bkr-20220331

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 March 31, 2022


☐						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	The Nasdaq Stock Market LLC

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 April 14, 2022, the registrant had outstanding 984,576,063 shares of Class A Common Stock, $0.0001 par value per share and 40,590,890 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 months ended March 31, 2022 and 2021	1

	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - Three months ended March 31, 2022 and 2021	2

	Condensed Consolidated Statements of Financial Position (Unaudited) - March 31, 2022 and December 31, 2021	3

	Condensed Consolidated Statements of Changes in Equity (Unaudited) - Three months ended March 31, 2022 and 2021	4

	Condensed Consolidated Statements of Cash Flows (Unaudited) - Three months ended March 31, 2022 and 2021	5

	Notes to Unaudited Condensed Consolidated Financial Statements	6

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32

Item 4.	Controls and Procedures	32

PART II -	OTHER INFORMATION

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 3.	Defaults Upon Senior Securities	34

Item 4.	Mine Safety Disclosures	34

Item 5.	Other Information	34

Item 6.	Exhibits	34

	Signatures	35

Baker Hughes Company 2022 First 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 March 31,
(In millions, except per share amounts)	2022		2021
Revenue:
Sales of goods	$	2,809	$	2,936
Sales of services	2,026		1,846
Total revenue	4,835		4,782

Costs and expenses:
Cost of goods sold	2,366		2,534
Cost of services sold	1,499		1,390
Selling, general and administrative	621		587

Restructuring, impairment and other	61		80
Separation related	9		27
Total costs and expenses	4,556		4,618
Operating income	279		164
Other non-operating loss, net	(28)		(626)
Interest expense, net	(64)		(74)
Income (loss) before income taxes	187		(536)
Provision for income taxes	(107)		(69)
Net income (loss)	80		(605)
Less: Net income (loss) attributable to noncontrolling interests	8		(153)
Net income (loss) attributable to Baker Hughes Company	$	72	$	(452)

Per share amounts:
Basic & diluted income (loss) per Class A common stock	$	0.08	$	(0.61)


Cash dividend per Class A common stock	$	0.18	$	0.18

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Baker Hughes Company 2022 First Quarter Form 10-Q | 1

Baker Hughes Company

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)


	Three Months Ended March 31,
(In millions)	2022		2021
Net income (loss)	$	80	$	(605)
Less: Net income (loss) attributable to noncontrolling interests	8		(153)
Net income (loss) attributable to Baker Hughes Company	72		(452)
Other comprehensive income (loss):

Foreign currency translation adjustments	17		(51)
Cash flow hedges	1		6
Benefit plans	8		3
Other comprehensive income (loss)	26		(42)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—		(11)
Other comprehensive income (loss) attributable to Baker Hughes Company	26		(31)
Comprehensive income (loss)	106		(647)
Less: Comprehensive income (loss) attributable to noncontrolling interests	8		(164)
Comprehensive income (loss) attributable to Baker Hughes Company	$	98	$	(483)

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Baker Hughes Company 2022 First Quarter Form 10-Q | 2

Baker Hughes Company

Condensed Consolidated Statements of Financial Position

(Unaudited)


(In millions, except par value)	March 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	3,191	$	3,853
Current receivables, net	5,738		5,651
Inventories, net	4,151		3,979
All other current assets	1,627		1,582
Total current assets	14,707		15,065
Property, plant and equipment (net of accumulated depreciation of $5,116 and $5,003)	4,804		4,877
Goodwill	5,989		5,959
Other intangible assets, net	4,118		4,131
Contract and other deferred assets	1,671		1,598
All other assets	2,944

SEC Form 10-Q filed by Baker Hughes Company