. At September 30, 2021 and December 31, 2020, there were no borrowings under the Credit Agreement. In addition, we have a commercial paper program under which we may issue from time to time commercial paper with maturities of no more than 397 days. As a result of the repayment of our commercial paper that matured on April 30, 2021, our authorized commercial paper program was reduced from $3.8 billion to $3 billion.

Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with BHH LLC on our long-term debt securities.  This co-obligor is a 100%-owned finance subsidiary of BHH LLC that was incorporated for the sole purpose of serving as a corporate co-obligor of long-term debt securities and has no assets or operations other than those related to its sole purpose. As of September 30, 2021, Baker Hughes Co-Obligor, Inc. is a co-obligor of our long-term debt securities totaling $6,638 million.

Certain Senior Notes contain covenants that restrict BHH LLC's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits. At September 30, 2021, we were in compliance with all debt covenants.

See "Note 16. Related Party Transactions" for additional information on the short-term borrowings from GE.

NOTE 10. EMPLOYEE BENEFIT PLANS

We have both funded and unfunded defined benefit plans which include four U.S. plans and seven non-U.S. plans, primarily in the UK, Germany, and Canada, all with plan assets or obligations greater than $20 million. We use a December 31 measurement date for these plans, and generally provide benefits to employees based on formulas recognizing length of service and earnings.

The components of net periodic cost are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Service cost	$	7	$	7	$	21	$	21
Interest cost	15		19		47		59
Expected return on plan assets	(32)		(31)		(95)		(93)
Amortization of net actuarial loss	10		9		30		25
Curtailment/settlement & other loss	1		3		1		3
Net periodic cost	$	1	$	7	$	4	$	15

The service cost component of the net periodic cost is included in operating income (loss) and all other components are included in non-operating income (loss) in our condensed consolidated statements of income (loss).

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 11. INCOME TAXES

For the three and nine months ended September 30, 2021, the provision for income taxes was $193 million and $406 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances and changes in unrecognized tax benefits related to uncertain tax positions.

For the three months ended September 30, 2020, the provision for income taxes was $6 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances, partially offset by the impact of the U.S. Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

For the nine months ended September 30, 2020, the income tax benefit was $10 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to non-deductible goodwill impairment, the geographical mix of earnings and losses, and losses with no tax benefit due to valuation allowances partially offset by the impact of the CARES Act.

NOTE 12. EQUITY

COMMON STOCK

We are authorized to issue 2 billion shares of Class A common stock, 1.25 billion shares of Class B common stock and 50 million shares of preferred stock each of which have a par value of $0.0001 per share. The number of shares of Class A common stock and Class B common stock outstanding as of September 30, 2021 is 859 million and 179 million, respectively. We have not issued any preferred stock. GE owns all the issued and outstanding Class B common stock. Each share of Class A and Class B common stock and the associated membership interest in BHH LLC form a paired interest. While each share of Class B common stock has equal voting rights to a share of Class A common stock, it has no economic rights, meaning holders of Class B common stock have no right to dividends or any assets in the event of liquidation of the Company. GE is entitled through BHH LLC common units (LLC Units) to receive distributions on an equal amount of any dividend paid by the Company.

In July 2020, GE launched a program to divest of its ownership interest in us, at its discretion, in a series of transactions over approximately three years, subject to market conditions and other factors. During the nine months ended September 30, 2021, GE's economic interest in BHH LLC was reduced to approximately 17.2% primarily as a result of the exchange of 132.7 million shares of Class B common stock, and associated LLC Units. When shares of Class B common stock, together with associated LLC Units, are exchanged for shares of Class A common stock pursuant to the Exchange Agreement, such shares of Class B common stock, together with associated LLC Units, are canceled.

On July 30, 2021, our Board of Directors authorized each of the Company and BHH LLC to repurchase up to $2 billion of its Class A common stock and LLC Units, respectively. We expect to fund the repurchase program from cash generated from operations, and we expect to make share repurchases from time to time subject to the Company's capital plan, market conditions, and other factors, including regulatory restrictions. The repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. During the three months ended September 30, 2021, the Company and BHH LLC repurchased and canceled 4.4 million shares of Class A common stock and LLC Units, respectively, each for $106 million. At September 30, 2021, the Company and BHH LLC had authorization remaining to repurchase up to approximately $1.9 billion of its Class A common stock and LLC Units, respectively.

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

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

	Class A Common Stock		Class B Common Stock
	2021	2020	2021	2020
Balance at January 1	723,999	650,065	311,433	377,428
Issue of shares upon vesting of restricted stock units (1)	4,903	3,425	—	—
Issue of shares on exercises of stock options (1)	369	5	—	—
Issue of shares for employee stock purchase plan	1,933	3,291	—	—
Exchange of Class B common stock for Class A common stock	132,706	27,988	(132,706)	(27,988)
Repurchase and cancellation of Class A common stock	(4,430)	—	—	—
Balance at September 30	859,480	684,775	178,726	349,440

(1)Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation.

ACCUMULATED OTHER COMPREHENSIVE LOSS (AOCL)

The following tables present the changes in accumulated other comprehensive loss, net of tax:

	Investment Securities		Foreign Currency Translation Adjustments		Cash Flow Hedges		Benefit Plans		Accumulated Other Comprehensive Loss
Balance at December 31, 2020	$	—	$	(1,464)	$	3	$	(317)	$	(1,778)
Other comprehensive income (loss) before reclassifications	—		(82)		(6)		47		(41)
Amounts reclassified from accumulated other comprehensive income (loss)	—		31		(7)		32		56
Deferred taxes	—		—		—		(1)		(1)
Other comprehensive income (loss)	—		(51)		(13)		78		14
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—		(9)		(2)		15		4
Less: Reallocation of AOCL based on change in ownership of LLC Units	—		269		(1)		56		324
Balance at September 30, 2021	$	—	$	(1,775)	$	(7)	$	(310)	$	(2,092)

	Investment Securities		Foreign Currency Translation Adjustments		Cash Flow Hedges		Benefit Plans		Accumulated Other Comprehensive Loss
Balance at December 31, 2019	$	1	$	(1,436)	$	6	$	(207)	$	(1,636)
Other comprehensive income (loss) before reclassifications	(2)		(101)		(5)		(56)		(164)
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		(2)		35		33
Deferred taxes	—		—		1		(3)		(2)
Other comprehensive income (loss)	(2)		(101)		(6)		(24)		(133)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(1)		(42)		(2)		(7)		(52)
Less: Reallocation of AOCL based on change in ownership of LLC Units	—		75		—		9		84
Balance at September 30, 2020	$	—	$	(1,570)	$	2	$	(233)	$	(1,801)

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

The amounts reclassified from accumulated other comprehensive loss during the nine months ended September 30, 2021 and 2020 for benefit plans represent amortization of net actuarial gain (loss) which are included in the computation of net periodic pension cost (see "Note 10. Employee Benefit Plans" for additional details) and recorded in "Other non-operating loss, net" in our condensed consolidated statements of income (loss).

NONCONTROLLING INTEREST

Noncontrolling interests represent the portion of net assets in consolidated entities that are not owned by the Company. As of September 30, 2021 and December 31, 2020, GE owned approximately 17.2% and 30.1%, respectively, of BHH LLC and this represents the majority of the noncontrolling interest balance reported within equity.

	September 30, 2021		December 31, 2020
GE's interest in BHH LLC	$	2,752	$	5,216
Other noncontrolling interests	142		133
Total noncontrolling interests	$	2,894	$	5,349

NOTE 13. EARNINGS PER SHARE

Basic and diluted net income (loss) per share of Class A common stock is presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share amounts)	2021		2020		2021		2020
Net income (loss)	$	16	$	(270)	$	(666)	$	(16,712)
Less: Net income (loss) attributable to noncontrolling interests	8		(100)		(154)		(6,120)
Net income (loss) attributable to Baker Hughes Company	$	8	$	(170)	$	(512)	$	(10,592)
Weighted average shares outstanding:
Class A basic	851		676		799		662
Class A diluted	857		676		799		662
Net income (loss) per share attributable to common stockholders:
Class A basic & diluted	$	0.01	$	(0.25)	$	(0.64)	$	(16.01)

Shares of our Class B common stock do not share in earnings or losses of the Company and are not considered in the calculation of basic or diluted earnings per share (EPS). As such, separate presentation of basic and diluted EPS of Class B under the two class method has not been presented. The basic weighted average shares outstanding for our Class B common stock for the three months ended September 30, 2021 and 2020 were 191 million and 358 million, respectively, and 242 million and 372 million for the nine months ended September 30, 2021 and 2020, respectively.

Under the Exchange Agreement between GE and us, GE is entitled to exchange its holding in our Class B common stock, and associated LLC Units, for Class A common stock on a one-for-one basis (subject to adjustment in accordance with the terms of the Exchange Agreement) or, at the option of Baker Hughes, an amount of cash equal to the aggregate value (determined in accordance with the terms of the Exchange Agreement) of the shares of Class A common stock that would have otherwise been received by GE in the exchange. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) attributable to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests associated with the Class B common stock (including any tax impact). For the three and nine months ended September 30, 2021 and 2020, such exchange is not reflected in diluted net loss per share as the assumed exchange is not dilutive.

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

For the three months ended September 30, 2021, Class A diluted shares include the dilutive impact of equity awards except for approximately 5 million options that were excluded because the exercise price exceeded the average market price of the Class A common stock and is therefore antidilutive. For the three months ended September 30, 2020 and the nine months ended September 30, 2021 and 2020, we excluded all outstanding equity awards from the computation of diluted net loss per share because their effect is antidilutive.

NOTE 14. FINANCIAL INSTRUMENTS

RECURRING FAIR VALUE MEASUREMENTS

Our assets and liabilities measured at fair value on a recurring basis consists of derivative instruments and investment securities.

	September 30, 2021								December 31, 2020
	Level 1		Level 2		Level 3		Net Balance		Level 1		Level 2		Level 3		Net Balance
Assets
Derivatives	$	—	$	19	$	—	$	19	$	—	$	118	$	—	$	118
Investment securities	403		—		9		411		1,502		—		30		1,532
Total assets	403		19		9		430		1,502		118		30		1,650
Liabilities
Derivatives	—		(30)		—		(30)		—		(52)		—		(52)
Total liabilities	$	—	$	(30)	$	—	$	(30)	$	—	$	(52)	$	—	$	(52)

There were no transfers between Level 1, 2 and 3 during the nine months ended September 30, 2021.

The following table provides a reconciliation of recurring Level 3 fair value measurements for investment securities:

	2021		2020
Balance at January 1	$	30	$	259
Purchases	—		10
Proceeds at maturity	(21)		(168)
Unrealized gains (losses) recognized in accumulated other comprehensive income (loss)	—		(3)
Balance at September 30	$	9	$	98

The most significant unobservable input used in the valuation of our Level 3 instruments is the discount rate. Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value of our investment securities. There are no unrealized gains or losses recognized in the condensed consolidated statement of income (loss) on account of any Level 3 instrument still held at the reporting date.

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

	September 30, 2021								December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investment securities
Non-U.S. debt securities (1)	$	9	$	—	$	—	$	9	$	30	$	—	$	—	$	30
Equity securities (2)	61		345		(3)		403		76		1,431		(5)		1,502
Total	$	70	$	345	$	(3)	$	411	$	106	$	1,431	$	(5)	$	1,532

(1)All of our investment securities are classified as available for sale instruments. Non-U.S. debt securities mature within one year.

(2)Gains (losses) recorded to earnings related to these securities were $(141) million and nil for the three months ended September 30, 2021 and 2020, respectively, and $(954) million and $(12) million for the nine months ended September 30, 2021 and 2020, respectively.

As of September 30, 2021 and December 31, 2020, our equity securities are comprised primarily of our investment in C3.ai, which consists of 8,650,476 and 10,813,095 shares, respectively, of C3.ai Class A common stock (C3.ai Shares), with a fair value of $401 million and $1,500 million, respectively. There were no C3.ai Shares sold during the three months ended September 30, 2021. We sold approximately 2.2 million of C3.ai Shares during the nine months ended September 30, 2021 and received proceeds of $145 million. For the three and nine months ended September 30, 2021, we recorded a loss of $140 million and $955 million, respectively, from the net change in fair value of our investment in C3.ai, which is reported in the “Other non-operating loss, net” caption in our condensed consolidated statement of income (loss). See “Note 16. Related Party Transactions” for further details on our agreements with C3.ai.

As of September 30, 2021 and December 31, 2020, $403 million and $1,514 million of total investment securities are recorded in "All other current assets" and $9 million and $18 million are recorded in "All other assets" of the condensed consolidated statements of financial position, respectively.

FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS

Our financial instruments include cash, cash equivalents, current receivables, certain investments, accounts payable, short and long-term debt, and derivative financial instruments. Except for long-term debt, the estimated fair value of these financial instruments as of September 30, 2021 and December 31, 2020 approximates their carrying value as reflected in our condensed consolidated financial statements. For further information on the fair value of our debt, see "Note 9. Borrowings."

DERIVATIVES AND HEDGING

We use derivatives to manage our risks and do not use derivatives for speculation. The table below summarizes the fair value of all derivatives, including hedging instruments and embedded derivatives.

	September 30, 2021				December 31, 2020
	Assets		Liabilities		Assets		Liabilities
Derivatives accounted for as hedges
Currency exchange contracts	$	—	$	—	$	5	$	—
Interest rate swap contracts	—		(12)		—		—
Derivatives not accounted for as hedges
Currency exchange contracts and other	19		(18)		113		(52)
Total derivatives	$	19	$	(30)	$	118	$	(52)

Derivatives are classified in condensed consolidated statements of financial position depending on their respective maturity date. As of September 30, 2021 and December 31, 2020, $18 million and $115 million of

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

derivative assets are recorded in "All other current assets" and $1 million and $3 million are recorded in "All other assets" of the condensed consolidated statements of financial position, respectively. As of September 30, 2021 and December 31, 2020, $27 million and $48 million of derivative liabilities are recorded in "All other current liabilities" and $4 million and $4 million are recorded in "All other liabilities" of the condensed consolidated statements of financial position, respectively.

FORMS OF HEDGING

Cash Flow Hedges

We use cash flow hedging primarily to reduce or eliminate the effects of foreign exchange rate changes on purchase and sale contracts. Accordingly, the vast majority of our derivative activity in this category consists of currency exchange contracts. In addition, we are exposed to interest rate risk fluctuations in connection with the planned issuance of long-term debt. During the nine months ended September 30, 2021, the Company executed interest rate swap contracts designated as cash flow hedges. These contracts are expected to mitigate interest rate risk associated with the anticipated refinancing of certain portions of long-term debt.

Changes in the fair value of cash flow hedges are recorded in a separate component of equity (referred to as Accumulated Other Comprehensive Income, or AOCI) and are recorded in earnings in the period in which the hedged transaction occurs. See "Note 12. Equity" for further information on activity in AOCI for cash flow hedges.

As of September 30, 2021 and December 31, 2020, the maximum term of derivative instruments that hedge forecasted transactions was one year.

Fair Value Hedges

All of our long-term debt is comprised of fixed rate instruments. We are subject to interest rate risk on our debt portfolio and may use interest rate swaps to manage the economic effect of fixed rate obligations associated with certain debt. Under these arrangements, we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount.

As of September 30, 2021, we had interest rate swaps with a notional amount of $500 million that converted a portion of our $1,350 million aggregate principal amount of 3.337% fixed rate Senior Notes due 2027 into a floating rate instrument with an interest rate based on a LIBOR index as a hedge of its exposure to changes in fair value that are attributable to interest rate risk. We concluded that the interest rate swap met the criteria necessary to qualify for the short-cut method of hedge accounting, and as such, an assumption is made that the change in the fair value of the hedged debt, due to changes in the benchmark rate, exactly offsets the change in the fair value of the interest rate swaps. Therefore, the derivative is considered to be effective at achieving offsetting changes in the fair value of the hedged liability, and no ineffectiveness is recognized. The mark-to-market of this fair value hedge is recorded as gains or losses in interest expense and is equally offset by the gain or loss of the underlying debt instrument, which also is recorded in interest expense.

Economic Hedges

These derivatives are not designated as hedges from an accounting standpoint (and therefore we do not apply hedge accounting to the relationship) but otherwise serve the same economic purpose as other hedging arrangements. Economic hedges are marked to fair value through earnings each period.

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

The following table summarizes the gains (losses) from derivatives not designated as hedges in the condensed consolidated statements of income (loss).

Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Currency exchange contracts (1)	Cost of goods sold	$	(2)	$	20	$	7	$	37
Currency exchange contracts	Cost of services sold	8		17		—		63
Commodity derivatives	Cost of goods sold	—		3		5		2
Other derivatives	Other non-operating loss, net	—		—		—		8
Total (2)		$	6	$	40	$	12	$	110

(1)Excludes gains of $2 million and losses of $14 million on embedded derivatives for the three months ended September 30, 2021 and 2020, respectively, and gains of $5 million and losses of $9 million during the nine months ended September 30, 2021 and 2020, respectively, as embedded derivatives are not considered to be hedging instruments in our economic hedges.

(2)The effect on earnings of derivatives not designated as hedges is substantially offset by the change in fair value of the economically hedged items in the current and future periods.

NOTIONAL AMOUNT OF DERIVATIVES

The notional amount of a derivative is the number of units of the underlying. A substantial majority of the outstanding notional amount of $5.3 billion and $7.0 billion at September 30, 2021 and December 31, 2020, respectively, is related to hedges of anticipated sales and purchases in foreign currency, commodity purchases, changes in interest rates, and contractual terms in contracts that are considered embedded derivatives and for intercompany borrowings in foreign currencies. We generally disclose derivative notional amounts on a gross basis to indicate the total counterparty risk. Where we have gross purchase and sale derivative contracts for a particular currency, we look to execute these contracts with the same counterparty to reduce our exposure. The notional amount of these derivative instruments do not generally represent cash amounts exchanged by us and the counterparties, but rather the nominal amount upon which changes in the value of the derivatives are measured.

COUNTERPARTY CREDIT RISK

Fair values of our derivatives can change significantly from period to period based on, among other factors, market movements and changes in our positions. We manage counterparty credit risk (the risk that counterparties will default and not make payments to us according to the terms of our agreements) on an individual counterparty basis.

OTHER EQUITY INVESTMENTS

As of September 30, 2021 and December 31, 2020, the carrying amount of equity securities without readily determinable fair values was $572 million and $554 million, respectively, and includes $500 million related to our five percent investment in ADNOC Drilling. These investments are recorded in "All other assets" of the condensed consolidated statements of financial position.

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 15. SEGMENT INFORMATION

Our reportable segments, which are the same as our operating segments, are organized based on the nature of markets and customers. We report our operating results through our four operating segments that consist of similar products and services within each segment. These products and services operate across upstream oil & gas and broader energy and industrial markets.

OILFIELD SERVICES (OFS)

Oilfield Services provides discrete products and integrated well services for onshore and offshore operations across the lifecycle of a well, ranging from drilling, evaluation, completion, production, and intervention. Products and services include drilling services, including directional drilling technology, measurement while drilling & logging while drilling, oilfield and industrial chemicals, artificial lift technologies, including electrical submersible pumps, downhole completion tools and systems, wellbore intervention tools and services, pressure pumping, drilling and completions fluids, wireline services and diamond and tri-cone drill bits.

OILFIELD EQUIPMENT (OFE)

Oilfield Equipment provides a broad portfolio of products and services required to facilitate the safe and reliable flow of hydrocarbons from the wellhead to the production facilities. The Oilfield Equipment portfolio has solutions for the subsea, offshore surface, and onshore operating environments. Products and services include subsea and surface pressure control and production systems and services, flexible pipe systems for offshore and onshore applications, and life-of-field solutions including well intervention, covering the entire life cycle of a field.

TURBOMACHINERY & PROCESS SOLUTIONS (TPS)

Turbomachinery & Process Solutions provides technology solutions and services for mechanical-drive, compression and power-generation applications across the energy industry, including oil and gas, liquefied natural gas (LNG) operations, downstream refining and petrochemical segments, as well as decarbonization solutions to broader energy and industrial sectors. The Turbomachinery & Process Solutions portfolio includes drivers (aero-derivative gas turbines, heavy-duty gas turbines and synchronous and induction electric motors), compressors (centrifugal and axial, direct drive high speed, integrated, subsea compressors, turbo expanders and reciprocating), turnkey solutions (industrial modules and waste heat recovery), pumps, valves, and compressed natural gas (CNG) and small-scale LNG solutions.

DIGITAL SOLUTIONS (DS)

Digital Solutions provides equipment, software, and services for a wide range of industries, including oil & gas, power generation, aerospace, metals, and transportation. The offerings include a number of products and solutions that provide industrial asset management capabilities, including sensor-based process measurement, machine health and condition monitoring, asset strategy and management, control systems, as well as non-destructive testing and inspection, and pipeline integrity solutions.

SEGMENT RESULTS

Segment revenue and profit are determined based on the internal performance measures used by the Company to assess the performance of each segment in a financial period. Summarized financial information is shown in the following tables. Consistent accounting policies have been applied by all segments within the Company, for all reporting periods.

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment revenue	2021		2020		2021		2020
Oilfield Services	$	2,419	$	2,308	$	6,976	$	7,858
Oilfield Equipment	603		726		1,867		2,133
Turbomachinery & Process Solutions	1,562		1,513		4,675		3,759
Digital Solutions	510		503		1,499		1,460
Total	$	5,093	$	5,049	$	15,017	$	15,210

The performance of our operating segments is evaluated based on segment operating income (loss), which is defined as income (loss) before income taxes before the following: net interest expense, net other non-operating income (loss), corporate expenses, restructuring, impairment and other charges, inventory impairments, separation related costs, goodwill impairments and certain gains and losses not allocated to the operating segments.

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment income (loss) before income taxes	2021		2020		2021		2020
Oilfield Services	$	190	$	93	$	505	$	345
Oilfield Equipment	14		19		45		(4)
Turbomachinery & Process Solutions	278		191		705		473
Digital Solutions	26		46		75		117
Total segment	508		349		1,330		931
Corporate	(105)		(115)		(324)		(353)
Goodwill impairment	—		—		—		(14,773)
Inventory impairment (1)	—		(42)		—		(218)
Restructuring, impairment and other	(14)		(209)		(219)		(1,637)
Separation related	(11)		(32)		(53)		(110)
Other non-operating loss, net	(102)		(149)		(791)		(367)
Interest expense, net	(67)		(66)		(205)		(195)
Income (loss) before income taxes	$	209	$	(264)	$	(260)	$	(16,722)

(1)Charges for inventory impairments are predominantly reported in the "Cost of goods sold" caption of the condensed consolidated statements of income (loss).

The following table presents depreciation and amortization by segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment depreciation and amortization	2021		2020		2021		2020
Oilfield Services	$	183	$	217	$	578	$	714
Oilfield Equipment	22		35		81		114
Turbomachinery & Process Solutions	30		33		90		87
Digital Solutions	22		24		66		73
Total segment	257		309		815		988
Corporate	5		6		17		22
Total	$	262	$	315	$	832	$	1,010

Baker Hughes Company 2021 Third Quarter Form 10-Q | 22

Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 16. RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS WITH GE

GE is our largest shareholder, and we have continuing involvement with GE primarily through their remaining interest in us and BHH LLC, ongoing purchases and sales of products and services, transition services that they provide, as well as an aeroderivative joint venture (Aero JV) we formed with GE in 2019. Until GE and its affiliates own less than 20% of the voting power of our outstanding common stock, which includes both Class A and B common stock, GE is entitled to designate one person for nomination to our board of directors. At September 30, 2021 and December 31, 2020, GE's economic interest in BHH LLC through their ownership of Class B common stock and associated LLC Units were 17.2% and 30.1%, respectively. At September 30, 2021, GE owned Class A common stock in addition to their Class B common stock, which represents their overall Baker Hughes ownership of 20.6%.

The Aero JV is jointly controlled by GE and us, and therefore, we do not consolidate the JV. We had purchases with GE and its affiliates, including the Aero JV, of $366 million and $384 million during the three months ended September 30, 2021 and 2020, respectively, and $988 million and $993 million during the nine months ended September 30, 2021 and 2020, respectively. In addition, we sold products and services to GE and its affiliates for $48 million and $46 million during the three months ended September 30, 2021 and 2020, respectively, and $136 million and $150 million during the nine months ended September 30, 2021 and 2020, respectively.

The Company has $300 million and $356 million of accounts payable at September 30, 2021 and December 31, 2020, respectively, for goods and services provided by GE in the ordinary course of business. The Company has $362 million and $429 million of current receivables at September 30, 2021 and December 31, 2020, respectively, for goods and services provided to GE in the ordinary course of business.

On July 3, 2017, we executed a promissory note with GE that represents certain cash that we are holding on GE's behalf due to the restricted nature of the cash. The restriction arises as the majority of the cash cannot be released, transferred or otherwise converted into a non-restricted market currency due to the lack of market liquidity, capital controls or similar monetary or exchange limitations by a government entity of the jurisdiction in which such cash is situated. There is no maturity date on the promissory note, but we remain obligated to repay GE, therefore, this obligation is reflected as short-term borrowings. As of September 30, 2021, of the $11 million due to GE, all was held in the form of cash. As of December 31, 2020, of the $45 million due to GE, $44 million was held in the form of cash and $1 million was held in the form of investment securities. A corresponding liability is reported in short-term debt in the condensed consolidated statements of financial position.

RELATED PARTY TRANSACTIONS WITH C3.ai

We have agreements with C3.ai under which, among other things, we received a subscription (which we refer to below as direct subscription fees) to use certain C3.ai offerings for internal use and the development of applications on the C3.ai AI Suite, as well as the right to resell C3.ai offerings worldwide on an exclusive basis in the oil and gas market and, with C3.ai's prior consent, non-exclusively in other markets, in each case subject to certain exceptions and conditions. The agreement has an expiration date in the fiscal year ending April 30, 2024 with annual contractual amounts of our minimum revenue commitment of $75 million, $125 million, and $150 million per year, which amounts are inclusive of direct subscription fees of approximately $28 million per year, over the fiscal years ending April 30, 2022, 2023, and 2024, respectively. To the extent we are unable to meet the annual minimum revenue commitment under such arrangement, we are obligated to pay C3.ai the shortfall; if we exceed the annual minimum revenue commitment, C3.ai will pay us a sales commission. Lorenzo Simonelli, Chief Executive Officer of Baker Hughes, serves as a member of the board of directors of C3.ai. See “Note 14. Financial Instruments” for further discussion of our investment in C3.ai.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 23

Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 17. COMMITMENTS AND CONTINGENCIES

LITIGATION

We are subject to legal proceedings arising in the ordinary course of our business. Because legal proceedings are inherently uncertain, we are unable to predict the ultimate outcome of such matters. We record a liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. Based on the opinion of management, we do not expect the ultimate outcome of currently pending legal proceedings to have a material adverse effect on our results of operations, financial position or cash flows. However, there can be no assurance as to the ultimate outcome of these matters.

In January 2013, INEOS and Naphtachimie initiated expertise proceedings in Aix-en-Provence, France arising out of a fire at a chemical plant owned by INEOS in Lavera, France, which resulted in a 15-day plant shutdown and destruction of a steam turbine, which was part of a compressor train owned by Naphtachimie. The most recent quantification of the alleged damages is €250 million. Two of the Company's subsidiaries (and 17 other companies) were notified to participate in the proceedings. The proceedings are ongoing, and at this time, there is no indication that the Company's subsidiaries were involved in the incident. Although the outcome of the claims remains uncertain, our insurer has accepted coverage and is defending the Company in the expertise proceeding.

On July 31, 2018, International Engineering & Construction S.A. (IEC) initiated arbitration proceedings in New York administered by the International Center for Dispute Resolution (ICDR) against the Company and its subsidiaries arising out of a series of sales and service contracts entered between IEC and the Company’s subsidiaries for the sale and installation of LNG plants and related power generation equipment in Nigeria (Contracts).  Prior to the filing of the IEC Arbitration, the Company’s subsidiaries made demands for payment due under the Contracts.  On August 15, 2018, the Company’s subsidiaries initiated a separate demand for ICDR arbitration against IEC for claims of additional costs and amounts due under the Contracts.  On October 10, 2018, IEC filed a Petition to Compel Arbitration in the United States District Court for the Southern District of New York against the Company seeking to compel non-signatory Baker Hughes entities to participate in the arbitration filed by IEC. The complaint is captioned International Engineering & Construction S.A. et al. v. Baker Hughes, a GE company, LLC, et al. No. 18-cv-09241 (S.D.N.Y 2018); this action was dismissed by the Court on August 13, 2019.  In the arbitration, IEC alleges breach of contract and other claims against the Company and its subsidiaries and seeks recovery of alleged compensatory damages, in addition to reasonable attorneys' fees, expenses and arbitration costs. On March 15, 2019, IEC amended its request for arbitration to alleged damages of $591 million of lost profits plus unspecified additional costs based on alleged non-performance of the contracts in dispute. The arbitration hearing was held from December 9, 2019 to December 20, 2019. On March 3, 2020, IEC amended their damages claim to $700 million of alleged loss cash flow or, in the alternative, $244.9 million of lost profits and various costs based on alleged non-performance of the contracts in dispute, and in addition $4.8 million of liquidated damages, $58.6 million in take-or-pay costs of feed gas, and unspecified additional costs of rectification and take-or-pay future obligations, plus unspecified interest and attorneys' fees. On May 3, 2020, the arbitration panel dismissed IEC's request for take-or-pay damages. On May 29, 2020, IEC quantified their claim for legal fees at $14.2 million and reduced their alternative claim from $244.9 million to approximately $235 million. The Company and its subsidiaries have contested IEC’s claims and are pursuing claims for compensation under the contracts. On October 31, 2020, the ICDR notified the arbitration panel’s final award, which dismissed the majority of IEC’s claims and awarded a portion of the Company’s claims. On January 27, 2021, IEC filed a petition to vacate the arbitral award in the Supreme Court of New York, County of New York. On March 5, 2021, the Company filed a petition to confirm the arbitral award, and on March 8, 2021, the Company removed the matter to the United States District Court for the Southern District of New York. At this time, we are not able to predict the outcome of these proceedings.

On March 15, 2019 and March 18, 2019, the City of Riviera Beach Pension Fund and Richard Schippnick, respectively, filed in the Delaware Court of Chancery shareholder derivative lawsuits for and on the Company’s behalf against GE, the then-current members of the Board of Directors of the Company and the Company as a nominal defendant, related to the decision to (i) terminate the contractual prohibition barring GE from selling any of the Company’s shares before July 3, 2019; (ii) repurchase $1.5 billion in the Company’s stock from GE; (iii) permit GE to sell approximately $2.5 billion in the Company’s stock through a secondary offering; and (iv) enter into a series of other agreements and amendments that will govern the ongoing relationship between the Company and

Baker Hughes Company 2021 Third Quarter Form 10-Q | 24

Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

GE  (collectively, the “2018 Transactions”). The complaints in both lawsuits allege, among other things, that GE, as the Company’s controlling stockholder, and the members of the Company’s Board of Directors breached their fiduciary duties by entering into the 2018 Transactions.  The relief sought in the complaints includes a request for a declaration that the defendants breached their fiduciary duties, that GE was unjustly enriched, disgorgement of profits, an award of damages sustained by the Company, pre- and post-judgment interest, and attorneys’ fees and costs.  On March 21, 2019, the Chancery Court entered an order consolidating the Schippnick and City of Riviera Beach complaints under consolidated C.A. No. 2019-0201-AGB, styled in re Baker Hughes, a GE company derivative litigation. On May 10, 2019, Plaintiffs voluntarily dismissed their claims against the members of the Company’s Conflicts Committee, and on May 15, 2019, Plaintiffs voluntarily dismissed their claims against former Baker Hughes director Martin Craighead. On June 7, 2019, the defendants and nominal defendant filed a motion to dismiss the lawsuit on the ground that the derivative plaintiffs failed to make a demand on the Company’s Board of Directors to pursue the claims itself, and GE and the Company’s Board of Directors filed a motion to dismiss the lawsuit on the ground that the complaint failed to state a claim on which relief can be granted. The Chancery Court denied the motions on October 8, 2019, except granted GE’s motion to dismiss the unjust enrichment claim against it. On October 31, 2019, the Company’s Board of Directors designated a Special Litigation Committee and empowered it with full authority to investigate and evaluate the allegations and issues raised in the derivative litigation. The Special Litigation Committee filed a motion to stay the derivative litigation during its investigation. On December 3, 2019, the Chancery Court granted the motion and stayed the derivative litigation until June 1, 2020. On May 20, 2020, the Chancery Court granted an extension of the stay to October 1, 2020, and on September 29, 2020, the Court granted a further extension of the stay to October 15, 2020. On October 13, 2020, the Special Litigation Committee filed its report with the Court. At this time, we are not able to predict the outcome of these claims.

In March 2019, the Company received a document request from the United States Department of Justice (the “DOJ”) related to certain of the Company’s operations in Iraq and its dealings with Unaoil Limited and its affiliates. In December 2019, the Company received a similar document request from the SEC. The Company has cooperated with the DOJ and the SEC in connection with their requests and any related matters. On September 30, 2021, the Company was informed that the matter has been closed and no enforcement action has been taken.

On August 13, 2019, Tri-State Joint Fund filed in the Delaware Court of Chancery, a shareholder class action lawsuit for and on the behalf of itself and all similarly situated public stockholders of Baker Hughes Incorporated against the General Electric Company (GE), the former members of the Board of Directors of BHI, and certain former BHI Officers alleging breaches of fiduciary duty, aiding and abetting, and other claims in connection with the combination of BHI and the oil and gas business (GE O&G) of GE (the Transactions). On October 28, 2019, City of Providence filed in the Delaware Court of Chancery a shareholder class action lawsuit for and on behalf of itself and all similarly situated public shareholders of BHI against GE, the former members of the Board of Directors of BHI, and certain former BHI Officers alleging substantially the same claims in connection with the Transactions. The relief sought in these complaints include a request for a declaration that Defendants breached their fiduciary duties, an award of damages, pre- and post-judgment interest, and attorneys’ fees and costs. The lawsuits have been consolidated, and plaintiffs filed a consolidated class action complaint on December 17, 2019 against certain former BHI officers alleging breaches of fiduciary duty and against GE for aiding and abetting those breaches. The December 2019 complaint omitted the former members of the Board of Directors of BHI, except for Mr. Craighead who also served as President and CEO of BHI. Mr. Craighead and Ms. Ross, who served as Senior Vice President and Chief Financial Officer of BHI, remain named in the December 2019 complaint along with GE. The relief sought in the consolidated complaint includes a declaration that the former BHI officers breached their fiduciary duties and that GE aided and abetted those breaches, an award of damages, pre- and post-judgment interest, and attorneys’ fees and costs. On or around February 12, 2020, the defendants filed motions to dismiss the lawsuit on the grounds that the complaint failed to state a claim on which relief could be granted. On or around October 27, 2020, the Chancery Court granted GE’s motion to dismiss, and granted in part the motion to dismiss filed by Mr. Craighead and Ms. Ross, thereby dismissing all of the claims against GE and Ms. Ross, and all but one of the claims against Mr. Craighead. At this time, we are not able to predict the outcome of the remaining claim.

On December 11, 2019, BMC Software, Inc. (“BMC”) filed a lawsuit in federal court in the Southern District of Texas against Baker Hughes, a GE company, LLC alleging trademark infringement, unfair competition, and unjust enrichment, arising out of the Company’s use of its new logo and affiliated branding. On January 1, 2020, BMC amended its complaint to add Baker Hughes Company. The relief sought in the complaint includes a request for

Baker Hughes Company 2021 Third Quarter Form 10-Q | 25

Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

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. While the Company’s review remains ongoing, in September 2021, the Company voluntarily informed the Office of Foreign Assets Control (OFAC) that non-U.S. Baker Hughes affiliates in two foreign countries appear to have received payments, involving U.S. touchpoints, that are subject to debt restrictions pursuant to applicable U.S. sanctions laws. Although the value of the payments in connection with the identified transactions is immaterial, the Company is unable to determine at this time if any remedial or other actions may be taken by OFAC. The Company provided a copy of the letter to the SEC, and, as the SEC investigation is ongoing, the Company cannot anticipate the timing, outcome or possible impact of the investigation or review, financial or otherwise.

We insure against risks arising from our business to the extent deemed prudent by our management and to the extent insurance is available, but no assurance can be given that the nature and amount of that insurance will be sufficient to fully indemnify us against liabilities arising out of pending or future legal proceedings or other claims. Most of our insurance policies contain deductibles or self-insured retentions in amounts we deem prudent and for which we are responsible for payment. In determining the amount of self-insurance, it is our policy to self-insure those losses that are predictable, measurable and recurring in nature, such as claims for automobile liability, general liability and workers compensation.

OTHER

In the normal course of business with customers, vendors and others, we have entered into off-balance sheet arrangements, such as surety bonds for performance, letters of credit and other bank issued guarantees. We also provide guarantees to GE Capital on behalf of some customers who have entered into financing arrangements with GE Capital. Total off-balance sheet arrangements were approximately $4.5 billion at September 30, 2021. It is not practicable to estimate the fair value of these financial instruments. None of the off-balance sheet arrangements either has, or is likely to have, a material effect on our financial position, results of operations or cash flows.

We sometimes enter into consortium or similar arrangements for certain projects primarily in our Oilfield Equipment segment.  Under such arrangements, each party is responsible for performing a certain scope of work within the total scope of the contracted work, and the obligations expire when all contractual obligations are completed.  The failure or inability, financially or otherwise, of any of the parties to perform their obligations could impose additional costs and obligations on us. These factors could result in unanticipated costs to complete the project, liquidated damages or contract disputes.

NOTE 18. RESTRUCTURING, IMPAIRMENT AND OTHER

We recorded restructuring, impairment and other charges of $14 million and $209 million during the three months ended September 30, 2021 and 2020, respectively, and $219 million and $1,637 million during the nine months ended September 30, 2021 and 2020, respectively. Charges incurred in 2021 are primarily related to the continuation of our overall strategy to right-size our structural costs for the year-over-year change in activity levels and market conditions. Details of these charges are discussed below.

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Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

RESTRUCTURING AND IMPAIRMENT

The following table presents restructuring and impairment charges by the impacted segment, however, these charges are not included in the reported segment results:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Oilfield Services	$	14	$	144	$	119	$	453
Oilfield Equipment	3		21		4		121
Turbomachinery & Process Solutions	(3)		7		11		27
Digital Solutions	—		18		3		52
Corporate	—		1		7		15
Total	$	14	$	191	$	144	$	668

Restructuring and impairment charges were primarily related to employee termination expenses from reducing our headcount in certain geographical locations, and product line rationalization, including facility closures and related expenses such as property, plant & equipment impairments and contract termination fees. The table below includes any gains on the dispositions of certain property, plant & equipment previously impaired as a consequence of exit activities. Details of these charges are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Property, plant & equipment, net	$	(1)	$	65	$	21	$	214
Employee-related termination expenses	1		108		94		406
Contract termination fees	3		1		4		23
Other incremental costs	11		17		25		25
Total	$	14	$	191	$	144	$	668

OTHER

During the three months ended September 30, 2021, there were no other charges incurred. During the nine months ended September 30, 2021, we incurred other charges of $75 million. During the three and nine months ended September 30, 2020, we incurred other charges of $18 million and $969 million, respectively.

Charges for the nine months ended September 30, 2021 were primarily related to certain litigation matters in our TPS segment and the release of foreign currency translation adjustments for certain restructured product lines in our DS segment.

Charges for the nine months ended September 30, 2020 were comprised of intangible asset impairments of $605 million driven by our decision to exit certain businesses primarily in our OFS segment, other long-lived asset impairments of $216 million ($124 million of intangible assets, $77 million of property, plant and equipment and $15 million of other assets) in our OFE segment and other charges of $73 million driven by certain litigation matters and impairment of an equity method investment primarily in corporate and the OFE segment, and charges related to corporate facility rationalization.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 27

Baker Hughes Company

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 19. ASSETS AND LIABILITIES OF BUSINESS HELD FOR SALE

In March 2021, we announced that we entered into an agreement with Akastor ASA to create a joint venture company (JV Company) to deliver global offshore drilling solutions. The JV Company will be known as HMH and owned 50-50 by Baker Hughes and Akastor ASA. Consequently, on October 1, 2021, we closed the transaction and contributed our subsea drilling systems (SDS) business, a division of our Oilfield Equipment segment, to the JV Company and received as consideration 50% of the shares of the JV Company and $200 million cash of which $120 million was paid at the time of closing. The JV Company issued notes to Baker Hughes for $80 million representing the balance of the consideration owed that will be subordinated to the JV Company’s external debt financing. Our ongoing operations in the JV Company will not be integral to our operations. The Company's interest in the JV Company will be accounted for as an equity method investment.

As of September 30, 2021, the SDS business was classified as held for sale and measured and reported at the lower of its carrying amount or fair value less costs to sell. Based on our preliminary estimates, the carrying value is expected to approximate the fair value less costs to sell, which would include deal costs and foreign currency translation adjustments associated with this business. The following table presents financial information related to the assets and liabilities of the SDS business being contributed to the JV Company that are classified as held for sale and reported in "All other current assets" and "All other current liabilities" in our condensed consolidated statement of financial position as of September 30, 2021.

Assets and liabilities of business held for sale	September 30, 2021
Assets
Current assets (1)	$	122
Property, plant and equipment	108
Intangible assets	122
All other assets	56
Total assets	408
Liabilities
Current liabilities	48
All other liabilities	6
Total liabilities	54
Total carrying amount of net assets contributed	$	354

(1)On the closing date, we contributed cash in lieu of customer receivables, which was incremental to the assets held for sale detailed in the table above.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 28

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the condensed consolidated financial statements and the related notes included in Item 1 thereto.

EXECUTIVE SUMMARY

We are an energy technology company with a broad and diversified portfolio of technologies and services that span the energy and industrial value chain. We conduct business in more than 120 countries and employ approximately 54,000 employees. We operate through our four business segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). We sell products and services primarily in the global oil and gas markets, within the upstream, midstream and downstream segments.

In 2020, the industry experienced multiple factors which drove expectations for global oil and gas related spending to be lower. The COVID-19 pandemic lowered global demand for hydrocarbons, as social distancing and travel restrictions were implemented across the world.

The health and safety of our employees continues to be a top priority. Throughout the COVID-19 pandemic, we have utilized remote working where possible, limited travel, and implemented rigorous safety protocols at our sites including pre-entry screenings, social distancing, and face coverings. As conditions improve in certain locations, we are starting to return additional employees to offices/worksites and enabling opportunities for more in-person engagements where it is safe to do so. We are also closely monitoring the evolving dynamics and vaccine situation, and will adjust our protocols as needed to continue protecting our employees and delivering for our customers, in alignment with all associated requirements.

As we look at the macro environment in 2021 and into 2022, the global economy continues to recover from the impact of the global pandemic. However, the pace of growth is being constrained by effects from variant strains of the COVID-19 virus, global chip shortages, supply chain challenges, and energy supply constraints in multiple parts of the world. Despite these headwinds, global growth appears to be on relatively solid footing, underpinning a favorable outlook for the oil market, aided by continued spending discipline by the world’s largest producers. In the natural gas and liquefied natural gas (LNG) markets, fundamentals remain strong with a combination of solid demand growth and extremely tight supply in many parts of the world. We anticipate future demand improving as governments around the world accelerate the transition towards cleaner sources of energy. Outside of the oil and gas industry, the focus on cleaner energy sources and technology to decarbonize resource-intensive industries continue to accelerate. In the U.S., Europe, and Asia, various projects around wind, solar, and green and blue hydrogen are moving forward, as well as a number of carbon capture projects.

In the third quarter of 2021, we took steps to accelerate our strategy and to view our company in two broad business areas: Oilfield Services & Equipment and Industrial Energy Technology to better position Baker Hughes for today and in the coming years. We believe that focusing on two major business areas with close alignment will enhance our flexibility, improve execution, and provide long-term optionality as the energy markets evolve.

On the Oilfield Services & Equipment side of the Company, we have a technology-leading global enterprise with core strengths in drilling services, high-end completion tools, flexible pipe, artificial lift, and production and downstream chemicals. Oilfield Services & Equipment is poised to benefit from cyclical growth in the coming years as we believe that we are in the early stages of a broad based, multi-year recovery that will be characterized by longer term investments into the core OPEC+ countries.

Industrial Energy Technology is our TPS and DS businesses. Both product companies have compelling portfolios that are beginning to see significant secular growth opportunities, particularly in areas such as hydrogen and carbon capture, utilization and storage (CCUS). With core competencies across a number of offerings like power generation, compression, and condition monitoring, as well as a growing presence in flow control, industrial asset management and digital, we have a strong foundation on which to build an even more comprehensive presence in the broad industrial energy technology markets.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 29

In the third quarter of 2021, we generated revenue of $5,093 million compared to $5,049 million in the third quarter of 2020. The increase in revenue was driven by higher volume in the OFS, TPS and DS segments, partially offset by lower activity in the OFE segment. Income before income taxes was $209 million for the third quarter of 2021, which included restructuring, impairment and other charges of $14 million and separation related costs of $11 million. In the third quarter of 2020, loss before income taxes was $264 million, which included the write-down of assets held for sale of $129 million, restructuring, impairment and other charges of $209 million, separation related costs of $32 million, and inventory impairments of $42 million.

OUTLOOK

Our business is exposed to a number of different macro factors, which influence our outlook and expectations given the volatile conditions in the industry. All of our outlook expectations are purely based on the market as we see it today, and are subject to changing conditions in the industry.

•North America onshore activity: we expect North America onshore activity to continue to improve in the fourth quarter of 2021 as compared to the third quarter of 2021 along with further growth in 2022 should commodity prices remain at current levels.

•International onshore activity: we expect international activity to continue to improve in the fourth quarter of 2021 across a broad range of markets compared to the third quarter of 2021 with further growth in 2022 should commodity prices remain at current levels.

•Offshore projects: we expect the offshore markets to stabilize in 2021 and for the number of tree awards in the market to remain stable or grow modestly compared to 2020 levels. Looking ahead to 2022, we expect a modest recovery in offshore activity.

•LNG projects: we remain optimistic on the LNG market long-term and view natural gas as a transition and destination fuel. We continue to view the long-term economics of the LNG industry as positive.

We have other segments in our portfolio that are more correlated with various industrial metrics, including GDP, such as our Digital Solutions segment.

We also have segments within our portfolio that are exposed to new energy solutions, specifically focused around decarbonization of energy and industry, including hydrogen, geothermal, CCUS, and energy storage. We expect to see continued growth in these segments as new energy solutions become a more prevalent part of the broader energy mix.

Overall, we believe our portfolio is well positioned to compete across the energy value chain and deliver comprehensive solutions for our customers. We remain optimistic about the long-term economics of the industry, but we are continuing to operate with flexibility given our expectations for volatility and changing activity levels in the near term. While governments may change or discontinue incentives for renewable energy additions, we do not anticipate any significant impacts to our business in the foreseeable future.

Over time, we believe the world’s demand for energy will continue to rise, and that hydrocarbons will play a major role in meeting the world's energy needs for the foreseeable future. As such, we remain focused on delivering innovative, cost-efficient solutions that deliver step changes in operating and economic performance for our customers.

BUSINESS ENVIRONMENT

The following discussion and analysis summarizes the significant factors affecting our results of operations, financial condition and liquidity position as of and for the three and nine months ended September 30, 2021 and 2020, and should be read in conjunction with the condensed consolidated financial statements and related notes of the Company.

We operate in more than 120 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. Our revenue is predominately generated from the sale of products and services to major, national, and independent oil and natural gas companies worldwide, and is dependent on spending by our customers for oil and natural gas exploration, field development and production. This spending is driven by a number of factors, including our customers' forecasts of future energy demand and supply, their access to resources

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to develop and produce oil and natural gas, their ability to fund their capital programs, the impact of new government regulations and most importantly, their expectations for oil and natural gas prices as a key driver of their cash flows.

Oil and Natural Gas Prices

Oil and natural gas prices are summarized in the table below as averages of the daily closing prices during each of the periods indicated.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Brent oil price ($/Bbl) (1)	$	73.51	$	42.91	$	67.89	$	41.15
WTI oil price ($/Bbl) (2)	70.58		40.89		65.05		38.04
Natural gas price ($/mmBtu) (3)	4.35		2.00		3.61		1.87

(1)Energy Information Administration (EIA) Europe Brent Spot Price per Barrel

(2)EIA Cushing, OK WTI (West Texas Intermediate) spot price

(3)EIA Henry Hub Natural Gas Spot Price per million British Thermal Unit

Oil and natural gas prices increased during the three and nine months ended September 30, 2021 largely driven by increased demand as a result of the global recovery from the COVID-19 pandemic which has outpaced a constrained supply.

Outside North America, customer spending is most heavily influenced by Brent oil prices, which increased from the same quarter last year, ranging from a low of $65.51/Bbl in August 2021 to a high of $78.85/Bbl in September 2021. For the nine months ended September 30, 2021, Brent oil prices averaged $67.89/Bbl, which represented an increase of $26.74/Bbl from the same period last year.

In North America, customer spending is highly driven by WTI oil prices, which increased from the same quarter last year. Overall, WTI oil prices ranged from a low of $62.25/Bbl in August 2021 to a high of $75.54/Bbl in September 2021. For the nine months ended September 30, 2021, WTI oil prices averaged $65.05/Bbl, which represented an increase of $27.01/Bbl from the same period last year.

In North America, natural gas prices, as measured by the Henry Hub Natural Gas Spot Price, averaged $4.35/mmBtu in the third quarter of 2021, representing a 118% increase from the same quarter in the prior year. Throughout the quarter, Henry Hub Natural Gas Spot Prices ranged from a low of $3.56/mmBtu in July 2021 to a high of $5.94/mmBtu in September 2021.

Baker Hughes Rig Count

The Baker Hughes rig counts are an important business barometer for the drilling industry and its suppliers. When drilling rigs are active they consume products and services produced by the oil service industry. Rig count trends are driven by the exploration and development spending by oil and natural gas companies, which in turn is influenced by current and future price expectations for oil and natural gas. The counts may reflect the relative strength and stability of energy prices and overall market activity; however, these counts should not be solely relied on as other specific and pervasive conditions may exist that affect overall energy prices and market activity.

We have been providing rig counts to the public since 1944. We gather all relevant data through our field service personnel, who obtain the necessary data from routine visits to the various rigs, customers, contractors and other outside sources as necessary. We base the classification of a well as either oil or natural gas primarily upon filings made by operators in the relevant jurisdiction. This data is then compiled and distributed to various wire services and trade associations and is published on our website. We believe the counting process and resulting data is reliable; however, it is subject to our ability to obtain accurate and timely information. Rig counts are compiled weekly for the U.S. and Canada and monthly for all international rigs. Published international rig counts

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do not include rigs drilling in certain locations, such as Russia, the Caspian region, and onshore China because this information is not readily available.

Rigs in the U.S. and Canada are counted as active if, on the day the count is taken, the well being drilled has been started but drilling has not been completed and the well is anticipated to be of sufficient depth to be a potential consumer of our drill bits. In international areas, rigs are counted on a weekly basis and deemed active if drilling activities occurred during the majority of the week. The weekly results are then averaged for the month and published accordingly. The rig count does not include rigs that are in transit from one location to another, rigging up, being used in non-drilling activities including production testing, completion and workover, and are not expected to be significant consumers of drill bits.

The rig counts are summarized in the table below as averages for each of the periods indicated.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021	2020	% Change		2021	2020	% Change
North America	647	301	115	%	570	566	1	%
International	770	729	6	%	735	877	(16)	%
Worldwide	1,417	1,030	38	%	1,305	1,443	(10)	%

The worldwide rig count was 1,417 for the third quarter of 2021, an increase of 38% as compared to the same period last year due primarily to an increase in North America.

Within North America, the increase was primarily driven by the Canada rig count, which was up 220% when compared to the same period last year, and an increase in the U.S. rig count, which was up 95% when compared to the same period last year. Internationally, the rig count increase was driven by increases in the Latin America and Africa regions of 78% and 28%, respectively.

The worldwide rig count was 1,305 for the nine months ended September 30, 2021, a decrease of 10% as compared to the same period last year. Within North America, the rig count was relatively flat primarily driven by the land rig count, which was up 1%, and a decrease in the offshore rig count of 19%. Internationally, the rig count decline was driven by decreases in the Middle East and Africa regions of 29% and 21%, respectively.

RESULTS OF OPERATIONS

The discussions below relating to significant line items from our condensed consolidated statements of income (loss) are based on available information and represent our analysis of significant changes or events that impact the comparability of reported amounts. Where appropriate, we have identified specific events and changes that affect comparability or trends and, where reasonably practicable, have quantified the impact of such items. All dollar amounts in tabulations in this section are in millions of dollars, unless otherwise stated. Certain columns and rows may not add due to the use of rounded numbers.

Our condensed consolidated statement of income (loss) displays sales and costs of sales in accordance with SEC regulations under which "goods" is required to include all sales of tangible products and "services" must include all other sales, including other service activities. For the amounts shown below, we distinguish between "equipment" and "product services", where product services refer to sales under product services agreements, including sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenance and repairs), which is an important part of our operations. We refer to "product services" simply as "services" within the Business Environment section of Management's Discussion and Analysis.

The performance of our operating segments is evaluated based on segment operating income (loss), which is defined as income (loss) before income taxes and before the following: net interest expense, net other non-operating income (loss), corporate expenses, restructuring, impairment and other charges, goodwill impairments, inventory impairments, separation related costs, and certain gains and losses not allocated to the operating segments.

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In evaluating the segment performance, the Company primarily uses the following:

Volume: Volume is the increase or decrease in products and/or services sold period-over-period excluding the impact of foreign exchange and price. The volume impact on profit is calculated by multiplying the prior period profit rate by the change in revenue volume between the current and prior period. It also includes price, defined as the change in sales price for a comparable product or service period-over-period and is calculated as the period-over-period change in sales prices of comparable products and services.

Foreign Exchange (FX): FX measures the translational foreign exchange impact, or the translation impact of the period-over-period change on sales and costs directly attributable to change in the foreign exchange rate compared to the U.S. dollar. FX impact is calculated by multiplying the functional currency amounts (revenue or profit) with the period-over-period FX rate variance, using the average exchange rate for the respective period.

(Inflation)/Deflation: (Inflation)/deflation is defined as the increase or decrease in direct and indirect costs of the same type for an equal amount of volume. It is calculated as the year-over-year change in cost (i.e. price paid) of direct material, compensation & benefits and overhead costs.

Productivity: Productivity is measured by the remaining variance in profit, after adjusting for the period-over-period impact of volume & price, foreign exchange and (inflation)/deflation as defined above. Improved or lower period-over-period cost productivity is the result of cost efficiencies or inefficiencies, such as cost decreasing or increasing more than volume, or cost increasing or decreasing less than volume, or changes in sales mix among segments. This also includes the period-over-period variance of transactional foreign exchange, aside from those foreign currency devaluations that are reported separately for business evaluation purposes.

Orders and Remaining Performance Obligations

Orders: For the nine months ended September 30, 2021, we recognized orders of $15.0 billion, a decrease of $0.5 billion, or 3%, from the nine months ended September 30, 2020. For the three months ended September 30, 2021, we recognized orders of $5.4 billion, an increase of $0.3 billion, or 5%, from the three months ended September 30, 2020. Service orders were up 18% and equipment orders were down 7%. The increase in orders was driven by OFE, OFS and DS, partially offset by TPS.

Remaining Performance Obligations (RPO): As of September 30, 2021, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.5 billion.

Revenue and Operating Income (Loss)

Revenue and operating income (loss) for each of our four operating segments is provided below.

	Three Months Ended September 30,				$ Change		Nine Months Ended September 30,				$ Change
	2021		2020				2021		2020
Segment revenue:
Oilfield Services	$	2,419	$	2,308	$	111	$	6,976	$	7,858	$	(882)
Oilfield Equipment	603		726		(123)		1,867		2,133		(266)
Turbomachinery & Process Solutions	1,562		1,513		49		4,675		3,759		916
Digital Solutions	510		503		7		1,499		1,460		39
Total	$	5,093	$	5,049	$	44	$	15,017	$	15,210	$	(193)

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	Three Months Ended September 30,				$ Change		Nine Months Ended September 30,				$ Change
	2021		2020				2021		2020
Segment operating income (loss):
Oilfield Services	$	190	$	93	$	97	$	505	$	345	$	160
Oilfield Equipment	14		19		(5)		45		(4)		49
Turbomachinery & Process Solutions	278		191		87		705		473		232
Digital Solutions	26		46		(20)		75		117		(42)
Total segment operating income	508		349		159		1,330		931		399
Corporate	(105)		(115)		10		(324)		(353)		29
Goodwill impairment	—		—		—		—		(14,773)		14,773
Inventory impairment	—		(42)		42		—		(218)		218
Restructuring, impairment and other	(14)		(209)		195		(219)		(1,637)		1,418
Separation related	(11)		(32)		21		(53)		(110)		57
Operating income (loss)	378		(49)		427		736		(16,160)		16,896
Other non-operating loss, net	(102)		(149)		47		(791)		(367)		(424)
Interest expense, net	(67)		(66)		(1)		(205)		(195)		(10)
Income (loss) before income taxes	209		(264)		473		(260)		(16,722)		16,462
Benefit (provision) for income taxes	(193)		(6)		(187)		(406)		10		(416)
Net income (loss)	$	16	$	(270)	$	286	$	(666)	$	(16,712)	$	16,046

Segment Revenues and Segment Operating Income (Loss)

Third Quarter of 2021 Compared to the Third Quarter of 2020

Revenue increased $44 million, or 1%, driven by higher volume in OFS, TPS and DS, partially offset by lower volume in OFE. OFS increased $111 million, TPS increased $49 million and DS increased $7 million, partially offset by OFE which decreased $123 million.

Total segment operating income increased $159 million. The increase was driven by OFS which increased $97 million and TPS which increased $87 million, partially offset by DS which decreased $20 million and OFE which decreased $5 million.

Oilfield Services

OFS revenue of $2,419 million increased $111 million, or 5%, in the third quarter of 2021 compared to the third quarter of 2020, as a result of increased activity in North America, as evidenced by an increase in the North America rig count. North America revenue was $714 million in the third quarter of 2021, an increase of $155 million from the third quarter of 2020. International revenue was $1,705 million in the third quarter of 2021, a decrease of $44 million from the third quarter of 2020, mainly driven by the Middle East region. OFS revenue growth was affected by Hurricane Ida and supply chain-related shipment delays in the quarter.

OFS segment operating income was $190 million in the third quarter of 2021 compared to $93 million in the third quarter of 2020, primarily driven by higher volume and increased cost productivity as a result of cost efficiencies and restructuring actions, partially offset by commodity cost inflation.

Oilfield Equipment

OFE revenue of $603 million decreased $123 million, or 17%, in the third quarter of 2021 compared to the third quarter of 2020. The decrease was primarily driven by lower volume in the subsea production systems and surface pressure control projects businesses, and from the disposition of the surface pressure control flow business in the fourth quarter of 2020, partially offset by higher volume in the services and flexible pipe businesses.

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OFE segment operating income was $14 million in the third quarter of 2021 compared to segment operating income of $19 million in the third quarter of 2020. The decrease in income was primarily driven by lower volume.

Turbomachinery & Process Solutions

TPS revenue of $1,562 million increased $49 million, or 3%, in the third quarter of 2021 compared to the third quarter of 2020. The increase was driven by higher equipment and services volume. Equipment revenue was up 2% and service revenue was up 4% when compared to the prior year. Equipment revenue in the quarter represented 45% and service revenue represented 55% of total segment revenue.

TPS segment operating income was $278 million in the third quarter of 2021 compared to $191 million in the third quarter of 2020. The increase in income was driven primarily by higher volume and increased cost productivity.

Digital Solutions

DS revenue of $510 million increased $7 million, or 1%, in the third quarter of 2021 compared to the third quarter of 2020, mainly driven by higher volume across the Process & Pipeline Services and Waygate Technologies businesses, partially offset by declines in the Nexus Control and Bently Nevada businesses. DS revenue growth was affected by supply chain constraints that impacted product deliveries.

DS segment operating income was $26 million in the third quarter of 2021 compared to $46 million in the third quarter of 2020. The decrease in profitability was primarily driven by lower cost productivity and unfavorable business mix.

Corporate

In the third quarter of 2021, corporate expenses were $105 million compared to $115 million in the third quarter of 2020. The decrease of $10 million was primarily driven by lower expenses related to cost efficiencies and restructuring actions.

Restructuring, Impairment and Other

In the third quarter of 2021, we recognized $14 million of restructuring, impairment and other items, compared to $209 million in the third quarter of 2020. The charges in the third quarter of 2021 primarily relate to initiatives in our OFS segment that are the continuation of our overall strategy to right-size our structural costs. The charges in the third quarter of 2020 primarily related to the continuation of activities from our first quarter 2020 restructuring plan.

Other Non-Operating Loss, Net

In the third quarter of 2021, we incurred $102 million of other non-operating losses. Included in this amount was a loss of $140 million related to marking our investment in C3.ai to fair value. For the third quarter of 2020, we incurred $149 million of other non-operating losses. Included in this amount was a loss of $129 million related to the disposition of our surface pressure control flow business.

Interest Expense, Net

In the third quarter of 2021, we incurred interest expense, net of interest income, of $67 million, which increased $1 million compared to the third quarter of 2020, primarily driven by lower interest income.

Income Taxes

In the third quarter of 2021, the provision for income taxes was $193 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances and changes in unrecognized tax benefits related to uncertain tax positions.

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In the third quarter of 2020, the income tax expense was $6 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowance, partially offset by the impact of the U.S. Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

The First Nine Months of 2021 Compared to the First Nine Months of 2020

Revenue decreased $193 million, or 1%, primarily driven by lower volume in OFS and OFE, partially offset by higher volume in TPS and DS. OFS decreased $882 million and OFE decreased $266 million, partially offset by TPS which increased $916 million and DS which increased $39 million.

Total segment operating income increased $399 million. The increase was driven by TPS which increased $232 million, OFS which increased $160 million, and OFE which increased $49 million, partially offset by DS which decreased $42 million.

Oilfield Services

OFS revenue of $6,976 million decreased $882 million, or 11%, in the first nine months of 2021 compared to the first nine months of 2020, as a result of decreased activity internationally and in North America as evidenced by the decrease in the worldwide rig count. North America revenue was $2,031 million in the first nine months of 2021, a decrease of $150 million from the first nine months of 2020. International revenue was $4,945 million in the first nine months of 2021, a decrease of $732 million from the first nine months of 2020, mainly driven by the Middle East region.

OFS segment operating income was $505 million in the first nine months of 2021 compared to $345 million in the first nine months of 2020. The increase in income was primarily driven by increased cost productivity as a result of cost efficiencies and restructuring actions, partially offset by lower volume and unfavorable business mix.

Oilfield Equipment

OFE revenue of $1,867 million decreased $266 million, or 12%, in the first nine months of 2021 compared to the first nine months of 2020. The decrease was primarily driven by lower volume in the subsea drilling systems and surface pressure control projects businesses, and from the disposition of the surface pressure control flow business in the fourth quarter of 2020, partially offset by higher volume in the flexible pipe business.

OFE segment operating income was $45 million in the first nine months of 2021 compared to segment operating loss of $4 million in the first nine months of 2020. The increase in income was primarily driven by increased cost productivity from our cost-out programs.

Turbomachinery & Process Solutions

TPS revenue of $4,675 million increased $916 million, or 24%, in the first nine months of 2021 compared to the first nine months of 2020. The increase was primarily driven by higher equipment volume. Equipment revenue was up 50% and service revenue was up 8% when compared to the prior year. Equipment revenue in the period represented 47% and service revenue represented 53% of total segment revenue.

TPS segment operating income was $705 million in the first nine months of 2021 compared to $473 million in the first nine months of 2020. The increase in income was driven primarily by higher volume and increased cost productivity, partially offset by unfavorable business mix.

Digital Solutions

DS revenue of $1,499 million increased $39 million, or 3%, in the first nine months of 2021 compared to the first nine months of 2020, mainly driven by volume increases in Process & Pipeline Services and Waygate Technologies, partially offset by declines in the Nexus Controls business.

DS segment operating income was $75 million in the first nine months of 2021 compared to $117 million in the first nine months of 2020. The decrease in profitability was primarily driven by decreased cost productivity.

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Corporate

In the first nine months of 2021, corporate expenses were $324 million compared to $353 million in the first nine months of 2020. The decrease of $29 million was primarily driven by lower expenses related to cost efficiencies and restructuring actions.

Goodwill Impairment

In the first quarter of 2020, the Company’s market capitalization declined significantly driven by macroeconomic and geopolitical conditions including the decrease in demand caused by the COVID-19 pandemic and collapse of oil prices driven by both surplus production and supply. Based on these events, we performed an interim quantitative impairment test as of March 31, 2020. Based upon the results of the impairment test, we recognized a goodwill impairment charge of $14,773 million during the first quarter of 2020.

Restructuring, Impairment and Other

In the first nine months of 2021, we recognized $219 million of restructuring, impairment and other charges, primarily related to initiatives in our OFS segment that are the continuation of our overall strategy to right-size our structural costs. For the first nine months of 2020, we recognized $1,637 million of restructuring, impairment and other charges, primarily related to product line rationalization and headcount reductions in certain geographical locations to align our workforce with expected activity levels and market conditions.

Other Non-Operating Loss, Net

In the first nine months of 2021, we incurred $791 million of other non-operating losses. Included in this amount were losses of $955 million related to marking our investment in C3.ai to fair value, partially offset by the reversal of current accruals of $121 million due to the settlement of certain legal matters. For the first nine months of 2020, we incurred $367 million of other non-operating losses. Included in this amount was a loss of $217 million related to the sale of our rod lift systems business in the second quarter of 2020, and a loss of $129 million related to the disposition of our surface pressure control flow business.

Interest Expense, Net

In the first nine months of 2021, we incurred interest expense, net of interest income, of $205 million, which increased $10 million compared to the first nine months of 2020, driven by lower interest income.

Income Taxes

In the first nine months of 2021, the provision for income taxes was $406 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances and changes in unrecognized tax benefits related to uncertain tax positions.

In the first nine months of 2020, the income tax benefit was $10 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to non-deductible goodwill impairment, the geographical mix of earnings and losses with no tax benefit due to valuation allowances, partially offset by the impact of the CARES act.

LIQUIDITY AND CAPITAL RESOURCES

Our objective in financing our business is to maintain sufficient liquidity, adequate financial resources and financial flexibility in order to fund the requirements of our business. Despite the challenging dynamics since the first quarter of 2020, we continue to maintain solid financial strength and liquidity. At September 30, 2021, we had cash and cash equivalents of $3.9 billion compared to $4.1 billion at December 31, 2020. Our liquidity is further supported by a revolving credit facility of $3 billion, and access to both commercial paper and uncommitted lines of credit. At September 30, 2021, we had no borrowings outstanding under the revolving credit facility, our commercial paper program or our uncommitted lines of credit. Our next debt maturity is December 2022.

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Cash and cash equivalents includes $11 million and $44 million of cash held on behalf of GE at September 30, 2021 and December 31, 2020, respectively. Excluding cash held on behalf of GE, our U.S. subsidiaries held approximately $1.2 billion and $1 billion while our foreign subsidiaries held approximately $2.7 billion and $3.1 billion of our cash and cash equivalents as of September 30, 2021 and December 31, 2020, respectively. A substantial portion of the cash held by foreign subsidiaries at September 30, 2021 has been reinvested in active non-U.S. business operations. If we decide at a later date to repatriate those funds to the U.S., they will generally be free of U.S. federal tax but may incur other taxes such as withholding or state taxes.

We have a $3 billion committed unsecured revolving credit facility (the Credit Agreement) with commercial banks maturing in December 2024. The Credit Agreement contains certain customary representations and warranties, certain customary affirmative covenants and certain customary negative covenants. Upon the occurrence of certain events of default, our obligations under the Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the Credit Agreement and other customary defaults. No such events of default have occurred. We have no borrowings under the Credit Agreement.

In addition, we have a commercial paper program under which we may issue from time to time commercial paper with maturities of no more than 397 days. As a result of the repayment of £600 million of our commercial paper on April 30, 2021, originally issued in May of 2020 under the COVID Corporate Financing Facility established by the Bank of England, our authorized commercial paper program was reduced from $3.8 billion to $3 billion.

Certain Senior Notes contain covenants that restrict our ability to take certain actions. See Note 9. "Borrowings" of the Notes to Unaudited Condensed Consolidated Financial Statements in this Quarterly Report for further details. At September 30, 2021, we were in compliance with all debt covenants.

We continuously review our liquidity and capital resources. If market conditions were to change, for instance due to the uncertainty created by a global pandemic or a significant decline in oil and gas prices, and our revenue was reduced significantly or operating costs were to increase significantly, our cash flows and liquidity could be negatively impacted. Additionally, it could cause the rating agencies to lower our credit ratings. There are no ratings triggers that would accelerate the maturity of any borrowings under our committed credit facility; however, a downgrade in our credit ratings could increase the cost of borrowings under the credit facility and could also limit or preclude our ability to issue commercial paper. Should this occur, we could seek alternative sources of funding, including borrowing under the credit facility.

During the nine months ended September 30, 2021, we dispersed cash to fund a variety of activities including certain working capital needs, restructuring and GE separation related costs, capital expenditures, the payment of dividends and distributions to noncontrolling interests, and repurchases of our common stock. We believe that cash on hand, cash flows generated from operating and financing activities, and the available credit facility will provide sufficient liquidity to manage our global cash needs.

Cash Flows

Cash flows provided by (used in) each type of activity were as follows for the nine months ended September 30:

(In millions)	2021		2020
Operating activities	$	1,600	$	927
Investing activities	(212)		(551)
Financing activities	(1,585)		494

Operating Activities

Our largest source of operating cash is payments from customers, of which the largest component is collecting cash related to our sales of products and services including advance payments or progress collections for work to be performed. The primary use of operating cash is to pay our suppliers, employees, tax authorities, and others for a wide range of material and services.

Cash flows from operating activities generated cash of $1,600 million and $927 million for the nine months ended September 30, 2021 and 2020, respectively.

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For the nine months ended September 30, 2021, cash generated from operating activities were primarily driven by net losses adjusted for certain noncash items (including depreciation, amortization, and loss on equity securities) and working capital, which includes contract and other deferred assets. Net working capital cash generation was $470 million for the nine months ended September 30, 2021, mainly due to receivables, inventory, and contract assets, partially offset by progress collections, as we continue to improve our working capital processes. Restructuring and GE separation related payments were $210 million for the nine months ended September 30, 2021.

For the nine months ended September 30, 2020, cash generated from operating activities were primarily driven by net losses adjusted for certain noncash items (including depreciation, amortization, impairments, loss on sale of business, and write-down of assets held for sale) and working capital, which includes contract and other deferred assets. Net working capital generation was $255 million for the nine months ended September 30, 2020, mainly due to positive customer progress collections, partially offset by higher inventory to deliver the volume for TPS equipment contracts in the second half of the year. We also used working capital from net negative receivables and payables as a result of lower revenues. Restructuring and GE separation related payments were $480 million for the nine months ended September 30, 2020.

Investing Activities

Cash flows from investing activities used cash of $212 million and $551 million for the nine months ended September 30, 2021 and 2020, respectively.

Our principal recurring investing activity is the funding of capital expenditures including property, plant and equipment and software, to support and generate revenue from operations. Expenditures for capital assets were $590 million and $801 million for the nine months ended September 30, 2021 and 2020, respectively. Proceeds from the sale of property, plant and equipment were $178 million and $141 million for the nine months ended September 30, 2021 and 2020, respectively.

During the nine months ended September 30, 2021, we sold approximately 2.2 million shares of C3.ai Class A common stock and received proceeds of $145 million, which is reported as an other investing activity.

Financing Activities

Cash flows from financing activities used cash of $1,585 million and generated cash of $494 million for the nine months ended September 30, 2021 and 2020, respectively.

We had net repayments of debt and other borrowings of $60 million and $170 million for the nine months ended September 30, 2021 and 2020, respectively. In addition, in April 2021 we repaid $832 million (£600 million) of commercial paper originally issued in May 2020 under the COVID Corporate Financing Facility established by the Bank of England. In May 2020, we received proceeds from the issuance of $500 million aggregate principal amount of 4.486% Senior Notes due May 2030.

We paid dividends of $436 million to our Class A shareholders, and we made a distribution of $127 million to GE during the nine months ended September 30, 2021. We paid dividends of $359 million to our Class A shareholders, and we made a distribution of $199 million to GE during the nine months ended September 30, 2020.

On July 30, 2021, our Board of Directors authorized each of the Company and BHH LLC to repurchase up to $2 billion of its Class A common stock and LLC Units, respectively. During the three months ended September 30, 2021, the Company and BHH LLC repurchased and canceled 4.4 million shares of Class A common stock and LLC Units, respectively, for a total of $106 million.

Cash Requirements

For the remainder of 2021, we believe cash on hand, cash flows from operating activities, the available revolving credit facility, and the availability to issue debt under our existing shelf registrations will provide us with sufficient capital resources and liquidity to manage our working capital needs, meet contractual obligations, fund capital expenditures, dividends and repurchases of our common stock, and support the development of our short-

Baker Hughes Company 2021 Third Quarter Form 10-Q | 39

term and long-term operating strategies. When necessary, we issue commercial paper or other short-term debt to fund cash needs in the U.S. in excess of the cash generated in the U.S.

Our capital expenditures can be adjusted and managed by us to match market demand and activity levels. Based on current market conditions, capital expenditures, net of proceeds from disposal of assets, in 2021 are expected to be below 2020 levels. The expenditures are expected to be used primarily for normal, recurring items necessary to support our business. We currently anticipate making income tax payments in the range of $350 million to $450 million in 2021.

Other Factors Affecting Liquidity

Registration Statements: In May 2021, Baker Hughes filed a universal shelf registration statement on Form S-3ASR (Automatic Shelf Registration) with the SEC to have the ability to sell various types of securities including debt securities, Class A common stock, preferred stock, guarantees of debt securities, purchase contracts and units. The specific terms of any securities to be sold would be described in supplemental filings with the SEC. The registration statement will expire in May 2024.

In December 2020, BHH LLC, Baker Hughes Netherlands Funding Company B.V., and Baker Hughes Co-Obligor, Inc. filed a shelf registration statement on Form S-3 with the SEC to have the ability to sell up to $3 billion in debt securities in amounts to be determined at the time of an offering. Any such offering, if it does occur, may happen in one or more transactions. The specific terms of any debt securities to be sold would be described in supplemental filings with the SEC. The registration statement will expire in December 2023.

Customer receivables: In line with industry practice, we may bill our customers for services provided in arrears dependent upon contractual terms. In a challenging economic environment, we may experience delays in the payment of our invoices due to customers' lower cash flow from operations or their more limited access to credit markets. While historically there have not been material non-payment events, we attempt to mitigate this risk through working with our customers to restructure their debts. A customer's failure or delay in payment could have a material adverse effect on our short-term liquidity and results from operations. As of September 30, 2021, no single customer accounted for more than 10% of our gross trade receivables.

International operations: Our cash that is held outside the U.S. is 70% of the total cash balance as of September 30, 2021. We may not be able to use this cash quickly and efficiently due to exchange or cash controls that could make it challenging. As a result, our cash balance may not represent our ability to quickly and efficiently use this cash.

Supply chain finance programs: Under supply chain finance programs, administered by a third party, our suppliers are given the opportunity to sell receivables from us to participating financial institutions at their sole discretion at a rate that leverages our credit rating and thus might be more beneficial to our suppliers. Our responsibility is limited to making payment on the terms originally negotiated with our supplier, regardless of whether the supplier sells its receivable to a financial institution. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the program. These liabilities continue to be presented as accounts payable in our condensed consolidated statements of financial position and reflected as cash flow from operating activities when settled. We do not believe that changes in the availability of supply chain financing programs would have a material impact on our liquidity.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, (each a "forward-looking statement"). All statements, other than historical facts, including statements regarding the presentation of the Company's operations in future reports and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "would," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target", "goal" or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect,

Baker Hughes Company 2021 Third Quarter Form 10-Q | 40

actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, the risk factors identified in the "Risk Factors" section of Part I of Item 1A of our 2020 Annual Report and those set forth from time-to-time in other filings by the Company with the SEC. These documents are available through our website or through the SEC's Electronic Data Gathering and Analysis Retrieval (EDGAR) system at http://www.sec.gov.

Any forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. The Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information or developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For quantitative and qualitative disclosures about market risk affecting us, see Item 7A. “Quantitative and Qualitative Disclosures about Market Risk,” in our 2020 Annual Report. Our exposure to market risk has not changed materially since December 31, 2020.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures (as defined in Rule 15d-15(e) of the Exchange Act) were effective at a reasonable assurance level.

There has been no change in our internal controls over financial reporting during the quarter ended September 30, 2021 that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 41

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See discussion of legal proceedings in "Note 17. Commitments And Contingencies" of the Notes to Unaudited Condensed Consolidated Financial Statements in this Quarterly Report, Item 3 of Part I of our 2020 Annual Report and Note 19 of the Notes to Consolidated Financial Statements included in Item 8 of our 2020 Annual Report.

ITEM 1A. RISK FACTORS

As of the date of this filing, the Company and its operations continue to be subject to the risk factors previously discussed in the "Risk Factors" sections contained in the 2020 Annual Report and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table contains information about our purchases of our Class A common stock equity securities during the three months ended September 30, 2021.

Period	Total Number of Shares Purchased (1)	Average Price Paid  Per Share (2)		Total Number of Shares Purchased as Part of a Publicly Announced Program (3)	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program (4)
July 1-31, 2021	3,480	$	22.36	—	$	2,018,690,655
August 1-31, 2021	4,846	$	22.16	—	$	2,018,690,655
September 1-30, 2021	4,800,007	$	24.05	4,796,931	$	1,903,331,222
Total	4,808,333	$	24.04	4,796,931

(1)Represents Class A common stock purchased from employees to satisfy the tax withholding obligations in connection with the vesting of restricted stock units and shares purchased in the open market under our publicly announced program.

(2)Average price paid for Class A common stock purchased from employees to satisfy the tax withholding obligations in connection with the vesting of restricted stock units and shares purchased in the open market under our publicly announced purchase program.

(3)On July 30, 2021, our Board of Directors authorized the Company to repurchase up to $2 billion of its Class A common stock. On September 9, 2021, we entered into a purchase plan, that complied with Rule 10b5-1 of the Exchange Act (the "10b5-1 Plan"). Under the 10b5-1 Plan, the agent repurchased a number of our Class A common stock determined under the terms of the 10b5-1 Plan each trading day based on the trading price of the stock on that day.

(4)During the three months ended September 30, 2021, we repurchased and subsequently canceled 4.8 million shares of Class A common stock at an average price of $24.05 per share for a total of $115 million. This includes 0.4 million of Class A common stock totaling $9 million that were repurchased but settlement and cancellation had not occurred as of September 30, 2021.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

We have no mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K to report for the current quarter.

ITEM 5. OTHER INFORMATION

None.

Baker Hughes Company 2021 Third Quarter Form 10-Q | 42

ITEM 6. EXHIBITS

Each exhibit identified below is filed as a part of this report. Exhibits designated with an "*" are filed as an exhibit to this Quarterly Report on Form 10-Q and Exhibits designated with an "**" are furnished as an exhibit to this Quarterly Report on Form 10-Q. Exhibits designated with a "+" are identified as management contracts or compensatory plans or arrangements. Exhibits previously filed are incorporated by reference.

31.1**	Certification of Lorenzo Simonelli, President and Chief Executive Officer, furnished pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
31.2**	Certification of Brian Worrell, Chief Financial Officer, furnished pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
32**	Certification of Lorenzo Simonelli, President and Chief Executive Officer, and Brian Worrell, Chief Financial Officer, furnished pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended.
101.INS*	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	XBRL Schema Document
101.CAL*	XBRL Calculation Linkbase Document
101.DEF*	XBRL Definition Linkbase Document
101.LAB*	XBRL Label Linkbase Document
101.PRE*	XBRL Presentation Linkbase Document

Baker Hughes Company 2021 Third Quarter Form 10-Q | 43

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Baker Hughes Company (Registrant)
Date:	October 22, 2021	By:	/s/ BRIAN WORRELL
		Brian Worrell
		Chief Financial Officer
Date:	October 22, 2021	By:	/s/ KURT CAMILLERI
		Kurt Camilleri
		Senior Vice President, Controller and Chief Accounting Officer

Baker Hughes Company 2021 Third Quarter Form 10-Q | 44

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Lorenzo Simonelli, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Baker Hughes Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 22, 2021	By:	/s/ Lorenzo Simonelli
			Lorenzo Simonelli
			President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Brian Worrell, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Baker Hughes Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 22, 2021	By:	/s/ Brian Worrell
			Brian Worrell
			Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Baker Hughes Company (the “Company”) on Form 10-Q for the period ended September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Lorenzo Simonelli, President and Chief Executive Officer of the Company, and Brian Worrell, the Chief Financial Officer of the Company, each of the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

The certification is given to the knowledge of the undersigned.

	/s/ Lorenzo Simonelli
Name:	Lorenzo Simonelli
Title:	President and Chief Executive Officer
Date:	October 22, 2021
	/s/ Brian Worrell
Name:	Brian Worrell
Title:	Chief Financial Officer
Date:	October 22, 2021

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Oct. 15, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	1-38143
Registrant Name	Baker Hughes Company
Entity Incorporation, State Code	DE
Entity Tax Identification Number	81-4403168
Entity Address, Address Line One	17021 Aldine Westfield
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77073-5101
City Area Code	713
Local Phone Number	439-8600
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Trading Symbol	BKR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001701605
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		869,968,050
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		166,645,919

XML

Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Revenues	$ 5,093,000,000	$ 5,049,000,000	$ 15,017,000,000	$ 15,210,000,000
Costs and expenses:
Selling, general and administrative	607,000,000	565,000,000	1,836,000,000	1,830,000,000
Goodwill impairment	0	0	0	14,773,000,000
Restructuring, impairment and other	14,000,000	209,000,000	219,000,000	1,637,000,000
Separation related	11,000,000	32,000,000	53,000,000	110,000,000
Total costs and expenses	4,715,000,000	5,098,000,000	14,281,000,000	31,370,000,000
Operating income (loss)	378,000,000	(49,000,000)	736,000,000	(16,160,000,000)
Other non-operating loss, net	(102,000,000)	(149,000,000)	(791,000,000)	(367,000,000)
Interest expense, net	(67,000,000)	(66,000,000)	(205,000,000)	(195,000,000)
Income (loss) before income taxes	209,000,000	(264,000,000)	(260,000,000)	(16,722,000,000)
Benefit (provision) for income taxes	(193,000,000)	(6,000,000)	(406,000,000)	10,000,000
Net income (loss)	16,000,000	(270,000,000)	(666,000,000)	(16,712,000,000)
Less: Net income (loss) attributable to noncontrolling interests	8,000,000	(100,000,000)	(154,000,000)	(6,120,000,000)
Net income (loss) attributable to Baker Hughes Company	$ 8,000,000	$ (170,000,000)	$ (512,000,000)	$ (10,592,000,000)
Per share amounts:
Diluted income (loss) per Class A common stock (in dollars per share)	$ 0.01	$ (0.25)	$ (0.64)	$ (16.01)
Class A Common Stock
Per share amounts:
Basic income (loss) per Class A common stock (in dollars per share)	0.01	(0.25)	(0.64)	(16.01)
Diluted income (loss) per Class A common stock (in dollars per share)	0.01	(0.25)	(0.64)	(16.01)
Cash dividend per Class A common stock (in dollars per share)	$ 0.18	$ 0.18	$ 0.54	$ 0.54
Sales of goods
Revenue:
Revenues	$ 2,984,000,000	$ 3,290,000,000	$ 8,997,000,000	$ 9,240,000,000
Costs and expenses:
Costs	2,561,000,000	2,920,000,000	7,769,000,000	8,296,000,000
Sales of services
Revenue:
Revenues	2,109,000,000	1,759,000,000	6,020,000,000	5,970,000,000
Costs and expenses:
Costs	$ 1,522,000,000	$ 1,372,000,000	$ 4,404,000,000	$ 4,724,000,000

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 16	$ (270)	$ (666)	$ (16,712)
Less: Net income (loss) attributable to noncontrolling interests	8	(100)	(154)	(6,120)
Net income (loss) attributable to Baker Hughes Company	8	(170)	(512)	(10,592)
Other comprehensive income (loss):
Investment securities	0	0	0	(2)
Foreign currency translation adjustments	(158)	135	(51)	(101)
Cash flow hedges	(2)	2	(13)	(6)
Benefit plans	25	(54)	78	(24)
Other comprehensive income (loss)	(135)	83	14	(133)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(24)	29	4	(52)
Other comprehensive income (loss) attributable to Baker Hughes Company	(111)	54	10	(81)
Comprehensive loss	(119)	(187)	(652)	(16,845)
Less: Comprehensive loss attributable to noncontrolling interests	(16)	(71)	(150)	(6,172)
Comprehensive loss attributable to Baker Hughes Company	$ (103)	$ (116)	$ (502)	$ (10,673)

XML

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 3,926	$ 4,132
Current receivables, net	5,326	5,622
Inventories, net	4,110	4,421
All other current assets	1,525	2,280
Total current assets	14,887	16,455
Property, plant and equipment (net of accumulated depreciation of $5,082 and $5,115)	4,982	5,358
Goodwill	6,015	5,977
Other intangible assets, net	4,151	4,397
Contract and other deferred assets	1,738	2,001
All other assets	3,025	2,866
Deferred income taxes	974	953
Total assets	35,772	38,007
Current liabilities:
Accounts payable	3,514	3,532
Short-term debt and current portion of long-term debt	56	889
Progress collections and deferred income	3,263	3,454
All other current liabilities	2,521	2,352
Total current liabilities	9,354	10,227
Long-term debt	6,708	6,744
Deferred income taxes	157	186
Liabilities for pensions and other postretirement benefits	1,132	1,217
All other liabilities	1,385	1,391
Equity:
Capital in excess of par value	26,688	24,613
Retained loss	(10,454)	(9,942)
Accumulated other comprehensive loss	(2,092)	(1,778)
Baker Hughes Company equity	14,142	12,893
Noncontrolling interests	2,894	5,349
Total equity	17,036	18,242
Total liabilities and equity	35,772	38,007
Class A Common Stock
Equity:
Common stock	0	0
Class B Common Stock
Equity:
Common stock	$ 0	$ 0

XML

Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Property, plant and equipment, accumulated depreciation	$ 5,082	$ 5,115
Class A Common Stock
Common stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock authorized (in shares)	2,000,000,000	2,000,000,000
Common stock issued (in shares)	859,000,000	724,000,000
Common stock outstanding (in shares)	859,000,000	724,000,000
Class B Common Stock
Common stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock authorized (in shares)	1,250,000,000	1,250,000,000
Common stock issued (in shares)	179,000,000	311,000,000
Common stock outstanding (in shares)	179,000,000	311,000,000

XML

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions	Total	Class A Common Stock	Common Stock	Capital in Excess of Par Value	Retained Loss	Accumulated Other Comprehensive Loss	Non- controlling Interests
Beginning Balance at Dec. 31, 2019	$ 34,499		$ 0	$ 23,565	$ 0	$ (1,636)	$ 12,570
Comprehensive income (loss):
Net income (loss)	(16,712)				(10,592)		(6,120)
Other comprehensive income (loss)	(133)					(81)	(52)
Dividends on Class A common stock	(359)			(359)
Distributions to GE	(199)						(199)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock	0			608		(84)	(524)
Stock-based compensation cost	164			164
Other	(11)			(1)	(2)		(8)
Ending Balance at Sep. 30, 2020	17,249		0	23,977	(10,594)	(1,801)	5,667
Beginning Balance at Jun. 30, 2020	17,565		0	23,432	(10,424)	(1,771)	6,328
Comprehensive income (loss):
Net income (loss)	(270)				(170)		(100)
Other comprehensive income (loss)	83					54	29
Dividends on Class A common stock	(123)			(123)
Distributions to GE	(63)						(63)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock	0			608		(84)	(524)
Stock-based compensation cost	52			52
Other	5			8			(3)
Ending Balance at Sep. 30, 2020	17,249		0	23,977	(10,594)	(1,801)	5,667
Beginning Balance at Dec. 31, 2020	18,242		0	24,613	(9,942)	(1,778)	5,349
Comprehensive income (loss):
Net income (loss)	(666)				(512)		(154)
Other comprehensive income (loss)	14					10	4
Dividends on Class A common stock	(436)			(436)
Distributions to GE	(127)						(127)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock	0			2,484		(326)	(2,158)
Repurchase and cancellation of Class A common stock	(106)			(101)		2	(7)
Stock-based compensation cost	153			153
Other	(38)			(25)			(13)
Ending Balance at Sep. 30, 2021	17,036		0	26,688	(10,454)	(2,092)	2,894
Beginning Balance at Jun. 30, 2021	17,400		0	26,253	(10,462)	(1,901)	3,510
Comprehensive income (loss):
Net income (loss)	16				8		8
Other comprehensive income (loss)	(135)					(111)	(24)
Dividends on Class A common stock	(156)			(156)
Distributions to GE	(32)						(32)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock	0			639		(82)	(557)
Repurchase and cancellation of Class A common stock	(106)	$ (106)		(101)		2	(7)
Stock-based compensation cost	51			51
Other	(2)			2			(4)
Ending Balance at Sep. 30, 2021	$ 17,036		$ 0	$ 26,688	$ (10,454)	$ (2,092)	$ 2,894

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Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Class A Common Stock
Cash dividends per share (in dollars per share)	$ 0.18	$ 0.18	$ 0.54	$ 0.54

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (666,000,000)	$ (16,712,000,000)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization	832,000,000	1,010,000,000
Loss on equity securities	955,000,000	0
Provision (benefit) for deferred income taxes	24,000,000	(265,000,000)
Property, plant and equipment impairment, net	21,000,000	290,000,000
Goodwill impairment	0	14,773,000,000
Intangible assets impairment	0	729,000,000
Inventory impairment	0	218,000,000
Loss on sale of business	0	217,000,000
Write-down of assets held for sale	0	129,000,000
Changes in operating assets and liabilities:
Current receivables	308,000,000	579,000,000
Inventories	151,000,000	(183,000,000)
Accounts payable	(10,000,000)	(670,000,000)
Progress collections and deferred income	(157,000,000)	619,000,000
Contract and other deferred assets	178,000,000	(90,000,000)
Other operating items, net	(36,000,000)	283,000,000
Net cash flows from operating activities	1,600,000,000	927,000,000
Cash flows from investing activities:
Expenditures for capital assets	(590,000,000)	(801,000,000)
Proceeds from disposal of assets	178,000,000	141,000,000
Other investing items, net	200,000,000	109,000,000
Net cash flows used in investing activities	(212,000,000)	(551,000,000)
Cash flows from financing activities:
Net repayments of debt and other borrowings	(60,000,000)	(170,000,000)
Proceeds from (repayment of) commercial paper	(832,000,000)	737,000,000
Proceeds from issuance of long-term debt	0	500,000,000
Dividends paid	(436,000,000)	(359,000,000)
Distributions to GE	(127,000,000)	(199,000,000)
Repurchase of Class A common stock	(106,000,000)	0
Other financing items, net	(24,000,000)	(15,000,000)
Net cash flows from (used in) financing activities	(1,585,000,000)	494,000,000
Effect of currency exchange rate changes on cash and cash equivalents	(9,000,000)	(58,000,000)
Increase (decrease) in cash and cash equivalents	(206,000,000)	812,000,000
Cash and cash equivalents, beginning of period	4,132,000,000	3,249,000,000
Cash and cash equivalents, end of period	3,926,000,000	4,061,000,000
Supplemental cash flows disclosures:
Income taxes paid, net of refunds	181,000,000	317,000,000
Interest paid	$ 204,000,000	$ 188,000,000

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF THE BUSINESS

Baker Hughes Company (Baker Hughes, the Company, we, us, or our) is an energy technology company with a diversified portfolio of technologies and services that span the entire energy value chain. We are a holding company and have no material assets other than our 82.8% ownership interest in Baker Hughes Holdings LLC (BHH LLC) and certain intercompany and tax related balances. BHH LLC is a Securities and Exchange Commission (SEC) Registrant with separate filing requirements with the SEC and its separate financial information can be obtained from www.sec.gov.

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. and such principles, U.S. GAAP) and pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report).

We hold a majority economic interest in BHH LLC and conduct and exercise full control over all activities of BHH LLC without the approval of any other member. Accordingly, we consolidate the financial results of BHH LLC and report a noncontrolling interest in our condensed consolidated financial statements for the economic interest held by General Electric (GE). As of September 30, 2021, GE's interest in BHH LLC was 17.2%. See "Note 12. Equity" for further information.

In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated.

In the Company's financial statements and notes, certain amounts have been reclassified to conform to the current year presentation. In the notes to unaudited condensed consolidated financial statements, all dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers.

Separation related costs as reflected in our condensed consolidated statements of income (loss) include costs incurred in connection with the ongoing activities related to our separation from GE. See "Note 16. Related Party Transactions" for further information.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Please refer to "Note 1. Basis of Presentation and Summary of Significant Accounting Policies," to our consolidated financial statements from our 2020 Annual Report for the discussion of our significant accounting policies.

Cash and Cash Equivalents

As of September 30, 2021 and December 31, 2020, we had $691 million and $687 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations

limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S.

NEW ACCOUNTING STANDARDS TO BE ADOPTED

All new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.

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Revenue Related to Contracts with Customers

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue Related to Contracts with Customers

REVENUE RELATED TO CONTRACTS WITH CUSTOMERS

DISAGGREGATED REVENUE

We disaggregate our revenue from contracts with customers by primary geographic markets.

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Revenue	2021		2020		2021		2020
U.S.	$	1,199	$	1,032	$	3,337	$	3,330
Non-U.S.	3,894		4,017		11,680		11,880
Total	$	5,093	$	5,049	$	15,017	$	15,210

REMAINING PERFORMANCE OBLIGATIONS

As of September 30, 2021 and 2020, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.5 billion and $23.0 billion, respectively. As of September 30, 2021, we expect to recognize revenue of approximately 50%, 67% and 89% of the total remaining performance obligations within 2, 5, and 15 years, respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations.

PROGRESS COLLECTIONS AND DEFERRED INCOME

Contract liabilities include progress collections, which reflects billings in excess of revenue, and deferred income on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities are comprised of the following:

	September 30, 2021		December 31, 2020
Progress collections	$	3,140	$	3,352
Deferred income	123		102
Progress collections and deferred income (contract liabilities)	$	3,263	$	3,454

Revenue recognized during the three months ended September 30, 2021 and 2020 that was included in the contract liabilities at the beginning of the period was $448 million and $501 million, respectively, and $2,033 million and $1,328 million during the nine months ended September 30, 2021 and 2020, respectively.

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Current Receivables

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Current Receivables

CURRENT RECEIVABLES

Current receivables are comprised of the following:

	September 30, 2021		December 31, 2020
Customer receivables	$	4,569	$	4,676
Related parties	362		429
Other	782		890
Total current receivables	5,713		5,995
Less: Allowance for credit losses	(387)		(373)
Total current receivables, net	$	5,326	$	5,622

Customer receivables are recorded at the invoiced amount. Related parties consists of amounts owed to us by GE. The "Other" category consists primarily of indirect taxes, advance payments to suppliers, other tax receivables and customer retentions.

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Inventories

9 Months Ended

Sep. 30, 2021

Inventory, Net [Abstract]

Inventories

INVENTORIES

Inventories, net of reserves of $390 million and $421 million as of September 30, 2021 and December 31, 2020, respectively, are comprised of the following:

	September 30, 2021		December 31, 2020
Finished goods	$	2,255	$	2,337
Work in process and raw materials	1,855		2,084
Total inventories, net	$	4,110	$	4,421

During the three and nine months ended September 30, 2020, we recorded inventory impairments of $42 million, predominately in our Oilfield Equipment segment, and $218 million, predominately in our Oilfield Services segment, respectively, as a result of certain restructuring activities initiated by the Company. Charges for inventory impairments are predominantly reported in the "Cost of goods sold" caption of the condensed consolidated statements of income (loss).

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL

The changes in the carrying value of goodwill are detailed below by segment:

	Oilfield Services		Oilfield Equipment		Turbo- machinery & Process Solutions		Digital Solutions		Total
Balance at December 31, 2019, gross	$	15,676	$	4,186	$	2,171	$	2,411	$	24,444
Accumulated impairment at December 31, 2019	(2,633)		(867)		—		(254)		(3,754)
Balance at December 31, 2019	13,043		3,319		2,171		2,157		20,690
Impairment	(11,484)		(3,289)		—		—		(14,773)
Currency exchange and others	(20)		(24)		63		41		60
Balance at December 31, 2020	1,539		6		2,234		2,198		5,977
Currency exchange and others	—		(3)		(20)		61		38
Balance at September 30, 2021	$	1,539	$	3	$	2,214	$	2,259	$	6,015

We perform our annual goodwill impairment test for each of our reporting units as of July 1 of each fiscal year, in conjunction with our annual strategic planning process. Our reporting units are the same as our four reportable segments. We also test goodwill for impairment whenever events or circumstances occur which, in our judgment, could more likely than not reduce the fair value of one or more reporting units below its carrying value. Potential impairment indicators include, but are not limited to, (i) the results of our most recent annual or interim impairment testing, in particular the magnitude of the excess of fair value over carrying value observed, (ii) downward revisions to internal forecasts, and the magnitude thereof, if any, and (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, if any.

During the third quarter of 2021, we completed our annual impairment test and determined that the fair value was substantially in excess of the carrying value for each reporting unit resulting in no goodwill impairment. There can be no assurances that future sustained declines in macroeconomic or business conditions affecting our industry will not occur, which could result in goodwill impairment charges in future periods.

During the first quarter of 2020, our market capitalization declined significantly. Our closing stock price fell to a historic low of $9.33 on March 23, 2020. Over the same period, the equity value of our peer group companies and the overall U.S. stock market also declined significantly amid market volatility. In addition, the Oilfield Services Index (OSX), an indicator of investors’ view of the earnings prospects and cost of capital of the oil and gas services industry, traded at prices that were the lowest in its history. These declines were driven by the uncertainty

surrounding the outbreak of the coronavirus (COVID-19) and other macroeconomic events such as the geopolitical tensions between the Organization of Petroleum Exporting Countries (OPEC) and Russia, which also resulted in a significant drop in oil prices. Based on these factors, we concluded that a triggering event occurred and, accordingly, an interim quantitative impairment test was performed as of March 31, 2020. Based upon the results of our interim quantitative impairment test, we concluded that the carrying value of the Oilfield Services and Oilfield Equipment reporting units exceeded their estimated fair value as of March 31, 2020, which resulted in goodwill impairment charges of $11,484 million and $3,289 million, respectively. The goodwill impairment was calculated as the amount that the carrying value of the reporting unit, including any goodwill, exceeded its fair value.

OTHER INTANGIBLE ASSETS

Intangible assets are comprised of the following:

	September 30, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	1,944	$	(749)	$	1,195	$	2,261	$	(916)	$	1,345
Technology	1,105		(741)		364		1,127		(696)		431
Trade names and trademarks	293		(168)		125		326		(181)		145
Capitalized software	1,306		(1,062)		244		1,294		(1,041)		253
Finite-lived intangible assets	4,648		(2,720)		1,928		5,008		(2,834)		2,174
Indefinite-lived intangible assets	2,223		—		2,223		2,223		—		2,223
Total intangible assets	$	6,871	$	(2,720)	$	4,151	$	7,231	$	(2,834)	$	4,397

Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 1 to 35 years. Amortization expense for the three months ended September 30, 2021 and 2020 was $59 million and $75 million, respectively, and $193 million and $231 million for the nine months ended September 30, 2021 and 2020, respectively.

Estimated amortization expense for the remainder of 2021 and each of the subsequent five fiscal years is expected to be as follows:

Year	Estimated Amortization Expense
Remainder of 2021	$	58
2022	213
2023	200
2024	182
2025	135
2026	92

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Contract and Other Deferred Assets

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Contract and Other Deferred Assets

CONTRACT AND OTHER DEFERRED ASSETS

A majority of our long-term product service agreements relate to our Turbomachinery & Process Solutions segment. Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements and other deferred contract related costs. Contract assets are comprised of the following:

	September 30, 2021		December 31, 2020
Long-term product service agreements	$	644	$	660
Long-term equipment contracts (1)	909		1,160
Contract assets (total revenue in excess of billings)	1,553		1,820
Deferred inventory costs	153		138
Non-recurring engineering costs	32		43
Contract and other deferred assets	$	1,738	$	2,001

(1)Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements.

Revenue recognized during the three months ended September 30, 2021 and 2020 from performance obligations satisfied (or partially satisfied) in previous periods related to our long-term service agreements was $9 million and $(8) million, respectively, and $18 million and $22 million during the nine months ended September 30, 2021 and 2020, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract’s total estimated profitability resulting in an adjustment of earnings.

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Progress Collections and Deferred Income

9 Months Ended

Sep. 30, 2021

Revenue Recognition and Deferred Revenue [Abstract]

Progress Collections and Deferred Income

REVENUE RELATED TO CONTRACTS WITH CUSTOMERS

DISAGGREGATED REVENUE

We disaggregate our revenue from contracts with customers by primary geographic markets.

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Revenue	2021		2020		2021		2020
U.S.	$	1,199	$	1,032	$	3,337	$	3,330
Non-U.S.	3,894		4,017		11,680		11,880
Total	$	5,093	$	5,049	$	15,017	$	15,210

REMAINING PERFORMANCE OBLIGATIONS

As of September 30, 2021 and 2020, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.5 billion and $23.0 billion, respectively. As of September 30, 2021, we expect to recognize revenue of approximately 50%, 67% and 89% of the total remaining performance obligations within 2, 5, and 15 years, respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations.

PROGRESS COLLECTIONS AND DEFERRED INCOME

Contract liabilities include progress collections, which reflects billings in excess of revenue, and deferred income on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities are comprised of the following:

	September 30, 2021		December 31, 2020
Progress collections	$	3,140	$	3,352
Deferred income	123		102
Progress collections and deferred income (contract liabilities)	$	3,263	$	3,454

Revenue recognized during the three months ended September 30, 2021 and 2020 that was included in the contract liabilities at the beginning of the period was $448 million and $501 million, respectively, and $2,033 million and $1,328 million during the nine months ended September 30, 2021 and 2020, respectively.

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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

LEASES

Our leasing activities primarily consist of operating leases for administrative offices, manufacturing facilities, research centers, service centers, sales offices and certain equipment.

	Three Months Ended September 30,				Nine Months Ended September 30,
Operating Lease Expense	2021		2020		2021		2020
Long-term fixed lease	$	64	$	71	$	192	$	213
Long-term variable lease	7		3		24		23
Short-term lease	119		102		328		382
Total operating lease expense	$	190	$	176	$	544	$	618

Cash flows used in operating activities for operating leases approximates our expense for the three and nine months ended September 30, 2021 and 2020.

The weighted-average remaining lease term as of September 30, 2021 and December 31, 2020 was approximately nine years and eight years for our operating leases, respectively. The weighted-average discount rate used to determine the operating lease liability as of September 30, 2021 and December 31, 2020 was 3.5% and 3.7%, respectively.

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Borrowings

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

Short-term and long-term borrowings are comprised of the following:

	September 30, 2021		December 31, 2020
Short-term borrowings
Commercial paper	$	—	$	801
Short-term borrowings from GE	11		45
Other borrowings	45		43
Total short-term borrowings	56		889
Long-term borrowings
2.773% Senior Notes due December 2022	1,249		1,247
8.55% Debentures due June 2024	119		123
3.337% Senior Notes due December 2027	1,341		1,344
6.875% Notes due January 2029	280		284
3.138% Senior Notes due November 2029	522		522
4.486% Senior Notes due May 2030	497		497
5.125% Senior Notes due September 2040	1,293		1,297
4.08% Senior Notes due December 2047	1,337		1,337
Other long-term borrowings	70		93
Total long-term borrowings	6,708		6,744
Total borrowings	$	6,764	$	7,633

The estimated fair value of total borrowings at September 30, 2021 and December 31, 2020 was $7,498 million and $8,502 million, respectively. For a majority of our borrowings the fair value was determined using quoted period-end market prices. Where market prices are not available, we estimate fair values based on valuation methodologies using current market interest rate data adjusted for our non-performance risk.

BHH LLC has a $3 billion committed unsecured revolving credit facility (the Credit Agreement) with commercial banks maturing in December 2024. The Credit Agreement contains certain customary representations and warranties, certain customary affirmative covenants and certain customary negative covenants. Upon the occurrence of certain events of default, BHH LLC's obligations under the Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the Credit Agreement and other customary defaults. No such events of default have occurred. At September 30, 2021 and December 31, 2020, there were no borrowings under the Credit Agreement. In addition, we have a commercial paper program under which we may issue from time to time commercial paper with maturities of no more than 397 days. As a result of the repayment of our commercial paper that matured on April 30, 2021, our authorized commercial paper program was reduced from $3.8 billion to $3 billion.

Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with BHH LLC on our long-term debt securities.  This co-obligor is a 100%-owned finance subsidiary of BHH LLC that was incorporated for the sole purpose of serving as a corporate co-obligor of long-term debt securities and has no assets or operations other than those related to its sole purpose. As of September 30, 2021, Baker Hughes Co-Obligor, Inc. is a co-obligor of our long-term debt securities totaling $6,638 million.

Certain Senior Notes contain covenants that restrict BHH LLC's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits. At September 30, 2021, we were in compliance with all debt covenants.

See "Note 16. Related Party Transactions" for additional information on the short-term borrowings from GE.

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

We have both funded and unfunded defined benefit plans which include four U.S. plans and seven non-U.S. plans, primarily in the UK, Germany, and Canada, all with plan assets or obligations greater than $20 million. We use a December 31 measurement date for these plans, and generally provide benefits to employees based on formulas recognizing length of service and earnings.

The components of net periodic cost are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Service cost	$	7	$	7	$	21	$	21
Interest cost	15		19		47		59
Expected return on plan assets	(32)		(31)		(95)		(93)
Amortization of net actuarial loss	10		9		30		25
Curtailment/settlement & other loss	1		3		1		3
Net periodic cost	$	1	$	7	$	4	$	15

The service cost component of the net periodic cost is included in operating income (loss) and all other components are included in non-operating income (loss) in our condensed consolidated statements of income (loss).

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Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

For the three and nine months ended September 30, 2021, the provision for income taxes was $193 million and $406 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances and changes in unrecognized tax benefits related to uncertain tax positions.

For the three months ended September 30, 2020, the provision for income taxes was $6 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances, partially offset by the impact of the U.S. Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

For the nine months ended September 30, 2020, the income tax benefit was $10 million. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to non-deductible goodwill impairment, the geographical mix of earnings and losses, and losses with no tax benefit due to valuation allowances partially offset by the impact of the CARES Act.

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Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Equity

EQUITY

COMMON STOCK

We are authorized to issue 2 billion shares of Class A common stock, 1.25 billion shares of Class B common stock and 50 million shares of preferred stock each of which have a par value of $0.0001 per share. The number of shares of Class A common stock and Class B common stock outstanding as of September 30, 2021 is 859 million and 179 million, respectively. We have not issued any preferred stock. GE owns all the issued and outstanding Class B common stock. Each share of Class A and Class B common stock and the associated membership interest in BHH LLC form a paired interest. While each share of Class B common stock has equal voting rights to a share of Class A common stock, it has no economic rights, meaning holders of Class B common stock have no right to dividends or any assets in the event of liquidation of the Company. GE is entitled through BHH LLC common units (LLC Units) to receive distributions on an equal amount of any dividend paid by the Company.

In July 2020, GE launched a program to divest of its ownership interest in us, at its discretion, in a series of transactions over approximately three years, subject to market conditions and other factors. During the nine months ended September 30, 2021, GE's economic interest in BHH LLC was reduced to approximately 17.2% primarily as a result of the exchange of 132.7 million shares of Class B common stock, and associated LLC Units. When shares of Class B common stock, together with associated LLC Units, are exchanged for shares of Class A common stock pursuant to the Exchange Agreement, such shares of Class B common stock, together with associated LLC Units, are canceled.

On July 30, 2021, our Board of Directors authorized each of the Company and BHH LLC to repurchase up to $2 billion of its Class A common stock and LLC Units, respectively. We expect to fund the repurchase program from cash generated from operations, and we expect to make share repurchases from time to time subject to the Company's capital plan, market conditions, and other factors, including regulatory restrictions. The repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. During the three months ended September 30, 2021, the Company and BHH LLC repurchased and canceled 4.4 million shares of Class A common stock and LLC Units, respectively, each for $106 million. At September 30, 2021, the Company and BHH LLC had authorization remaining to repurchase up to approximately $1.9 billion of its Class A common stock and LLC Units, respectively.

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

	Class A Common Stock		Class B Common Stock
	2021	2020	2021	2020
Balance at January 1	723,999	650,065	311,433	377,428
Issue of shares upon vesting of restricted stock units (1)	4,903	3,425	—	—
Issue of shares on exercises of stock options (1)	369	5	—	—
Issue of shares for employee stock purchase plan	1,933	3,291	—	—
Exchange of Class B common stock for Class A common stock	132,706	27,988	(132,706)	(27,988)
Repurchase and cancellation of Class A common stock	(4,430)	—	—	—
Balance at September 30	859,480	684,775	178,726	349,440

(1)Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation.

ACCUMULATED OTHER COMPREHENSIVE LOSS (AOCL)

The following tables present the changes in accumulated other comprehensive loss, net of tax:

	Investment Securities		Foreign Currency Translation Adjustments		Cash Flow Hedges		Benefit Plans		Accumulated Other Comprehensive Loss
Balance at December 31, 2020	$	—	$	(1,464)	$	3	$	(317)	$	(1,778)
Other comprehensive income (loss) before reclassifications	—		(82)		(6)		47		(41)
Amounts reclassified from accumulated other comprehensive income (loss)	—		31		(7)		32		56
Deferred taxes	—		—		—		(1)		(1)
Other comprehensive income (loss)	—		(51)		(13)		78		14
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—		(9)		(2)		15		4
Less: Reallocation of AOCL based on change in ownership of LLC Units	—		269		(1)		56		324
Balance at September 30, 2021	$	—	$	(1,775)	$	(7)	$	(310)	$	(2,092)

	Investment Securities		Foreign Currency Translation Adjustments		Cash Flow Hedges		Benefit Plans		Accumulated Other Comprehensive Loss
Balance at December 31, 2019	$	1	$	(1,436)	$	6	$	(207)	$	(1,636)
Other comprehensive income (loss) before reclassifications	(2)		(101)		(5)		(56)		(164)
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		(2)		35		33
Deferred taxes	—		—		1		(3)		(2)
Other comprehensive income (loss)	(2)		(101)		(6)		(24)		(133)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(1)		(42)		(2)		(7)		(52)
Less: Reallocation of AOCL based on change in ownership of LLC Units	—		75		—		9		84
Balance at September 30, 2020	$	—	$	(1,570)	$	2	$	(233)	$	(1,801)

The amounts reclassified from accumulated other comprehensive loss during the nine months ended September 30, 2021 and 2020 for benefit plans represent amortization of net actuarial gain (loss) which are included in the computation of net periodic pension cost (see "Note 10. Employee Benefit Plans" for additional details) and recorded in "Other non-operating loss, net" in our condensed consolidated statements of income (loss).

NONCONTROLLING INTEREST

Noncontrolling interests represent the portion of net assets in consolidated entities that are not owned by the Company. As of September 30, 2021 and December 31, 2020, GE owned approximately 17.2% and 30.1%, respectively, of BHH LLC and this represents the majority of the noncontrolling interest balance reported within equity.

	September 30, 2021		December 31, 2020
GE's interest in BHH LLC	$	2,752	$	5,216
Other noncontrolling interests	142		133
Total noncontrolling interests	$	2,894	$	5,349

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Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Basic and diluted net income (loss) per share of Class A common stock is presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share amounts)	2021		2020		2021		2020
Net income (loss)	$	16	$	(270)	$	(666)	$	(16,712)
Less: Net income (loss) attributable to noncontrolling interests	8		(100)		(154)		(6,120)
Net income (loss) attributable to Baker Hughes Company	$	8	$	(170)	$	(512)	$	(10,592)
Weighted average shares outstanding:
Class A basic	851		676		799		662
Class A diluted	857		676		799		662
Net income (loss) per share attributable to common stockholders:
Class A basic & diluted	$	0.01	$	(0.25)	$	(0.64)	$	(16.01)

Shares of our Class B common stock do not share in earnings or losses of the Company and are not considered in the calculation of basic or diluted earnings per share (EPS). As such, separate presentation of basic and diluted EPS of Class B under the two class method has not been presented. The basic weighted average shares outstanding for our Class B common stock for the three months ended September 30, 2021 and 2020 were 191 million and 358 million, respectively, and 242 million and 372 million for the nine months ended September 30, 2021 and 2020, respectively.

Under the Exchange Agreement between GE and us, GE is entitled to exchange its holding in our Class B common stock, and associated LLC Units, for Class A common stock on a one-for-one basis (subject to adjustment in accordance with the terms of the Exchange Agreement) or, at the option of Baker Hughes, an amount of cash equal to the aggregate value (determined in accordance with the terms of the Exchange Agreement) of the shares of Class A common stock that would have otherwise been received by GE in the exchange. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) attributable to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests associated with the Class B common stock (including any tax impact). For the three and nine months ended September 30, 2021 and 2020, such exchange is not reflected in diluted net loss per share as the assumed exchange is not dilutive.

For the three months ended September 30, 2021, Class A diluted shares include the dilutive impact of equity awards except for approximately 5 million options that were excluded because the exercise price exceeded the average market price of the Class A common stock and is therefore antidilutive. For the three months ended September 30, 2020 and the nine months ended September 30, 2021 and 2020, we excluded all outstanding equity awards from the computation of diluted net loss per share because their effect is antidilutive.

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Financial Instruments

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

FINANCIAL INSTRUMENTS

RECURRING FAIR VALUE MEASUREMENTS

Our assets and liabilities measured at fair value on a recurring basis consists of derivative instruments and investment securities.

	September 30, 2021								December 31, 2020
	Level 1		Level 2		Level 3		Net Balance		Level 1		Level 2		Level 3		Net Balance
Assets
Derivatives	$	—	$	19	$	—	$	19	$	—	$	118	$	—	$	118
Investment securities	403		—		9		411		1,502		—		30		1,532
Total assets	403		19		9		430		1,502		118		30		1,650
Liabilities
Derivatives	—		(30)		—		(30)		—		(52)		—		(52)
Total liabilities	$	—	$	(30)	$	—	$	(30)	$	—	$	(52)	$	—	$	(52)

There were no transfers between Level 1, 2 and 3 during the nine months ended September 30, 2021.

The following table provides a reconciliation of recurring Level 3 fair value measurements for investment securities:

	2021		2020
Balance at January 1	$	30	$	259
Purchases	—		10
Proceeds at maturity	(21)		(168)
Unrealized gains (losses) recognized in accumulated other comprehensive income (loss)	—		(3)
Balance at September 30	$	9	$	98

The most significant unobservable input used in the valuation of our Level 3 instruments is the discount rate. Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value of our investment securities. There are no unrealized gains or losses recognized in the condensed consolidated statement of income (loss) on account of any Level 3 instrument still held at the reporting date.

	September 30, 2021								December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investment securities
Non-U.S. debt securities (1)	$	9	$	—	$	—	$	9	$	30	$	—	$	—	$	30
Equity securities (2)	61		345		(3)		403		76		1,431		(5)		1,502
Total	$	70	$	345	$	(3)	$	411	$	106	$	1,431	$	(5)	$	1,532

(1)All of our investment securities are classified as available for sale instruments. Non-U.S. debt securities mature within one year.

(2)Gains (losses) recorded to earnings related to these securities were $(141) million and nil for the three months ended September 30, 2021 and 2020, respectively, and $(954) million and $(12) million for the nine months ended September 30, 2021 and 2020, respectively.

As of September 30, 2021 and December 31, 2020, our equity securities are comprised primarily of our investment in C3.ai, which consists of 8,650,476 and 10,813,095 shares, respectively, of C3.ai Class A common stock (C3.ai Shares), with a fair value of $401 million and $1,500 million, respectively. There were no C3.ai Shares sold during the three months ended September 30, 2021. We sold approximately 2.2 million of C3.ai Shares during the nine months ended September 30, 2021 and received proceeds of $145 million. For the three and nine months ended September 30, 2021, we recorded a loss of $140 million and $955 million, respectively, from the net change in fair value of our investment in C3.ai, which is reported in the “Other non-operating loss, net” caption in our condensed consolidated statement of income (loss). See “Note 16. Related Party Transactions” for further details on our agreements with C3.ai.

As of September 30, 2021 and December 31, 2020, $403 million and $1,514 million of total investment securities are recorded in "All other current assets" and $9 million and $18 million are recorded in "All other assets" of the condensed consolidated statements of financial position, respectively.

FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS

Our financial instruments include cash, cash equivalents, current receivables, certain investments, accounts payable, short and long-term debt, and derivative financial instruments. Except for long-term debt, the estimated fair value of these financial instruments as of September 30, 2021 and December 31, 2020 approximates their carrying value as reflected in our condensed consolidated financial statements. For further information on the fair value of our debt, see "Note 9. Borrowings."

DERIVATIVES AND HEDGING

We use derivatives to manage our risks and do not use derivatives for speculation. The table below summarizes the fair value of all derivatives, including hedging instruments and embedded derivatives.

	September 30, 2021				December 31, 2020
	Assets		Liabilities		Assets		Liabilities
Derivatives accounted for as hedges
Currency exchange contracts	$	—	$	—	$	5	$	—
Interest rate swap contracts	—		(12)		—		—
Derivatives not accounted for as hedges
Currency exchange contracts and other	19		(18)		113		(52)
Total derivatives	$	19	$	(30)	$	118	$	(52)

Derivatives are classified in condensed consolidated statements of financial position depending on their respective maturity date. As of September 30, 2021 and December 31, 2020, $18 million and $115 million of

derivative assets are recorded in "All other current assets" and $1 million and $3 million are recorded in "All other assets" of the condensed consolidated statements of financial position, respectively. As of September 30, 2021 and December 31, 2020, $27 million and $48 million of derivative liabilities are recorded in "All other current liabilities" and $4 million and $4 million are recorded in "All other liabilities" of the condensed consolidated statements of financial position, respectively.

FORMS OF HEDGING

Cash Flow Hedges

We use cash flow hedging primarily to reduce or eliminate the effects of foreign exchange rate changes on purchase and sale contracts. Accordingly, the vast majority of our derivative activity in this category consists of currency exchange contracts. In addition, we are exposed to interest rate risk fluctuations in connection with the planned issuance of long-term debt. During the nine months ended September 30, 2021, the Company executed interest rate swap contracts designated as cash flow hedges. These contracts are expected to mitigate interest rate risk associated with the anticipated refinancing of certain portions of long-term debt.

Changes in the fair value of cash flow hedges are recorded in a separate component of equity (referred to as Accumulated Other Comprehensive Income, or AOCI) and are recorded in earnings in the period in which the hedged transaction occurs. See "Note 12. Equity" for further information on activity in AOCI for cash flow hedges.

As of September 30, 2021 and December 31, 2020, the maximum term of derivative instruments that hedge forecasted transactions was one year.

Fair Value Hedges

All of our long-term debt is comprised of fixed rate instruments. We are subject to interest rate risk on our debt portfolio and may use interest rate swaps to manage the economic effect of fixed rate obligations associated with certain debt. Under these arrangements, we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount.

As of September 30, 2021, we had interest rate swaps with a notional amount of $500 million that converted a portion of our $1,350 million aggregate principal amount of 3.337% fixed rate Senior Notes due 2027 into a floating rate instrument with an interest rate based on a LIBOR index as a hedge of its exposure to changes in fair value that are attributable to interest rate risk. We concluded that the interest rate swap met the criteria necessary to qualify for the short-cut method of hedge accounting, and as such, an assumption is made that the change in the fair value of the hedged debt, due to changes in the benchmark rate, exactly offsets the change in the fair value of the interest rate swaps. Therefore, the derivative is considered to be effective at achieving offsetting changes in the fair value of the hedged liability, and no ineffectiveness is recognized. The mark-to-market of this fair value hedge is recorded as gains or losses in interest expense and is equally offset by the gain or loss of the underlying debt instrument, which also is recorded in interest expense.

Economic Hedges

These derivatives are not designated as hedges from an accounting standpoint (and therefore we do not apply hedge accounting to the relationship) but otherwise serve the same economic purpose as other hedging arrangements. Economic hedges are marked to fair value through earnings each period.

The following table summarizes the gains (losses) from derivatives not designated as hedges in the condensed consolidated statements of income (loss).

Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Currency exchange contracts (1)	Cost of goods sold	$	(2)	$	20	$	7	$	37
Currency exchange contracts	Cost of services sold	8		17		—		63
Commodity derivatives	Cost of goods sold	—		3		5		2
Other derivatives	Other non-operating loss, net	—		—		—		8
Total (2)		$	6	$	40	$	12	$	110

(1)Excludes gains of $2 million and losses of $14 million on embedded derivatives for the three months ended September 30, 2021 and 2020, respectively, and gains of $5 million and losses of $9 million during the nine months ended September 30, 2021 and 2020, respectively, as embedded derivatives are not considered to be hedging instruments in our economic hedges.

(2)The effect on earnings of derivatives not designated as hedges is substantially offset by the change in fair value of the economically hedged items in the current and future periods.

NOTIONAL AMOUNT OF DERIVATIVES

The notional amount of a derivative is the number of units of the underlying. A substantial majority of the outstanding notional amount of $5.3 billion and $7.0 billion at September 30, 2021 and December 31, 2020, respectively, is related to hedges of anticipated sales and purchases in foreign currency, commodity purchases, changes in interest rates, and contractual terms in contracts that are considered embedded derivatives and for intercompany borrowings in foreign currencies. We generally disclose derivative notional amounts on a gross basis to indicate the total counterparty risk. Where we have gross purchase and sale derivative contracts for a particular currency, we look to execute these contracts with the same counterparty to reduce our exposure. The notional amount of these derivative instruments do not generally represent cash amounts exchanged by us and the counterparties, but rather the nominal amount upon which changes in the value of the derivatives are measured.

COUNTERPARTY CREDIT RISK

Fair values of our derivatives can change significantly from period to period based on, among other factors, market movements and changes in our positions. We manage counterparty credit risk (the risk that counterparties will default and not make payments to us according to the terms of our agreements) on an individual counterparty basis.

OTHER EQUITY INVESTMENTS

As of September 30, 2021 and December 31, 2020, the carrying amount of equity securities without readily determinable fair values was $572 million and $554 million, respectively, and includes $500 million related to our five percent investment in ADNOC Drilling. These investments are recorded in "All other assets" of the condensed consolidated statements of financial position.

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Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Our reportable segments, which are the same as our operating segments, are organized based on the nature of markets and customers. We report our operating results through our four operating segments that consist of similar products and services within each segment. These products and services operate across upstream oil & gas and broader energy and industrial markets.

OILFIELD SERVICES (OFS)

Oilfield Services provides discrete products and integrated well services for onshore and offshore operations across the lifecycle of a well, ranging from drilling, evaluation, completion, production, and intervention. Products and services include drilling services, including directional drilling technology, measurement while drilling & logging while drilling, oilfield and industrial chemicals, artificial lift technologies, including electrical submersible pumps, downhole completion tools and systems, wellbore intervention tools and services, pressure pumping, drilling and completions fluids, wireline services and diamond and tri-cone drill bits.

OILFIELD EQUIPMENT (OFE)

Oilfield Equipment provides a broad portfolio of products and services required to facilitate the safe and reliable flow of hydrocarbons from the wellhead to the production facilities. The Oilfield Equipment portfolio has solutions for the subsea, offshore surface, and onshore operating environments. Products and services include subsea and surface pressure control and production systems and services, flexible pipe systems for offshore and onshore applications, and life-of-field solutions including well intervention, covering the entire life cycle of a field.

TURBOMACHINERY & PROCESS SOLUTIONS (TPS)

Turbomachinery & Process Solutions provides technology solutions and services for mechanical-drive, compression and power-generation applications across the energy industry, including oil and gas, liquefied natural gas (LNG) operations, downstream refining and petrochemical segments, as well as decarbonization solutions to broader energy and industrial sectors. The Turbomachinery & Process Solutions portfolio includes drivers (aero-derivative gas turbines, heavy-duty gas turbines and synchronous and induction electric motors), compressors (centrifugal and axial, direct drive high speed, integrated, subsea compressors, turbo expanders and reciprocating), turnkey solutions (industrial modules and waste heat recovery), pumps, valves, and compressed natural gas (CNG) and small-scale LNG solutions.

DIGITAL SOLUTIONS (DS)

Digital Solutions provides equipment, software, and services for a wide range of industries, including oil & gas, power generation, aerospace, metals, and transportation. The offerings include a number of products and solutions that provide industrial asset management capabilities, including sensor-based process measurement, machine health and condition monitoring, asset strategy and management, control systems, as well as non-destructive testing and inspection, and pipeline integrity solutions.

SEGMENT RESULTS

Segment revenue and profit are determined based on the internal performance measures used by the Company to assess the performance of each segment in a financial period. Summarized financial information is shown in the following tables. Consistent accounting policies have been applied by all segments within the Company, for all reporting periods.

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment revenue	2021		2020		2021		2020
Oilfield Services	$	2,419	$	2,308	$	6,976	$	7,858
Oilfield Equipment	603		726		1,867		2,133
Turbomachinery & Process Solutions	1,562		1,513		4,675		3,759
Digital Solutions	510		503		1,499		1,460
Total	$	5,093	$	5,049	$	15,017	$	15,210

The performance of our operating segments is evaluated based on segment operating income (loss), which is defined as income (loss) before income taxes before the following: net interest expense, net other non-operating income (loss), corporate expenses, restructuring, impairment and other charges, inventory impairments, separation related costs, goodwill impairments and certain gains and losses not allocated to the operating segments.

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment income (loss) before income taxes	2021		2020		2021		2020
Oilfield Services	$	190	$	93	$	505	$	345
Oilfield Equipment	14		19		45		(4)
Turbomachinery & Process Solutions	278		191		705		473
Digital Solutions	26		46		75		117
Total segment	508		349		1,330		931
Corporate	(105)		(115)		(324)		(353)
Goodwill impairment	—		—		—		(14,773)
Inventory impairment (1)	—		(42)		—		(218)
Restructuring, impairment and other	(14)		(209)		(219)		(1,637)
Separation related	(11)		(32)		(53)		(110)
Other non-operating loss, net	(102)		(149)		(791)		(367)
Interest expense, net	(67)		(66)		(205)		(195)
Income (loss) before income taxes	$	209	$	(264)	$	(260)	$	(16,722)

(1)Charges for inventory impairments are predominantly reported in the "Cost of goods sold" caption of the condensed consolidated statements of income (loss).

The following table presents depreciation and amortization by segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment depreciation and amortization	2021		2020		2021		2020
Oilfield Services	$	183	$	217	$	578	$	714
Oilfield Equipment	22		35		81		114
Turbomachinery & Process Solutions	30		33		90		87
Digital Solutions	22		24		66		73
Total segment	257		309		815		988
Corporate	5		6		17		22
Total	$	262	$	315	$	832	$	1,010

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Related Party Transactions

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS WITH GE

GE is our largest shareholder, and we have continuing involvement with GE primarily through their remaining interest in us and BHH LLC, ongoing purchases and sales of products and services, transition services that they provide, as well as an aeroderivative joint venture (Aero JV) we formed with GE in 2019. Until GE and its affiliates own less than 20% of the voting power of our outstanding common stock, which includes both Class A and B common stock, GE is entitled to designate one person for nomination to our board of directors. At September 30, 2021 and December 31, 2020, GE's economic interest in BHH LLC through their ownership of Class B common stock and associated LLC Units were 17.2% and 30.1%, respectively. At September 30, 2021, GE owned Class A common stock in addition to their Class B common stock, which represents their overall Baker Hughes ownership of 20.6%.

The Aero JV is jointly controlled by GE and us, and therefore, we do not consolidate the JV. We had purchases with GE and its affiliates, including the Aero JV, of $366 million and $384 million during the three months ended September 30, 2021 and 2020, respectively, and $988 million and $993 million during the nine months ended September 30, 2021 and 2020, respectively. In addition, we sold products and services to GE and its affiliates for $48 million and $46 million during the three months ended September 30, 2021 and 2020, respectively, and $136 million and $150 million during the nine months ended September 30, 2021 and 2020, respectively.

The Company has $300 million and $356 million of accounts payable at September 30, 2021 and December 31, 2020, respectively, for goods and services provided by GE in the ordinary course of business. The Company has $362 million and $429 million of current receivables at September 30, 2021 and December 31, 2020, respectively, for goods and services provided to GE in the ordinary course of business.

On July 3, 2017, we executed a promissory note with GE that represents certain cash that we are holding on GE's behalf due to the restricted nature of the cash. The restriction arises as the majority of the cash cannot be released, transferred or otherwise converted into a non-restricted market currency due to the lack of market liquidity, capital controls or similar monetary or exchange limitations by a government entity of the jurisdiction in which such cash is situated. There is no maturity date on the promissory note, but we remain obligated to repay GE, therefore, this obligation is reflected as short-term borrowings. As of September 30, 2021, of the $11 million due to GE, all was held in the form of cash. As of December 31, 2020, of the $45 million due to GE, $44 million was held in the form of cash and $1 million was held in the form of investment securities. A corresponding liability is reported in short-term debt in the condensed consolidated statements of financial position.

RELATED PARTY TRANSACTIONS WITH C3.ai

We have agreements with C3.ai under which, among other things, we received a subscription (which we refer to below as direct subscription fees) to use certain C3.ai offerings for internal use and the development of applications on the C3.ai AI Suite, as well as the right to resell C3.ai offerings worldwide on an exclusive basis in the oil and gas market and, with C3.ai's prior consent, non-exclusively in other markets, in each case subject to certain exceptions and conditions. The agreement has an expiration date in the fiscal year ending April 30, 2024 with annual contractual amounts of our minimum revenue commitment of $75 million, $125 million, and $150 million per year, which amounts are inclusive of direct subscription fees of approximately $28 million per year, over the fiscal years ending April 30, 2022, 2023, and 2024, respectively. To the extent we are unable to meet the annual minimum revenue commitment under such arrangement, we are obligated to pay C3.ai the shortfall; if we exceed the annual minimum revenue commitment, C3.ai will pay us a sales commission. Lorenzo Simonelli, Chief Executive Officer of Baker Hughes, serves as a member of the board of directors of C3.ai. See “Note 14. Financial Instruments” for further discussion of our investment in C3.ai.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

LITIGATION

We are subject to legal proceedings arising in the ordinary course of our business. Because legal proceedings are inherently uncertain, we are unable to predict the ultimate outcome of such matters. We record a liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. Based on the opinion of management, we do not expect the ultimate outcome of currently pending legal proceedings to have a material adverse effect on our results of operations, financial position or cash flows. However, there can be no assurance as to the ultimate outcome of these matters.

In January 2013, INEOS and Naphtachimie initiated expertise proceedings in Aix-en-Provence, France arising out of a fire at a chemical plant owned by INEOS in Lavera, France, which resulted in a 15-day plant shutdown and destruction of a steam turbine, which was part of a compressor train owned by Naphtachimie. The most recent quantification of the alleged damages is €250 million. Two of the Company's subsidiaries (and 17 other companies) were notified to participate in the proceedings. The proceedings are ongoing, and at this time, there is no indication that the Company's subsidiaries were involved in the incident. Although the outcome of the claims remains uncertain, our insurer has accepted coverage and is defending the Company in the expertise proceeding.

On July 31, 2018, International Engineering & Construction S.A. (IEC) initiated arbitration proceedings in New York administered by the International Center for Dispute Resolution (ICDR) against the Company and its subsidiaries arising out of a series of sales and service contracts entered between IEC and the Company’s subsidiaries for the sale and installation of LNG plants and related power generation equipment in Nigeria (Contracts).  Prior to the filing of the IEC Arbitration, the Company’s subsidiaries made demands for payment due under the Contracts.  On August 15, 2018, the Company’s subsidiaries initiated a separate demand for ICDR arbitration against IEC for claims of additional costs and amounts due under the Contracts.  On October 10, 2018, IEC filed a Petition to Compel Arbitration in the United States District Court for the Southern District of New York against the Company seeking to compel non-signatory Baker Hughes entities to participate in the arbitration filed by IEC. The complaint is captioned International Engineering & Construction S.A. et al. v. Baker Hughes, a GE company, LLC, et al. No. 18-cv-09241 (S.D.N.Y 2018); this action was dismissed by the Court on August 13, 2019.  In the arbitration, IEC alleges breach of contract and other claims against the Company and its subsidiaries and seeks recovery of alleged compensatory damages, in addition to reasonable attorneys' fees, expenses and arbitration costs. On March 15, 2019, IEC amended its request for arbitration to alleged damages of $591 million of lost profits plus unspecified additional costs based on alleged non-performance of the contracts in dispute. The arbitration hearing was held from December 9, 2019 to December 20, 2019. On March 3, 2020, IEC amended their damages claim to $700 million of alleged loss cash flow or, in the alternative, $244.9 million of lost profits and various costs based on alleged non-performance of the contracts in dispute, and in addition $4.8 million of liquidated damages, $58.6 million in take-or-pay costs of feed gas, and unspecified additional costs of rectification and take-or-pay future obligations, plus unspecified interest and attorneys' fees. On May 3, 2020, the arbitration panel dismissed IEC's request for take-or-pay damages. On May 29, 2020, IEC quantified their claim for legal fees at $14.2 million and reduced their alternative claim from $244.9 million to approximately $235 million. The Company and its subsidiaries have contested IEC’s claims and are pursuing claims for compensation under the contracts. On October 31, 2020, the ICDR notified the arbitration panel’s final award, which dismissed the majority of IEC’s claims and awarded a portion of the Company’s claims. On January 27, 2021, IEC filed a petition to vacate the arbitral award in the Supreme Court of New York, County of New York. On March 5, 2021, the Company filed a petition to confirm the arbitral award, and on March 8, 2021, the Company removed the matter to the United States District Court for the Southern District of New York. At this time, we are not able to predict the outcome of these proceedings.

On March 15, 2019 and March 18, 2019, the City of Riviera Beach Pension Fund and Richard Schippnick, respectively, filed in the Delaware Court of Chancery shareholder derivative lawsuits for and on the Company’s behalf against GE, the then-current members of the Board of Directors of the Company and the Company as a nominal defendant, related to the decision to (i) terminate the contractual prohibition barring GE from selling any of the Company’s shares before July 3, 2019; (ii) repurchase $1.5 billion in the Company’s stock from GE; (iii) permit GE to sell approximately $2.5 billion in the Company’s stock through a secondary offering; and (iv) enter into a series of other agreements and amendments that will govern the ongoing relationship between the Company and

GE  (collectively, the “2018 Transactions”). The complaints in both lawsuits allege, among other things, that GE, as the Company’s controlling stockholder, and the members of the Company’s Board of Directors breached their fiduciary duties by entering into the 2018 Transactions.  The relief sought in the complaints includes a request for a declaration that the defendants breached their fiduciary duties, that GE was unjustly enriched, disgorgement of profits, an award of damages sustained by the Company, pre- and post-judgment interest, and attorneys’ fees and costs.  On March 21, 2019, the Chancery Court entered an order consolidating the Schippnick and City of Riviera Beach complaints under consolidated C.A. No. 2019-0201-AGB, styled in re Baker Hughes, a GE company derivative litigation. On May 10, 2019, Plaintiffs voluntarily dismissed their claims against the members of the Company’s Conflicts Committee, and on May 15, 2019, Plaintiffs voluntarily dismissed their claims against former Baker Hughes director Martin Craighead. On June 7, 2019, the defendants and nominal defendant filed a motion to dismiss the lawsuit on the ground that the derivative plaintiffs failed to make a demand on the Company’s Board of Directors to pursue the claims itself, and GE and the Company’s Board of Directors filed a motion to dismiss the lawsuit on the ground that the complaint failed to state a claim on which relief can be granted. The Chancery Court denied the motions on October 8, 2019, except granted GE’s motion to dismiss the unjust enrichment claim against it. On October 31, 2019, the Company’s Board of Directors designated a Special Litigation Committee and empowered it with full authority to investigate and evaluate the allegations and issues raised in the derivative litigation. The Special Litigation Committee filed a motion to stay the derivative litigation during its investigation. On December 3, 2019, the Chancery Court granted the motion and stayed the derivative litigation until June 1, 2020. On May 20, 2020, the Chancery Court granted an extension of the stay to October 1, 2020, and on September 29, 2020, the Court granted a further extension of the stay to October 15, 2020. On October 13, 2020, the Special Litigation Committee filed its report with the Court. At this time, we are not able to predict the outcome of these claims.

In March 2019, the Company received a document request from the United States Department of Justice (the “DOJ”) related to certain of the Company’s operations in Iraq and its dealings with Unaoil Limited and its affiliates. In December 2019, the Company received a similar document request from the SEC. The Company has cooperated with the DOJ and the SEC in connection with their requests and any related matters. On September 30, 2021, the Company was informed that the matter has been closed and no enforcement action has been taken.

On August 13, 2019, Tri-State Joint Fund filed in the Delaware Court of Chancery, a shareholder class action lawsuit for and on the behalf of itself and all similarly situated public stockholders of Baker Hughes Incorporated against the General Electric Company (GE), the former members of the Board of Directors of BHI, and certain former BHI Officers alleging breaches of fiduciary duty, aiding and abetting, and other claims in connection with the combination of BHI and the oil and gas business (GE O&G) of GE (the Transactions). On October 28, 2019, City of Providence filed in the Delaware Court of Chancery a shareholder class action lawsuit for and on behalf of itself and all similarly situated public shareholders of BHI against GE, the former members of the Board of Directors of BHI, and certain former BHI Officers alleging substantially the same claims in connection with the Transactions. The relief sought in these complaints include a request for a declaration that Defendants breached their fiduciary duties, an award of damages, pre- and post-judgment interest, and attorneys’ fees and costs. The lawsuits have been consolidated, and plaintiffs filed a consolidated class action complaint on December 17, 2019 against certain former BHI officers alleging breaches of fiduciary duty and against GE for aiding and abetting those breaches. The December 2019 complaint omitted the former members of the Board of Directors of BHI, except for Mr. Craighead who also served as President and CEO of BHI. Mr. Craighead and Ms. Ross, who served as Senior Vice President and Chief Financial Officer of BHI, remain named in the December 2019 complaint along with GE. The relief sought in the consolidated complaint includes a declaration that the former BHI officers breached their fiduciary duties and that GE aided and abetted those breaches, an award of damages, pre- and post-judgment interest, and attorneys’ fees and costs. On or around February 12, 2020, the defendants filed motions to dismiss the lawsuit on the grounds that the complaint failed to state a claim on which relief could be granted. On or around October 27, 2020, the Chancery Court granted GE’s motion to dismiss, and granted in part the motion to dismiss filed by Mr. Craighead and Ms. Ross, thereby dismissing all of the claims against GE and Ms. Ross, and all but one of the claims against Mr. Craighead. At this time, we are not able to predict the outcome of the remaining claim.

On December 11, 2019, BMC Software, Inc. (“BMC”) filed a lawsuit in federal court in the Southern District of Texas against Baker Hughes, a GE company, LLC alleging trademark infringement, unfair competition, and unjust enrichment, arising out of the Company’s use of its new logo and affiliated branding. On January 1, 2020, BMC amended its complaint to add Baker Hughes Company. The relief sought in the complaint includes a request for

injunctive relief, an award of damages (including punitive damages), pre- and post-judgment interest, and attorneys’ fees and costs.  At this time, we are not able to predict the outcome of these claims.

In December 2020, 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. While the Company’s review remains ongoing, in September 2021, the Company voluntarily informed the Office of Foreign Assets Control (OFAC) that non-U.S. Baker Hughes affiliates in two foreign countries appear to have received payments, involving U.S. touchpoints, that are subject to debt restrictions pursuant to applicable U.S. sanctions laws. Although the value of the payments in connection with the identified transactions is immaterial, the Company is unable to determine at this time if any remedial or other actions may be taken by OFAC. The Company provided a copy of the letter to the SEC, and, as the SEC investigation is ongoing, the Company cannot anticipate the timing, outcome or possible impact of the investigation or review, financial or otherwise.

We insure against risks arising from our business to the extent deemed prudent by our management and to the extent insurance is available, but no assurance can be given that the nature and amount of that insurance will be sufficient to fully indemnify us against liabilities arising out of pending or future legal proceedings or other claims. Most of our insurance policies contain deductibles or self-insured retentions in amounts we deem prudent and for which we are responsible for payment. In determining the amount of self-insurance, it is our policy to self-insure those losses that are predictable, measurable and recurring in nature, such as claims for automobile liability, general liability and workers compensation.

OTHER

In the normal course of business with customers, vendors and others, we have entered into off-balance sheet arrangements, such as surety bonds for performance, letters of credit and other bank issued guarantees. We also provide guarantees to GE Capital on behalf of some customers who have entered into financing arrangements with GE Capital. Total off-balance sheet arrangements were approximately $4.5 billion at September 30, 2021. It is not practicable to estimate the fair value of these financial instruments. None of the off-balance sheet arrangements either has, or is likely to have, a material effect on our financial position, results of operations or cash flows.

We sometimes enter into consortium or similar arrangements for certain projects primarily in our Oilfield Equipment segment.  Under such arrangements, each party is responsible for performing a certain scope of work within the total scope of the contracted work, and the obligations expire when all contractual obligations are completed.  The failure or inability, financially or otherwise, of any of the parties to perform their obligations could impose additional costs and obligations on us. These factors could result in unanticipated costs to complete the project, liquidated damages or contract disputes.

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Restructuring, Impairment and Other

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring, Impairment and Other

RESTRUCTURING, IMPAIRMENT AND OTHERWe recorded restructuring, impairment and other charges of $14 million and $209 million during the three months ended September 30, 2021 and 2020, respectively, and $219 million and $1,637 million during the nine months ended September 30, 2021 and 2020, respectively. Charges incurred in 2021 are primarily related to the continuation of our overall strategy to right-size our structural costs for the year-over-year change in activity levels and market conditions. Details of these charges are discussed below.

RESTRUCTURING AND IMPAIRMENT

The following table presents restructuring and impairment charges by the impacted segment, however, these charges are not included in the reported segment results:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Oilfield Services	$	14	$	144	$	119	$	453
Oilfield Equipment	3		21		4		121
Turbomachinery & Process Solutions	(3)		7		11		27
Digital Solutions	—		18		3		52
Corporate	—		1		7		15
Total	$	14	$	191	$	144	$	668

Restructuring and impairment charges were primarily related to employee termination expenses from reducing our headcount in certain geographical locations, and product line rationalization, including facility closures and related expenses such as property, plant & equipment impairments and contract termination fees. The table below includes any gains on the dispositions of certain property, plant & equipment previously impaired as a consequence of exit activities. Details of these charges are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Property, plant & equipment, net	$	(1)	$	65	$	21	$	214
Employee-related termination expenses	1		108		94		406
Contract termination fees	3		1		4		23
Other incremental costs	11		17		25		25
Total	$	14	$	191	$	144	$	668

OTHER

During the three months ended September 30, 2021, there were no other charges incurred. During the nine months ended September 30, 2021, we incurred other charges of $75 million. During the three and nine months ended September 30, 2020, we incurred other charges of $18 million and $969 million, respectively.

Charges for the nine months ended September 30, 2021 were primarily related to certain litigation matters in our TPS segment and the release of foreign currency translation adjustments for certain restructured product lines in our DS segment.

Charges for the nine months ended September 30, 2020 were comprised of intangible asset impairments of $605 million driven by our decision to exit certain businesses primarily in our OFS segment, other long-lived asset impairments of $216 million ($124 million of intangible assets, $77 million of property, plant and equipment and $15 million of other assets) in our OFE segment and other charges of $73 million driven by certain litigation matters and impairment of an equity method investment primarily in corporate and the OFE segment, and charges related to corporate facility rationalization.

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Assets and Liabilities of Business Held for Sale

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities of Business Held for Sale

ASSETS AND LIABILITIES OF BUSINESS HELD FOR SALE

In March 2021, we announced that we entered into an agreement with Akastor ASA to create a joint venture company (JV Company) to deliver global offshore drilling solutions. The JV Company will be known as HMH and owned 50-50 by Baker Hughes and Akastor ASA. Consequently, on October 1, 2021, we closed the transaction and contributed our subsea drilling systems (SDS) business, a division of our Oilfield Equipment segment, to the JV Company and received as consideration 50% of the shares of the JV Company and $200 million cash of which $120 million was paid at the time of closing. The JV Company issued notes to Baker Hughes for $80 million representing the balance of the consideration owed that will be subordinated to the JV Company’s external debt financing. Our ongoing operations in the JV Company will not be integral to our operations. The Company's interest in the JV Company will be accounted for as an equity method investment.

As of September 30, 2021, the SDS business was classified as held for sale and measured and reported at the lower of its carrying amount or fair value less costs to sell. Based on our preliminary estimates, the carrying value is expected to approximate the fair value less costs to sell, which would include deal costs and foreign currency translation adjustments associated with this business. The following table presents financial information related to the assets and liabilities of the SDS business being contributed to the JV Company that are classified as held for sale and reported in "All other current assets" and "All other current liabilities" in our condensed consolidated statement of financial position as of September 30, 2021.

Assets and liabilities of business held for sale	September 30, 2021
Assets
Current assets (1)	$	122
Property, plant and equipment	108
Intangible assets	122
All other assets	56
Total assets	408
Liabilities
Current liabilities	48
All other liabilities	6
Total liabilities	54
Total carrying amount of net assets contributed	$	354

(1)On the closing date, we contributed cash in lieu of customer receivables, which was incremental to the assets held for sale detailed in the table above

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. and such principles, U.S. GAAP) and pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report).

We hold a majority economic interest in BHH LLC and conduct and exercise full control over all activities of BHH LLC without the approval of any other member. Accordingly, we consolidate the financial results of BHH LLC and report a noncontrolling interest in our condensed consolidated financial statements for the economic interest held by General Electric (GE). As of September 30, 2021, GE's interest in BHH LLC was 17.2%. See "Note 12. Equity" for further information.

In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated.

In the Company's financial statements and notes, certain amounts have been reclassified to conform to the current year presentation. In the notes to unaudited condensed consolidated financial statements, all dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers.

Separation related costs as reflected in our condensed consolidated statements of income (loss) include costs incurred in connection with the ongoing activities related to our separation from GE. See "Note 16. Related Party Transactions" for further information.

Cash and Cash Equivalents

Cash and Cash Equivalents

As of September 30, 2021 and December 31, 2020, we had $691 million and $687 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations

limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S.

New Accounting Standards To Be Adopted

NEW ACCOUNTING STANDARDS TO BE ADOPTED

All new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.

Fair Value Measurements

The most significant unobservable input used in the valuation of our Level 3 instruments is the discount rate. Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value of our investment securities.

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Revenue Related to Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregated revenue from contracts with customers by primary geographical markets

We disaggregate our revenue from contracts with customers by primary geographic markets.

	Three Months Ended September 30,				Nine Months Ended September 30,
Total Revenue	2021		2020		2021		2020
U.S.	$	1,199	$	1,032	$	3,337	$	3,330
Non-U.S.	3,894		4,017		11,680		11,880
Total	$	5,093	$	5,049	$	15,017	$	15,210

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Current Receivables (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Current receivables

Current receivables are comprised of the following:

	September 30, 2021		December 31, 2020
Customer receivables	$	4,569	$	4,676
Related parties	362		429
Other	782		890
Total current receivables	5,713		5,995
Less: Allowance for credit losses	(387)		(373)
Total current receivables, net	$	5,326	$	5,622

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Inventories (Tables)

9 Months Ended

Sep. 30, 2021

Inventory, Net [Abstract]

Inventories, net of reserves

Inventories, net of reserves of $390 million and $421 million as of September 30, 2021 and December 31, 2020, respectively, are comprised of the following:

	September 30, 2021		December 31, 2020
Finished goods	$	2,255	$	2,337
Work in process and raw materials	1,855		2,084
Total inventories, net	$	4,110	$	4,421

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The changes in the carrying value of goodwill are detailed below by segment:

	Oilfield Services		Oilfield Equipment		Turbo- machinery & Process Solutions		Digital Solutions		Total
Balance at December 31, 2019, gross	$	15,676	$	4,186	$	2,171	$	2,411	$	24,444
Accumulated impairment at December 31, 2019	(2,633)		(867)		—		(254)		(3,754)
Balance at December 31, 2019	13,043		3,319		2,171		2,157		20,690
Impairment	(11,484)		(3,289)		—		—		(14,773)
Currency exchange and others	(20)		(24)		63		41		60
Balance at December 31, 2020	1,539		6		2,234		2,198		5,977
Currency exchange and others	—		(3)		(20)		61		38
Balance at September 30, 2021	$	1,539	$	3	$	2,214	$	2,259	$	6,015

Schedule of finite-lived intangible assets

Intangible assets are comprised of the following:

	September 30, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	1,944	$	(749)	$	1,195	$	2,261	$	(916)	$	1,345
Technology	1,105		(741)		364		1,127		(696)		431
Trade names and trademarks	293		(168)		125		326		(181)		145
Capitalized software	1,306		(1,062)		244		1,294		(1,041)		253
Finite-lived intangible assets	4,648		(2,720)		1,928		5,008		(2,834)		2,174
Indefinite-lived intangible assets	2,223		—		2,223		2,223		—		2,223
Total intangible assets	$	6,871	$	(2,720)	$	4,151	$	7,231	$	(2,834)	$	4,397

Schedule of indefinite-lived intangible assets

Intangible assets are comprised of the following:

	September 30, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Customer relationships	$	1,944	$	(749)	$	1,195	$	2,261	$	(916)	$	1,345
Technology	1,105		(741)		364		1,127		(696)		431
Trade names and trademarks	293		(168)		125		326		(181)		145
Capitalized software	1,306		(1,062)		244		1,294		(1,041)		253
Finite-lived intangible assets	4,648		(2,720)		1,928		5,008		(2,834)		2,174
Indefinite-lived intangible assets	2,223		—		2,223		2,223		—		2,223
Total intangible assets	$	6,871	$	(2,720)	$	4,151	$	7,231	$	(2,834)	$	4,397

Schedule of finite-lived intangible assets, future amortization expense

Estimated amortization expense for the remainder of 2021 and each of the subsequent five fiscal years is expected to be as follows:

Year	Estimated Amortization Expense
Remainder of 2021	$	58
2022	213
2023	200
2024	182
2025	135
2026	92

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Contract and Other Deferred Assets (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Contract assets

Contract assets are comprised of the following:

	September 30, 2021		December 31, 2020
Long-term product service agreements	$	644	$	660
Long-term equipment contracts (1)	909		1,160
Contract assets (total revenue in excess of billings)	1,553		1,820
Deferred inventory costs	153		138
Non-recurring engineering costs	32		43
Contract and other deferred assets	$	1,738	$	2,001

(1)Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements.Contract liabilities are comprised of the following:

	September 30, 2021		December 31, 2020
Progress collections	$	3,140	$	3,352
Deferred income	123		102
Progress collections and deferred income (contract liabilities)	$	3,263	$	3,454

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Progress Collections and Deferred Income (Tables)

9 Months Ended

Sep. 30, 2021

Revenue Recognition and Deferred Revenue [Abstract]

Contract liabilities

Contract assets are comprised of the following:

	September 30, 2021		December 31, 2020
Long-term product service agreements	$	644	$	660
Long-term equipment contracts (1)	909		1,160
Contract assets (total revenue in excess of billings)	1,553		1,820
Deferred inventory costs	153		138
Non-recurring engineering costs	32		43
Contract and other deferred assets	$	1,738	$	2,001

(1)Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements.Contract liabilities are comprised of the following:

	September 30, 2021		December 31, 2020
Progress collections	$	3,140	$	3,352
Deferred income	123		102
Progress collections and deferred income (contract liabilities)	$	3,263	$	3,454

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Schedule of operating lease expense

Our leasing activities primarily consist of operating leases for administrative offices, manufacturing facilities, research centers, service centers, sales offices and certain equipment.

	Three Months Ended September 30,				Nine Months Ended September 30,
Operating Lease Expense	2021		2020		2021		2020
Long-term fixed lease	$	64	$	71	$	192	$	213
Long-term variable lease	7		3		24		23
Short-term lease	119		102		328		382
Total operating lease expense	$	190	$	176	$	544	$	618

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Borrowings (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Short-term and long-term borrowings

Short-term and long-term borrowings are comprised of the following:

	September 30, 2021		December 31, 2020
Short-term borrowings
Commercial paper	$	—	$	801
Short-term borrowings from GE	11		45
Other borrowings	45		43
Total short-term borrowings	56		889
Long-term borrowings
2.773% Senior Notes due December 2022	1,249		1,247
8.55% Debentures due June 2024	119		123
3.337% Senior Notes due December 2027	1,341		1,344
6.875% Notes due January 2029	280		284
3.138% Senior Notes due November 2029	522		522
4.486% Senior Notes due May 2030	497		497
5.125% Senior Notes due September 2040	1,293		1,297
4.08% Senior Notes due December 2047	1,337		1,337
Other long-term borrowings	70		93
Total long-term borrowings	6,708		6,744
Total borrowings	$	6,764	$	7,633

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Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Schedule of net periodic cost

The components of net periodic cost are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Service cost	$	7	$	7	$	21	$	21
Interest cost	15		19		47		59
Expected return on plan assets	(32)		(31)		(95)		(93)
Amortization of net actuarial loss	10		9		30		25
Curtailment/settlement & other loss	1		3		1		3
Net periodic cost	$	1	$	7	$	4	$	15

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Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of changes in number of shares outstanding

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

	Class A Common Stock		Class B Common Stock
	2021	2020	2021	2020
Balance at January 1	723,999	650,065	311,433	377,428
Issue of shares upon vesting of restricted stock units (1)	4,903	3,425	—	—
Issue of shares on exercises of stock options (1)	369	5	—	—
Issue of shares for employee stock purchase plan	1,933	3,291	—	—
Exchange of Class B common stock for Class A common stock	132,706	27,988	(132,706)	(27,988)
Repurchase and cancellation of Class A common stock	(4,430)	—	—	—
Balance at September 30	859,480	684,775	178,726	349,440

(1)Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation.

Schedule of accumulated other comprehensive loss

The following tables present the changes in accumulated other comprehensive loss, net of tax:

	Investment Securities		Foreign Currency Translation Adjustments		Cash Flow Hedges		Benefit Plans		Accumulated Other Comprehensive Loss
Balance at December 31, 2020	$	—	$	(1,464)	$	3	$	(317)	$	(1,778)
Other comprehensive income (loss) before reclassifications	—		(82)		(6)		47		(41)
Amounts reclassified from accumulated other comprehensive income (loss)	—		31		(7)		32		56
Deferred taxes	—		—		—		(1)		(1)
Other comprehensive income (loss)	—		(51)		(13)		78		14
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—		(9)		(2)		15		4
Less: Reallocation of AOCL based on change in ownership of LLC Units	—		269		(1)		56		324
Balance at September 30, 2021	$	—	$	(1,775)	$	(7)	$	(310)	$	(2,092)

	Investment Securities		Foreign Currency Translation Adjustments		Cash Flow Hedges		Benefit Plans		Accumulated Other Comprehensive Loss
Balance at December 31, 2019	$	1	$	(1,436)	$	6	$	(207)	$	(1,636)
Other comprehensive income (loss) before reclassifications	(2)		(101)		(5)		(56)		(164)
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		(2)		35		33
Deferred taxes	—		—		1		(3)		(2)
Other comprehensive income (loss)	(2)		(101)		(6)		(24)		(133)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(1)		(42)		(2)		(7)		(52)
Less: Reallocation of AOCL based on change in ownership of LLC Units	—		75		—		9		84
Balance at September 30, 2020	$	—	$	(1,570)	$	2	$	(233)	$	(1,801)

Schedule of noncontrolling interest

As of September 30, 2021 and December 31, 2020, GE owned approximately 17.2% and 30.1%, respectively, of BHH LLC and this represents the majority of the noncontrolling interest balance reported within equity.

	September 30, 2021		December 31, 2020
GE's interest in BHH LLC	$	2,752	$	5,216
Other noncontrolling interests	142		133
Total noncontrolling interests	$	2,894	$	5,349

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Basic and diluted net income (loss) per share

Basic and diluted net income (loss) per share of Class A common stock is presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share amounts)	2021		2020		2021		2020
Net income (loss)	$	16	$	(270)	$	(666)	$	(16,712)
Less: Net income (loss) attributable to noncontrolling interests	8		(100)		(154)		(6,120)
Net income (loss) attributable to Baker Hughes Company	$	8	$	(170)	$	(512)	$	(10,592)
Weighted average shares outstanding:
Class A basic	851		676		799		662
Class A diluted	857		676		799		662
Net income (loss) per share attributable to common stockholders:
Class A basic & diluted	$	0.01	$	(0.25)	$	(0.64)	$	(16.01)

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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Our assets and liabilities measured at fair value on a recurring basis consists of derivative instruments and investment securities.

	September 30, 2021								December 31, 2020
	Level 1		Level 2		Level 3		Net Balance		Level 1		Level 2		Level 3		Net Balance
Assets
Derivatives	$	—	$	19	$	—	$	19	$	—	$	118	$	—	$	118
Investment securities	403		—		9		411		1,502		—		30		1,532
Total assets	403		19		9		430		1,502		118		30		1,650
Liabilities
Derivatives	—		(30)		—		(30)		—		(52)		—		(52)
Total liabilities	$	—	$	(30)	$	—	$	(30)	$	—	$	(52)	$	—	$	(52)

Reconciliation of recurring Level 3 fair value measurements

The following table provides a reconciliation of recurring Level 3 fair value measurements for investment securities:

	2021		2020
Balance at January 1	$	30	$	259
Purchases	—		10
Proceeds at maturity	(21)		(168)
Unrealized gains (losses) recognized in accumulated other comprehensive income (loss)	—		(3)
Balance at September 30	$	9	$	98

Schedule of investment securities classified as available for sale

	September 30, 2021								December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investment securities
Non-U.S. debt securities (1)	$	9	$	—	$	—	$	9	$	30	$	—	$	—	$	30
Equity securities (2)	61		345		(3)		403		76		1,431		(5)		1,502
Total	$	70	$	345	$	(3)	$	411	$	106	$	1,431	$	(5)	$	1,532

(1)All of our investment securities are classified as available for sale instruments. Non-U.S. debt securities mature within one year.

(2)Gains (losses) recorded to earnings related to these securities were $(141) million and nil for the three months ended September 30, 2021 and 2020, respectively, and $(954) million and $(12) million for the nine months ended September 30, 2021 and 2020, respectively.

Schedule of derivatives

The table below summarizes the fair value of all derivatives, including hedging instruments and embedded derivatives.

	September 30, 2021				December 31, 2020
	Assets		Liabilities		Assets		Liabilities
Derivatives accounted for as hedges
Currency exchange contracts	$	—	$	—	$	5	$	—
Interest rate swap contracts	—		(12)		—		—
Derivatives not accounted for as hedges
Currency exchange contracts and other	19		(18)		113		(52)
Total derivatives	$	19	$	(30)	$	118	$	(52)

Schedule of gains (losses) from derivatives not designated as hedges

The following table summarizes the gains (losses) from derivatives not designated as hedges in the condensed consolidated statements of income (loss).

Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Currency exchange contracts (1)	Cost of goods sold	$	(2)	$	20	$	7	$	37
Currency exchange contracts	Cost of services sold	8		17		—		63
Commodity derivatives	Cost of goods sold	—		3		5		2
Other derivatives	Other non-operating loss, net	—		—		—		8
Total (2)		$	6	$	40	$	12	$	110

(1)Excludes gains of $2 million and losses of $14 million on embedded derivatives for the three months ended September 30, 2021 and 2020, respectively, and gains of $5 million and losses of $9 million during the nine months ended September 30, 2021 and 2020, respectively, as embedded derivatives are not considered to be hedging instruments in our economic hedges.

(2)The effect on earnings of derivatives not designated as hedges is substantially offset by the change in fair value of the economically hedged items in the current and future periods.

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Summarized financial information

Summarized financial information is shown in the following tables. Consistent accounting policies have been applied by all segments within the Company, for all reporting periods.

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment revenue	2021		2020		2021		2020
Oilfield Services	$	2,419	$	2,308	$	6,976	$	7,858
Oilfield Equipment	603		726		1,867		2,133
Turbomachinery & Process Solutions	1,562		1,513		4,675		3,759
Digital Solutions	510		503		1,499		1,460
Total	$	5,093	$	5,049	$	15,017	$	15,210

The performance of our operating segments is evaluated based on segment operating income (loss), which is defined as income (loss) before income taxes before the following: net interest expense, net other non-operating income (loss), corporate expenses, restructuring, impairment and other charges, inventory impairments, separation related costs, goodwill impairments and certain gains and losses not allocated to the operating segments.

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment income (loss) before income taxes	2021		2020		2021		2020
Oilfield Services	$	190	$	93	$	505	$	345
Oilfield Equipment	14		19		45		(4)
Turbomachinery & Process Solutions	278		191		705		473
Digital Solutions	26		46		75		117
Total segment	508		349		1,330		931
Corporate	(105)		(115)		(324)		(353)
Goodwill impairment	—		—		—		(14,773)
Inventory impairment (1)	—		(42)		—		(218)
Restructuring, impairment and other	(14)		(209)		(219)		(1,637)
Separation related	(11)		(32)		(53)		(110)
Other non-operating loss, net	(102)		(149)		(791)		(367)
Interest expense, net	(67)		(66)		(205)		(195)
Income (loss) before income taxes	$	209	$	(264)	$	(260)	$	(16,722)

(1)Charges for inventory impairments are predominantly reported in the "Cost of goods sold" caption of the condensed consolidated statements of income (loss).

The following table presents depreciation and amortization by segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
Segment depreciation and amortization	2021		2020		2021		2020
Oilfield Services	$	183	$	217	$	578	$	714
Oilfield Equipment	22		35		81		114
Turbomachinery & Process Solutions	30		33		90		87
Digital Solutions	22		24		66		73
Total segment	257		309		815		988
Corporate	5		6		17		22
Total	$	262	$	315	$	832	$	1,010

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Restructuring, Impairment and Other (Tables)

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Impairment and restructuring charges

The following table presents restructuring and impairment charges by the impacted segment, however, these charges are not included in the reported segment results:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Oilfield Services	$	14	$	144	$	119	$	453
Oilfield Equipment	3		21		4		121
Turbomachinery & Process Solutions	(3)		7		11		27
Digital Solutions	—		18		3		52
Corporate	—		1		7		15
Total	$	14	$	191	$	144	$	668

Restructuring and impairment charges were primarily related to employee termination expenses from reducing our headcount in certain geographical locations, and product line rationalization, including facility closures and related expenses such as property, plant & equipment impairments and contract termination fees. The table below includes any gains on the dispositions of certain property, plant & equipment previously impaired as a consequence of exit activities. Details of these charges are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Property, plant & equipment, net	$	(1)	$	65	$	21	$	214
Employee-related termination expenses	1		108		94		406
Contract termination fees	3		1		4		23
Other incremental costs	11		17		25		25
Total	$	14	$	191	$	144	$	668

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Assets and Liabilities of Business Held for Sale (Tables)

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Schedule of assets and liabilities of business held for sale

The following table presents financial information related to the assets and liabilities of the SDS business being contributed to the JV Company that are classified as held for sale and reported in "All other current assets" and "All other current liabilities" in our condensed consolidated statement of financial position as of September 30, 2021.

Assets and liabilities of business held for sale	September 30, 2021
Assets
Current assets (1)	$	122
Property, plant and equipment	108
Intangible assets	122
All other assets	56
Total assets	408
Liabilities
Current liabilities	48
All other liabilities	6
Total liabilities	54
Total carrying amount of net assets contributed	$	354

(1)On the closing date, we contributed cash in lieu of customer receivables, which was incremental to the assets held for sale detailed in the table above

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Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Restricted cash and cash equivalents held in bank accounts	$ 691	$ 687
BHH LLC
Business Acquisition [Line Items]
Approximate interest	82.80%
BHH LLC | GE
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners		30.10%
BHH LLC | GE | GE
Business Acquisition [Line Items]
Ownership percentage by noncontrolling owners	17.20%	30.10%

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Revenue Related to Contracts with Customers - Disaggregated Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 5,093	$ 5,049	$ 15,017	$ 15,210
U.S.
Disaggregation of Revenue [Line Items]
Revenues	1,199	1,032	3,337	3,330
Non-U.S.
Disaggregation of Revenue [Line Items]
Revenues	$ 3,894	$ 4,017	$ 11,680	$ 11,880

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Revenue Related to Contracts with Customers - Narrative (Details) - USD ($) $ in Billions	Sep. 30, 2021	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 23.5	$ 23.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Period one
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	50.00%
Performance obligations expected to be satisfied, expected timing	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Period two
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	67.00%
Performance obligations expected to be satisfied, expected timing	5 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Period three
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	89.00%
Performance obligations expected to be satisfied, expected timing	15 years

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Current Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	$ 5,713	$ 5,995
Less: Allowance for credit losses	(387)	(373)
Total current receivables, net	5,326	5,622
Customer receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	4,569	4,676
Related parties | GE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	362	429
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	$ 782	$ 890

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Inventories (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Inventory, Net [Abstract]
Inventory valuation reserves		$ 390		$ 421
Finished goods		2,255		2,337
Work in process and raw materials		1,855		2,084
Total inventories, net		4,110		$ 4,421
Inventory impairment	$ 42	$ 0	$ 218

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Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Goodwill [Line Items]
Balance at December 31, 2019, gross						$ 24,444,000,000
Accumulated impairment at December 31, 2019						(3,754,000,000)
Goodwill [Roll Forward]
Goodwill, net, beginning balance			$ 5,977,000,000	$ 20,690,000,000	$ 20,690,000,000
Impairment	$ 0	$ 0	0	(14,773,000,000)	(14,773,000,000)
Currency exchange and others			38,000,000		60,000,000
Goodwill, net, ending balance	6,015,000,000		6,015,000,000		5,977,000,000
Oilfield Services
Goodwill [Line Items]
Balance at December 31, 2019, gross						15,676,000,000
Accumulated impairment at December 31, 2019						(2,633,000,000)
Goodwill [Roll Forward]
Goodwill, net, beginning balance			1,539,000,000	13,043,000,000	13,043,000,000
Impairment					(11,484,000,000)
Currency exchange and others			0		(20,000,000)
Goodwill, net, ending balance	1,539,000,000		1,539,000,000		1,539,000,000
Oilfield Equipment
Goodwill [Line Items]
Balance at December 31, 2019, gross						4,186,000,000
Accumulated impairment at December 31, 2019						(867,000,000)
Goodwill [Roll Forward]
Goodwill, net, beginning balance			6,000,000	3,319,000,000	3,319,000,000
Impairment					(3,289,000,000)
Currency exchange and others			(3,000,000)		(24,000,000)
Goodwill, net, ending balance	3,000,000		3,000,000		6,000,000
Turbo- machinery & Process Solutions
Goodwill [Line Items]
Balance at December 31, 2019, gross						2,171,000,000
Accumulated impairment at December 31, 2019						0
Goodwill [Roll Forward]
Goodwill, net, beginning balance			2,234,000,000	2,171,000,000	2,171,000,000
Impairment					0
Currency exchange and others			(20,000,000)		63,000,000
Goodwill, net, ending balance	2,214,000,000		2,214,000,000		2,234,000,000
Digital Solutions
Goodwill [Line Items]
Balance at December 31, 2019, gross						2,411,000,000
Accumulated impairment at December 31, 2019						$ (254,000,000)
Goodwill [Roll Forward]
Goodwill, net, beginning balance			2,198,000,000	$ 2,157,000,000	2,157,000,000
Impairment					0
Currency exchange and others			61,000,000		41,000,000
Goodwill, net, ending balance	$ 2,259,000,000		$ 2,259,000,000		$ 2,198,000,000

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Goodwill and Other Intangible Assets - Narrative (Details)	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Mar. 23, 2020 $ / shares
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reportable segments | segment				4
Number of reportable units | segment				4
Finite-Lived Intangible Assets [Line Items]
Impairment	$ 0	$ 0		$ 0	$ 14,773,000,000	$ 14,773,000,000
Share price (in dollars per share) | $ / shares							$ 9.33
Amortization expense for intangible assets included in net income	$ 59,000,000	$ 75,000,000		$ 193,000,000	$ 231,000,000
Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives				1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives				35 years
OFS
Finite-Lived Intangible Assets [Line Items]
Impairment			$ 11,484,000,000
OFE
Finite-Lived Intangible Assets [Line Items]
Impairment			$ 3,289,000,000

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Goodwill and Other Intangible Assets - Schedule of Intangible Assets by Type (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Finite-lived intangible assets
Gross Carrying Amount	$ 4,648	$ 5,008
Accumulated Amortization	(2,720)	(2,834)
Net	1,928	2,174
Indefinite-lived intangible assets	2,223	2,223
Total intangible assets, Gross Carrying Amount	6,871	7,231
Total intangible assets, Net	4,151	4,397
Customer relationships
Finite-lived intangible assets
Gross Carrying Amount	1,944	2,261
Accumulated Amortization	(749)	(916)
Net	1,195	1,345
Technology
Finite-lived intangible assets
Gross Carrying Amount	1,105	1,127
Accumulated Amortization	(741)	(696)
Net	364	431
Trade names and trademarks
Finite-lived intangible assets
Gross Carrying Amount	293	326
Accumulated Amortization	(168)	(181)
Net	125	145
Capitalized software
Finite-lived intangible assets
Gross Carrying Amount	1,306	1,294
Accumulated Amortization	(1,062)	(1,041)
Net	$ 244	$ 253

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Goodwill and Other Intangible Assets - Schedule of Future Estimated Amortization Expense (Details) $ in Millions	Sep. 30, 2021 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2021	$ 58
2022	213
2023	200
2024	182
2025	135
2026	$ 92

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Contract and Other Deferred Assets (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (revenue in excess of billings)	$ 1,553		$ 1,553		$ 1,820
Deferred inventory costs	153		153		138
Non-recurring engineering costs	32		32		43
Contract and other deferred assets	1,738		1,738		2,001
Revenue recognized from performance obligations satisfied in previous periods	9	$ (8)	18	$ 22
Long-term product service agreements
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (revenue in excess of billings)	644		644		660
Long-term equipment contracts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (revenue in excess of billings)	$ 909		$ 909		$ 1,160

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Progress Collections and Deferred Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Progress collections and deferred income (contract liabilities)	$ 3,263		$ 3,263		$ 3,454
Revenue recognized, included in contract liability	448	$ 501	2,033	$ 1,328
Progress collections
Disaggregation of Revenue [Line Items]
Progress collections and deferred income (contract liabilities)	3,140		3,140		3,352
Deferred income
Disaggregation of Revenue [Line Items]
Progress collections and deferred income (contract liabilities)	$ 123		$ 123		$ 102

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Leases - Operating Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Operating Lease Expense
Long-term fixed lease	$ 64	$ 71	$ 192	$ 213
Long-term variable lease	7	3	24	23
Short-term lease	119	102	328	382
Total operating lease expense	$ 190	$ 176	$ 544	$ 618

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Leases - Narrative (Details)	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease, weighted-average remaining lease term	9 years	8 years
Operating lease, weighted-average discount rate	3.50%	3.70%

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Borrowings - Short-term and Long-term Borrowings (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Short-term borrowings
Total short-term borrowings	$ 56	$ 889
Long-term borrowings
Other long-term borrowings	70	93
Total long-term borrowings	6,708	6,744
Total borrowings	$ 6,764	7,633
2.773% Senior Notes due December 2022
Debt Instrument [Line Items]
Stated interest rate	2.773%
8.55% Debentures due June 2024
Debt Instrument [Line Items]
Stated interest rate	8.55%
3.337% Senior Notes due December 2027
Debt Instrument [Line Items]
Stated interest rate	3.337%
6.875% Notes due January 2029
Debt Instrument [Line Items]
Stated interest rate	6.875%
Long-term borrowings
Long-term borrowings	$ 280	284
3.138% Senior Notes due November 2029
Debt Instrument [Line Items]
Stated interest rate	3.138%
4.486% Senior Notes due May 2030
Debt Instrument [Line Items]
Stated interest rate	4.486%
5.125% Senior Notes due September 2040
Debt Instrument [Line Items]
Stated interest rate	5.125%
4.08% Senior Notes due December 2047
Debt Instrument [Line Items]
Stated interest rate	4.08%
Senior Notes | 2.773% Senior Notes due December 2022
Long-term borrowings
Long-term borrowings	$ 1,249	1,247
Senior Notes | 3.337% Senior Notes due December 2027
Long-term borrowings
Long-term borrowings	1,341	1,344
Senior Notes | 3.138% Senior Notes due November 2029
Long-term borrowings
Long-term borrowings	522	522
Senior Notes | 4.486% Senior Notes due May 2030
Long-term borrowings
Long-term borrowings	497	497
Senior Notes | 5.125% Senior Notes due September 2040
Long-term borrowings
Long-term borrowings	1,293	1,297
Senior Notes | 4.08% Senior Notes due December 2047
Long-term borrowings
Long-term borrowings	1,337	1,337
Debentures | 8.55% Debentures due June 2024
Long-term borrowings
Long-term borrowings	119	123
Commercial paper
Short-term borrowings
Total short-term borrowings	0	801
Short-term borrowings from GE
Short-term borrowings
Total short-term borrowings	11	45
Other borrowings
Short-term borrowings
Total short-term borrowings	$ 45	$ 43

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Borrowings - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Apr. 30, 2021	Apr. 29, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Estimated fair value of debt	$ 7,498,000,000			$ 8,502,000,000
Commercial paper
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 3,000,000,000	$ 3,800,000,000
Debt term (no more than)	397 days
BHH LLC | Baker Hughes Co-Obligor, Inc.
Line of Credit Facility [Line Items]
Ownership percentage	100.00%
BHH LLC | Baker Hughes Co-Obligor, Inc. | Senior Notes
Line of Credit Facility [Line Items]
Long-term borrowings	$ 6,638,000,000
BHH LLC | Revolving credit facility | The Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	3,000,000,000
Line of credit outstanding	$ 0			$ 0

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Employee Benefit Plans - Narrative (Details) - Pension Benefits	9 Months Ended
	Sep. 30, 2021 USD ($) plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension assets or obligations, threshold, per plan | $	$ 20,000,000
U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of plans	4
Non-U.S. Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of plans	7

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Employee Benefit Plans - Net Period Cost (Details) - Pension Benefits - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Components of net periodic benefit cost [Abstract]
Service cost	$ 7	$ 7	$ 21	$ 21
Interest cost	15	19	47	59
Expected return on plan assets	(32)	(31)	(95)	(93)
Amortization of net actuarial loss	10	9	30	25
Curtailment/settlement & other loss	1	3	1	3
Net periodic cost	$ 1	$ 7	$ 4	$ 15

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Provision for income taxes	$ (193)	$ (6)	$ (406)	$ 10

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Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Jul. 31, 2020	Sep. 30, 2021	Sep. 30, 2021	Jul. 31, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Preferred stock authorized (in shares)		50,000,000	50,000,000
Preferred stock par value (in dollars per share)		$ 0.0001	$ 0.0001
Repurchase and cancellation of Class A common stock		$ 106	$ 106
BHH LLC
Class of Stock [Line Items]
Authorized stock repurchase (in shares)				2,000,000,000
Remaining authorized repurchase amount		$ 1,900	$ 1,900
BHH LLC | GE
Class of Stock [Line Items]
Period of complete divestment	3 years
Ownership percentage by noncontrolling owners					30.10%
BHH LLC | GE | GE
Class of Stock [Line Items]
Ownership percentage by noncontrolling owners		17.20%	17.20%		30.10%
Class A Common Stock
Class of Stock [Line Items]
Common stock authorized (in shares)		2,000,000,000	2,000,000,000		2,000,000,000
Common stock par value (in dollars per share)		$ 0.0001	$ 0.0001		$ 0.0001
Common stock outstanding (in shares)		859,000,000	859,000,000		724,000,000
Stock repurchased and canceled (in shares)		4,400,000
Repurchase and cancellation of Class A common stock		$ 106
Class B Common Stock
Class of Stock [Line Items]
Common stock authorized (in shares)		1,250,000,000	1,250,000,000		1,250,000,000
Common stock par value (in dollars per share)		$ 0.0001	$ 0.0001		$ 0.0001
Common stock outstanding (in shares)		179,000,000	179,000,000		311,000,000
Class B Common Stock | BHH LLC
Class of Stock [Line Items]
Exchange of Class B common stock for Class A common stock (in shares)			132,700,000

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Equity - Changes in Number of Shares Outstanding (Details) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	724,000
Ending balance (in shares)	859,000
Class B Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	311,000
Ending balance (in shares)	179,000
Class B Common Stock | BHH LLC
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exchange of Class B common stock for Class A common stock (in shares)	(132,700)
Common Stock | Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	723,999	650,065
Issue of shares for employee stock purchase plan (in shares)	1,933	3,291
Exchange of Class B common stock for Class A common stock (in shares)	(132,706)	(27,988)
Repurchase and cancellation of Class A common stock (in shares)	(4,430)	0
Ending balance (in shares)	859,480	684,775
Common Stock | Class A Common Stock | Restricted Stock Units (RSUs)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issue of shares upon vesting of restricted stock units (in shares)	4,903	3,425
Common Stock | Class A Common Stock | Options
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issue of shares on exercises of stock options (in shares)	369	5
Common Stock | Class B Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	311,433	377,428
Issue of shares for employee stock purchase plan (in shares)	0	0
Exchange of Class B common stock for Class A common stock (in shares)	(132,706)	(27,988)
Repurchase and cancellation of Class A common stock (in shares)	0	0
Ending balance (in shares)	178,726	349,440
Common Stock | Class B Common Stock | Restricted Stock Units (RSUs)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issue of shares upon vesting of restricted stock units (in shares)	0	0
Common Stock | Class B Common Stock | Options
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issue of shares on exercises of stock options (in shares)	0	0

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Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ 17,400	$ 17,565	$ 18,242	$ 34,499
Other comprehensive income (loss) before reclassifications			(41)	(164)
Amounts reclassified from accumulated other comprehensive income (loss)			56	33
Deferred taxes			(1)	(2)
Other comprehensive income (loss)	(135)	83	14	(133)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(24)	29	4	(52)
Less: Reallocation of AOCL based on change in ownership of LLC Units			324	84
Ending Balance	17,036	17,249	17,036	17,249
Investment Securities, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance			0	1
Ending Balance	0	0	0	0
Investment Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income (loss) before reclassifications			0	(2)
Amounts reclassified from accumulated other comprehensive income (loss)			0	0
Deferred taxes			0	0
Other comprehensive income (loss)			0	(2)
Investment Securities, Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Less: Other comprehensive income (loss) attributable to noncontrolling interests			0	(1)
Less: Reallocation of AOCL based on change in ownership of LLC Units			0	0
Foreign Currency Translation Adjustment, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance			(1,464)	(1,436)
Ending Balance	(1,775)	(1,570)	(1,775)	(1,570)
Foreign Currency Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income (loss) before reclassifications			(82)	(101)
Amounts reclassified from accumulated other comprehensive income (loss)			31	0
Deferred taxes			0	0
Other comprehensive income (loss)			(51)	(101)
Foreign Currency Translation Adjustments, Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Less: Other comprehensive income (loss) attributable to noncontrolling interests			(9)	(42)
Less: Reallocation of AOCL based on change in ownership of LLC Units			269	75
Cash Flow Hedges, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance			3	6
Ending Balance	(7)	2	(7)	2
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income (loss) before reclassifications			(6)	(5)
Amounts reclassified from accumulated other comprehensive income (loss)			(7)	(2)
Deferred taxes			0	1
Other comprehensive income (loss)			(13)	(6)
Cash Flow Hedges, Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Less: Other comprehensive income (loss) attributable to noncontrolling interests			(2)	(2)
Less: Reallocation of AOCL based on change in ownership of LLC Units			(1)	0
Benefit Plans, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance			(317)	(207)
Ending Balance	(310)	(233)	(310)	(233)
Benefit Plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income (loss) before reclassifications			47	(56)
Amounts reclassified from accumulated other comprehensive income (loss)			32	35
Deferred taxes			(1)	(3)
Other comprehensive income (loss)			78	(24)
Benefit Plans, Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Less: Other comprehensive income (loss) attributable to noncontrolling interests			15	(7)
Less: Reallocation of AOCL based on change in ownership of LLC Units			56	9
Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(1,901)	(1,771)	(1,778)	(1,636)
Other comprehensive income (loss)	(111)	54	10	(81)
Ending Balance	$ (2,092)	$ (1,801)	$ (2,092)	$ (1,801)

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Equity - Non-controlling Interest (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Noncontrolling Interest [Line Items]
Total noncontrolling interests	$ 2,894	$ 5,349
GE's interest in BHH LLC
Noncontrolling Interest [Line Items]
Total noncontrolling interests	2,752	5,216
Other noncontrolling interests
Noncontrolling Interest [Line Items]
Total noncontrolling interests	$ 142	$ 133

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Earnings Per Share - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share
Net income (loss)	$ 16	$ (270)	$ (666)	$ (16,712)
Less: Net income (loss) attributable to noncontrolling interests	8	(100)	(154)	(6,120)
Net income (loss) attributable to Baker Hughes Company	$ 8	$ (170)	$ (512)	$ (10,592)
Net income (loss) per share attributable to common stockholders:
Class A diluted (in dollars per share)	$ 0.01	$ (0.25)	$ (0.64)	$ (16.01)
Class A Common Stock
Weighted average shares outstanding:
Class A basic (in shares)	851,000	676,000	799,000	662,000
Class A diluted (in shares)	857,000	676,000	799,000	662,000
Net income (loss) per share attributable to common stockholders:
Class A basic (in dollars per share)	$ 0.01	$ (0.25)	$ (0.64)	$ (16.01)
Class A diluted (in dollars per share)	$ 0.01	$ (0.25)	$ (0.64)	$ (16.01)

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Earnings Per Share - Narrative (Details) shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021 shares	Sep. 30, 2020 shares	Sep. 30, 2021 shares	Sep. 30, 2020 shares
Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted EPS calculation (in shares)	191	358	242	372
Class A Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from diluted EPS calculation (in shares)	5
Conversion ratio			1

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Financial Instruments - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Assets
Investment securities	$ 411	$ 1,532
Total assets	19	118
Liabilities
Total liabilities	(30)	(52)
Recurring basis
Assets
Derivatives	19	118
Investment securities	411	1,532
Total assets	430	1,650
Liabilities
Derivatives	(30)	(52)
Total liabilities	(30)	(52)
Recurring basis | Level 1
Assets
Derivatives	0	0
Investment securities	403	1,502
Total assets	403	1,502
Liabilities
Derivatives	0	0
Total liabilities	0	0
Recurring basis | Level 2
Assets
Derivatives	19	118
Investment securities	0	0
Total assets	19	118
Liabilities
Derivatives	(30)	(52)
Total liabilities	(30)	(52)
Recurring basis | Level 3
Assets
Derivatives	0	0
Investment securities	9	30
Total assets	9	30
Liabilities
Derivatives	0	0
Total liabilities	$ 0	$ 0

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Financial Instruments - Reconciliation of Recurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 30	$ 259
Purchases	0	10
Proceeds at maturity	(21)	(168)
Unrealized gains (losses) recognized in accumulated other comprehensive income (loss)	0	(3)
Ending balance	$ 9	$ 98

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Financial Instruments - Narrative (Details) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Investment securities	$ 411,000,000	$ 411,000,000	$ 1,532,000,000
Notional amount	5,300,000,000	5,300,000,000	7,000,000,000
Equity securities without readily determinable fair values	572,000,000	572,000,000	554,000,000
ADNOC Drilling
Derivative Instruments, Gain (Loss) [Line Items]
Equity securities without readily determinable fair values	$ 500,000,000	$ 500,000,000	$ 500,000,000
Investment percent		5.00%	5.00%
3.337% Senior Notes due December 2027
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate	3.337%	3.337%
3.337% Senior Notes due December 2027 | Senior Notes
Derivative Instruments, Gain (Loss) [Line Items]
Aggregate principal amount	$ 1,350,000,000	$ 1,350,000,000
Interest rate swap contracts
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	500,000,000	$ 500,000,000
Cash flow hedging
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, term		1 year	1 year
All other current assets
Derivative Instruments, Gain (Loss) [Line Items]
Investment securities	403,000,000	$ 403,000,000	$ 1,514,000,000
Derivative assets	18,000,000	18,000,000	115,000,000
All other assets
Derivative Instruments, Gain (Loss) [Line Items]
Investment securities	9,000,000	9,000,000	18,000,000
Derivative assets	1,000,000	1,000,000	3,000,000
All other current liabilities
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liability	27,000,000	27,000,000	48,000,000
All other liabilities
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liability	$ 4,000,000	$ 4,000,000	$ 4,000,000
C3.ai
Derivative Instruments, Gain (Loss) [Line Items]
Investments owned, number of shares sold (in shares)	0	2,200,000
Proceeds from sale of long-term investments		$ 145,000,000
Loss on equity securities	$ 140,000,000	$ 955,000,000
C3.ai | Class A Common Stock
Derivative Instruments, Gain (Loss) [Line Items]
Investment shares owned (in shares)	8,650,476	8,650,476	10,813,095
Equity securities economic interest fair value	$ 401,000,000	$ 401,000,000	$ 1,500,000,000
Level 3
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain (loss) on Level 3 instruments held at reporting date		$ 0

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Financial Instruments - Investment Securities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Equity securities, amortized cost	$ 61,000,000		$ 61,000,000		$ 76,000,000
Equity securities, gross unrealized gains	345,000,000		345,000,000		1,431,000,000
Equity securities, gross unrealized losses	(3,000,000)		(3,000,000)		(5,000,000)
Equity securities, estimated fair value	403,000,000		403,000,000		1,502,000,000
Total, amortized cost	70,000,000		70,000,000		106,000,000
Total, gross unrealized gains	345,000,000		345,000,000		1,431,000,000
Total, gross unrealized losses	(3,000,000)		(3,000,000)		(5,000,000)
Investment securities	411,000,000		411,000,000		1,532,000,000
Loss on equity securities	(141,000,000)	$ 0	(954,000,000)	$ (12,000,000)
Non-U.S. debt securities
Debt Securities, Available-for-sale [Line Items]
Investment securities, amortized cost	9,000,000		9,000,000		30,000,000
Investment securities, gross unrealized gains	0		0		0
Investment securities, gross unrealized losses	0		0		0
Investment securities	$ 9,000,000		$ 9,000,000		$ 30,000,000
Derivative, term			1 year

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Financial Instruments - Derivatives and Hedging (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Assets	$ 19	$ 118
Liabilities	(30)	(52)
Derivatives accounted for as hedges | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Assets	0	5
Liabilities	0	0
Derivatives accounted for as hedges | Interest rate swap contracts
Derivatives, Fair Value [Line Items]
Assets	0	0
Liabilities	(12)	0
Derivatives not accounted for as hedges | Currency exchange contracts
Derivatives, Fair Value [Line Items]
Assets	19	113
Liabilities	$ (18)	$ (52)

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Financial Instruments - Economic Hedges (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net gain (loss) on embedded derivatives	$ 2	$ (14)	$ 5	$ (9)
Not designated as hedging instrument, economic hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	6	40	12	110
Not designated as hedging instrument, economic hedge | Currency exchange contracts | Cost of goods sold
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gains (losses) from derivatives	(2)	20	7	37
Not designated as hedging instrument, economic hedge | Currency exchange contracts | Cost of services sold
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gains (losses) from derivatives	8	17	0	63
Not designated as hedging instrument, economic hedge | Commodity derivatives | Cost of goods sold
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gains (losses) from derivatives	0	3	5	2
Not designated as hedging instrument, economic hedge | Other derivatives | Other non-operating loss, net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gains (losses) from derivatives	$ 0	$ 0	$ 0	$ 8

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Segment Information - Narrative (Details)	9 Months Ended
	Sep. 30, 2021 segment
Segment Reporting [Abstract]
Number of operating segments	4

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Segment Information - Summarized Financial Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Segment revenue	$ 5,093,000,000	$ 5,049,000,000	$ 15,017,000,000	$ 15,210,000,000
Summarized financial information [Abstract]
Income (loss) before income taxes	209,000,000	(264,000,000)	(260,000,000)	(16,722,000,000)
Goodwill impairment	0	0	0	(14,773,000,000)	$ (14,773,000,000)
Inventory impairments		(42,000,000)	0	(218,000,000)
Other non-operating loss, net	(102,000,000)	(149,000,000)	(791,000,000)	(367,000,000)
Interest expense, net	(67,000,000)	(66,000,000)	(205,000,000)	(195,000,000)
Operating segments
Summarized financial information [Abstract]
Income (loss) before income taxes	508,000,000	349,000,000	1,330,000,000	931,000,000
Corporate
Summarized financial information [Abstract]
Income (loss) before income taxes	(105,000,000)	(115,000,000)	(324,000,000)	(353,000,000)
Segment reconciling items
Summarized financial information [Abstract]
Goodwill impairment	0	0	0	(14,773,000,000)
Inventory impairments	0	(42,000,000)	0	(218,000,000)
Restructuring, impairment and other	(14,000,000)	(209,000,000)	(219,000,000)	(1,637,000,000)
Separation related	(11,000,000)	(32,000,000)	(53,000,000)	(110,000,000)
Other non-operating loss, net	(102,000,000)	(149,000,000)	(791,000,000)	(367,000,000)
Interest expense, net	(67,000,000)	(66,000,000)	(205,000,000)	(195,000,000)
Oilfield Services
Segment Reporting Information [Line Items]
Segment revenue	2,419,000,000	2,308,000,000	6,976,000,000	7,858,000,000
Summarized financial information [Abstract]
Goodwill impairment					(11,484,000,000)
Oilfield Services | Operating segments
Summarized financial information [Abstract]
Income (loss) before income taxes	190,000,000	93,000,000	505,000,000	345,000,000
Oilfield Equipment
Segment Reporting Information [Line Items]
Segment revenue	603,000,000	726,000,000	1,867,000,000	2,133,000,000
Summarized financial information [Abstract]
Goodwill impairment					(3,289,000,000)
Oilfield Equipment | Operating segments
Summarized financial information [Abstract]
Income (loss) before income taxes	14,000,000	19,000,000	45,000,000	(4,000,000)
Turbomachinery & Process Solutions
Segment Reporting Information [Line Items]
Segment revenue	1,562,000,000	1,513,000,000	4,675,000,000	3,759,000,000
Summarized financial information [Abstract]
Goodwill impairment					0
Turbomachinery & Process Solutions | Operating segments
Summarized financial information [Abstract]
Income (loss) before income taxes	278,000,000	191,000,000	705,000,000	473,000,000
Digital Solutions
Segment Reporting Information [Line Items]
Segment revenue	510,000,000	503,000,000	1,499,000,000	1,460,000,000
Summarized financial information [Abstract]
Goodwill impairment					$ 0
Digital Solutions | Operating segments
Summarized financial information [Abstract]
Income (loss) before income taxes	$ 26,000,000	$ 46,000,000	$ 75,000,000	$ 117,000,000

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Segment Information - Capital Expenditures and Depreciation and Amortization by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Depreciation and amortization	$ 262	$ 315	$ 832	$ 1,010
Operating segments
Segment Reporting Information [Line Items]
Depreciation and amortization	257	309	815	988
Operating segments | Oilfield Services
Segment Reporting Information [Line Items]
Depreciation and amortization	183	217	578	714
Operating segments | Oilfield Equipment
Segment Reporting Information [Line Items]
Depreciation and amortization	22	35	81	114
Operating segments | Turbo- machinery & Process Solutions
Segment Reporting Information [Line Items]
Depreciation and amortization	30	33	90	87
Operating segments | Digital Solutions
Segment Reporting Information [Line Items]
Depreciation and amortization	22	24	66	73
Corporate
Segment Reporting Information [Line Items]
Depreciation and amortization	$ 5	$ 6	$ 17	$ 22

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Related Party Transactions (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) people	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Related Party Transaction [Line Items]
Total current receivables, gross	$ 5,713		$ 5,713		$ 5,995
Investment securities	411		411		$ 1,532
C3.ai | Related Party Transactions with C3.ai
Related Party Transaction [Line Items]
Purchase commitment, to be paid, year one	75		75
Purchase commitment, to be paid, year two	125		125
Purchase commitment, to be paid, year three	150		150
Subscription fee			$ 28
GE | BHH LLC
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners					30.10%
GE
Related Party Transaction [Line Items]
Voting power threshold			20.00%
Board of directors nomination, upon triggering event | people			1
GE | Related parties
Related Party Transaction [Line Items]
Total current receivables, gross	362		$ 362		$ 429
GE | Accounts Payable, GE and its affiliates
Related Party Transaction [Line Items]
Accounts payable, related party	300		300		356
GE | Related party amount, due to related party
Related Party Transaction [Line Items]
Cash and cash equivalents held on behalf of GE	$ 11		$ 11		45
Cash held on behalf of GE					44
Investment securities					$ 1
GE | GE | BHH LLC
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners	17.20%		17.20%		30.10%
GE | GE | Baker Hughes
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners	20.60%		20.60%
Areo JV | Purchases, GE and its affiliates
Related Party Transaction [Line Items]
Related party purchases	$ 366	$ 384	$ 988	$ 993
Areo JV | Sales of products and services, GE and its affiliates
Related Party Transaction [Line Items]
Revenue from related parties	$ 48	$ 46	$ 136	$ 150

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Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions					1 Months Ended	9 Months Ended
	May 29, 2020 USD ($)	Mar. 03, 2020 USD ($)	Mar. 15, 2019 USD ($)	Mar. 18, 2018 USD ($)	Jan. 31, 2013	Sep. 30, 2021 EUR (€) company subsidiary	Sep. 30, 2021 USD ($)	Mar. 18, 2019 USD ($)
Loss Contingencies [Line Items]
Off-balance sheet arrangements							$ 4,500.0
Pending litigation | INOES and Naphtachimie | Damage from fire
Loss Contingencies [Line Items]
Plant shutdown days					15 days
Value of alleged damages sought | €						€ 250
Subsidiaries participating | subsidiary						2
Other companies participating | company						17
Pending litigation | International Engineering & Construction S.A. (IEC) | Lost profits and various costs
Loss Contingencies [Line Items]
Value of alleged damages sought	$ 235.0	$ 244.9	$ 591.0
Pending litigation | International Engineering & Construction S.A. (IEC) | Loss of cash flow
Loss Contingencies [Line Items]
Value of alleged damages sought		700.0
Pending litigation | International Engineering & Construction S.A. (IEC) | Liquidated damages
Loss Contingencies [Line Items]
Value of alleged damages sought		4.8
Pending litigation | International Engineering & Construction S.A. (IEC) | Take-or-pay future obligations
Loss Contingencies [Line Items]
Value of alleged damages sought		$ 58.6
Pending litigation | International Engineering & Construction S.A. (IEC) | Legal fees
Loss Contingencies [Line Items]
Value of alleged damages sought	$ 14.2
Pending litigation | 2018 Transactions | Breach of fiduciary duties
Loss Contingencies [Line Items]
Repurchase of stock from GE								$ 1,500.0
GE sale of stock				$ 2,500.0

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Restructuring, Impairment and Other - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring, impairment and other	$ 14	$ 209	$ 219	$ 1,637
Intangible assets impairment			0	729
Property, plant and equipment impairment, net			21	290
Litigation and impairment of equity method investment				73
OFS
Restructuring Cost and Reserve [Line Items]
Intangible assets impairment				605
OFE
Restructuring Cost and Reserve [Line Items]
Intangible assets impairment				124
Other long-lived asset impairments				216
Property, plant and equipment impairment, net				77
Other assets				15
Restructuring Impairmentand Other Charges
Restructuring Cost and Reserve [Line Items]
Other asset impairment charges and foreign currency translation gain (loss), realized	$ 0	$ 18	$ 75	$ 969

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Restructuring, Impairment and Other - Schedule of Restructuring Charges (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 14	$ 191	$ 144	$ 668
Property, plant & equipment, net
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	(1)	65	21	214
Employee-related termination expenses
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	1	108	94	406
Contract termination fees
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	3	1	4	23
Other incremental costs
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	11	17	25	25
Operating segments | Oilfield Services
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	14	144	119	453
Operating segments | Oilfield Equipment
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	3	21	4	121
Operating segments | Turbo- machinery & Process Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	(3)	7	11	27
Operating segments | Digital Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	0	18	3	52
Corporate
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 0	$ 1	$ 7	$ 15

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Assets and Liabilities of Business Held for Sale - Narrative (Details) - USD ($) $ in Millions	Oct. 01, 2021	Mar. 31, 2021
SDS | Held for sale | Subsequent Event
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration	$ 200
Cash consideration paid	120
Balance of consideration	$ 80
HMH
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Joint venture ownership percentage		50.00%
HMH | SDS | Held for sale | Subsequent Event
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
JV ownership received as consideration	50.00%
HMH | Akastor ASA
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Joint venture ownership percentage		50.00%

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Assets and Liabilities of Business Held for Sale - Schedule of Assets and Liabilities of Business Held for Sale (Details) - Held for sale - SDS $ in Millions	Sep. 30, 2021 USD ($)
Assets
Current assets	$ 122
Property, plant and equipment	108
Intangible assets	122
All other assets	56
Total assets	408
Liabilities
Current liabilities	48
All other liabilities	6
Total liabilities	54
Total carrying amount of net assets contributed	$ 354