View Filing Data

1,849

1,894

All other assets

2,845

1,900

898

1,072

Total assets

^[1]

52,683

52,234

Current liabilities:

Short-term debt and current portion of long-term debt

3,959

4,018

^[1]

892

942

All other current liabilities

2,214

1,765

2,248

2,276

Total current liabilities

9,313

9,001

Long-term debt

6,256

6,285

Liabilities for pensions and other postretirement benefits

997

1,018

All other liabilities

1,426

960

Members' equity:

Members' capital (common units 1,037 and 1,035 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)

37,418

37,582

Retained loss

(306)

(354)

Accumulated other comprehensive loss

(2,564)

(2,462)

Baker Hughes, a GE company, LLC members' equity

34,548

34,766

Noncontrolling interests

116

110

Total equity

34,664

34,876

Total liabilities and equity

$ 52,683

$ 52,234

[1]

Total assets include $856 million and $896 million of assets held on behalf of General Electric Company, of which $739 million and $747 million is cash and cash equivalents and $117 million and $149 million is investment securities at June 30, 2019 and December 31, 2018, respectively, and a corresponding amount of liability is reported in short-term borrowings. See "Note 15. Related Party Transactions" for further details.

Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Common units issued (in shares)	1,037	1,035
Common units outstanding (in units)	1,037	1,035
Property, plant and equipment, accumulated depreciation	$ 3,918	$ 3,625
Related party amount, due to related party \| GE
Assets held on behalf of GE	856	896
Cash held on behalf of GE	739	747
Related party amount, due to related party \| GE \| Angola Bonds
Investment securities held on behalf of GE	$ 117	$ 149

Condensed Consolidated Statements of Changes in Members' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Unitholders	Retained Earnings (Loss)	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Beginning Balance at Dec. 31, 2017	$ 38,396	$ 40,678	$ (541)	$ (1,881)	$ 140
Comprehensive income (loss):
Net income (loss)	(181)		(194)		13
Other comprehensive income (loss)	(223)			(222)	(1)
Regular cash distribution to members	(403)	(403)
Repurchase and cancellation of common units	(1,000)	(1,000)
BHGE stock-based compensation cost	60	60
Other	(22)	21			(43)
Ending Balance at Jun. 30, 2018	36,694	39,356	(668)	(2,103)	109
Beginning Balance at Mar. 31, 2018	37,969	40,012	(617)	(1,565)	139
Comprehensive income (loss):
Net income (loss)	(38)		(51)		13
Other comprehensive income (loss)	(539)			(538)	(1)
Regular cash distribution to members	(199)	(199)
Repurchase and cancellation of common units	(500)	(500)			0
BHGE stock-based compensation cost	30	30
Other	(29)	13			(42)
Ending Balance at Jun. 30, 2018	36,694	39,356	(668)	(2,103)	109
Beginning Balance at Dec. 31, 2018	34,876	37,582	(354)	(2,462)	110
Comprehensive income (loss):
Net income (loss)	60		47		13
Other comprehensive income (loss)	16			17	(1)
Regular cash distribution to members	(373)	(373)
Other transactions with members	(7)	112		(119)
BHGE stock-based compensation cost	87	87
Other	5	10	1		(6)
Ending Balance at Jun. 30, 2019	34,664	37,418	(306)	(2,564)	116
Beginning Balance at Mar. 31, 2019	34,966	37,432	(288)	(2,290)	112
Comprehensive income (loss):
Net income (loss)	(11)		(18)		7
Other comprehensive income (loss)	(156)			(155)	(1)
Regular cash distribution to members	(187)	(187)
Other transactions with members	(7)	112		(119)
BHGE stock-based compensation cost	46	46
Other	13	15			(2)
Ending Balance at Jun. 30, 2019	$ 34,664	$ 37,418	$ (306)	$ (2,564)	$ 116

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Cash flows from operating activities:

Condensed Consolidated Statements of Changes in Members' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity [Abstract]
Cash distribution per common unit (in dollars per unit)	$ 0.18	$ 0.18	$ 0.36	$ 0.36

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Net income (loss)

$ 60

$ (181)

Adjustments to reconcile net income (loss) to net cash flows from operating activities:

Depreciation and amortization

709

780

Valuation allowance on disposal group

136

Benefit for deferred income taxes

(37)

(165)

Changes in operating assets and liabilities:

(190)

(30)

(303)

(282)

309

422

(137)

Other operating items, net

(29)

126

(374)

Net cash flows from operating activities

456

426

Cash flows from investing activities:

Expenditures for capital assets

(594)

(411)

Proceeds from disposal of assets

121

181

Net cash paid for business interests

(69)

Other investing items, net

(21)

Net cash flows used in investing activities

(563)

(162)

Cash flows from financing activities:

Net repayments of short-term debt and other borrowings

(41)

(300)

Repayment of long-term debt

(25)

(648)

Distribution to members

(373)

(403)

Repurchase of common units

(1,025)

Other financing items, net

(5)

Net cash flows used in financing activities

(428)

(2,381)

Effect of currency exchange rate changes on cash and cash equivalents

(4)

(50)

Decrease in cash and cash equivalents

(539)

(2,167)

Cash and cash equivalents, beginning of period

3,677

^[1]

7,026

Cash and cash equivalents, end of period

3,138

^[1]

4,859

Supplemental cash flows disclosures:

Income taxes paid

183

218

Interest paid

$ 137

$ 157

[1]

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
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, a GE company, LLC, a Delaware limited liability company (the Company, BHGE LLC, we, us, or our), and the successor to Baker Hughes Incorporated, a Delaware corporation (Baker Hughes) is a fullstream oilfield technology provider that has a unique mix of equipment and service capabilities. We conduct business in more than 120 countries and employ approximately 67,000 employees. On July 3, 2017, we completed the combination of the oil and gas business (GE O&G) of General Electric Company (GE) and Baker Hughes (the Transactions). As of June 30, 2019, GE owns approximately 50.3% of our common units and Baker Hughes, a GE company (BHGE) owns approximately 49.7% of our common units. BASIS OF PRESENTATION In connection with the Transactions, we entered into and are governed by an Amended & Restated Limited Liability Company Agreement, dated as of July 3, 2017 (the BHGE LLC Agreement). Under the BHGE LLC Agreement, EHHC Newco, LLC (EHHC), a wholly owned subsidiary of BHGE, is our sole managing member and BHGE is the sole managing member of EHHC. As our managing member, EHHC conducts, directs and exercises full control over all our activities, including our day-to-day business affairs and decision-making, without the approval of any other member. As such, EHHC is responsible for all our operational and administrative decisions and the day-to-day management of our business. 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 and combined financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (2018 Annual Report). In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated. In the Company's financial statements and notes, certain amounts have been reclassified to conform with the current year presentation. In the notes to unaudited condensed consolidated financial statements, all dollar and unit amounts in tabulations are in millions of dollars and units, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers. In June 2018, GE announced their intention to pursue an orderly separation from BHGE over time. In the three and six months ended June 30, 2019, separation and merger related costs include primarily costs incurred in connection with the finalization of the Master Agreement Framework and costs related to the anticipated separation from GE. In the three and six months ended June 30, 2018, separation and merger related costs are comprised solely of costs associated with the Transactions. See "Note 15. Related Party Transactions" for further information on the Master Agreement Framework. 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 2018 Annual Report for the discussion of our significant accounting policies. Please refer to the "New Accounting Standards Adopted" section of this Note for changes to our accounting policies. Cash and Cash Equivalents As of June 30, 2019 and December 31, 2018, we had $1,267 million and $1,208 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S. Included in these amounts are $429 million and $461 million, as of June 30, 2019 and December 31, 2018, respectively, held on behalf of GE. Cash and cash equivalents includes a total of $739 million and $747 million of cash at June 30, 2019 and December 31, 2018, respectively, held on behalf of GE, and a corresponding liability is reported in short-term borrowings. See "Note 15. Related Party Transactions" for further details. NEW ACCOUNTING STANDARDS ADOPTED Leases On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases, and the related amendments (ASC 842). This ASU requires lessees to recognize an operating lease asset and a lease liability on the balance sheet, with the exception of short-term leases. We adopted the standard using the modified retrospective approach under which leases existing at, or entered into after January 1, 2019 were required to be recognized and measured. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting. The Company has elected the practical expedients upon transition that allow entities not to reassess lease identification, classification and initial direct costs for leases that existed prior to adoption. The most significant impact of the standard is the recognition of right-of-use (ROU) assets and operating lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We implemented internal controls and key system functionality to enable the preparation of financial information on adoption. We determine if an arrangement is a lease at inception. ROU assets are included in "All other assets" and operating lease liabilities are included in "All other current liabilities" and "All other liabilities" on our consolidated statement of financial position. Finance lease assets are included in "Property, plant and equipment," and finance lease liabilities are included in "Short-term debt," and "Long-term debt" on our consolidated statement of financial position. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the later of the lease commencement date or the effective date of adoption of ASC 842 on January 1, 2019, based on the present value of lease payments over the remaining lease term. Finance lease ROU assets and liabilities are recognized at commencement date. As most of our leases do not provide an implicit rate, we use our incremental collateralized borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Short-term leases under one year do not result in a ROU asset, but are recognized in the income statement only on a straight-line basis over the lease term. The Company has made an election to include within our operating lease liability future payments for both lease and non-lease components. See "Note 8. Leases" for additional information. The adoption of this standard resulted in the recording of ROU assets and operating lease liabilities of $844 million as of January 1, 2019 on our consolidated statements of financial position with an immaterial impact on our consolidated statements of equity and no related impact on our consolidated statements of income (loss). Short-term leases have not been recorded on the consolidated statements of financial position. Our accounting for finance leases remained substantially unchanged. Derivatives and Hedging On January 1, 2019, we adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Since there was no impact from the new guidance to our consolidated financial statements, no transition adjustments were recorded. ASU 2017-12 simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. In accordance with the ASU, both the effective and ineffective portion of a cash flow hedge are initially reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. The ASU requires certain changes to the presentation of hedge accounting in the financial statements and some new or modified disclosures. See "Note 13. Financial Instruments" for additional information. NEW ACCOUNTING STANDARDS TO BE ADOPTED In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses. The ASU introduces a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current U.S. GAAP, which generally require that a loss be incurred before it is recognized. The new standard will also apply to receivables arising from revenue transactions such as contract assets and accounts receivables and is effective for fiscal years beginning after December 15, 2019. We continue to evaluate the effect of the standard on our consolidated financial statements. All other new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.

Revenue Related to Contracts with Customers

6 Months Ended

Jun. 30, 2019

REVENUE RELATED TO CONTRACTS WITH CUSTOMERS

DISAGGREGATED REVENUE

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



	Three Months Ended June 30,				Six Months Ended June 30,
Total Revenue	2019		2018		2019		2018
U.S.	$	1,616	$	1,560	$	3,121	$	3,043
Non-U.S.	4,378		3,988		8,487		7,904
Total	$	5,994	$	5,548	$	11,608	$	10,947

REMAINING PERFORMANCE OBLIGATIONS

As of June 30, 2019 and 2018, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $20.6 billion and $20.9 billion, respectively. As of June 30, 2019, we expect to recognize revenue of approximately 47%, 63% 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:



	June 30, 2019		December 31, 2018
Progress collections	$	2,088	$	1,600
Deferred income	126		165
Progress collections and deferred income (contract liabilities) ⁽¹⁾	$	2,214	$	1,765


⁽¹⁾	Progress collections and deferred income (contract liabilities) were $1,775 million at January 1, 2018.

Revenue recognized during the three months ended June 30, 2019 and 2018 that was included in the contract liabilities at the beginning of the period was $295 million and $404 million, respectively, and $848 million and $1,006 million, respectively, during the six months ended June 30, 2019 and 2018.

Current Receivables

6 Months Ended

Jun. 30, 2019

Current Receivables

CURRENT RECEIVABLES

Current receivables are comprised of the following:



	June 30, 2019			December 31, 2018
Customer receivables	$	5,245		$	4,974
Related parties	742			746
Other	730			669
Total current receivables	6,717			6,389
Less: Allowance for doubtful accounts	(333		)	(327		)
Total current receivables, net	$	6,384		$	6,062

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

Inventories

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

INVENTORIES

Inventories, net of reserves of $416 million and $430 million as of June 30, 2019 and December 31, 2018, respectively, are comprised of the following:



	June 30, 2019		December 31, 2018
Finished goods	$	2,751	$	2,575
Work in process and raw material	2,056		2,045
Total inventories, net	$	4,807	$	4,620

Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2019

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, 2017, gross	$	15,565		$	3,901		$	1,906		$	2,036		$	23,408
Accumulated impairment at December 31, 2017	(2,633		)	(867		)	—			(254		)	(3,754		)
Balance at December 31, 2017	12,932			3,034			1,906			1,782			19,654
Purchase accounting adjustments⁽¹⁾	(157		)	293			394			429			959
Currency exchange and others	(26		)	(17		)	(114		)	(33		)	(190		)
Balance at December 31, 2018	12,749			3,310			2,186			2,178			20,423
Currency exchange and others	—			—			(13		)	1			(12		)
Balance at June 30, 2019	$	12,749		$	3,310		$	2,173		$	2,179		$	20,411

⁽¹⁾

Includes the final determination of fair value of the assets and liabilities and the related goodwill associated with the acquisition of Baker Hughes that was concluded in the second quarter of 2018. Of the total goodwill of $13,669 million resulting from the acquisition of Baker Hughes, $12,604 million is allocated to our Oilfield Services segment and the remainder to our other segments based on the expected benefit from the synergies of the acquisition.

We test goodwill for impairment annually in the third quarter using data as of July 1 of that year. Our reporting units are the same as our four reportable segments. We also test goodwill for impairment between annual impairment testing dates whenever events or circumstances occur that, in our judgment, could more likely than not reduce the fair value of one or more reporting units below its carrying amount. In assessing the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates, we consider all available evidence, including, but not limited to, (i) the results of our impairment testing at the prior annual impairment testing date, in particular the magnitude of the excess of fair value over carrying value observed, (ii) changes in market conditions, (iii) downward revisions to internal forecasts, and the magnitude thereof, if any, (iv) the impact of the separation from GE, if any, and (v) declines in the market capitalization of BHGE below its book value, and the magnitude and duration of those declines, if any.

BHGE's stock price has historically experienced volatility as a result of industry-wide and macroeconomic factors, including principally global oil prices. In addition, more recently, we believe that BHGE's share price has been subject to increased volatility resulting from, among other things, uncertainty around the impact, if any, of the announced intention of GE to pursue an orderly separation from BHGE over time, which prompted us to evaluate whether circumstances had changed that would more likely than not reduce the fair value of one or more of our reporting units below their carrying value as of June 30, 2019. While conducting this evaluation, we considered macroeconomic and industry conditions, the magnitude and duration of any declines in BHGE's market capitalization and overall financial performance of our reporting units. We also considered whether there were any changes in our long-term forecasts, which includes assumptions about future commodity pricing and supply and demand for our goods and services, all of which require considerable judgment in estimation. Through this qualitative review we did not identify any reporting units that required an interim impairment test. In connection with our most recent annual impairment test (as of July 1, 2018), two of our reporting units, Oilfield Services and Oilfield Equipment, had fair values that exceeded their carrying values by amounts ranging between 15% and 20%, while our other reporting units had substantially higher "headroom" calculations. While we believe that BHGE's share price reflects transitory circumstances/conditions as described above, there can be no assurances that further or sustained declines in its share price would not result in a material impairment of goodwill.

OTHER INTANGIBLE ASSETS

Intangible assets are comprised of the following:



	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships	$	3,022	$	(985	)	$	2,037	$	3,085	$	(944	)	$	2,141
Technology	1,069		(572		)	497		1,107		(526		)	581
Trade names and trademarks	691		(240		)	451		698		(229		)	469
Capitalized software	1,162		(879		)	283		1,118		(824		)	294
Other	1		(1		)	—		14		(2		)	12
Finite-lived intangible assets	5,945		(2,677		)	3,268		6,022		(2,525		)	3,497
Indefinite-lived intangible assets ⁽¹⁾	2,242		—			2,242		2,222		—			2,222
Total intangible assets	$	8,187	$	(2,677	)	$	5,510	$	8,244	$	(2,525	)	$	5,719


⁽¹⁾	Indefinite-lived intangible assets are principally comprised of the Baker Hughes trade name.

Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 1 to 30 years. Amortization expense for the three months ended June 30, 2019 and 2018 was $97 million and $101 million, respectively, and $193 million and $240 million, respectively, for the six months ended June 30, 2019 and 2018.

Estimated amortization expense for the remainder of 2019 and each of the subsequent five fiscal years is expected to be as follows:



Year	Estimated Amortization Expense
Remainder of 2019	$	169
2020	323
2021	280
2022	240
2023	226
2024	221

Contract and Other Deferred Assets

6 Months Ended

Jun. 30, 2019

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:



	June 30, 2019		December 31, 2018
Long-term product service agreements	$	608	$	609
Long-term equipment contracts ⁽¹⁾	1,069		1,085
Contract assets (total revenue in excess of billings) ⁽²⁾	1,677		1,694
Deferred inventory costs ⁽³⁾	129		179
Non-recurring engineering costs	43		21
Contract and other deferred assets	$	1,849	$	1,894


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


⁽²⁾	Contract assets (total revenue in excess of billings) were $1,684 million as of January 1, 2018.


⁽³⁾	Deferred inventory costs were $360 million as of January 1, 2018, which represents cost deferral for shipped goods and other costs where the criteria for revenue recognition has not yet been met.

Revenue recognized during the three months ended June 30, 2019 and 2018 from performance obligations satisfied (or partially satisfied) in previous periods related to our long-term service agreements was $14 million and $12 million, respectively, and $21 million and $22 million during the six months ended June 30, 2019 and 2018, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract’s total estimated profitability resulting in an adjustment of earnings.

Progress Collections and Deferred Income

6 Months Ended

Jun. 30, 2019

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 June 30,				Six Months Ended June 30,
Total Revenue	2019		2018		2019		2018
U.S.	$	1,616	$	1,560	$	3,121	$	3,043
Non-U.S.	4,378		3,988		8,487		7,904
Total	$	5,994	$	5,548	$	11,608	$	10,947

REMAINING PERFORMANCE OBLIGATIONS

PROGRESS COLLECTIONS AND DEFERRED INCOME



	June 30, 2019		December 31, 2018
Progress collections	$	2,088	$	1,600
Deferred income	126		165
Progress collections and deferred income (contract liabilities) ⁽¹⁾	$	2,214	$	1,765


⁽¹⁾	Progress collections and deferred income (contract liabilities) were $1,775 million at January 1, 2018.

Leases

6 Months Ended

Jun. 30, 2019

Leases

LEASES

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



Operating Lease Expense	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Long-term fixed lease	$	60	$	108
Long-term variable lease	13		24
Short-term lease ⁽¹⁾	177		342
Total operating lease expense	$	250	$	474


⁽¹⁾	Includes leases with a term of one month or less

For the three and six months ended June 30, 2018, total operating lease expense was $188 million and $375 million, respectively. Cash flows used in operating activities for operating leases approximates our expense for the three and six months ended June 30, 2019 and 2018.

As of June 30, 2019, maturities of our operating lease liabilities are as follows:



Year	Operating Leases
Remainder of 2019	$	112
2020	198
2021	144
2022	117
2023	82
Thereafter	379
Total lease payments	1,032
Less: imputed interest	201
Total	$	831

Amounts recognized in the condensed consolidated statement of financial position as of June 30, 2019:



	Operating Leases
All other current liabilities	$	190
All other liabilities	641
Total	$	831

ROU assets of $821 million as of June 30, 2019 were included in "All other assets" in our condensed consolidated statements of financial position.

The weighted-average remaining lease term as of June 30, 2019 was approximately nine years for our operating leases. The weighted-average discount rate used to determine the operating lease liability as of June 30, 2019 was 4.4%.

Borrowings

6 Months Ended

Jun. 30, 2019

Borrowings

BORROWINGS

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



	June 30, 2019		December 31, 2018
Short-term borrowings
Short-term borrowings from GE	$	856	$	896
Other borrowings	36		46
Total short-term borrowings	892		942

Long-term borrowings
3.2% Senior Notes due August 2021	521		523
2.773% Senior Notes due December 2022	1,246		1,245
8.55% Debentures due June 2024	129		131
3.337% Senior Notes due December 2027	1,343		1,343
6.875% Notes due January 2029	291		294
5.125% Senior Notes due September 2040	1,304		1,306
4.08% Senior Notes due December 2047	1,337		1,336
Other long-term borrowings	85		107
Total long-term borrowings	6,256		6,285
Total borrowings	$	7,148	$	7,227

We have a $3 billion committed unsecured revolving credit facility (the 2017 Credit Agreement) with commercial banks maturing in July 2022. The 2017 Credit Agreement contains certain customary representations and warranties, certain affirmative covenants and no negative covenants. Upon the occurrence of certain events of default, our obligations under the 2017 Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the 2017 Credit Agreement, and other customary defaults. No such events of default have occurred. At June 30, 2019 and December 31, 2018, there were no borrowings under the 2017 Credit Agreement.

We have a commercial paper program under which we may issue from time to time up to $3 billion in commercial paper with maturities of no more than 397 days. At June 30, 2019 and December 31, 2018, there were no borrowings outstanding under the commercial paper program. The maximum combined borrowing at any time under both the 2017 Credit Agreement and the commercial paper program is $3 billion.

Concurrent with the Transactions associated with the acquisition of Baker Hughes on July 3, 2017, Baker Hughes Co-Obligor, Inc. became a co-obligor, jointly and severally with us, on our registered debt securities. This co-obligor is a 100%-owned finance subsidiary of the Company that was incorporated for the sole purpose of serving as a co-obligor of debt securities and has no assets or operations other than those related to its sole purpose. Baker Hughes Co-Obligor, Inc. is also a co-obligor of the $3,950 million senior notes issued in December 2017 by us in a private placement and subsequently registered in January 2018.

Certain Senior Notes contain covenants that restrict our ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits.

The estimated fair value of total borrowings at June 30, 2019 and December 31, 2018 was $7,132 million and $6,629 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.

See "Note 15. Related Party Transactions" for additional information on the short-term borrowings from GE.

Employee Benefit Plans

6 Months Ended

Jun. 30, 2019

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

Historically, certain of our U.S. employees were covered under various U.S. GE employee benefit plans, including GE's retirement plans (pension, retiree health and life insurance, and savings benefit plans). From January 1, 2019, these U.S. employees ceased to participate in the GE U.S. plans. In addition, certain United Kingdom (UK) employees participated in the GE UK Pension Plan. From May 1, 2019, these UK employees ceased to participate in the GE UK Pension Plan. We were allocated relevant participation costs for these GE employee benefit plans as part of multi-employer plans. Expenses associated with our participation in these plans was $1 million and $43 million in the three months ended June 30, 2019 and 2018, respectively, and $3 million and $80 million in the six months ended June 30, 2019 and 2018, respectively. During the second quarter of 2019, substantially, all of the assets and liabilities of the GE UK Pension Plan related to the oil & gas businesses have been transferred to BHGE on a fully funded basis.

In addition to these GE plans, certain of our employees are also covered by company sponsored employee defined benefit plans. These defined benefit plans include four U.S. plans and six 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. These defined benefit plans generally provide benefits to employees based on formulas recognizing length of service and earnings.

The components of net periodic cost (benefit) of plans sponsored by us are as follows for the three and six months ended June 30:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost	$	6		$	5		$	10		$	10
Interest cost	22			18			41			36
Expected return on plan assets	(30		)	(30		)	(55		)	(60		)
Amortization of net actuarial loss	5			2			9			4
Curtailment loss	7			—			7			—
Net periodic cost (benefit)	$	10		$	(5	)	$	12		$	(10	)

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

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES For the quarter ended June 30, 2019, income tax expense was $95 million compared to a tax expense of $62 million for the prior year quarter. The difference between the U.S. statutory tax rate of 21% and the current effective tax rate of 113% is primarily related to the geographical mix of earnings and losses, coupled with $69 million related to losses with no tax benefit due to valuation allowances and tax effects of the U.S. partnership structure. For the six months ended June 30, 2019, income tax expense was $162 million compared to a tax expense of $100 million for the six months ended June 30, 2018. The difference between the U.S. statutory tax rate of 21% and the current effective tax rate of 73% is primarily related to the geographical mix of earnings and losses, coupled with $90 million related to losses with no tax benefit due to valuation allowances and tax effects of the U.S. partnership structure. We are a partnership for U.S. federal tax purposes, therefore, any tax effects associated with the U.S. are recognized by our members and not reflected in our tax expense.

Members' Equity

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Members' Equity

MEMBERS' EQUITY

COMMON UNITS

The BHGE LLC Agreement provides that initially there is one class of common units, which are currently held by BHGE and GE. If BHGE issues a share of Class A common stock, including in connection with an equity incentive or similar plan, we will also issue a corresponding common unit to BHGE or one of its direct subsidiaries. For the six months ended June 30, 2019 we issued 2,224 thousand common units to BHGE in connection with the issuance of Class A common stock by BHGE.

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



	Common Units Held by BHGE	Common Units Held by GE
Balance at December 31, 2018	513,399	521,543
Issue of units to BHGE under equity incentive plan	2,224	—
Balance at June 30, 2019	515,624	521,543

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, 2018	$	—	$	(2,326	)	$	(3	)	$	(133	)	$	(2,462	)
Other comprehensive income (loss) before reclassifications	1		27			1			(27		)	2
Amounts reclassified from accumulated other comprehensive income (loss)	—		—			—			14			14
Deferred taxes	—		—			—			—			—
Other comprehensive income (loss)	1		27			1			(13		)	16
Less: Other comprehensive loss attributable to noncontrolling interests	—		(1		)	—			—			(1		)
Other adjustments	—		—			—			(119		)	(119		)
Balance at June 30, 2019	$	1	$	(2,298	)	$	(2	)	$	(265	)	$	(2,564	)



	Investment Securities			Foreign Currency Translation Adjustments			Cash Flow Hedges		Benefit Plans			Accumulated Other Comprehensive Loss
Balance at December 31, 2017	$	1		$	(1,824	)	$	2	$	(60	)	$	(1,881	)
Other comprehensive income (loss) before reclassifications	(1		)	(224		)	1		4			(220		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—			—		—			—
Deferred taxes	(1		)	—			—		(2		)	(3		)
Other comprehensive income (loss)	(2		)	(224		)	1		2			(223		)
Less: Other comprehensive loss attributable to noncontrolling interests	—			(1		)	—		—			(1		)
Balance at June 30, 2018	$	(1	)	$	(2,047	)	$	3	$	(58	)	$	(2,103	)

The amounts reclassified from accumulated other comprehensive loss during the six months ended June 30,

2019 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). These reclassifications are recorded across the various cost and expense line items within the condensed consolidated statements of income (loss).

Financial Instruments

6 Months Ended

Jun. 30, 2019

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.



	June 30, 2019										December 31, 2018
	Level 1		Level 2			Level 3		Net Balance			Level 1		Level 2			Level 3		Net Balance
Assets
Derivatives	$	—	$	47		$	—	$	47		$	—	$	74		$	—	$	74
Investment securities	40		—			265		305			39		—			288		327
Total assets	40		47			265		352			39		74			288		401

Liabilities
Derivatives	—		(50		)	—		(50		)	—		(82		)	—		(82		)
Total liabilities	$	—	$	(50	)	$	—	$	(50	)	$	—	$	(82	)	$	—	$	(82	)

There were no transfers between Level 1, 2 and 3 during the six months ended June 30, 2019.

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



	2019			2018
Balance at January 1	$	288		$	304
Purchases	7			36
Proceeds at maturity	(31		)	(30		)
Unrealized gains recognized in AOCI	1			—
Balance at June 30	$	265		$	310

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. At June 30, 2019 and December 31, 2018, we held $117 million and $149 million, respectively, of these investment securities on behalf of GE.



	June 30, 2019								December 31, 2018
	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⁾	$	264	$	1	$	—	$	265	$	288	$	—	$	—	$	288
Equity securities ⁽²⁾	40		—		—		40		39		—		—		39
Total	$	304	$	1	$	—	$	305	$	327	$	—	$	—	$	327


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


⁽²⁾	Gains (losses) recorded to earnings related to these securities were $(9) million and $11 million for the three months ended June 30, 2019 and 2018, respectively, and $1 million and $(3) million for the six months ended June 30, 2019 and 2018, respectively.

FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS

Our financial instruments include cash, cash equivalents, current receivables, investments, accounts payable, short and long-term debt, and derivative financial instruments. Except for long-term debt, the estimated fair value of these financial instruments at June 30, 2019 and December 31, 2018 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.



	June 30, 2019					December 31, 2018
	Assets		(Liabilities)			Assets		(Liabilities)
Derivatives accounted for as hedges
Currency exchange contracts	$	—	$	(4	)	$	—	$	(7	)

Derivatives not accounted for as hedges
Currency exchange contracts	45		(46		)	74		(75		)
Other derivatives	2		—			—		—
Total derivatives	$	47	$	(50	)	$	74	$	(82	)

Derivatives are classified in the captions "All other current assets," "All other assets," "All other current liabilities," and "All other liabilities" depending on their respective maturity date.

As of June 30, 2019 and December 31, 2018, $42 million and $67 million of derivative assets are recorded in "All other current assets" and $5 million and $7 million are recorded in "All other assets" of the condensed consolidated statements of financial position, respectively. As of June 30, 2019 and December 31, 2018, $47 million and $79 million of derivative liabilities are recorded in "All other current liabilities" and $3 million and $3 million are recorded in "All other liabilities" of the condensed consolidated statements of financial position, respectively.

RISK MANAGEMENT STRATEGY

We buy, manufacture and sell components and products as well as provide services across global markets. These activities expose us to changes in foreign currency exchange rates and commodity prices, which can adversely affect revenues earned and costs of operating our business. When the currency in which we sell equipment differs from the primary currency (known as its functional currency) and the exchange rate fluctuates, it will affect the revenue we earn on the sale. These sales and purchase transactions also create receivables and payables denominated in foreign currencies, along with other monetary assets and liabilities, which expose us to foreign currency gains and losses based on changes in exchange rates. Changes in the price of a raw material that we use in manufacturing can affect the cost of manufacturing. We use derivatives to mitigate or eliminate these exposures.

FORMS OF HEDGING

Cash Flow Hedges

We use cash flow hedging primarily to reduce or eliminate the effects of foreign exchange rate changes on purchase and sale contracts. Accordingly, the vast majority of our derivative activity in this category consists of currency exchange contracts. We also use commodity derivatives to reduce or eliminate price risk on raw materials purchased for use in manufacturing.

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. Some economic hedges are used when changes in the carrying amount of the hedged item are already recorded in earnings in the same period as the derivative, making hedge accounting unnecessary. For some other types of economic hedges, changes in the fair value of the derivative are recorded in earnings currently but changes in the value of the forecasted foreign currency cash flows are only recognized in earnings when they occur. As a result, even though the derivative is an effective economic hedge, there is a net effect on earnings in each period due to differences in the timing of earnings recognition between the derivative and the hedged item. These derivatives are marked to fair value through earnings each period.

NOTIONAL AMOUNT OF DERIVATIVES

The notional amount of a derivative is the number of units of the underlying (for example, the notional principal amount of the debt in an interest rate swap). A substantial majority of the outstanding notional amount of $5.4 billion and $6.4 billion at June 30, 2019 and December 31, 2018, respectively, is related to hedges of anticipated sales and purchases in foreign currency, commodity purchases, and contractual terms in contracts that are considered embedded derivatives and for intercompany borrowings in foreign currencies. We generally disclose derivative notional amounts on a gross basis to indicate the total counterparty risk. Where we have gross purchase and sale derivative contracts for a particular currency, we look to execute these contracts with the same counterparty to reduce our exposure. The corresponding net notional amounts were $2.2 billion and $2.8 billion at June 30, 2019 and December 31, 2018, respectively.

CASH FLOW HEDGES

Changes in the fair value of cash flow hedges are recorded in a separate component of equity (referred to below as Accumulated Other Comprehensive Income, or AOCI) and are recorded in earnings in the period in which the hedged transaction occurs. The table below summarizes this activity by hedging instrument.



	Three Months Ended June 30,										Six Months Ended June 30,
	Gain (Loss) Recognized in AOCI						Gain (Loss) Reclassified from AOCI to Earnings				Gain (Loss) Recognized in AOCI				Gain (Loss) Reclassified from AOCI to Earnings
	2019			2018			2019		2018		2019		2018		2019		2018
Currency exchange contracts	$	(4	)	$	(7	)	$	—	$	—	$	1	$	1	$	—	$	—

We expect to transfer $2 million to earnings as an expense in the next 12 months contemporaneously with the earnings effects of the related forecast transactions. At June 30, 2019 and December 31, 2018, the maximum term of derivative instruments that hedge forecast transactions was one year and two years, respectively.

ECONOMIC HEDGES

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



Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	Three Months Ended June 30,						Six Months Ended June 30,
Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	2019			2018			2019			2018
Currency exchange contracts ⁽¹⁾	Cost of goods sold	$	(8	)	$	(37	)	$	(5	)	$	4
Currency exchange contracts	Selling, general and administrative expenses	(3		)	26			(4		)	2
Commodity derivatives	Cost of goods sold	(2		)	1			—			1
Other derivatives	Other non operating income (loss), net	3			—			2			—
Total ⁽²⁾		$	(10	)	$	(10	)	$	(7	)	$	7


⁽¹⁾	Excludes gains on embedded derivatives of $2 million and $30 million for the three months ended June 30, 2019 and 2018, respectively, and losses of nil and $10 million during the six months ended June 30, 2019 and 2018, 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 change in fair value of the economically hedged items in the current and future periods.

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.

Segment Information

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Segment Information

SEGMENT INFORMATION

Our operating segments are organized based on the nature of markets and customers. We report our operating results through four operating segments that consists of similar products and services within each segment as described below.

OILFIELD SERVICES (OFS)

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

OILFIELD EQUIPMENT (OFE)

OFE provides a broad portfolio of products and services required to facilitate the safe and reliable flow of hydrocarbons from the subsea wellhead to the surface. Products and services include pressure control equipment and services, subsea production systems and services, drilling equipment, and flexible pipeline systems. OFE designs and manufactures onshore and offshore drilling and production systems and equipment for floating production platforms and provides a full range of services related to onshore and offshore drilling activities.

TURBOMACHINERY & PROCESS SOLUTIONS (TPS)

TPS provides equipment and related services for mechanical-drive, compression and power-generation applications across the oil and gas industry as well as products and services to serve the downstream segments of the industry including refining, petrochemical, distributed gas, flow and process control and other industrial applications. The TPS portfolio includes drivers (aero-derivative gas turbines, heavy-duty gas turbines and synchronous and induction electric motors), compressors (centrifugal and axial, direct drive high speed, integrated, subsea compressors, turbo expanders and reciprocating), turn-key solutions (industrial modules and waste heat recovery), pumps, valves, and compressed natural gas (CNG) and small-scale liquefied natural gas (LNG) solutions used primarily for shale oil and gas field development.

DIGITAL SOLUTIONS (DS)

DS provides equipment and services for a wide range of industries, including oil & gas, power generation, aerospace, metals, and transportation. The offerings include sensor-based measurement, non-destructive testing and inspection, turbine, generator and plant controls and condition monitoring, as well as pipeline integrity solutions.

SEGMENT RESULTS

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



	Three Months Ended June 30,				Six Months Ended June 30,
Segments revenue	2019		2018		2019		2018
Oilfield Services	$	3,263	$	2,884	$	6,249	$	5,562
Oilfield Equipment	693		617		1,428		1,281
Turbomachinery & Process Solutions	1,405		1,385		2,707		2,845
Digital Solutions	632		662		1,224		1,260
Total	$	5,994	$	5,548	$	11,608	$	10,947

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



	Three Months Ended June 30,						Six Months Ended June 30,
Segment income (loss) before income taxes	2019			2018			2019			2018
Oilfield Services	$	233		$	189		$	409		$	330
Oilfield Equipment	14			(12		)	26			(18		)
Turbomachinery & Process Solutions	135			113			253			232
Digital Solutions	84			96			152			169
Total segment	466			387			839			714
Corporate	(105		)	(98		)	(205		)	(196		)
Inventory impairments ⁽¹⁾	—			(15		)	—			(76		)
Restructuring, impairment and other	(50		)	(146		)	(112		)	(308		)
Separation and merger related costs	(40		)	(50		)	(74		)	(96		)
Other non operating income (loss), net	(131		)	43			(110		)	45
Interest expense, net	(56		)	(63		)	(115		)	(109		)
Total	$	84		$	58		$	222		$	(27	)

⁽¹⁾

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

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS In connection with the Transactions on July 3, 2017, we entered into various agreements with GE and its affiliates that govern our relationship with GE following the Transactions including an Intercompany Services Agreement pursuant to which GE and its affiliates and the Company provide certain services to each other. GE provides certain administrative services, GE proprietary technology and use of certain GE trademarks for an annual service fee of $55 million. GE may also provide us with certain additional administrative services under the Intercompany Services Agreement and the fees for such services are based on actual usage of such services and historical GE intercompany pricing. Under the terms of the Master Agreement Framework, entered into on November 13, 2018, the annual intercompany services fee of $55 million that we agreed to pay GE as part of the Transactions is reduced by 50% to $27.5 million per year beginning on January 1, 2019. The Intercompany Services Agreement will terminate 90 days following the Trigger Date. See further discussion below. We incurred costs of $7 million and $14 million related to the Intercompany Services Agreement during the three months ended June 30, 2019 and 2018, respectively, and $14 million and $28 million during the six months ended June 30, 2019 and 2018, respectively. In addition, we provide GE and its affiliates with confidential access to certain of our proprietary technology and related developments and enhancements thereto related to GE's operations, products or service offerings. We sold $108 million and $84 million of products and services to GE and its affiliates during the three months ended June 30, 2019 and 2018, respectively, and $189 million and $184 million, during the six months ended June 30, 2019 and 2018, respectively. Purchases from GE and its affiliates were $428 million and $523 million during the three months ended June 30, 2019 and 2018, respectively, and $879 million and $926 million during the six months ended June 30, 2019 and 2018, respectively. MASTER AGREEMENT FRAMEWORK In June 2018, GE announced their intention to pursue an orderly separation from BHGE over time. On November 13, 2018, we entered into a Master Agreement and a series of related ancillary agreements and binding term sheets (which were later negotiated into definitive agreements) with GE and BHGE (collectively, the Master Agreement Framework) designed to further solidify the commercial and technological collaborations between us and GE and to facilitate our ability to transition from operating as a controlled company. In particular, the Master Agreement Framework contemplates long-term agreements between us, BHGE and GE on technology, fulfillment and other key areas to provide greater clarity to customers, employees and shareholders. Key elements of the Master Agreement Framework include: Secured long-term collaboration on critical rotating equipment Under the terms of the Master Agreement Framework, we have defined the parameters for a long-term collaboration and strategic relationship with GE on certain critical rotating equipment products. We have entered into an aero-derivative joint venture (JV) agreement with GE to form a JV relating to the parties’ respective aero-derivative gas turbine products and services. Effectiveness of the JV is subject to regulatory clearances and other customary closing conditions. In addition, the JV cannot become effective prior to the first business day of the month after the "Trigger Date" which is the date on which GE and its affiliates cease to own more than 50% of the voting power of BHGE’s outstanding common stock. These jet engine aero-derivative products are mainly used in our LNG, onshore-offshore production, pipeline and industrial segments within our Turbomachinery & Process Solutions segment and by GE in its power generation business. GE and we will contribute certain assets, inventory and service facilities into the JV and both companies will jointly control operations. In addition to the contributions to the JV, we agreed to pay $60 million to GE, in order to equalize each party's interests in the JV at 50%. The JV will have a supply and technology development agreement with GE’s aviation business (GE Aviation), which will revise and extend pricing arrangements as compared to BHGE’s existing supply agreement, and which will become effective at the Trigger Date. Additionally, effective May 1, 2019, we closed on the previously announced transfer of our assets, liabilities and employees related to our prior business of developing, designing, engineering, marketing, supplying, installing and servicing certain industrial steam turbine product lines (IST) to GE pursuant to the Stock and Asset Purchase Agreement. In addition and in connection with the transfer of the IST business, we made a cash payment of $13 million, in addition to working capital adjustments, to GE at the closing of the transaction. In parallel, we have also entered into an agreement for the long-term supply and related distribution arrangement with GE for heavy-duty gas turbine technology at the current pricing levels, which will become effective at the Trigger Date. Under this agreement BHGE LLC will be appointed as GE's exclusive distributor (with limited exceptions) within the oil and gas industry with respect to the heavy-duty gas turbine units for an initial term of 5 years and associated services (including parts and components) for an initial term of 20 years or the operating service life of the relevant gas turbine, whichever is more. The heavy-duty gas turbine technologies are important components of TPS’ offerings and the long-term agreements provide greater clarity on the commercial approach and customer fulfillment, and will enable us and GE to jointly innovate on leading technology. Preserved access to GE Digital software & technology As part of the Master Agreement Framework, BHGE LLC has agreed with GE Digital to maintain, subject to certain conditions, BHGE LLC's current status as the exclusive reseller of GE Digital offerings in the oil & gas space, and BHGE LLC will continue to source exclusively from GE Digital for certain GE Digital offerings for oil and gas applications. As part of this agreement, BHGE LLC and GE Digital have revised and extended certain pricing arrangements and have established service level obligations. Other key agreements • GE and we agreed to maintain current operations and pricing levels with regards to Control upgrade services we offer through our Digitals Solution segment division for the 4 years commencing on the Trigger Date. • During the second quarter of 2019, GE transferred to BHGE certain UK pension liabilities related to the oil and gas businesses of BHGE and certain specified former oil and gas businesses of GE. The assets associated with these liabilities were also substantially transferred on that date based on a preliminary valuation of the liabilities. On the completion of the final valuation of the liabilities GE will transfer any remaining assets on what is intended to be a fully funded basis (using agreed upon actuarial assumptions). The completion of the final valuation and transfer of remaining assets associated with the UK pension liabilities is expected to be completed in 2019. No liabilities associated with GE’s broad-based U.S. defined benefit pension plan will be transferred to us. • The Tax Matters Agreement with GE that was negotiated at the time of the Transactions will be clarified but otherwise will remain substantially in place and both companies retain the ability to monetize certain tax benefits. • Under the terms of the Master Agreement Framework, the annual intercompany services fee of $55 million that we agreed to pay GE as part of the Transactions is reduced by 50% to $27.5 million per year beginning on January 1, 2019. The Intercompany Services Agreement will terminate 90 days following the Trigger Date (except with respect to certain tools access). In connection with the Master Agreement Framework, BHGE has agreed to terminate certain aspects of the transfer restrictions previously applicable to GE under the Stockholders Agreement, dated as of July 3, 2017, by and between BHGE and GE, as amended from time to time (the Stockholders Agreement). The transfer restrictions prohibited GE from transferring any shares of BHGE's common stock prior to July 3, 2019 (except to its affiliates) without the approval of the Conflicts Committee of BHGE's board of directors. Other provisions of the Stockholders Agreement, including continuing restrictions on certain private transfers of shares of BHGE's common stock by GE, and approval requirements for related party transactions, remain in effect. In addition, the Stockholders Agreement was amended and restated to provide that, following the Trigger Date and until GE and its affiliates own less than 20% of the voting power of BHGE's outstanding common stock, GE shall be entitled to designate one person for nomination to BHGE's board of directors. OTHER RELATED PARTY In connection with the Transactions, 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 June 30, 2019, of the $856 million due to GE, $739 million was held in the form of cash and $117 million was held in the form of investment securities. As of December 31, 2018, of the $896 million due to GE, $747 million was held in the form of cash and $149 million was held in the form of investment securities. A corresponding liability is reported in short-term borrowings in the condensed consolidated statements of financial position. Additionally, the Company has $498 million and $538 million of accounts payable at June 30, 2019 and December 31, 2018, respectively, for goods and services provided by GE in the ordinary course of business. The Company has $668 million and $653 million of current receivables at June 30, 2019 and December 31, 2018, respectively, for goods and services provided to GE in the ordinary course of business. Additionally, the Company has $74 million and $93 million of current receivable at June 30, 2019 and December 31, 2018, respectively from BHGE. We also provide guarantees to GE Capital on behalf of some customers who have entered into financing arrangements with GE Capital. TRADE PAYABLES ACCELERATED PAYMENT PROGRAM Our North American operations participate in accounts payable programs with GE Capital. Invoices are settled with vendors per our payment terms to obtain cash discounts. GE Capital provides funding for invoices eligible for a cash discount. Our liability associated with the funded participation in the accounts payable programs, which is presented as accounts payable within the condensed consolidated statements of financial position, was $454 million and $471 million as of June 30, 2019 and December 31, 2018, respectively. On January 16, 2019, GE announced the sale of GE Capital’s accounts payable program platform to a third-party and their intent to start transitioning their existing program to an accounts payable program with that party. As a GE affiliate, we are covered under the agreement.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

LITIGATION

We are subject to a number of lawsuits and claims arising out of the conduct of our business. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. We record a liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated, including accruals for self-insured losses which are calculated based on historical claim data, specific loss development factors and other information.

A range of total possible losses for all litigation matters cannot be reasonably estimated. Based on a consideration of all relevant facts and circumstances, we do not expect the ultimate outcome of currently pending lawsuits or claims against us, other than those discussed below, will have a material adverse effect on our financial position, results of operations or cash flows, however, there can be no assurance as to the ultimate outcome of these matters.

With respect to the litigation matters below, if there was an adverse outcome individually or collectively, there could be a material impact on our business, financial condition and results of operations expected for the year. These litigation matters are subject to inherent uncertainties and management's view of these matters may change in the future. Therefore, there can be no assurance as to the ultimate outcome of these matters.

During 2014, we received notification from a customer related to a possible equipment failure in a natural gas storage system in Northern Germany, which includes certain of our products. The customer initiated arbitral proceedings against us on June 19, 2015, under the rules of the German Institute of Arbitration e.V. (DIS). On August 3, 2016, the customer amended its claims and alleged damages of €202 million plus interest at an annual rate of prime + 5%. Hearings before the arbitration panel were held January 16, 2017 through January 23, 2017, and March 20, 2017 through March 21, 2017. In addition, on September 21, 2015, TRIUVA Kapitalverwaltungsgesellschaft mbH filed a lawsuit in the United States District Court for the Southern District of Texas, Houston Division against the Company and Baker Hughes Oilfield Operations, Inc. alleging that the plaintiff is the owner of gas storage caverns in Etzel, Germany in which the Company provided certain equipment in connection with the development of the gas storage caverns. The plaintiff further alleges that the Company supplied equipment that was either defectively designed or failed to warn of risks that the equipment posed, and that these alleged defects caused damage to the plaintiff's property. The plaintiff seeks recovery of alleged compensatory and punitive damages of an unspecified amount, in addition to reasonable attorneys' fees, court costs and pre-judgment and post-judgment interest. The allegations in this lawsuit are related to the claims made in the June 19, 2015 German arbitration referenced above. On June 7, 2018, the DIS arbitration panel issued a confidential Arbitration Ruling which addressed all claims asserted by the customer. The estimated financial impact of the Arbitration Ruling has been reflected in the Company's financial statements and did not have a material impact. Further, on March 11, 2019, the customer initiated a second arbitral proceeding against us, under the rules of the German Institute of Arbitration e.V. (DIS). The customer alleged damages of €142 million plus interest at an annual rate of prime + 5% since June 20, 2015. The allegations in this second arbitration proceeding are related to the claims made in the June 19, 2015 German arbitration and Houston Federal Court proceedings referenced

above. The Company is vigorously contesting the claims made by TRIUVA in the Houston Federal Court and the claims made by the customer in the 2019 arbitration proceeding. At this time, we are not able to predict the outcome of the claims asserted in the Houston Federal Court or the 2019 arbitration proceeding.

On July 31, 2015, Rapid Completions LLC filed a lawsuit in federal court in the Eastern District of Texas against Baker Hughes Incorporated, Baker Hughes Oilfield Operations, Inc., and others claiming infringement of U.S. Patent Nos. 6,907,936; 7,134,505; 7,543,634; 7,861,774; and 8,657,009. On August 6, 2015, Rapid Completions amended its complaint to allege infringement of U.S. Patent No. 9,074,451. On September 17, 2015, Rapid Completions and Packers Plus Energy Services Inc. sued Baker Hughes Canada Company in the Canada Federal Court on the related Canadian patent 2,412,072. On April 1, 2016, Rapid Completions removed U.S. Patent No. 6,907,936 from its claims in the lawsuit. On April 5, 2016, Rapid Completions filed a second lawsuit in federal court in the Eastern District of Texas against Baker Hughes Incorporated, Baker Hughes Oilfield Operations, Inc. and others claiming infringement of U.S. Patent No. 9,303,501. These patents relate primarily to certain specific downhole completions equipment. The plaintiff has requested a permanent injunction against further alleged infringement, damages in an unspecified amount, supplemental and enhanced damages, and additional relief such as attorney's fees and costs. During August and September 2016, the United States Patent and Trademark Office (USPTO) agreed to institute an inter-partes review of U.S. Patent Nos 7,861,774; 7,134,505; 7,543,634; 6,907,936; 8,657,009; and 9,074,451. On August 29, 2017, the USPTO issued its final written decisions in the inter-partes reviews of U.S. Patent Nos. 8,657,009 and 9,074,451 finding that all claims of those patents were unpatentable. On August 31, 2017, the USPTO issued its final written decision in the inter-partes review of U.S. Patent 6,907,936 - the patent dropped from the lawsuit by the plaintiffs - finding that all claims of this patent were patentable. On October 27, 2017, Rapid Completions filed its notices of appeal of the USPTO’s final written decision in the inter-partes review of U.S. Patent Nos. 8,657,009 and 9,074,451. On September 26, 2018, the USPTO issued its final written decision in the inter-partes review of U.S. Patent No. 7,134,505 finding all of the challenged claims unpatentable. On September 27, 2018, the USPTO issued its final written decision in the inter-partes review of U.S. Patent No. 7,543,634 finding all of the challenged claims unpatentable. Trial on the validity of asserted claims from Canada patent 2,412,072, was completed March 9, 2017. On December 7, 2017, the Canadian Court issued its judgment finding the patent claims asserted from Canada patent 2,412,072 against Baker Hughes Canada Company were invalid. On January 5, 2018, Rapid Completions filed its Notice of Appeal of the Canadian Court’s judgment of invalidity. On November 19, 2018, the U.S. Court of Appeals for the Federal Circuit affirmed the USPTO’s unpatentability findings with respect to U.S. Patent Nos. 8,657,009 and 9,074,451. On November 26, 2018, Rapid Completions filed notices of appeal of the USPTO’s final written decisions in the inter partes reviews of U.S. Patent No. 7,134,505, and 7,543,634. On April 24, 2019, the Canadian Court of Appeals ruled against Rapid Completions and dismissed Rapid Completion’s appeal in Canada. On June 24, 2019, Rapid Completions filed an application for leave to appeal the Court of Appeals decision to the Supreme Court of Canada. On May 2, 2019, the USPTO issued a final written decision in an IPR on US Patent Number 9,303,501 finding all of its claims unpatentable, and Rapid Completions appealed that decision to the Federal Circuit on July 5, 2019. The remaining appeals of the USPTO decisions finding Rapid Completion’s U.S. Patent claims unpatentable are still pending and, at this time, we are not able to predict the outcome of these claims.

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, BHGE's insurer has accepted coverage and is defending the Company in the expertise proceeding.

In late November 2017, staff of the Boston office of the SEC notified GE that they are conducting an investigation of GE’s revenue recognition practices and internal controls over financial reporting related to long-term service agreements. The scope of the SEC’s request may include some BHGE contracts, expected to be mainly in our TPS business. We have provided documents to GE and are cooperating with them in their response to the SEC. At this time, we are not able to predict the outcome of this review.

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 BHGE 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). 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 is currently scheduled to commence on December 9, 2019. The Company and its subsidiaries have vigorously contested IEC’s claims and are pursuing claims for compensation under the contracts. At this time, we are not able to predict the outcome of these claims.

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 BHGE's behalf against GE, the current members of the Board of Directors of BHGE and BHGE as a nominal defendant, related to the decision to (i) terminate the contractual prohibition barring GE from selling any of BHGE's shares before July 3, 2019; (ii) repurchase $1.5 billion in BHGE's stock from GE; (iii) permit GE to sell approximately $2.5 billion in BHGE's stock through a secondary offering; and (iv) enter into a series of other agreements and amendments that will govern the ongoing relationship between BHGE and GE (collectively, the “2018 Transactions”). The complaints in both lawsuits allege, among other things, that GE, as BHGE's controlling stockholder, and the members of BHGE'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 BHGE, 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 BHGE's Conflicts Committee, and on May 15, 2019, Plaintiffs voluntarily dismissed their claims against former BHGE's director Martin Craighead. At this time, we are not able to predict the outcome of these claims.

In March 2019, BHGE 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. BHGE and the Company are cooperating with the DOJ in connection with this request and any related matters. In addition, BHGE has agreed to toll any statute of limitations in connection with the matters subject to the DOJ’s document request until December 2019.

On May 7, 2019, the Alaska District Attorney filed a Criminal Information against Baker Hughes Incorporated, Baker Hughes Oilfield Operations, Inc., Baker Petrolite Corporation and a Baker Hughes employee alleging that individuals working at a Baker Petrolite Corporation chemical transfer facility in Kenai, Alaska were exposed to hazardous air emissions. The Criminal Information charges six counts of Assault in the Third Degree, three counts of Assault in the Fourth Degree and Negligent Air Emissions. On July 22, 2019, the six counts of Assault in the Third Degree were dismissed, with the Alaska Attorney General’s office indicating their intent to present those charges to the grand jury to obtain an indictment. The Company and other Defendants have pled not guilty and intend to vigorously defend the charges. At this time, we are not able to predict the outcome of the criminal proceeding.

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.

PRODUCT WARRANTIES

We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates are forecasts that are based on the best available information, primarily historical claims experience, claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties are as follows:



	2019			2018
Balance at January 1	$	236		$	164
Provisions	5			18
Expenditures	(10		)	(15		)
Other ⁽¹⁾	(7		)	119
Balance at June 30	$	224		$	286


⁽¹⁾	2018 amount is primarily related to the acquisition of Baker Hughes.

OTHER

In the normal course of business with customers, vendors and others, we have entered into off-balance sheet arrangements, such as surety bonds for performance, letters of credit and other bank issued guarantees, which totaled approximately $3.8 billion at June 30, 2019. 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.

Restructuring, Impairment and Other

6 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring, Impairment and Other

RESTRUCTURING, IMPAIRMENT AND OTHER

We recorded restructuring, impairment and other charges of $50 million and $146 million during the three months ended June 30, 2019 and 2018, respectively, and $112 million and $308 million during the six months ended June 30, 2019 and 2018, respectively. Details of these charges are discussed below.

RESTRUCTURING AND IMPAIRMENT CHARGES

In the current and prior periods, we approved various restructuring plans globally, mainly to consolidate manufacturing and service facilities, rationalize product lines and rooftops, and reduce headcount across various functions. As a result, we recognized a charge of $45 million and $68 million for the three months ended June 30, 2019 and 2018, respectively, and $107 million and $193 million for the six months ended June 30, 2019 and 2018, respectively. These restructuring initiatives will generate charges post June 30, 2019, and the related estimated remaining charges are approximately $54 million.

The amount of costs not included in the reported segment results is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Oilfield Services	$	19	$	40	$	36	$	99
Oilfield Equipment	—		6		18		18
Turbomachinery & Process Solutions	10		11		29		39
Digital Solutions	9		7		12		16
Corporate	7		4		12		21
Total	$	45	$	68	$	107	$	193

These costs were primarily related to employee termination benefits, product line terminations, plant closures and related expenses such as property, plant and equipment impairments, contract terminations and costs of assets', and other incremental costs that were a direct result of the restructuring plans.



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Property, plant & equipment, net	$	7	$	18	$	16	$	37
Employee-related termination expenses	34		16		78		99
Asset relocation costs	2		8		4		13
Environmental remediation costs	—		—		—		3
Contract termination fees	2		21		9		28
Other incremental costs	—		5		—		13
Total	$	45	$	68	$	107	$	193

OTHER CHARGES

Other charges included in "Restructuring, impairment and other" of the condensed consolidated statements of income (loss) were $5 million and $78 million for the three months ended June 30, 2019 and 2018, respectively, and $5 million and $115 million for the six months ended June 30, 2019 and 2018, respectively. For the three and six months ended June 30, 2018 such charges relate primarily to accelerated amortization for certain trade names, and technology in our Oilfield Services segment.

Assets and Liabilities of Business Held for Sale

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities of Business Held for Sale

ASSETS AND LIABILITIES OF BUSINESS HELD FOR SALE

On June 30, 2019, we entered into an agreement to sell our high-speed reciprocating compression (Recip) business for a total consideration of $80 million. Recip, based in Houston, Texas, is part of our TPS segment and provides high-speed reciprocating compression equipment and aftermarket parts and services for oil and gas production, gas processing, gas distribution and independent power industries. As of June 30, 2019, the disposal group met the criteria to be classified as held for sale and was measured and reported at the lower of carrying amount and fair value less costs to sell by recognizing a valuation allowance. The transaction is expected to close later this year subject to customary regulatory approval.

The following table presents financial information related to the assets and liabilities of the Recip business that was 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 June 30, 2019:



Assets and liabilities of business held for sale	June 30, 2019
Assets
Current receivables	$	29
Inventories	94
Property, plant and equipment	21
Goodwill	14
Other intangible assets	66
Valuation allowance on disposal group classified as held for sale ⁽¹⁾	(136		)
Other assets	8
Total assets of business held for sale	96
Liabilities
Accounts payable	(11		)
All other liabilities	(16		)
Total liabilities of business held for sale	(27		)
Total net assets of business held for sale	$	69

⁽¹⁾

Valuation allowance on disposal group classified as held for sale is recorded in Other non operating income (loss), net in our condensed consolidated statements of income (loss) and includes costs associated with selling the business of $11 million.

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	BASIS OF PRESENTATION In connection with the Transactions, we entered into and are governed by an Amended & Restated Limited Liability Company Agreement, dated as of July 3, 2017 (the BHGE LLC Agreement). Under the BHGE LLC Agreement, EHHC Newco, LLC (EHHC), a wholly owned subsidiary of BHGE, is our sole managing member and BHGE is the sole managing member of EHHC. As our managing member, EHHC conducts, directs and exercises full control over all our activities, including our day-to-day business affairs and decision-making, without the approval of any other member. As such, EHHC is responsible for all our operational and administrative decisions and the day-to-day management of our business. 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 and combined financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (2018 Annual Report). In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated. In the Company's financial statements and notes, certain amounts have been reclassified to conform with the current year presentation. In the notes to unaudited condensed consolidated financial statements, all dollar and unit amounts in tabulations are in millions of dollars and units, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers. In June 2018, GE announced their intention to pursue an orderly separation from BHGE over time. In the three and six months ended June 30, 2019, separation and merger related costs include primarily costs incurred in connection with the finalization of the Master Agreement Framework and costs related to the anticipated separation from GE. In the three and six months ended June 30, 2018, separation and merger related costs are comprised solely of costs associated with the Transactions. See "Note 15. Related Party Transactions" for further information on the Master Agreement Framework. 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 2018 Annual Report for the discussion of our significant accounting policies. Please refer to the "New Accounting Standards Adopted" section of this Note for changes to our accounting policies.
Cash and Cash Equivalents	Cash and Cash Equivalents As of June 30, 2019 and December 31, 2018, we had $1,267 million and $1,208 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S. Included in these amounts are $429 million and $461 million, as of June 30, 2019 and December 31, 2018, respectively, held on behalf of GE. Cash and cash equivalents includes a total of $739 million and $747 million of cash at June 30, 2019 and December 31, 2018, respectively, held on behalf of GE, and a corresponding liability is reported in short-term borrowings. See "Note 15. Related Party Transactions" for further details.
New Accounting Standards Adopted and To Be Adopted	NEW ACCOUNTING STANDARDS ADOPTED Leases On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases, and the related amendments (ASC 842). This ASU requires lessees to recognize an operating lease asset and a lease liability on the balance sheet, with the exception of short-term leases. We adopted the standard using the modified retrospective approach under which leases existing at, or entered into after January 1, 2019 were required to be recognized and measured. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting. The Company has elected the practical expedients upon transition that allow entities not to reassess lease identification, classification and initial direct costs for leases that existed prior to adoption. The most significant impact of the standard is the recognition of right-of-use (ROU) assets and operating lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We implemented internal controls and key system functionality to enable the preparation of financial information on adoption. We determine if an arrangement is a lease at inception. ROU assets are included in "All other assets" and operating lease liabilities are included in "All other current liabilities" and "All other liabilities" on our consolidated statement of financial position. Finance lease assets are included in "Property, plant and equipment," and finance lease liabilities are included in "Short-term debt," and "Long-term debt" on our consolidated statement of financial position. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the later of the lease commencement date or the effective date of adoption of ASC 842 on January 1, 2019, based on the present value of lease payments over the remaining lease term. Finance lease ROU assets and liabilities are recognized at commencement date. As most of our leases do not provide an implicit rate, we use our incremental collateralized borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Short-term leases under one year do not result in a ROU asset, but are recognized in the income statement only on a straight-line basis over the lease term. The Company has made an election to include within our operating lease liability future payments for both lease and non-lease components. See "Note 8. Leases" for additional information. The adoption of this standard resulted in the recording of ROU assets and operating lease liabilities of $844 million as of January 1, 2019 on our consolidated statements of financial position with an immaterial impact on our consolidated statements of equity and no related impact on our consolidated statements of income (loss). Short-term leases have not been recorded on the consolidated statements of financial position. Our accounting for finance leases remained substantially unchanged. Derivatives and Hedging On January 1, 2019, we adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Since there was no impact from the new guidance to our consolidated financial statements, no transition adjustments were recorded. ASU 2017-12 simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. In accordance with the ASU, both the effective and ineffective portion of a cash flow hedge are initially reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. The ASU requires certain changes to the presentation of hedge accounting in the financial statements and some new or modified disclosures. See "Note 13. Financial Instruments" for additional information. NEW ACCOUNTING STANDARDS TO BE ADOPTED In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses. The ASU introduces a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current U.S. GAAP, which generally require that a loss be incurred before it is recognized. The new standard will also apply to receivables arising from revenue transactions such as contract assets and accounts receivables and is effective for fiscal years beginning after December 15, 2019. We continue to evaluate the effect of the standard on our consolidated financial statements. All other new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.
Fair Value Measurements	The most significant unobservable input used in the valuation of our Level 3 instruments is the discount rate. Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value of our investment securities.

Revenue Related to Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30,				Six Months Ended June 30,
Total Revenue	2019		2018		2019		2018
U.S.	$	1,616	$	1,560	$	3,121	$	3,043
Non-U.S.	4,378		3,988		8,487		7,904
Total	$	5,994	$	5,548	$	11,608	$	10,947

Current Receivables (Tables)

6 Months Ended

Jun. 30, 2019

Current receivables are comprised of the following:



	June 30, 2019			December 31, 2018
Customer receivables	$	5,245		$	4,974
Related parties	742			746
Other	730			669
Total current receivables	6,717			6,389
Less: Allowance for doubtful accounts	(333		)	(327		)
Total current receivables, net	$	6,384		$	6,062

Inventories (Tables)

6 Months Ended

Jun. 30, 2019

Inventories, net of reserves

Inventories, net of reserves of $416 million and $430 million as of June 30, 2019 and December 31, 2018, respectively, are comprised of the following:



	June 30, 2019		December 31, 2018
Finished goods	$	2,751	$	2,575
Work in process and raw material	2,056		2,045
Total inventories, net	$	4,807	$	4,620

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2019

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, 2017, gross	$	15,565		$	3,901		$	1,906		$	2,036		$	23,408
Accumulated impairment at December 31, 2017	(2,633		)	(867		)	—			(254		)	(3,754		)
Balance at December 31, 2017	12,932			3,034			1,906			1,782			19,654
Purchase accounting adjustments⁽¹⁾	(157		)	293			394			429			959
Currency exchange and others	(26		)	(17		)	(114		)	(33		)	(190		)
Balance at December 31, 2018	12,749			3,310			2,186			2,178			20,423
Currency exchange and others	—			—			(13		)	1			(12		)
Balance at June 30, 2019	$	12,749		$	3,310		$	2,173		$	2,179		$	20,411

⁽¹⁾

Schedule of finite-lived intangible assets

Intangible assets are comprised of the following:



	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships	$	3,022	$	(985	)	$	2,037	$	3,085	$	(944	)	$	2,141
Technology	1,069		(572		)	497		1,107		(526		)	581
Trade names and trademarks	691		(240		)	451		698		(229		)	469
Capitalized software	1,162		(879		)	283		1,118		(824		)	294
Other	1		(1		)	—		14		(2		)	12
Finite-lived intangible assets	5,945		(2,677		)	3,268		6,022		(2,525		)	3,497
Indefinite-lived intangible assets ⁽¹⁾	2,242		—			2,242		2,222		—			2,222
Total intangible assets	$	8,187	$	(2,677	)	$	5,510	$	8,244	$	(2,525	)	$	5,719

⁽¹⁾

Indefinite-lived intangible assets are principally comprised of the Baker Hughes trade name.

Schedule of indefinite-lived intangible assets

Intangible assets are comprised of the following:



	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships	$	3,022	$	(985	)	$	2,037	$	3,085	$	(944	)	$	2,141
Technology	1,069		(572		)	497		1,107		(526		)	581
Trade names and trademarks	691		(240		)	451		698		(229		)	469
Capitalized software	1,162		(879		)	283		1,118		(824		)	294
Other	1		(1		)	—		14		(2		)	12
Finite-lived intangible assets	5,945		(2,677		)	3,268		6,022		(2,525		)	3,497
Indefinite-lived intangible assets ⁽¹⁾	2,242		—			2,242		2,222		—			2,222
Total intangible assets	$	8,187	$	(2,677	)	$	5,510	$	8,244	$	(2,525	)	$	5,719

⁽¹⁾

Indefinite-lived intangible assets are principally comprised of the Baker Hughes trade name.

Schedule of finite-lived intangible assets, future amortization expense

Estimated amortization expense for the remainder of 2019 and each of the subsequent five fiscal years is expected to be as follows:



Year	Estimated Amortization Expense
Remainder of 2019	$	169
2020	323
2021	280
2022	240
2023	226
2024	221

Contract and Other Deferred Assets (Tables)

6 Months Ended

Jun. 30, 2019

Revenue Recognition and Deferred Revenue [Abstract]

Contract assets

Contract assets are comprised of the following:



	June 30, 2019		December 31, 2018
Long-term product service agreements	$	608	$	609
Long-term equipment contracts ⁽¹⁾	1,069		1,085
Contract assets (total revenue in excess of billings) ⁽²⁾	1,677		1,694
Deferred inventory costs ⁽³⁾	129		179
Non-recurring engineering costs	43		21
Contract and other deferred assets	$	1,849	$	1,894


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


⁽²⁾	Contract assets (total revenue in excess of billings) were $1,684 million as of January 1, 2018.

⁽³⁾

Deferred inventory costs were $360 million as of January 1, 2018, which represents cost deferral for shipped goods and other costs where the criteria for revenue recognition has not yet been met.

Contract liabilities are comprised of the following:



	June 30, 2019		December 31, 2018
Progress collections	$	2,088	$	1,600
Deferred income	126		165
Progress collections and deferred income (contract liabilities) ⁽¹⁾	$	2,214	$	1,765

⁽¹⁾

Progress collections and deferred income (contract liabilities) were $1,775 million at January 1, 2018.

Progress Collections and Deferred Income (Tables)

6 Months Ended

Jun. 30, 2019

Contract liabilities

Contract assets are comprised of the following:



	June 30, 2019		December 31, 2018
Long-term product service agreements	$	608	$	609
Long-term equipment contracts ⁽¹⁾	1,069		1,085
Contract assets (total revenue in excess of billings) ⁽²⁾	1,677		1,694
Deferred inventory costs ⁽³⁾	129		179
Non-recurring engineering costs	43		21
Contract and other deferred assets	$	1,849	$	1,894


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


⁽²⁾	Contract assets (total revenue in excess of billings) were $1,684 million as of January 1, 2018.

⁽³⁾

Deferred inventory costs were $360 million as of January 1, 2018, which represents cost deferral for shipped goods and other costs where the criteria for revenue recognition has not yet been met.

Contract liabilities are comprised of the following:



	June 30, 2019		December 31, 2018
Progress collections	$	2,088	$	1,600
Deferred income	126		165
Progress collections and deferred income (contract liabilities) ⁽¹⁾	$	2,214	$	1,765

⁽¹⁾

Progress collections and deferred income (contract liabilities) were $1,775 million at January 1, 2018.

Leases (Tables)

6 Months Ended

Jun. 30, 2019

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.



Operating Lease Expense	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Long-term fixed lease	$	60	$	108
Long-term variable lease	13		24
Short-term lease ⁽¹⁾	177		342
Total operating lease expense	$	250	$	474

⁽¹⁾

Includes leases with a term of one month or less

Maturities of lease liabilities, operating leases

As of June 30, 2019, maturities of our operating lease liabilities are as follows:



Year	Operating Leases
Remainder of 2019	$	112
2020	198
2021	144
2022	117
2023	82
Thereafter	379
Total lease payments	1,032
Less: imputed interest	201
Total	$	831

Schedule of liabilities

Amounts recognized in the condensed consolidated statement of financial position as of June 30, 2019:



	Operating Leases
All other current liabilities	$	190
All other liabilities	641
Total	$	831

Borrowings (Tables)

6 Months Ended

Jun. 30, 2019

Short-term and long-term borrowings

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



	June 30, 2019		December 31, 2018
Short-term borrowings
Short-term borrowings from GE	$	856	$	896
Other borrowings	36		46
Total short-term borrowings	892		942

Long-term borrowings
3.2% Senior Notes due August 2021	521		523
2.773% Senior Notes due December 2022	1,246		1,245
8.55% Debentures due June 2024	129		131
3.337% Senior Notes due December 2027	1,343		1,343
6.875% Notes due January 2029	291		294
5.125% Senior Notes due September 2040	1,304		1,306
4.08% Senior Notes due December 2047	1,337		1,336
Other long-term borrowings	85		107
Total long-term borrowings	6,256		6,285
Total borrowings	$	7,148	$	7,227

Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of net periodic cost (benefit)

The components of net periodic cost (benefit) of plans sponsored by us are as follows for the three and six months ended June 30:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost	$	6		$	5		$	10		$	10
Interest cost	22			18			41			36
Expected return on plan assets	(30		)	(30		)	(55		)	(60		)
Amortization of net actuarial loss	5			2			9			4
Curtailment loss	7			—			7			—
Net periodic cost (benefit)	$	10		$	(5	)	$	12		$	(10	)

Members' Equity (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of changes in number of shares outstanding

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



	Common Units Held by BHGE	Common Units Held by GE
Balance at December 31, 2018	513,399	521,543
Issue of units to BHGE under equity incentive plan	2,224	—
Balance at June 30, 2019	515,624	521,543

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, 2018	$	—	$	(2,326	)	$	(3	)	$	(133	)	$	(2,462	)
Other comprehensive income (loss) before reclassifications	1		27			1			(27		)	2
Amounts reclassified from accumulated other comprehensive income (loss)	—		—			—			14			14
Deferred taxes	—		—			—			—			—
Other comprehensive income (loss)	1		27			1			(13		)	16
Less: Other comprehensive loss attributable to noncontrolling interests	—		(1		)	—			—			(1		)
Other adjustments	—		—			—			(119		)	(119		)
Balance at June 30, 2019	$	1	$	(2,298	)	$	(2	)	$	(265	)	$	(2,564	)



	Investment Securities			Foreign Currency Translation Adjustments			Cash Flow Hedges		Benefit Plans			Accumulated Other Comprehensive Loss
Balance at December 31, 2017	$	1		$	(1,824	)	$	2	$	(60	)	$	(1,881	)
Other comprehensive income (loss) before reclassifications	(1		)	(224		)	1		4			(220		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—			—		—			—
Deferred taxes	(1		)	—			—		(2		)	(3		)
Other comprehensive income (loss)	(2		)	(224		)	1		2			(223		)
Less: Other comprehensive loss attributable to noncontrolling interests	—			(1		)	—		—			(1		)
Balance at June 30, 2018	$	(1	)	$	(2,047	)	$	3	$	(58	)	$	(2,103	)

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

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.



	June 30, 2019										December 31, 2018
	Level 1		Level 2			Level 3		Net Balance			Level 1		Level 2			Level 3		Net Balance
Assets
Derivatives	$	—	$	47		$	—	$	47		$	—	$	74		$	—	$	74
Investment securities	40		—			265		305			39		—			288		327
Total assets	40		47			265		352			39		74			288		401

Liabilities
Derivatives	—		(50		)	—		(50		)	—		(82		)	—		(82		)
Total liabilities	$	—	$	(50	)	$	—	$	(50	)	$	—	$	(82	)	$	—	$	(82	)

Reconciliation of recurring Level 3 fair value measurements

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



	2019			2018
Balance at January 1	$	288		$	304
Purchases	7			36
Proceeds at maturity	(31		)	(30		)
Unrealized gains recognized in AOCI	1			—
Balance at June 30	$	265		$	310

Schedule of investment securities classified as available for sale



	June 30, 2019								December 31, 2018
	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⁾	$	264	$	1	$	—	$	265	$	288	$	—	$	—	$	288
Equity securities ⁽²⁾	40		—		—		40		39		—		—		39
Total	$	304	$	1	$	—	$	305	$	327	$	—	$	—	$	327


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

⁽²⁾

Gains (losses) recorded to earnings related to these securities were $(9) million and $11 million for the three months ended June 30, 2019 and 2018, respectively, and $1 million and $(3) million for the six months ended June 30, 2019 and 2018, respectively.

Schedule of derivatives

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



	June 30, 2019					December 31, 2018
	Assets		(Liabilities)			Assets		(Liabilities)
Derivatives accounted for as hedges
Currency exchange contracts	$	—	$	(4	)	$	—	$	(7	)

Derivatives not accounted for as hedges
Currency exchange contracts	45		(46		)	74		(75		)
Other derivatives	2		—			—		—
Total derivatives	$	47	$	(50	)	$	74	$	(82	)

Schedule of hedging instrument, currency exchange contract

The table below summarizes this activity by hedging instrument.



	Three Months Ended June 30,										Six Months Ended June 30,
	Gain (Loss) Recognized in AOCI						Gain (Loss) Reclassified from AOCI to Earnings				Gain (Loss) Recognized in AOCI				Gain (Loss) Reclassified from AOCI to Earnings
	2019			2018			2019		2018		2019		2018		2019		2018
Currency exchange contracts	$	(4	)	$	(7	)	$	—	$	—	$	1	$	1	$	—	$	—

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

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



Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	Three Months Ended June 30,						Six Months Ended June 30,
Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	2019			2018			2019			2018
Currency exchange contracts ⁽¹⁾	Cost of goods sold	$	(8	)	$	(37	)	$	(5	)	$	4
Currency exchange contracts	Selling, general and administrative expenses	(3		)	26			(4		)	2
Commodity derivatives	Cost of goods sold	(2		)	1			—			1
Other derivatives	Other non operating income (loss), net	3			—			2			—
Total ⁽²⁾		$	(10	)	$	(10	)	$	(7	)	$	7


⁽¹⁾	Excludes gains on embedded derivatives of $2 million and $30 million for the three months ended June 30, 2019 and 2018, respectively, and losses of nil and $10 million during the six months ended June 30, 2019 and 2018, 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 change in fair value of the economically hedged items in the current and future periods.

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30,				Six Months Ended June 30,
Segments revenue	2019		2018		2019		2018
Oilfield Services	$	3,263	$	2,884	$	6,249	$	5,562
Oilfield Equipment	693		617		1,428		1,281
Turbomachinery & Process Solutions	1,405		1,385		2,707		2,845
Digital Solutions	632		662		1,224		1,260
Total	$	5,994	$	5,548	$	11,608	$	10,947



	Three Months Ended June 30,						Six Months Ended June 30,
Segment income (loss) before income taxes	2019			2018			2019			2018
Oilfield Services	$	233		$	189		$	409		$	330
Oilfield Equipment	14			(12		)	26			(18		)
Turbomachinery & Process Solutions	135			113			253			232
Digital Solutions	84			96			152			169
Total segment	466			387			839			714
Corporate	(105		)	(98		)	(205		)	(196		)
Inventory impairments ⁽¹⁾	—			(15		)	—			(76		)
Restructuring, impairment and other	(50		)	(146		)	(112		)	(308		)
Separation and merger related costs	(40		)	(50		)	(74		)	(96		)
Other non operating income (loss), net	(131		)	43			(110		)	45
Interest expense, net	(56		)	(63		)	(115		)	(109		)
Total	$	84		$	58		$	222		$	(27	)

⁽¹⁾

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

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of product warranties

An analysis of changes in the liability for product warranties are as follows:



	2019			2018
Balance at January 1	$	236		$	164
Provisions	5			18
Expenditures	(10		)	(15		)
Other ⁽¹⁾	(7		)	119
Balance at June 30	$	224		$	286


⁽¹⁾	2018 amount is primarily related to the acquisition of Baker Hughes.

Restructuring, Impairment and Other (Tables)

6 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

Impairment and restructuring charges

The amount of costs not included in the reported segment results is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Oilfield Services	$	19	$	40	$	36	$	99
Oilfield Equipment	—		6		18		18
Turbomachinery & Process Solutions	10		11		29		39
Digital Solutions	9		7		12		16
Corporate	7		4		12		21
Total	$	45	$	68	$	107	$	193



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Property, plant & equipment, net	$	7	$	18	$	16	$	37
Employee-related termination expenses	34		16		78		99
Asset relocation costs	2		8		4		13
Environmental remediation costs	—		—		—		3
Contract termination fees	2		21		9		28
Other incremental costs	—		5		—		13
Total	$	45	$	68	$	107	$	193

Assets and Liabilities of Business Held for Sale (Tables)

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Schedule of assets and liabilities of business held for sale



Assets and liabilities of business held for sale	June 30, 2019
Assets
Current receivables	$	29
Inventories	94
Property, plant and equipment	21
Goodwill	14
Other intangible assets	66
Valuation allowance on disposal group classified as held for sale ⁽¹⁾	(136		)
Other assets	8
Total assets of business held for sale	96
Liabilities
Accounts payable	(11		)
All other liabilities	(16		)
Total liabilities of business held for sale	(27		)
Total net assets of business held for sale	$	69

⁽¹⁾

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Basis of Presentation and Summary of Significant Accounting Policies (Details) employee in Thousands, $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($) employee country	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Countries in which our business is conducted (more than) \| country	120
Number of our employees \| employee	67
Restricted cash and cash equivalents held in bank accounts	$ 1,267	$ 1,208
General Electric Company
Business Acquisition [Line Items]
Restricted cash and cash equivalents held in bank accounts	429	461
Related party amount, due to related party \| GE
Business Acquisition [Line Items]
Cash	$ 739	$ 747
BHGE LLC \| BHGE
Business Acquisition [Line Items]
Approximate interest	49.70%
BHGE LLC \| General Electric Company
Business Acquisition [Line Items]
Approximate interest	50.30%

Basis of Presentation and Summary of Significant Accounting Policies - New Accounting Policy (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, liability	$ 831
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use asset		$ 844
Operating lease, liability		$ 844

Revenue Related to Contracts with Customers - Disaggregated Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 5,994	$ 5,548	$ 11,608	$ 10,947
U.S.
Disaggregation of Revenue [Line Items]
Revenue	1,616	1,560	3,121	3,043
Non-U.S.
Disaggregation of Revenue [Line Items]
Revenue	$ 4,378	$ 3,988	$ 8,487	$ 7,904

Revenue Related to Contracts with Customers - Performance Obligation - Revenue Recognized (Details) - USD ($) $ in Billions	Jun. 30, 2019	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Performance obligation expected to be satisfied	$ 20.6	$ 20.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	47.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	16.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	26.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2034-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	11.00%

Revenue Related to Contracts with Customers - Performance Obligation - Performance Period (Details)	Jun. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied, expected timing	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied, expected timing	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied, expected timing	10 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2034-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied, expected timing

Current Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	$ 6,717	$ 6,389
Less: Allowance for doubtful accounts	(333)	(327)
Total current receivables, net	6,384	6,062
Customer receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	5,245	4,974
Related parties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	742	746
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	$ 730	$ 669

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Inventory, Net [Abstract]
Inventory valuation reserves	$ 416	$ 430
Finished goods	2,751	2,575
Work in process and raw material	2,056	2,045
Total inventories, net	$ 4,807	$ 4,620

Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Line Items]
Balance at December 31, 2017, gross				$ 23,408
Accumulated impairment				(3,754)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		$ 20,423	$ 19,654
Purchase accounting adjustments			959
Currency exchange and others		(12)	(190)
Goodwill, net, ending balance		20,411	20,423
GE Transaction Agreement
Goodwill [Roll Forward]
Goodwill, acquisition	$ 13,669
Oilfield Services
Goodwill [Line Items]
Balance at December 31, 2017, gross				15,565
Accumulated impairment				(2,633)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		12,749	12,932
Purchase accounting adjustments			(157)
Currency exchange and others		0	(26)
Goodwill, net, ending balance		12,749	12,749
Oilfield Services \| GE Transaction Agreement
Goodwill [Roll Forward]
Goodwill, acquisition	$ 12,604
Oilfield Equipment
Goodwill [Line Items]
Balance at December 31, 2017, gross				3,901
Accumulated impairment				(867)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		3,310	3,034
Purchase accounting adjustments			293
Currency exchange and others		0	(17)
Goodwill, net, ending balance		3,310	3,310
Turbomachinery & Process Solutions
Goodwill [Line Items]
Balance at December 31, 2017, gross				1,906
Accumulated impairment				0
Goodwill [Roll Forward]
Goodwill, net, beginning balance		2,186	1,906
Purchase accounting adjustments			394
Currency exchange and others		(13)	(114)
Goodwill, net, ending balance		2,173	2,186
Digital Solutions
Goodwill [Line Items]
Balance at December 31, 2017, gross				2,036
Accumulated impairment				$ (254)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		2,178	1,782
Purchase accounting adjustments			429
Currency exchange and others		1	(33)
Goodwill, net, ending balance		$ 2,179	$ 2,178

Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) segment	Jun. 30, 2018 USD ($)	Jul. 01, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reportable segments \| segment			4
Finite-Lived Intangible Assets [Line Items]
Amortization expense for intangible assets included in net income \| $	$ 97	$ 101	$ 193	$ 240
Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives			1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives			30 years
Oilfield Services (OFS) and Oilfield Equipment (OFE) \| Minimum
Finite-Lived Intangible Assets [Line Items]
Reporting unit, percentage of fair value in excess of carrying value					15.00%
Oilfield Services (OFS) and Oilfield Equipment (OFE) \| Maximum
Finite-Lived Intangible Assets [Line Items]
Reporting unit, percentage of fair value in excess of carrying value					20.00%

Goodwill and Other Intangible Assets - Schedule of Intangible Assets by Type (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	$ 5,945	$ 6,022
Finite-lived intangible assets, accumulated amortization	(2,677)	(2,525)
Finite-lived intangible assets, net	3,268	3,497
Indefinite-lived intangible assets	2,242	2,222
Intangible assets, gross	8,187	8,244
Other intangible assets, net	5,510	5,719
Trade names and trademarks
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	3,022	3,085
Finite-lived intangible assets, accumulated amortization	(985)	(944)
Finite-lived intangible assets, net	2,037	2,141
Technology
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	1,069	1,107
Finite-lived intangible assets, accumulated amortization	(572)	(526)
Finite-lived intangible assets, net	497	581
Trade names and trademarks
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	691	698
Finite-lived intangible assets, accumulated amortization	(240)	(229)
Finite-lived intangible assets, net	451	469
Capitalized software
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	1,162	1,118
Finite-lived intangible assets, accumulated amortization	(879)	(824)
Finite-lived intangible assets, net	283	294
Other
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	1	14
Finite-lived intangible assets, accumulated amortization	(1)	(2)
Finite-lived intangible assets, net	$ 0	$ 12

Goodwill and Other Intangible Assets - Schedule of Future Estimated Amortization Expense (Details) $ in Millions	Jun. 30, 2019 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2019	$ 169
2020	323
2021	280
2022	240
2023	226
2024	$ 221

Contract and Other Deferred Assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Jan. 01, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (revenue in excess of billings)	$ 1,677		$ 1,677		$ 1,694	$ 1,684
Deferred inventory costs	129		129		179	$ 360
Non-recurring engineering costs	43		43		21
Contract and other deferred assets	1,849		1,849		1,894
Revenue recognized from performance obligations satisfied in previous periods	14	$ 12	21	$ 22
Long-term product service agreements
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (revenue in excess of billings)	608		608		609
Long-term equipment contracts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (revenue in excess of billings)	$ 1,069		$ 1,069		$ 1,085

Progress Collections and Deferred Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Jan. 01, 2018
Disaggregation of Revenue [Line Items]
Progress collections and deferred income (contract liabilities)	$ 2,214		$ 2,214		$ 1,765	$ 1,775
Revenue recognized, included in contract liability	295	$ 404	848	$ 1,006
Progress collections
Disaggregation of Revenue [Line Items]
Progress collections and deferred income (contract liabilities)	2,088		2,088		1,600
Deferred income
Disaggregation of Revenue [Line Items]
Progress collections and deferred income (contract liabilities)	$ 126		$ 126		$ 165

Leases - Operating Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019
Operating Lease Expense
Long-term fixed lease	$ 60		$ 108
Long-term variable lease	13		24
Short-term lease	177		342
Total operating lease expense	$ 250	$ 188	$ 474

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Leases [Abstract]
Operating lease expense	$ 250	$ 188	$ 474
Operating lease expense				$ 375
Lessee, Lease, Description [Line Items]
Operating lease, weighted-average remaining lease term	9 years		9 years
Operating lease, weighted-average discount rate	4.40%		4.40%
All other assets
Lessee, Lease, Description [Line Items]
Operating lease assets	$ 821		$ 821

Leases - Operating Lease Liabilities (Details) $ in Millions	Jun. 30, 2019 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remainder of 2019	$ 112
2020	198
2021	144
2022	117
2023	82
Thereafter	379
Total lease payments	1,032
Less: imputed interest	201
Total	$ 831

Leases - Lease Liabilities Statement of Financial Position (Details) $ in Millions	Jun. 30, 2019 USD ($)
Operating Leases
All other current liabilities	$ 190
All other liabilities	641
Total	$ 831

Borrowings - Short-term and Long-term Borrowings (Details) - USD ($)
$ in Millions

Jun. 30, 2019

Dec. 31, 2018

^[1]

$ 892

$ 942

Other long-term borrowings

107

Total long-term borrowings

6,256

6,285

Total borrowings

$ 7,148

7,227

3.2% Senior Notes due August 2021

2.773% Senior Notes due December 2022

3.20%

8.55% Debentures due June 2024

2.773%

3.337% Senior Notes due December 2027

8.55%

6.875% Notes due January 2029

3.337%

5.125% Senior Notes due September 2040

6.875%

4.08% Senior Notes due December 2047

5.125%

Senior Notes | 3.2% Senior Notes due August 2021

4.08%

Senior Notes | 2.773% Senior Notes due December 2022

$ 521

523

Senior Notes | 3.337% Senior Notes due December 2027

1,246

1,245

Senior Notes | 6.875% Notes due January 2029

1,343

Senior Notes | 5.125% Senior Notes due September 2040

291

294

Senior Notes | 4.08% Senior Notes due December 2047

1,304

1,306

Debentures | 8.55% Debentures due June 2024

1,337

1,336

Short-term borrowings from GE

129

131

856

896

Other borrowings

Cash and cash equivalents

$ 36

$ 46

[1]

Borrowings - Narrative (Details) - USD ($)	Jul. 03, 2017	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Estimated fair value of debt		$ 7,132,000,000	$ 6,629,000,000
BHGE LLC \| 2017 Credit Agreement \| Commercial paper
Line of Credit Facility [Line Items]
Debt instrument, term	397 days
BHGE LLC \| Revolving credit facility \| 2017 Credit Agreement
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 3,000,000,000
Long-term borrowings		0	0
BHGE LLC \| Revolving credit facility \| 2017 Credit Agreement \| Commercial paper
Line of Credit Facility [Line Items]
Short-term borrowings		$ 0	$ 0
BHGE LLC \| Baker Hughes Co-Obligor, Inc.
Line of Credit Facility [Line Items]
Ownership percentage	100.00%
BHGE LLC \| Baker Hughes Co-Obligor, Inc. \| Senior Notes
Line of Credit Facility [Line Items]
Debt instrument, face				$ 3,950,000,000

Employee Benefit Plans - Narrative (Details)	3 Months Ended		6 Months Ended
Employee Benefit Plans - Narrative (Details)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) plan	Jun. 30, 2018 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Multiemployer plan, contributions by employer \| $	$ 1,000,000	$ 43,000,000	$ 3,000,000	$ 80,000,000
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension assets or obligations, threshold, per plan \| $	$ 20,000,000		$ 20,000,000
Pension Benefits \| U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of plans \| plan			4
Pension Benefits \| Non-U.S. Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of plans \| plan			6

Employee Benefit Plans - Net Period Cost (Details) - Pension Benefits - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Components of net periodic benefit cost [Abstract]
Service cost	$ 6	$ 5	$ 10	$ 10
Interest cost	22	18	41	36
Expected return on plan assets	(30)	(30)	(55)	(60)
Amortization of net actuarial loss	5	2	9	4
Curtailment loss	7	0	7	0
Net periodic cost (benefit)	$ 10	$ (5)	$ 12	$ (10)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 95	$ 62	$ 162	$ 100
U.S. income tax rate	21.00%		21.00%
Effective tax rate	113.00%		73.00%
Loss with no tax benefit, valuation allowance	$ 69		$ 90

Members' Equity - Narrative (Details) shares in Thousands	6 Months Ended
Members' Equity - Narrative (Details) shares in Thousands	Jun. 30, 2019 shares
BHGE LLC \| Common Unitholders
Class of Stock [Line Items]
Issue of units to BHGE under equity incentive plan (in units)	2,224

Members' Equity - Changes in Number of Shares Outstanding (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2019 shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in units)	1,035,000
Beginning balance (in units)	1,037,000
Common Unitholders \| BHGE LLC
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in units)	513,399
Issue of units to BHGE under equity incentive plan (in units)	2,224
Beginning balance (in units)	515,624
Common Unitholders \| General Electric Company
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in units)	521,543
Issue of units to BHGE under equity incentive plan (in units)	0
Beginning balance (in units)	521,543

Members' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ 34,966	$ 37,969	$ 34,876	$ 38,396
Other comprehensive income (loss) before reclassifications			2	(220)
Amounts reclassified from accumulated other comprehensive income (loss)			14	0
Deferred taxes			0	(3)
Other comprehensive income (loss)	(156)	(539)	16	(223)
Less: Other comprehensive loss attributable to noncontrolling interests	(1)	(1)	(1)	(1)
Other adjustments			(119)
Ending Balance	34,664	36,694	34,664	36,694
Investment Securities, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance			0	1
Ending Balance	1	(1)	1	(1)
Investment Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income (loss) before reclassifications			1	(1)
Amounts reclassified from accumulated other comprehensive income (loss)			0	0
Deferred taxes			0	(1)
Other comprehensive income (loss)			1	(2)
Investment Securities, Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Less: Other comprehensive loss attributable to noncontrolling interests			0	0
Other adjustments			0
Foreign Currency Translation Adjustment, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance			(2,326)	(1,824)
Ending Balance	(2,298)	(2,047)	(2,298)	(2,047)
Foreign Currency Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income (loss) before reclassifications			27	(224)
Amounts reclassified from accumulated other comprehensive income (loss)			0	0
Deferred taxes			0	0
Other comprehensive income (loss)			27	(224)
Foreign Currency Translation Adjustment, Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Less: Other comprehensive loss attributable to noncontrolling interests			(1)	(1)
Other adjustments			0
Cash Flow Hedges, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance			(3)	2
Ending Balance		3		3
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income (loss) before reclassifications			1	1
Amounts reclassified from accumulated other comprehensive income (loss)			0	0
Deferred taxes			0	0
Other comprehensive income (loss)			1	1
Cash Flow Hedges, Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Less: Other comprehensive loss attributable to noncontrolling interests			0	0
Other adjustments			0
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Ending Balance	(2)		(2)
Benefit Plans, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance			(133)	(60)
Ending Balance	(265)	(58)	(265)	(58)
Benefit Plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive income (loss) before reclassifications			(27)	4
Amounts reclassified from accumulated other comprehensive income (loss)			14	0
Deferred taxes			0	(2)
Other comprehensive income (loss)			(13)	2
Benefit Plans, Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Less: Other comprehensive loss attributable to noncontrolling interests			0	0
Other adjustments			(119)
Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(2,290)	(1,565)	(2,462)	(1,881)
Other comprehensive income (loss)	(155)	(538)	17	(222)
Ending Balance	$ (2,564)	$ (2,103)	$ (2,564)	$ (2,103)

Financial Instruments - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Assets
Investment securities	$ 305	$ 327
Total assets	47	74
Liabilities
Total liabilities	(50)	(82)
Fair value, measurements, recurring
Assets
Derivatives	47	74
Investment securities	305	327
Total assets	352	401
Liabilities
Derivatives	(50)	(82)
Total liabilities	(50)	(82)
Fair value, measurements, recurring \| Level 1
Assets
Derivatives	0	0
Investment securities	40	39
Total assets	40	39
Liabilities
Derivatives	0	0
Total liabilities	0	0
Fair value, measurements, recurring \| Level 2
Assets
Derivatives	47	74
Investment securities	0	0
Total assets	47	74
Liabilities
Derivatives	(50)	(82)
Total liabilities	(50)	(82)
Fair value, measurements, recurring \| Level 3
Assets
Derivatives	0	0
Investment securities	265	288
Total assets	265	288
Liabilities
Derivatives	0	0
Total liabilities	$ 0	$ 0

Financial Instruments - Reconciliation of Recurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 288	$ 304
Purchases	7	36
Proceeds at maturity	(31)	(30)
Unrealized gains recognized in AOCI	1	0
Ending balance	$ 265	$ 310

Financial Instruments - Narrative (Details) - USD ($)	6 Months Ended	12 Months Ended
Financial Instruments - Narrative (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	$ 5,400,000,000	$ 6,400,000,000
Derivative, notional amount, net	2,200,000,000	2,800,000,000
Derivative, transfer to earnings	2,000,000
All other current assets
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	42,000,000	67,000,000
All other assets
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	5,000,000	7,000,000
All other current liabilities
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liability	47,000,000	79,000,000
All other liabilities
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liability	$ 3,000,000	$ 3,000,000
Cash flow hedging
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, term	1 year	2 years
Level 3
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain (loss) on Level 3 instruments held at reporting date	$ 0

Financial Instruments - Investment Securities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Investment securities, gross unrealized gains	$ 1		$ 1		$ 0
Investment securities, gross unrealized losses	0		0		0
Equity securities, amortized cost	40		40		39
Equity securities, estimated fair value	40		40		39
Total, amortized cost	304		304		327
Total, estimated fair value	305		305		327
Net unrealized gain (loss)	(9)	$ 11	1	$ (3)
Non-U.S. debt securities
Debt Securities, Available-for-sale [Line Items]
Investment securities, amortized cost	264		264		288
Investment securities, gross unrealized gains	1		1		0
Investment securities, gross unrealized losses	0		0		0
Investment securities	$ 265		$ 265		$ 288
Derivative, term			4 years

Financial Instruments - Derivatives and Hedging (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Assets, fair value	$ 47	$ 74
Liabilities, fair value	(50)	(82)
Designated as hedging instrument \| Currency exchange contracts
Derivatives, Fair Value [Line Items]
Assets, fair value	0	0
Liabilities, fair value	(4)	(7)
Not designated as hedging instrument \| Currency exchange contracts
Derivatives, Fair Value [Line Items]
Assets, fair value	45	74
Liabilities, fair value	(46)	(75)
Not designated as hedging instrument \| Other derivatives
Derivatives, Fair Value [Line Items]
Assets, fair value	2	0
Liabilities, fair value	$ 0	$ 0

Financial Instruments - Cash Flow Hedges (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI	$ (3)		$ 1
Gain (Loss) Recognized in AOCI		$ (6)		$ 1
Cash flow hedging \| Currency exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI	(4)		1
Gain (Loss) Recognized in AOCI		(7)		1
Gain (Loss) Reclassified from AOCI to Earnings	$ 0		$ 0
Gain (Loss) Reclassified from AOCI to Earnings		$ 0		$ 0

Financial Instruments - Economic Hedges (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Embedded derivative, gain	$ 2	$ 30
Embedded derivatives, loss			$ 0	$ (10)
Not designated as hedging instrument, economic hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	(10)	(10)	(7)	7
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	(8)	(37)	(5)	4
Not designated as hedging instrument, economic hedge \| Currency exchange contracts \| Selling, general and administrative expenses
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gains (losses) from derivatives	(3)	26	(4)	2
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	(2)	1	0	1
Not designated as hedging instrument, economic hedge \| Other derivatives \| Other non operating income (loss), net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gains (losses) from derivatives	$ 3	$ 0	$ 2	$ 0

Segment Information - Narrative (Details)	6 Months Ended
Segment Information - Narrative (Details)	Jun. 30, 2019 segment
Segment Reporting [Abstract]
Number of operating segments	4

Segment Information - Operating Profit (Loss) by Segment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Summarized financial information [Abstract]
Revenue	$ 5,994	$ 5,548	$ 11,608	$ 10,947
Income (loss) before income taxes and equity in loss of affiliate	84	58	222	(27)
Restructuring, impairment and other	(50)	(146)	(112)	(308)
Separation and merger related costs	(40)	(50)	(74)	(96)
Other non operating income (loss), net	(131)	43	(110)	45
Interest expense, net	(56)	(63)	(115)	(109)
Operating segments
Summarized financial information [Abstract]
Income (loss) before income taxes and equity in loss of affiliate	466	387	839	714
Corporate
Summarized financial information [Abstract]
Income (loss) before income taxes and equity in loss of affiliate	(105)	(98)	(205)	(196)
Segment reconciling items
Summarized financial information [Abstract]
Inventory impairments	0	(15)	0	(76)
Oilfield Services
Summarized financial information [Abstract]
Revenue	3,263	2,884	6,249	5,562
Oilfield Services \| Operating segments
Summarized financial information [Abstract]
Income (loss) before income taxes and equity in loss of affiliate	233	189	409	330
Oilfield Equipment
Summarized financial information [Abstract]
Revenue	693	617	1,428	1,281
Oilfield Equipment \| Operating segments
Summarized financial information [Abstract]
Income (loss) before income taxes and equity in loss of affiliate	14	(12)	26	(18)
Turbomachinery & Process Solutions
Summarized financial information [Abstract]
Revenue	1,405	1,385	2,707	2,845
Turbomachinery & Process Solutions \| Operating segments
Summarized financial information [Abstract]
Income (loss) before income taxes and equity in loss of affiliate	135	113	253	232
Digital Solutions
Summarized financial information [Abstract]
Revenue	632	662	1,224	1,260
Digital Solutions \| Operating segments
Summarized financial information [Abstract]
Income (loss) before income taxes and equity in loss of affiliate	$ 84	$ 96	$ 152	$ 169

Related Party Transactions (Details) $ in Millions			3 Months Ended		6 Months Ended
Related Party Transactions (Details) $ in Millions	Jan. 01, 2019 USD ($)	Jul. 03, 2017 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) nomination	Jun. 30, 2018 USD ($)	May 01, 2019 USD ($)	Dec. 31, 2018 USD ($)
Related Party Transaction [Line Items]
Total current receivables, gross			$ 6,717.0		$ 6,717.0			$ 6,389.0
Accounts payable, GE and its affiliates
Related Party Transaction [Line Items]
Accounts payable, related party			498.0		498.0			538.0
GE Capital accounts payable program
Related Party Transaction [Line Items]
Accounts payable, related party			454.0		454.0			471.0
Related parties
Related Party Transaction [Line Items]
Total current receivables, gross			$ 742.0		742.0			746.0
JV aero-derivative gas turbine products and services \| Joint venture, GE aero-derivative gas turbine products and services
Related Party Transaction [Line Items]
Related party transaction					$ 60.0
Joint venture ownership percentage			50.00%		50.00%
Voting power threshold			20.00%
Board of directors nomination, upon triggering event \| nomination					1
GE \| Corporate overhead allocation
Related Party Transaction [Line Items]
Selling, general and administrative expenses, agreement	$ 27.5	$ 55.0
Selling, general and administrative expenses, agreement, service increase (decrease)	(50.00%)
Related party transaction, term	90 days
GE \| Intercompany Services Agreement
Related Party Transaction [Line Items]
Related party transaction, term			90 days
Related party transaction			$ 7.0	$ 14.0	$ 14.0	$ 28.0
GE \| Sales of products and services, GE and its affiliates
Related Party Transaction [Line Items]
Revenue from related parties			108.0	84.0	189.0	184.0
GE \| Purchases, GE and its affiliates
Related Party Transaction [Line Items]
Related party purchases			428.0	$ 523.0	$ 879.0	$ 926.0
GE \| Industrial Steam Turbine (IST) sale agreement with GE \| BHGE LLC
Related Party Transaction [Line Items]
Due to Affiliate							$ 13.0
GE \| Long-term supply arrangement, heavy-duty gas turbine units \| BHGE LLC
Related Party Transaction [Line Items]
Related party transaction, term					5 years
GE \| Long-term supply arrangement, associated services \| BHGE LLC
Related Party Transaction [Line Items]
Related party transaction, term					20 years
GE \| Operations and pricing levels, control upgrade services
Related Party Transaction [Line Items]
Related party transaction, term					4 years
GE \| Related party amount, due to related party
Related Party Transaction [Line Items]
Assets held on behalf of GE			856.0		$ 856.0			896.0
Cash			739.0		739.0			747.0
GE \| Angola Bonds \| Related party amount, due to related party
Related Party Transaction [Line Items]
Investment securities			117.0		117.0			149.0
GE \| Related parties
Related Party Transaction [Line Items]
Total current receivables, gross			668.0		668.0			653.0
BHGE \| Related parties
Related Party Transaction [Line Items]
Total current receivables, gross			$ 74.0		$ 74.0			$ 93.0

Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions					6 Months Ended
	Mar. 18, 2019 USD ($)	Mar. 11, 2019 EUR (€)	Jul. 31, 2018 USD ($)	Aug. 03, 2016 EUR (€)	Jun. 30, 2019 EUR (€) subsidiary company	Jun. 30, 2019 USD ($)
Loss Contingencies [Line Items]
Off-balance sheet arrangements						$ 3,800
Equipment failure \| Pending litigation \| Natural Gas Storage System in Northern Germany
Loss Contingencies [Line Items]
Value of alleged damages sought \| €		€ 142		€ 202
Marginal rate on annual prime rate (percent)		5.00%		5.00%
Breach of contract \| Pending litigation \| International Engineering & Construction S.A. (IEC)
Loss Contingencies [Line Items]
Value of alleged damages sought			$ 591
Damage from fire \| Pending litigation \| INOES and Naphtachimie
Loss Contingencies [Line Items]
Value of alleged damages sought \| €					€ 250
Plant shutdown days					15 days
Subsidiaries participating \| subsidiary					2
Other companies participating \| company					17
Breach of fiduciary duties \| Pending litigation \| 2018 Transactions
Loss Contingencies [Line Items]
Repurchase of stock from GE	$ 1,500
GE sale of stock	$ 2,500

Commitments and Contingencies - Schedule of Product Warranties (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 236	$ 164
Provisions	5	18
Expenditures	(10)	(15)
Other	(7)	119
Ending balance	$ 224	$ 286

Restructuring, Impairment and Other - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Restructuring, impairment and other	$ 50	$ 146	$ 112	$ 308
Restructuring charges	45	68	107	193
Estimated remaining charges	54		54
Restructuring, impairment and other charges
Restructuring Cost and Reserve [Line Items]
Other asset impairment charges and foreign currency translation gain (loss), realized	$ 5	$ 78	$ 5	$ 115

Restructuring, Impairment and Other - Schedule of Restructuring Charges (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 45	$ 68	$ 107	$ 193
Property, plant & equipment, net
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	7	18	16	37
Employee-related termination expenses
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	34	16	78	99
Asset relocation costs
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	2	8	4	13
Environmental remediation costs
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	0	0	0	3
Contract termination fees
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	2	21	9	28
Other incremental costs
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	0	5	0	13
Operating segments \| Oilfield Services
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	19	40	36	99
Operating segments \| Oilfield Equipment
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	0	6	18	18
Operating segments \| Turbomachinery & Process Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	10	11	29	39
Operating segments \| Digital Solutions
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	9	7	12	16
Corporate
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 7	$ 4	$ 12	$ 21

Assets and Liabilities of Business Held for Sale (Details) - Reciprocating Compression (Recip) - Disposal group, held-for-sale $ in Millions	Jun. 30, 2019 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales price	$ 80
Assets
Current receivables	29
Inventories	94
Property, plant and equipment	21
Goodwill	14
Other intangible assets	66
Valuation allowance on disposal group classified as held for sale (1)	(136)
Other assets	8
Total assets of business held for sale	96
Liabilities
Accounts payable	(11)
All other liabilities	(16)
Total liabilities of business held for sale	(27)
Total net assets of business held for sale	69
Costs associated with sale	$ 11

Label	Element	Value
Accounting Standards Update 2016-16 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 67,000,000
Accounting Standards Update 2016-16 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 67,000,000

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2019	Jul. 22, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	1-09397
Entity Registrant Name	BAKER HUGHES a GE Co LLC
Entity Incorporation, State Code	DE
Entity Tax Identification Number	76-0207995
Entity Address, Address Line One	17021 Aldine Westfield
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77073-5101
City Area Code	713
Local Phone Number	439-8600
Title of 12(b) Security	5.125% Senior Notes due 2040
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		0
Entity Central Index Key	0000808362
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
No Trading Symbol Flag	true

Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue:
Revenue	$ 5,994	$ 5,548	$ 11,608	$ 10,947
Costs and expenses:
Selling, general and administrative expenses	701	662	1,404	1,336
Restructuring, impairment and other	50	146	112	308
Separation and merger related costs	40	50	74	96
Total costs and expenses	5,723	5,470	11,161	10,910
Operating income	271	78	447	37
Other non operating income (loss), net	(131)	43	(110)	45
Interest expense, net	(56)	(63)	(115)	(109)
Income (loss) before income taxes and equity in loss of affiliate	84	58	222	(27)
Equity in loss of affiliate	0	(34)	0	(54)
Provision for income taxes	(95)	(62)	(162)	(100)
Net income (loss)	(11)	(38)	60	(181)
Less: Net income attributable to noncontrolling interests	7	13	13	13
Net income (loss) attributable to Baker Hughes, a GE company, LLC	$ (18)	$ (51)	$ 47	$ (194)
Cash distribution per common unit (in dollars per unit)	$ 0.18	$ 0.18	$ 0.36	$ 0.36
Sales of goods
Revenue:
Revenue	$ 3,346	$ 3,119	$ 6,547	$ 6,279
Costs and expenses:
Costs	2,937	2,752	5,746	5,552
Sales of services
Revenue:
Revenue	2,648	2,429	5,061	4,668
Costs and expenses:
Costs	$ 1,995	$ 1,860	$ 3,825	$ 3,618

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (11)	$ (38)	$ 60	$ (181)
Less: Net income attributable to noncontrolling interests	7	13	13	13
Net income (loss) attributable to Baker Hughes, a GE company, LLC	(18)	(51)	47	(194)
Other comprehensive income (loss):
Investment securities	(1)	(2)	1	(2)
Foreign currency translation adjustments	(139)	(536)	27	(224)
Cash flow hedges	(3)		1
Cash flow hedges		(6)		1
Benefit plans	(13)	5	(13)	2
Other comprehensive income (loss)	(156)	(539)	16	(223)
Less: Other comprehensive loss attributable to noncontrolling interests	(1)	(1)	(1)	(1)
Other comprehensive income (loss) attributable to Baker Hughes, a GE company, LLC	(155)	(538)	17	(222)
Comprehensive income (loss)	(167)	(577)	76	(404)
Less: Comprehensive income attributable to noncontrolling interests	6	12	12	12
Comprehensive income (loss) attributable to Baker Hughes, a GE company, LLC	$ (173)	$ (589)	$ 64	$ (416)

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($)
$ in Millions

Jun. 30, 2019

Dec. 31, 2018

Current assets:

^[1]

$ 3,138

$ 3,677

Current receivables, net

6,384

6,062

Inventories, net

4,807

4,620

All other current assets

711

639

Total current assets

15,040

14,998

Property, plant and equipment (net of accumulated depreciation of $3,918 and $3,625)

6,130

6,228

Goodwill

20,411

20,423

Other intangible assets, net

5,510

5,719

1,849

1,894

All other assets

2,845

1,900

898

1,072

Total assets

^[1]

52,683

52,234

Current liabilities:

Short-term debt and current portion of long-term debt

3,959

4,018

^[1]

892

942

All other current liabilities

2,214

1,765

2,248

2,276

Total current liabilities

9,313

9,001

Long-term debt

6,256

6,285

Liabilities for pensions and other postretirement benefits

997

1,018

All other liabilities

1,426

960

Members' equity:

Members' capital (common units 1,037 and 1,035 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)

37,418

37,582

Retained loss

(306)

(354)

Accumulated other comprehensive loss

(2,564)

(2,462)

Baker Hughes, a GE company, LLC members' equity

34,548

34,766

Noncontrolling interests

116

110

Total equity

34,664

34,876

Total liabilities and equity

$ 52,683

$ 52,234

[1]

Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Common units issued (in shares)	1,037	1,035
Common units outstanding (in units)	1,037	1,035
Property, plant and equipment, accumulated depreciation	$ 3,918	$ 3,625
Related party amount, due to related party \| GE
Assets held on behalf of GE	856	896
Cash held on behalf of GE	739	747
Related party amount, due to related party \| GE \| Angola Bonds
Investment securities held on behalf of GE	$ 117	$ 149

Condensed Consolidated Statements of Changes in Members' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Unitholders	Retained Earnings (Loss)	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Beginning Balance at Dec. 31, 2017	$ 38,396	$ 40,678	$ (541)	$ (1,881)	$ 140
Comprehensive income (loss):
Net income (loss)	(181)		(194)		13
Other comprehensive income (loss)	(223)			(222)	(1)
Regular cash distribution to members	(403)	(403)
Repurchase and cancellation of common units	(1,000)	(1,000)
BHGE stock-based compensation cost	60	60
Other	(22)	21			(43)
Ending Balance at Jun. 30, 2018	36,694	39,356	(668)	(2,103)	109
Beginning Balance at Mar. 31, 2018	37,969	40,012	(617)	(1,565)	139
Comprehensive income (loss):
Net income (loss)	(38)		(51)		13
Other comprehensive income (loss)	(539)			(538)	(1)
Regular cash distribution to members	(199)	(199)
Repurchase and cancellation of common units	(500)	(500)			0
BHGE stock-based compensation cost	30	30
Other	(29)	13			(42)
Ending Balance at Jun. 30, 2018	36,694	39,356	(668)	(2,103)	109
Beginning Balance at Dec. 31, 2018	34,876	37,582	(354)	(2,462)	110
Comprehensive income (loss):
Net income (loss)	60		47		13
Other comprehensive income (loss)	16			17	(1)
Regular cash distribution to members	(373)	(373)
Other transactions with members	(7)	112		(119)
BHGE stock-based compensation cost	87	87
Other	5	10	1		(6)
Ending Balance at Jun. 30, 2019	34,664	37,418	(306)	(2,564)	116
Beginning Balance at Mar. 31, 2019	34,966	37,432	(288)	(2,290)	112
Comprehensive income (loss):
Net income (loss)	(11)		(18)		7
Other comprehensive income (loss)	(156)			(155)	(1)
Regular cash distribution to members	(187)	(187)
Other transactions with members	(7)	112		(119)
BHGE stock-based compensation cost	46	46
Other	13	15			(2)
Ending Balance at Jun. 30, 2019	$ 34,664	$ 37,418	$ (306)	$ (2,564)	$ 116

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

Cash flows from operating activities:

Condensed Consolidated Statements of Changes in Members' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity [Abstract]
Cash distribution per common unit (in dollars per unit)	$ 0.18	$ 0.18	$ 0.36	$ 0.36

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Net income (loss)

$ 60

$ (181)

Adjustments to reconcile net income (loss) to net cash flows from operating activities:

Depreciation and amortization

709

780

Valuation allowance on disposal group

136

Benefit for deferred income taxes

(37)

(165)

Changes in operating assets and liabilities:

(190)

(30)

(303)

(282)

309

422

(137)

Other operating items, net

(29)

126

(374)

Net cash flows from operating activities

456

426

Cash flows from investing activities:

Expenditures for capital assets

(594)

(411)

Proceeds from disposal of assets

121

181

Net cash paid for business interests

(69)

Other investing items, net

(21)

Net cash flows used in investing activities

(563)

(162)

Cash flows from financing activities:

Net repayments of short-term debt and other borrowings

(41)

(300)

Repayment of long-term debt

(25)

(648)

Distribution to members

(373)

(403)

Repurchase of common units

(1,025)

Other financing items, net

(5)

Net cash flows used in financing activities

(428)

(2,381)

Effect of currency exchange rate changes on cash and cash equivalents

(4)

(50)

Decrease in cash and cash equivalents

(539)

(2,167)

Cash and cash equivalents, beginning of period

3,677

^[1]

7,026

Cash and cash equivalents, end of period

3,138

^[1]

4,859

Supplemental cash flows disclosures:

Income taxes paid

183

218

Interest paid

$ 137

$ 157

[1]

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
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, a GE company, LLC, a Delaware limited liability company (the Company, BHGE LLC, we, us, or our), and the successor to Baker Hughes Incorporated, a Delaware corporation (Baker Hughes) is a fullstream oilfield technology provider that has a unique mix of equipment and service capabilities. We conduct business in more than 120 countries and employ approximately 67,000 employees. On July 3, 2017, we completed the combination of the oil and gas business (GE O&G) of General Electric Company (GE) and Baker Hughes (the Transactions). As of June 30, 2019, GE owns approximately 50.3% of our common units and Baker Hughes, a GE company (BHGE) owns approximately 49.7% of our common units. BASIS OF PRESENTATION In connection with the Transactions, we entered into and are governed by an Amended & Restated Limited Liability Company Agreement, dated as of July 3, 2017 (the BHGE LLC Agreement). Under the BHGE LLC Agreement, EHHC Newco, LLC (EHHC), a wholly owned subsidiary of BHGE, is our sole managing member and BHGE is the sole managing member of EHHC. As our managing member, EHHC conducts, directs and exercises full control over all our activities, including our day-to-day business affairs and decision-making, without the approval of any other member. As such, EHHC is responsible for all our operational and administrative decisions and the day-to-day management of our business. 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 and combined financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (2018 Annual Report). In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated. In the Company's financial statements and notes, certain amounts have been reclassified to conform with the current year presentation. In the notes to unaudited condensed consolidated financial statements, all dollar and unit amounts in tabulations are in millions of dollars and units, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers. In June 2018, GE announced their intention to pursue an orderly separation from BHGE over time. In the three and six months ended June 30, 2019, separation and merger related costs include primarily costs incurred in connection with the finalization of the Master Agreement Framework and costs related to the anticipated separation from GE. In the three and six months ended June 30, 2018, separation and merger related costs are comprised solely of costs associated with the Transactions. See "Note 15. Related Party Transactions" for further information on the Master Agreement Framework. 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 2018 Annual Report for the discussion of our significant accounting policies. Please refer to the "New Accounting Standards Adopted" section of this Note for changes to our accounting policies. Cash and Cash Equivalents As of June 30, 2019 and December 31, 2018, we had $1,267 million and $1,208 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S. Included in these amounts are $429 million and $461 million, as of June 30, 2019 and December 31, 2018, respectively, held on behalf of GE. Cash and cash equivalents includes a total of $739 million and $747 million of cash at June 30, 2019 and December 31, 2018, respectively, held on behalf of GE, and a corresponding liability is reported in short-term borrowings. See "Note 15. Related Party Transactions" for further details. NEW ACCOUNTING STANDARDS ADOPTED Leases On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases, and the related amendments (ASC 842). This ASU requires lessees to recognize an operating lease asset and a lease liability on the balance sheet, with the exception of short-term leases. We adopted the standard using the modified retrospective approach under which leases existing at, or entered into after January 1, 2019 were required to be recognized and measured. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting. The Company has elected the practical expedients upon transition that allow entities not to reassess lease identification, classification and initial direct costs for leases that existed prior to adoption. The most significant impact of the standard is the recognition of right-of-use (ROU) assets and operating lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We implemented internal controls and key system functionality to enable the preparation of financial information on adoption. We determine if an arrangement is a lease at inception. ROU assets are included in "All other assets" and operating lease liabilities are included in "All other current liabilities" and "All other liabilities" on our consolidated statement of financial position. Finance lease assets are included in "Property, plant and equipment," and finance lease liabilities are included in "Short-term debt," and "Long-term debt" on our consolidated statement of financial position. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the later of the lease commencement date or the effective date of adoption of ASC 842 on January 1, 2019, based on the present value of lease payments over the remaining lease term. Finance lease ROU assets and liabilities are recognized at commencement date. As most of our leases do not provide an implicit rate, we use our incremental collateralized borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Short-term leases under one year do not result in a ROU asset, but are recognized in the income statement only on a straight-line basis over the lease term. The Company has made an election to include within our operating lease liability future payments for both lease and non-lease components. See "Note 8. Leases" for additional information. The adoption of this standard resulted in the recording of ROU assets and operating lease liabilities of $844 million as of January 1, 2019 on our consolidated statements of financial position with an immaterial impact on our consolidated statements of equity and no related impact on our consolidated statements of income (loss). Short-term leases have not been recorded on the consolidated statements of financial position. Our accounting for finance leases remained substantially unchanged. Derivatives and Hedging On January 1, 2019, we adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Since there was no impact from the new guidance to our consolidated financial statements, no transition adjustments were recorded. ASU 2017-12 simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. In accordance with the ASU, both the effective and ineffective portion of a cash flow hedge are initially reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. The ASU requires certain changes to the presentation of hedge accounting in the financial statements and some new or modified disclosures. See "Note 13. Financial Instruments" for additional information. NEW ACCOUNTING STANDARDS TO BE ADOPTED In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses. The ASU introduces a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current U.S. GAAP, which generally require that a loss be incurred before it is recognized. The new standard will also apply to receivables arising from revenue transactions such as contract assets and accounts receivables and is effective for fiscal years beginning after December 15, 2019. We continue to evaluate the effect of the standard on our consolidated financial statements. All other new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.

Revenue Related to Contracts with Customers

6 Months Ended

Jun. 30, 2019

REVENUE RELATED TO CONTRACTS WITH CUSTOMERS

DISAGGREGATED REVENUE

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



	Three Months Ended June 30,				Six Months Ended June 30,
Total Revenue	2019		2018		2019		2018
U.S.	$	1,616	$	1,560	$	3,121	$	3,043
Non-U.S.	4,378		3,988		8,487		7,904
Total	$	5,994	$	5,548	$	11,608	$	10,947

REMAINING PERFORMANCE OBLIGATIONS

PROGRESS COLLECTIONS AND DEFERRED INCOME



	June 30, 2019		December 31, 2018
Progress collections	$	2,088	$	1,600
Deferred income	126		165
Progress collections and deferred income (contract liabilities) ⁽¹⁾	$	2,214	$	1,765


⁽¹⁾	Progress collections and deferred income (contract liabilities) were $1,775 million at January 1, 2018.

Current Receivables

6 Months Ended

Jun. 30, 2019

Current Receivables

CURRENT RECEIVABLES

Current receivables are comprised of the following:



	June 30, 2019			December 31, 2018
Customer receivables	$	5,245		$	4,974
Related parties	742			746
Other	730			669
Total current receivables	6,717			6,389
Less: Allowance for doubtful accounts	(333		)	(327		)
Total current receivables, net	$	6,384		$	6,062

Inventories

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

INVENTORIES

Inventories, net of reserves of $416 million and $430 million as of June 30, 2019 and December 31, 2018, respectively, are comprised of the following:



	June 30, 2019		December 31, 2018
Finished goods	$	2,751	$	2,575
Work in process and raw material	2,056		2,045
Total inventories, net	$	4,807	$	4,620

Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2019

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, 2017, gross	$	15,565		$	3,901		$	1,906		$	2,036		$	23,408
Accumulated impairment at December 31, 2017	(2,633		)	(867		)	—			(254		)	(3,754		)
Balance at December 31, 2017	12,932			3,034			1,906			1,782			19,654
Purchase accounting adjustments⁽¹⁾	(157		)	293			394			429			959
Currency exchange and others	(26		)	(17		)	(114		)	(33		)	(190		)
Balance at December 31, 2018	12,749			3,310			2,186			2,178			20,423
Currency exchange and others	—			—			(13		)	1			(12		)
Balance at June 30, 2019	$	12,749		$	3,310		$	2,173		$	2,179		$	20,411

⁽¹⁾

OTHER INTANGIBLE ASSETS

Intangible assets are comprised of the following:



	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships	$	3,022	$	(985	)	$	2,037	$	3,085	$	(944	)	$	2,141
Technology	1,069		(572		)	497		1,107		(526		)	581
Trade names and trademarks	691		(240		)	451		698		(229		)	469
Capitalized software	1,162		(879		)	283		1,118		(824		)	294
Other	1		(1		)	—		14		(2		)	12
Finite-lived intangible assets	5,945		(2,677		)	3,268		6,022		(2,525		)	3,497
Indefinite-lived intangible assets ⁽¹⁾	2,242		—			2,242		2,222		—			2,222
Total intangible assets	$	8,187	$	(2,677	)	$	5,510	$	8,244	$	(2,525	)	$	5,719


⁽¹⁾	Indefinite-lived intangible assets are principally comprised of the Baker Hughes trade name.

Estimated amortization expense for the remainder of 2019 and each of the subsequent five fiscal years is expected to be as follows:



Year	Estimated Amortization Expense
Remainder of 2019	$	169
2020	323
2021	280
2022	240
2023	226
2024	221

Contract and Other Deferred Assets

6 Months Ended

Jun. 30, 2019

Contract and Other Deferred Assets

CONTRACT AND OTHER DEFERRED ASSETS



	June 30, 2019		December 31, 2018
Long-term product service agreements	$	608	$	609
Long-term equipment contracts ⁽¹⁾	1,069		1,085
Contract assets (total revenue in excess of billings) ⁽²⁾	1,677		1,694
Deferred inventory costs ⁽³⁾	129		179
Non-recurring engineering costs	43		21
Contract and other deferred assets	$	1,849	$	1,894


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


⁽²⁾	Contract assets (total revenue in excess of billings) were $1,684 million as of January 1, 2018.


⁽³⁾	Deferred inventory costs were $360 million as of January 1, 2018, which represents cost deferral for shipped goods and other costs where the criteria for revenue recognition has not yet been met.

Progress Collections and Deferred Income

6 Months Ended

Jun. 30, 2019

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 June 30,				Six Months Ended June 30,
Total Revenue	2019		2018		2019		2018
U.S.	$	1,616	$	1,560	$	3,121	$	3,043
Non-U.S.	4,378		3,988		8,487		7,904
Total	$	5,994	$	5,548	$	11,608	$	10,947

REMAINING PERFORMANCE OBLIGATIONS

PROGRESS COLLECTIONS AND DEFERRED INCOME



	June 30, 2019		December 31, 2018
Progress collections	$	2,088	$	1,600
Deferred income	126		165
Progress collections and deferred income (contract liabilities) ⁽¹⁾	$	2,214	$	1,765


⁽¹⁾	Progress collections and deferred income (contract liabilities) were $1,775 million at January 1, 2018.

Leases

6 Months Ended

Jun. 30, 2019

Leases

LEASES

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



Operating Lease Expense	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Long-term fixed lease	$	60	$	108
Long-term variable lease	13		24
Short-term lease ⁽¹⁾	177		342
Total operating lease expense	$	250	$	474


⁽¹⁾	Includes leases with a term of one month or less

As of June 30, 2019, maturities of our operating lease liabilities are as follows:



Year	Operating Leases
Remainder of 2019	$	112
2020	198
2021	144
2022	117
2023	82
Thereafter	379
Total lease payments	1,032
Less: imputed interest	201
Total	$	831

Amounts recognized in the condensed consolidated statement of financial position as of June 30, 2019:



	Operating Leases
All other current liabilities	$	190
All other liabilities	641
Total	$	831

ROU assets of $821 million as of June 30, 2019 were included in "All other assets" in our condensed consolidated statements of financial position.

Borrowings

6 Months Ended

Jun. 30, 2019

Borrowings

BORROWINGS

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



	June 30, 2019		December 31, 2018
Short-term borrowings
Short-term borrowings from GE	$	856	$	896
Other borrowings	36		46
Total short-term borrowings	892		942

Long-term borrowings
3.2% Senior Notes due August 2021	521		523
2.773% Senior Notes due December 2022	1,246		1,245
8.55% Debentures due June 2024	129		131
3.337% Senior Notes due December 2027	1,343		1,343
6.875% Notes due January 2029	291		294
5.125% Senior Notes due September 2040	1,304		1,306
4.08% Senior Notes due December 2047	1,337		1,336
Other long-term borrowings	85		107
Total long-term borrowings	6,256		6,285
Total borrowings	$	7,148	$	7,227

See "Note 15. Related Party Transactions" for additional information on the short-term borrowings from GE.

Employee Benefit Plans

6 Months Ended

Jun. 30, 2019

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

The components of net periodic cost (benefit) of plans sponsored by us are as follows for the three and six months ended June 30:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost	$	6		$	5		$	10		$	10
Interest cost	22			18			41			36
Expected return on plan assets	(30		)	(30		)	(55		)	(60		)
Amortization of net actuarial loss	5			2			9			4
Curtailment loss	7			—			7			—
Net periodic cost (benefit)	$	10		$	(5	)	$	12		$	(10	)

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES For the quarter ended June 30, 2019, income tax expense was $95 million compared to a tax expense of $62 million for the prior year quarter. The difference between the U.S. statutory tax rate of 21% and the current effective tax rate of 113% is primarily related to the geographical mix of earnings and losses, coupled with $69 million related to losses with no tax benefit due to valuation allowances and tax effects of the U.S. partnership structure. For the six months ended June 30, 2019, income tax expense was $162 million compared to a tax expense of $100 million for the six months ended June 30, 2018. The difference between the U.S. statutory tax rate of 21% and the current effective tax rate of 73% is primarily related to the geographical mix of earnings and losses, coupled with $90 million related to losses with no tax benefit due to valuation allowances and tax effects of the U.S. partnership structure. We are a partnership for U.S. federal tax purposes, therefore, any tax effects associated with the U.S. are recognized by our members and not reflected in our tax expense.

Members' Equity

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Members' Equity

MEMBERS' EQUITY

COMMON UNITS

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



	Common Units Held by BHGE	Common Units Held by GE
Balance at December 31, 2018	513,399	521,543
Issue of units to BHGE under equity incentive plan	2,224	—
Balance at June 30, 2019	515,624	521,543

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, 2018	$	—	$	(2,326	)	$	(3	)	$	(133	)	$	(2,462	)
Other comprehensive income (loss) before reclassifications	1		27			1			(27		)	2
Amounts reclassified from accumulated other comprehensive income (loss)	—		—			—			14			14
Deferred taxes	—		—			—			—			—
Other comprehensive income (loss)	1		27			1			(13		)	16
Less: Other comprehensive loss attributable to noncontrolling interests	—		(1		)	—			—			(1		)
Other adjustments	—		—			—			(119		)	(119		)
Balance at June 30, 2019	$	1	$	(2,298	)	$	(2	)	$	(265	)	$	(2,564	)



	Investment Securities			Foreign Currency Translation Adjustments			Cash Flow Hedges		Benefit Plans			Accumulated Other Comprehensive Loss
Balance at December 31, 2017	$	1		$	(1,824	)	$	2	$	(60	)	$	(1,881	)
Other comprehensive income (loss) before reclassifications	(1		)	(224		)	1		4			(220		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—			—		—			—
Deferred taxes	(1		)	—			—		(2		)	(3		)
Other comprehensive income (loss)	(2		)	(224		)	1		2			(223		)
Less: Other comprehensive loss attributable to noncontrolling interests	—			(1		)	—		—			(1		)
Balance at June 30, 2018	$	(1	)	$	(2,047	)	$	3	$	(58	)	$	(2,103	)

The amounts reclassified from accumulated other comprehensive loss during the six months ended June 30,

Financial Instruments

6 Months Ended

Jun. 30, 2019

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.



	June 30, 2019										December 31, 2018
	Level 1		Level 2			Level 3		Net Balance			Level 1		Level 2			Level 3		Net Balance
Assets
Derivatives	$	—	$	47		$	—	$	47		$	—	$	74		$	—	$	74
Investment securities	40		—			265		305			39		—			288		327
Total assets	40		47			265		352			39		74			288		401

Liabilities
Derivatives	—		(50		)	—		(50		)	—		(82		)	—		(82		)
Total liabilities	$	—	$	(50	)	$	—	$	(50	)	$	—	$	(82	)	$	—	$	(82	)

There were no transfers between Level 1, 2 and 3 during the six months ended June 30, 2019.

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



	2019			2018
Balance at January 1	$	288		$	304
Purchases	7			36
Proceeds at maturity	(31		)	(30		)
Unrealized gains recognized in AOCI	1			—
Balance at June 30	$	265		$	310



	June 30, 2019								December 31, 2018
	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⁾	$	264	$	1	$	—	$	265	$	288	$	—	$	—	$	288
Equity securities ⁽²⁾	40		—		—		40		39		—		—		39
Total	$	304	$	1	$	—	$	305	$	327	$	—	$	—	$	327


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


⁽²⁾	Gains (losses) recorded to earnings related to these securities were $(9) million and $11 million for the three months ended June 30, 2019 and 2018, respectively, and $1 million and $(3) million for the six months ended June 30, 2019 and 2018, respectively.

FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS

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.



	June 30, 2019					December 31, 2018
	Assets		(Liabilities)			Assets		(Liabilities)
Derivatives accounted for as hedges
Currency exchange contracts	$	—	$	(4	)	$	—	$	(7	)

Derivatives not accounted for as hedges
Currency exchange contracts	45		(46		)	74		(75		)
Other derivatives	2		—			—		—
Total derivatives	$	47	$	(50	)	$	74	$	(82	)

Derivatives are classified in the captions "All other current assets," "All other assets," "All other current liabilities," and "All other liabilities" depending on their respective maturity date.

RISK MANAGEMENT STRATEGY

FORMS OF HEDGING

Cash Flow Hedges

Economic Hedges

NOTIONAL AMOUNT OF DERIVATIVES

CASH FLOW HEDGES



	Three Months Ended June 30,										Six Months Ended June 30,
	Gain (Loss) Recognized in AOCI						Gain (Loss) Reclassified from AOCI to Earnings				Gain (Loss) Recognized in AOCI				Gain (Loss) Reclassified from AOCI to Earnings
	2019			2018			2019		2018		2019		2018		2019		2018
Currency exchange contracts	$	(4	)	$	(7	)	$	—	$	—	$	1	$	1	$	—	$	—

ECONOMIC HEDGES

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



Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	Three Months Ended June 30,						Six Months Ended June 30,
Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	2019			2018			2019			2018
Currency exchange contracts ⁽¹⁾	Cost of goods sold	$	(8	)	$	(37	)	$	(5	)	$	4
Currency exchange contracts	Selling, general and administrative expenses	(3		)	26			(4		)	2
Commodity derivatives	Cost of goods sold	(2		)	1			—			1
Other derivatives	Other non operating income (loss), net	3			—			2			—
Total ⁽²⁾		$	(10	)	$	(10	)	$	(7	)	$	7


⁽¹⁾	Excludes gains on embedded derivatives of $2 million and $30 million for the three months ended June 30, 2019 and 2018, respectively, and losses of nil and $10 million during the six months ended June 30, 2019 and 2018, 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 change in fair value of the economically hedged items in the current and future periods.

COUNTERPARTY CREDIT RISK

Segment Information

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Segment Information

SEGMENT INFORMATION

OILFIELD SERVICES (OFS)

OILFIELD EQUIPMENT (OFE)

TURBOMACHINERY & PROCESS SOLUTIONS (TPS)

DIGITAL SOLUTIONS (DS)

SEGMENT RESULTS

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



	Three Months Ended June 30,				Six Months Ended June 30,
Segments revenue	2019		2018		2019		2018
Oilfield Services	$	3,263	$	2,884	$	6,249	$	5,562
Oilfield Equipment	693		617		1,428		1,281
Turbomachinery & Process Solutions	1,405		1,385		2,707		2,845
Digital Solutions	632		662		1,224		1,260
Total	$	5,994	$	5,548	$	11,608	$	10,947



	Three Months Ended June 30,						Six Months Ended June 30,
Segment income (loss) before income taxes	2019			2018			2019			2018
Oilfield Services	$	233		$	189		$	409		$	330
Oilfield Equipment	14			(12		)	26			(18		)
Turbomachinery & Process Solutions	135			113			253			232
Digital Solutions	84			96			152			169
Total segment	466			387			839			714
Corporate	(105		)	(98		)	(205		)	(196		)
Inventory impairments ⁽¹⁾	—			(15		)	—			(76		)
Restructuring, impairment and other	(50		)	(146		)	(112		)	(308		)
Separation and merger related costs	(40		)	(50		)	(74		)	(96		)
Other non operating income (loss), net	(131		)	43			(110		)	45
Interest expense, net	(56		)	(63		)	(115		)	(109		)
Total	$	84		$	58		$	222		$	(27	)

⁽¹⁾

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

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS In connection with the Transactions on July 3, 2017, we entered into various agreements with GE and its affiliates that govern our relationship with GE following the Transactions including an Intercompany Services Agreement pursuant to which GE and its affiliates and the Company provide certain services to each other. GE provides certain administrative services, GE proprietary technology and use of certain GE trademarks for an annual service fee of $55 million. GE may also provide us with certain additional administrative services under the Intercompany Services Agreement and the fees for such services are based on actual usage of such services and historical GE intercompany pricing. Under the terms of the Master Agreement Framework, entered into on November 13, 2018, the annual intercompany services fee of $55 million that we agreed to pay GE as part of the Transactions is reduced by 50% to $27.5 million per year beginning on January 1, 2019. The Intercompany Services Agreement will terminate 90 days following the Trigger Date. See further discussion below. We incurred costs of $7 million and $14 million related to the Intercompany Services Agreement during the three months ended June 30, 2019 and 2018, respectively, and $14 million and $28 million during the six months ended June 30, 2019 and 2018, respectively. In addition, we provide GE and its affiliates with confidential access to certain of our proprietary technology and related developments and enhancements thereto related to GE's operations, products or service offerings. We sold $108 million and $84 million of products and services to GE and its affiliates during the three months ended June 30, 2019 and 2018, respectively, and $189 million and $184 million, during the six months ended June 30, 2019 and 2018, respectively. Purchases from GE and its affiliates were $428 million and $523 million during the three months ended June 30, 2019 and 2018, respectively, and $879 million and $926 million during the six months ended June 30, 2019 and 2018, respectively. MASTER AGREEMENT FRAMEWORK In June 2018, GE announced their intention to pursue an orderly separation from BHGE over time. On November 13, 2018, we entered into a Master Agreement and a series of related ancillary agreements and binding term sheets (which were later negotiated into definitive agreements) with GE and BHGE (collectively, the Master Agreement Framework) designed to further solidify the commercial and technological collaborations between us and GE and to facilitate our ability to transition from operating as a controlled company. In particular, the Master Agreement Framework contemplates long-term agreements between us, BHGE and GE on technology, fulfillment and other key areas to provide greater clarity to customers, employees and shareholders. Key elements of the Master Agreement Framework include: Secured long-term collaboration on critical rotating equipment Under the terms of the Master Agreement Framework, we have defined the parameters for a long-term collaboration and strategic relationship with GE on certain critical rotating equipment products. We have entered into an aero-derivative joint venture (JV) agreement with GE to form a JV relating to the parties’ respective aero-derivative gas turbine products and services. Effectiveness of the JV is subject to regulatory clearances and other customary closing conditions. In addition, the JV cannot become effective prior to the first business day of the month after the "Trigger Date" which is the date on which GE and its affiliates cease to own more than 50% of the voting power of BHGE’s outstanding common stock. These jet engine aero-derivative products are mainly used in our LNG, onshore-offshore production, pipeline and industrial segments within our Turbomachinery & Process Solutions segment and by GE in its power generation business. GE and we will contribute certain assets, inventory and service facilities into the JV and both companies will jointly control operations. In addition to the contributions to the JV, we agreed to pay $60 million to GE, in order to equalize each party's interests in the JV at 50%. The JV will have a supply and technology development agreement with GE’s aviation business (GE Aviation), which will revise and extend pricing arrangements as compared to BHGE’s existing supply agreement, and which will become effective at the Trigger Date. Additionally, effective May 1, 2019, we closed on the previously announced transfer of our assets, liabilities and employees related to our prior business of developing, designing, engineering, marketing, supplying, installing and servicing certain industrial steam turbine product lines (IST) to GE pursuant to the Stock and Asset Purchase Agreement. In addition and in connection with the transfer of the IST business, we made a cash payment of $13 million, in addition to working capital adjustments, to GE at the closing of the transaction. In parallel, we have also entered into an agreement for the long-term supply and related distribution arrangement with GE for heavy-duty gas turbine technology at the current pricing levels, which will become effective at the Trigger Date. Under this agreement BHGE LLC will be appointed as GE's exclusive distributor (with limited exceptions) within the oil and gas industry with respect to the heavy-duty gas turbine units for an initial term of 5 years and associated services (including parts and components) for an initial term of 20 years or the operating service life of the relevant gas turbine, whichever is more. The heavy-duty gas turbine technologies are important components of TPS’ offerings and the long-term agreements provide greater clarity on the commercial approach and customer fulfillment, and will enable us and GE to jointly innovate on leading technology. Preserved access to GE Digital software & technology As part of the Master Agreement Framework, BHGE LLC has agreed with GE Digital to maintain, subject to certain conditions, BHGE LLC's current status as the exclusive reseller of GE Digital offerings in the oil & gas space, and BHGE LLC will continue to source exclusively from GE Digital for certain GE Digital offerings for oil and gas applications. As part of this agreement, BHGE LLC and GE Digital have revised and extended certain pricing arrangements and have established service level obligations. Other key agreements • GE and we agreed to maintain current operations and pricing levels with regards to Control upgrade services we offer through our Digitals Solution segment division for the 4 years commencing on the Trigger Date. • During the second quarter of 2019, GE transferred to BHGE certain UK pension liabilities related to the oil and gas businesses of BHGE and certain specified former oil and gas businesses of GE. The assets associated with these liabilities were also substantially transferred on that date based on a preliminary valuation of the liabilities. On the completion of the final valuation of the liabilities GE will transfer any remaining assets on what is intended to be a fully funded basis (using agreed upon actuarial assumptions). The completion of the final valuation and transfer of remaining assets associated with the UK pension liabilities is expected to be completed in 2019. No liabilities associated with GE’s broad-based U.S. defined benefit pension plan will be transferred to us. • The Tax Matters Agreement with GE that was negotiated at the time of the Transactions will be clarified but otherwise will remain substantially in place and both companies retain the ability to monetize certain tax benefits. • Under the terms of the Master Agreement Framework, the annual intercompany services fee of $55 million that we agreed to pay GE as part of the Transactions is reduced by 50% to $27.5 million per year beginning on January 1, 2019. The Intercompany Services Agreement will terminate 90 days following the Trigger Date (except with respect to certain tools access). In connection with the Master Agreement Framework, BHGE has agreed to terminate certain aspects of the transfer restrictions previously applicable to GE under the Stockholders Agreement, dated as of July 3, 2017, by and between BHGE and GE, as amended from time to time (the Stockholders Agreement). The transfer restrictions prohibited GE from transferring any shares of BHGE's common stock prior to July 3, 2019 (except to its affiliates) without the approval of the Conflicts Committee of BHGE's board of directors. Other provisions of the Stockholders Agreement, including continuing restrictions on certain private transfers of shares of BHGE's common stock by GE, and approval requirements for related party transactions, remain in effect. In addition, the Stockholders Agreement was amended and restated to provide that, following the Trigger Date and until GE and its affiliates own less than 20% of the voting power of BHGE's outstanding common stock, GE shall be entitled to designate one person for nomination to BHGE's board of directors. OTHER RELATED PARTY In connection with the Transactions, 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 June 30, 2019, of the $856 million due to GE, $739 million was held in the form of cash and $117 million was held in the form of investment securities. As of December 31, 2018, of the $896 million due to GE, $747 million was held in the form of cash and $149 million was held in the form of investment securities. A corresponding liability is reported in short-term borrowings in the condensed consolidated statements of financial position. Additionally, the Company has $498 million and $538 million of accounts payable at June 30, 2019 and December 31, 2018, respectively, for goods and services provided by GE in the ordinary course of business. The Company has $668 million and $653 million of current receivables at June 30, 2019 and December 31, 2018, respectively, for goods and services provided to GE in the ordinary course of business. Additionally, the Company has $74 million and $93 million of current receivable at June 30, 2019 and December 31, 2018, respectively from BHGE. We also provide guarantees to GE Capital on behalf of some customers who have entered into financing arrangements with GE Capital. TRADE PAYABLES ACCELERATED PAYMENT PROGRAM Our North American operations participate in accounts payable programs with GE Capital. Invoices are settled with vendors per our payment terms to obtain cash discounts. GE Capital provides funding for invoices eligible for a cash discount. Our liability associated with the funded participation in the accounts payable programs, which is presented as accounts payable within the condensed consolidated statements of financial position, was $454 million and $471 million as of June 30, 2019 and December 31, 2018, respectively. On January 16, 2019, GE announced the sale of GE Capital’s accounts payable program platform to a third-party and their intent to start transitioning their existing program to an accounts payable program with that party. As a GE affiliate, we are covered under the agreement.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

LITIGATION

those losses that are predictable, measurable and recurring in nature, such as claims for automobile liability, general liability and workers compensation.

PRODUCT WARRANTIES



	2019			2018
Balance at January 1	$	236		$	164
Provisions	5			18
Expenditures	(10		)	(15		)
Other ⁽¹⁾	(7		)	119
Balance at June 30	$	224		$	286


⁽¹⁾	2018 amount is primarily related to the acquisition of Baker Hughes.

OTHER

Restructuring, Impairment and Other

6 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring, Impairment and Other

RESTRUCTURING, IMPAIRMENT AND OTHER

RESTRUCTURING AND IMPAIRMENT CHARGES

The amount of costs not included in the reported segment results is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Oilfield Services	$	19	$	40	$	36	$	99
Oilfield Equipment	—		6		18		18
Turbomachinery & Process Solutions	10		11		29		39
Digital Solutions	9		7		12		16
Corporate	7		4		12		21
Total	$	45	$	68	$	107	$	193



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Property, plant & equipment, net	$	7	$	18	$	16	$	37
Employee-related termination expenses	34		16		78		99
Asset relocation costs	2		8		4		13
Environmental remediation costs	—		—		—		3
Contract termination fees	2		21		9		28
Other incremental costs	—		5		—		13
Total	$	45	$	68	$	107	$	193

OTHER CHARGES

Assets and Liabilities of Business Held for Sale

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities of Business Held for Sale

ASSETS AND LIABILITIES OF BUSINESS HELD FOR SALE



Assets and liabilities of business held for sale	June 30, 2019
Assets
Current receivables	$	29
Inventories	94
Property, plant and equipment	21
Goodwill	14
Other intangible assets	66
Valuation allowance on disposal group classified as held for sale ⁽¹⁾	(136		)
Other assets	8
Total assets of business held for sale	96
Liabilities
Accounts payable	(11		)
All other liabilities	(16		)
Total liabilities of business held for sale	(27		)
Total net assets of business held for sale	$	69

⁽¹⁾

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	BASIS OF PRESENTATION In connection with the Transactions, we entered into and are governed by an Amended & Restated Limited Liability Company Agreement, dated as of July 3, 2017 (the BHGE LLC Agreement). Under the BHGE LLC Agreement, EHHC Newco, LLC (EHHC), a wholly owned subsidiary of BHGE, is our sole managing member and BHGE is the sole managing member of EHHC. As our managing member, EHHC conducts, directs and exercises full control over all our activities, including our day-to-day business affairs and decision-making, without the approval of any other member. As such, EHHC is responsible for all our operational and administrative decisions and the day-to-day management of our business. 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 and combined financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (2018 Annual Report). In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated. In the Company's financial statements and notes, certain amounts have been reclassified to conform with the current year presentation. In the notes to unaudited condensed consolidated financial statements, all dollar and unit amounts in tabulations are in millions of dollars and units, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers. In June 2018, GE announced their intention to pursue an orderly separation from BHGE over time. In the three and six months ended June 30, 2019, separation and merger related costs include primarily costs incurred in connection with the finalization of the Master Agreement Framework and costs related to the anticipated separation from GE. In the three and six months ended June 30, 2018, separation and merger related costs are comprised solely of costs associated with the Transactions. See "Note 15. Related Party Transactions" for further information on the Master Agreement Framework. 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 2018 Annual Report for the discussion of our significant accounting policies. Please refer to the "New Accounting Standards Adopted" section of this Note for changes to our accounting policies.
Cash and Cash Equivalents	Cash and Cash Equivalents As of June 30, 2019 and December 31, 2018, we had $1,267 million and $1,208 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S. Included in these amounts are $429 million and $461 million, as of June 30, 2019 and December 31, 2018, respectively, held on behalf of GE. Cash and cash equivalents includes a total of $739 million and $747 million of cash at June 30, 2019 and December 31, 2018, respectively, held on behalf of GE, and a corresponding liability is reported in short-term borrowings. See "Note 15. Related Party Transactions" for further details.
New Accounting Standards Adopted and To Be Adopted	NEW ACCOUNTING STANDARDS ADOPTED Leases On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases, and the related amendments (ASC 842). This ASU requires lessees to recognize an operating lease asset and a lease liability on the balance sheet, with the exception of short-term leases. We adopted the standard using the modified retrospective approach under which leases existing at, or entered into after January 1, 2019 were required to be recognized and measured. Prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting. The Company has elected the practical expedients upon transition that allow entities not to reassess lease identification, classification and initial direct costs for leases that existed prior to adoption. The most significant impact of the standard is the recognition of right-of-use (ROU) assets and operating lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We implemented internal controls and key system functionality to enable the preparation of financial information on adoption. We determine if an arrangement is a lease at inception. ROU assets are included in "All other assets" and operating lease liabilities are included in "All other current liabilities" and "All other liabilities" on our consolidated statement of financial position. Finance lease assets are included in "Property, plant and equipment," and finance lease liabilities are included in "Short-term debt," and "Long-term debt" on our consolidated statement of financial position. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the later of the lease commencement date or the effective date of adoption of ASC 842 on January 1, 2019, based on the present value of lease payments over the remaining lease term. Finance lease ROU assets and liabilities are recognized at commencement date. As most of our leases do not provide an implicit rate, we use our incremental collateralized borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Short-term leases under one year do not result in a ROU asset, but are recognized in the income statement only on a straight-line basis over the lease term. The Company has made an election to include within our operating lease liability future payments for both lease and non-lease components. See "Note 8. Leases" for additional information. The adoption of this standard resulted in the recording of ROU assets and operating lease liabilities of $844 million as of January 1, 2019 on our consolidated statements of financial position with an immaterial impact on our consolidated statements of equity and no related impact on our consolidated statements of income (loss). Short-term leases have not been recorded on the consolidated statements of financial position. Our accounting for finance leases remained substantially unchanged. Derivatives and Hedging On January 1, 2019, we adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Since there was no impact from the new guidance to our consolidated financial statements, no transition adjustments were recorded. ASU 2017-12 simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. In accordance with the ASU, both the effective and ineffective portion of a cash flow hedge are initially reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. The ASU requires certain changes to the presentation of hedge accounting in the financial statements and some new or modified disclosures. See "Note 13. Financial Instruments" for additional information. NEW ACCOUNTING STANDARDS TO BE ADOPTED In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses. The ASU introduces a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current U.S. GAAP, which generally require that a loss be incurred before it is recognized. The new standard will also apply to receivables arising from revenue transactions such as contract assets and accounts receivables and is effective for fiscal years beginning after December 15, 2019. We continue to evaluate the effect of the standard on our consolidated financial statements. All other new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.
Fair Value Measurements	The most significant unobservable input used in the valuation of our Level 3 instruments is the discount rate. Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value of our investment securities.

Revenue Related to Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30,				Six Months Ended June 30,
Total Revenue	2019		2018		2019		2018
U.S.	$	1,616	$	1,560	$	3,121	$	3,043
Non-U.S.	4,378		3,988		8,487		7,904
Total	$	5,994	$	5,548	$	11,608	$	10,947

Current Receivables (Tables)

6 Months Ended

Jun. 30, 2019

Current receivables are comprised of the following:



	June 30, 2019			December 31, 2018
Customer receivables	$	5,245		$	4,974
Related parties	742			746
Other	730			669
Total current receivables	6,717			6,389
Less: Allowance for doubtful accounts	(333		)	(327		)
Total current receivables, net	$	6,384		$	6,062

Inventories (Tables)

6 Months Ended

Jun. 30, 2019

Inventories, net of reserves

Inventories, net of reserves of $416 million and $430 million as of June 30, 2019 and December 31, 2018, respectively, are comprised of the following:



	June 30, 2019		December 31, 2018
Finished goods	$	2,751	$	2,575
Work in process and raw material	2,056		2,045
Total inventories, net	$	4,807	$	4,620

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2019

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, 2017, gross	$	15,565		$	3,901		$	1,906		$	2,036		$	23,408
Accumulated impairment at December 31, 2017	(2,633		)	(867		)	—			(254		)	(3,754		)
Balance at December 31, 2017	12,932			3,034			1,906			1,782			19,654
Purchase accounting adjustments⁽¹⁾	(157		)	293			394			429			959
Currency exchange and others	(26		)	(17		)	(114		)	(33		)	(190		)
Balance at December 31, 2018	12,749			3,310			2,186			2,178			20,423
Currency exchange and others	—			—			(13		)	1			(12		)
Balance at June 30, 2019	$	12,749		$	3,310		$	2,173		$	2,179		$	20,411

⁽¹⁾

Schedule of finite-lived intangible assets

Intangible assets are comprised of the following:



	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships	$	3,022	$	(985	)	$	2,037	$	3,085	$	(944	)	$	2,141
Technology	1,069		(572		)	497		1,107		(526		)	581
Trade names and trademarks	691		(240		)	451		698		(229		)	469
Capitalized software	1,162		(879		)	283		1,118		(824		)	294
Other	1		(1		)	—		14		(2		)	12
Finite-lived intangible assets	5,945		(2,677		)	3,268		6,022		(2,525		)	3,497
Indefinite-lived intangible assets ⁽¹⁾	2,242		—			2,242		2,222		—			2,222
Total intangible assets	$	8,187	$	(2,677	)	$	5,510	$	8,244	$	(2,525	)	$	5,719

⁽¹⁾

Indefinite-lived intangible assets are principally comprised of the Baker Hughes trade name.

Schedule of indefinite-lived intangible assets

Intangible assets are comprised of the following:



	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships	$	3,022	$	(985	)	$	2,037	$	3,085	$	(944	)	$	2,141
Technology	1,069		(572		)	497		1,107		(526		)	581
Trade names and trademarks	691		(240		)	451		698		(229		)	469
Capitalized software	1,162		(879		)	283		1,118		(824		)	294
Other	1		(1		)	—		14		(2		)	12
Finite-lived intangible assets	5,945		(2,677		)	3,268		6,022		(2,525		)	3,497
Indefinite-lived intangible assets ⁽¹⁾	2,242		—			2,242		2,222		—			2,222
Total intangible assets	$	8,187	$	(2,677	)	$	5,510	$	8,244	$	(2,525	)	$	5,719

⁽¹⁾

Indefinite-lived intangible assets are principally comprised of the Baker Hughes trade name.

Schedule of finite-lived intangible assets, future amortization expense

Estimated amortization expense for the remainder of 2019 and each of the subsequent five fiscal years is expected to be as follows:



Year	Estimated Amortization Expense
Remainder of 2019	$	169
2020	323
2021	280
2022	240
2023	226
2024	221

Contract and Other Deferred Assets (Tables)

6 Months Ended

Jun. 30, 2019

Revenue Recognition and Deferred Revenue [Abstract]

Contract assets

Contract assets are comprised of the following:



	June 30, 2019		December 31, 2018
Long-term product service agreements	$	608	$	609
Long-term equipment contracts ⁽¹⁾	1,069		1,085
Contract assets (total revenue in excess of billings) ⁽²⁾	1,677		1,694
Deferred inventory costs ⁽³⁾	129		179
Non-recurring engineering costs	43		21
Contract and other deferred assets	$	1,849	$	1,894


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


⁽²⁾	Contract assets (total revenue in excess of billings) were $1,684 million as of January 1, 2018.

⁽³⁾

Deferred inventory costs were $360 million as of January 1, 2018, which represents cost deferral for shipped goods and other costs where the criteria for revenue recognition has not yet been met.

Contract liabilities are comprised of the following:



	June 30, 2019		December 31, 2018
Progress collections	$	2,088	$	1,600
Deferred income	126		165
Progress collections and deferred income (contract liabilities) ⁽¹⁾	$	2,214	$	1,765

⁽¹⁾

Progress collections and deferred income (contract liabilities) were $1,775 million at January 1, 2018.

Progress Collections and Deferred Income (Tables)

6 Months Ended

Jun. 30, 2019

Contract liabilities

Contract assets are comprised of the following:



	June 30, 2019		December 31, 2018
Long-term product service agreements	$	608	$	609
Long-term equipment contracts ⁽¹⁾	1,069		1,085
Contract assets (total revenue in excess of billings) ⁽²⁾	1,677		1,694
Deferred inventory costs ⁽³⁾	129		179
Non-recurring engineering costs	43		21
Contract and other deferred assets	$	1,849	$	1,894


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


⁽²⁾	Contract assets (total revenue in excess of billings) were $1,684 million as of January 1, 2018.

⁽³⁾

Deferred inventory costs were $360 million as of January 1, 2018, which represents cost deferral for shipped goods and other costs where the criteria for revenue recognition has not yet been met.

Contract liabilities are comprised of the following:



	June 30, 2019		December 31, 2018
Progress collections	$	2,088	$	1,600
Deferred income	126		165
Progress collections and deferred income (contract liabilities) ⁽¹⁾	$	2,214	$	1,765

⁽¹⁾

Progress collections and deferred income (contract liabilities) were $1,775 million at January 1, 2018.

Leases (Tables)

6 Months Ended

Jun. 30, 2019

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.



Operating Lease Expense	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Long-term fixed lease	$	60	$	108
Long-term variable lease	13		24
Short-term lease ⁽¹⁾	177		342
Total operating lease expense	$	250	$	474

⁽¹⁾

Includes leases with a term of one month or less

Maturities of lease liabilities, operating leases

As of June 30, 2019, maturities of our operating lease liabilities are as follows:



Year	Operating Leases
Remainder of 2019	$	112
2020	198
2021	144
2022	117
2023	82
Thereafter	379
Total lease payments	1,032
Less: imputed interest	201
Total	$	831

Schedule of liabilities

Amounts recognized in the condensed consolidated statement of financial position as of June 30, 2019:



	Operating Leases
All other current liabilities	$	190
All other liabilities	641
Total	$	831

Borrowings (Tables)

6 Months Ended

Jun. 30, 2019

Short-term and long-term borrowings

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



	June 30, 2019		December 31, 2018
Short-term borrowings
Short-term borrowings from GE	$	856	$	896
Other borrowings	36		46
Total short-term borrowings	892		942

Long-term borrowings
3.2% Senior Notes due August 2021	521		523
2.773% Senior Notes due December 2022	1,246		1,245
8.55% Debentures due June 2024	129		131
3.337% Senior Notes due December 2027	1,343		1,343
6.875% Notes due January 2029	291		294
5.125% Senior Notes due September 2040	1,304		1,306
4.08% Senior Notes due December 2047	1,337		1,336
Other long-term borrowings	85		107
Total long-term borrowings	6,256		6,285
Total borrowings	$	7,148	$	7,227

Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of net periodic cost (benefit)

The components of net periodic cost (benefit) of plans sponsored by us are as follows for the three and six months ended June 30:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost	$	6		$	5		$	10		$	10
Interest cost	22			18			41			36
Expected return on plan assets	(30		)	(30		)	(55		)	(60		)
Amortization of net actuarial loss	5			2			9			4
Curtailment loss	7			—			7			—
Net periodic cost (benefit)	$	10		$	(5	)	$	12		$	(10	)

Members' Equity (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of changes in number of shares outstanding

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



	Common Units Held by BHGE	Common Units Held by GE
Balance at December 31, 2018	513,399	521,543
Issue of units to BHGE under equity incentive plan	2,224	—
Balance at June 30, 2019	515,624	521,543

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, 2018	$	—	$	(2,326	)	$	(3	)	$	(133	)	$	(2,462	)
Other comprehensive income (loss) before reclassifications	1		27			1			(27		)	2
Amounts reclassified from accumulated other comprehensive income (loss)	—		—			—			14			14
Deferred taxes	—		—			—			—			—
Other comprehensive income (loss)	1		27			1			(13		)	16
Less: Other comprehensive loss attributable to noncontrolling interests	—		(1		)	—			—			(1		)
Other adjustments	—		—			—			(119		)	(119		)
Balance at June 30, 2019	$	1	$	(2,298	)	$	(2	)	$	(265	)	$	(2,564	)



	Investment Securities			Foreign Currency Translation Adjustments			Cash Flow Hedges		Benefit Plans			Accumulated Other Comprehensive Loss
Balance at December 31, 2017	$	1		$	(1,824	)	$	2	$	(60	)	$	(1,881	)
Other comprehensive income (loss) before reclassifications	(1		)	(224		)	1		4			(220		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			—			—		—			—
Deferred taxes	(1		)	—			—		(2		)	(3		)
Other comprehensive income (loss)	(2		)	(224		)	1		2			(223		)
Less: Other comprehensive loss attributable to noncontrolling interests	—			(1		)	—		—			(1		)
Balance at June 30, 2018	$	(1	)	$	(2,047	)	$	3	$	(58	)	$	(2,103	)

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

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.



	June 30, 2019										December 31, 2018
	Level 1		Level 2			Level 3		Net Balance			Level 1		Level 2			Level 3		Net Balance
Assets
Derivatives	$	—	$	47		$	—	$	47		$	—	$	74		$	—	$	74
Investment securities	40		—			265		305			39		—			288		327
Total assets	40		47			265		352			39		74			288		401

Liabilities
Derivatives	—		(50		)	—		(50		)	—		(82		)	—		(82		)
Total liabilities	$	—	$	(50	)	$	—	$	(50	)	$	—	$	(82	)	$	—	$	(82	)

Reconciliation of recurring Level 3 fair value measurements

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



	2019			2018
Balance at January 1	$	288		$	304
Purchases	7			36
Proceeds at maturity	(31		)	(30		)
Unrealized gains recognized in AOCI	1			—
Balance at June 30	$	265		$	310

Schedule of investment securities classified as available for sale



	June 30, 2019								December 31, 2018
	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⁾	$	264	$	1	$	—	$	265	$	288	$	—	$	—	$	288
Equity securities ⁽²⁾	40		—		—		40		39		—		—		39
Total	$	304	$	1	$	—	$	305	$	327	$	—	$	—	$	327


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

⁽²⁾

Schedule of derivatives

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



	June 30, 2019					December 31, 2018
	Assets		(Liabilities)			Assets		(Liabilities)
Derivatives accounted for as hedges
Currency exchange contracts	$	—	$	(4	)	$	—	$	(7	)

Derivatives not accounted for as hedges
Currency exchange contracts	45		(46		)	74		(75		)
Other derivatives	2		—			—		—
Total derivatives	$	47	$	(50	)	$	74	$	(82	)

Schedule of hedging instrument, currency exchange contract

The table below summarizes this activity by hedging instrument.



	Three Months Ended June 30,										Six Months Ended June 30,
	Gain (Loss) Recognized in AOCI						Gain (Loss) Reclassified from AOCI to Earnings				Gain (Loss) Recognized in AOCI				Gain (Loss) Reclassified from AOCI to Earnings
	2019			2018			2019		2018		2019		2018		2019		2018
Currency exchange contracts	$	(4	)	$	(7	)	$	—	$	—	$	1	$	1	$	—	$	—

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

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



Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	Three Months Ended June 30,						Six Months Ended June 30,
Derivatives not designated as hedging instruments	Condensed consolidated statement of income caption	2019			2018			2019			2018
Currency exchange contracts ⁽¹⁾	Cost of goods sold	$	(8	)	$	(37	)	$	(5	)	$	4
Currency exchange contracts	Selling, general and administrative expenses	(3		)	26			(4		)	2
Commodity derivatives	Cost of goods sold	(2		)	1			—			1
Other derivatives	Other non operating income (loss), net	3			—			2			—
Total ⁽²⁾		$	(10	)	$	(10	)	$	(7	)	$	7


⁽¹⁾	Excludes gains on embedded derivatives of $2 million and $30 million for the three months ended June 30, 2019 and 2018, respectively, and losses of nil and $10 million during the six months ended June 30, 2019 and 2018, 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 change in fair value of the economically hedged items in the current and future periods.

Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30,				Six Months Ended June 30,
Segments revenue	2019		2018		2019		2018
Oilfield Services	$	3,263	$	2,884	$	6,249	$	5,562
Oilfield Equipment	693		617		1,428		1,281
Turbomachinery & Process Solutions	1,405		1,385		2,707		2,845
Digital Solutions	632		662		1,224		1,260
Total	$	5,994	$	5,548	$	11,608	$	10,947



	Three Months Ended June 30,						Six Months Ended June 30,
Segment income (loss) before income taxes	2019			2018			2019			2018
Oilfield Services	$	233		$	189		$	409		$	330
Oilfield Equipment	14			(12		)	26			(18		)
Turbomachinery & Process Solutions	135			113			253			232
Digital Solutions	84			96			152			169
Total segment	466			387			839			714
Corporate	(105		)	(98		)	(205		)	(196		)
Inventory impairments ⁽¹⁾	—			(15		)	—			(76		)
Restructuring, impairment and other	(50		)	(146		)	(112		)	(308		)
Separation and merger related costs	(40		)	(50		)	(74		)	(96		)
Other non operating income (loss), net	(131		)	43			(110		)	45
Interest expense, net	(56		)	(63		)	(115		)	(109		)
Total	$	84		$	58		$	222		$	(27	)

⁽¹⁾

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

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of product warranties

An analysis of changes in the liability for product warranties are as follows:



	2019			2018
Balance at January 1	$	236		$	164
Provisions	5			18
Expenditures	(10		)	(15		)
Other ⁽¹⁾	(7		)	119
Balance at June 30	$	224		$	286


⁽¹⁾	2018 amount is primarily related to the acquisition of Baker Hughes.

Restructuring, Impairment and Other (Tables)

6 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

Impairment and restructuring charges

The amount of costs not included in the reported segment results is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Oilfield Services	$	19	$	40	$	36	$	99
Oilfield Equipment	—		6		18		18
Turbomachinery & Process Solutions	10		11		29		39
Digital Solutions	9		7		12		16
Corporate	7		4		12		21
Total	$	45	$	68	$	107	$	193



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Property, plant & equipment, net	$	7	$	18	$	16	$	37
Employee-related termination expenses	34		16		78		99
Asset relocation costs	2		8		4		13
Environmental remediation costs	—		—		—		3
Contract termination fees	2		21		9		28
Other incremental costs	—		5		—		13
Total	$	45	$	68	$	107	$	193

Assets and Liabilities of Business Held for Sale (Tables)

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Schedule of assets and liabilities of business held for sale



Assets and liabilities of business held for sale	June 30, 2019
Assets
Current receivables	$	29
Inventories	94
Property, plant and equipment	21
Goodwill	14
Other intangible assets	66
Valuation allowance on disposal group classified as held for sale ⁽¹⁾	(136		)
Other assets	8
Total assets of business held for sale	96
Liabilities
Accounts payable	(11		)
All other liabilities	(16		)
Total liabilities of business held for sale	(27		)
Total net assets of business held for sale	$	69

⁽¹⁾

Basis of Presentation and Summary of Significant Accounting Policies (Details) employee in Thousands, $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($) employee country	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Countries in which our business is conducted (more than) \| country	120
Number of our employees \| employee	67
Restricted cash and cash equivalents held in bank accounts	$ 1,267	$ 1,208
General Electric Company
Business Acquisition [Line Items]
Restricted cash and cash equivalents held in bank accounts	429	461
Related party amount, due to related party \| GE
Business Acquisition [Line Items]
Cash	$ 739	$ 747
BHGE LLC \| BHGE
Business Acquisition [Line Items]
Approximate interest	49.70%
BHGE LLC \| General Electric Company
Business Acquisition [Line Items]
Approximate interest	50.30%

Basis of Presentation and Summary of Significant Accounting Policies - New Accounting Policy (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, liability	$ 831
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use asset		$ 844
Operating lease, liability		$ 844

Revenue Related to Contracts with Customers - Disaggregated Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 5,994	$ 5,548	$ 11,608	$ 10,947
U.S.
Disaggregation of Revenue [Line Items]
Revenue	1,616	1,560	3,121	3,043
Non-U.S.
Disaggregation of Revenue [Line Items]
Revenue	$ 4,378	$ 3,988	$ 8,487	$ 7,904

Revenue Related to Contracts with Customers - Performance Obligation - Revenue Recognized (Details) - USD ($) $ in Billions	Jun. 30, 2019	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Performance obligation expected to be satisfied	$ 20.6	$ 20.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	47.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	16.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	26.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2034-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied, percent	11.00%

Revenue Related to Contracts with Customers - Performance Obligation - Performance Period (Details)	Jun. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied, expected timing	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied, expected timing	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied, expected timing	10 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2034-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied, expected timing

Current Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	$ 6,717	$ 6,389
Less: Allowance for doubtful accounts	(333)	(327)
Total current receivables, net	6,384	6,062
Customer receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	5,245	4,974
Related parties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	742	746
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables	$ 730	$ 669

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Inventory, Net [Abstract]
Inventory valuation reserves	$ 416	$ 430
Finished goods	2,751	2,575
Work in process and raw material	2,056	2,045
Total inventories, net	$ 4,807	$ 4,620

Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Line Items]
Balance at December 31, 2017, gross				$ 23,408
Accumulated impairment				(3,754)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		$ 20,423	$ 19,654
Purchase accounting adjustments			959
Currency exchange and others		(12)	(190)
Goodwill, net, ending balance		20,411	20,423
GE Transaction Agreement
Goodwill [Roll Forward]
Goodwill, acquisition	$ 13,669
Oilfield Services
Goodwill [Line Items]
Balance at December 31, 2017, gross				15,565
Accumulated impairment				(2,633)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		12,749	12,932
Purchase accounting adjustments			(157)
Currency exchange and others		0	(26)
Goodwill, net, ending balance		12,749	12,749
Oilfield Services \| GE Transaction Agreement
Goodwill [Roll Forward]
Goodwill, acquisition	$ 12,604
Oilfield Equipment
Goodwill [Line Items]
Balance at December 31, 2017, gross				3,901
Accumulated impairment				(867)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		3,310	3,034
Purchase accounting adjustments			293
Currency exchange and others		0	(17)
Goodwill, net, ending balance		3,310	3,310
Turbomachinery & Process Solutions
Goodwill [Line Items]
Balance at December 31, 2017, gross				1,906
Accumulated impairment				0
Goodwill [Roll Forward]
Goodwill, net, beginning balance		2,186	1,906
Purchase accounting adjustments			394
Currency exchange and others		(13)	(114)
Goodwill, net, ending balance		2,173	2,186
Digital Solutions
Goodwill [Line Items]
Balance at December 31, 2017, gross				2,036
Accumulated impairment				$ (254)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		2,178	1,782
Purchase accounting adjustments			429
Currency exchange and others		1	(33)
Goodwill, net, ending balance		$ 2,179	$ 2,178

Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) segment	Jun. 30, 2018 USD ($)	Jul. 01, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reportable segments \| segment			4
Finite-Lived Intangible Assets [Line Items]
Amortization expense for intangible assets included in net income \| $	$ 97	$ 101	$ 193	$ 240
Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives			1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives			30 years
Oilfield Services (OFS) and Oilfield Equipment (OFE) \| Minimum
Finite-Lived Intangible Assets [Line Items]
Reporting unit, percentage of fair value in excess of carrying value					15.00%
Oilfield Services (OFS) and Oilfield Equipment (OFE) \| Maximum
Finite-Lived Intangible Assets [Line Items]
Reporting unit, percentage of fair value in excess of carrying value					20.00%

Goodwill and Other Intangible Assets - Schedule of Intangible Assets by Type (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	$ 5,945	$ 6,022
Finite-lived intangible assets, accumulated amortization	(2,677)	(2,525)
Finite-lived intangible assets, net	3,268	3,497
Indefinite-lived intangible assets	2,242	2,222
Intangible assets, gross	8,187	8,244
Other intangible assets, net	5,510	5,719
Trade names and trademarks
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	3,022	3,085
Finite-lived intangible assets, accumulated amortization	(985)	(944)
Finite-lived intangible assets, net	2,037	2,141
Technology
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	1,069	1,107
Finite-lived intangible assets, accumulated amortization	(572)	(526)
Finite-lived intangible assets, net	497	581
Trade names and trademarks
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	691	698
Finite-lived intangible assets, accumulated amortization	(240)	(229)
Finite-lived intangible assets, net	451	469
Capitalized software
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	1,162	1,118
Finite-lived intangible assets, accumulated amortization	(879)	(824)
Finite-lived intangible assets, net	283	294
Other
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	1	14
Finite-lived intangible assets, accumulated amortization	(1)	(2)
Finite-lived intangible assets, net	$ 0	$ 12

Goodwill and Other Intangible Assets - Schedule of Future Estimated Amortization Expense (Details) $ in Millions	Jun. 30, 2019 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2019	$ 169
2020	323
2021	280
2022	240
2023	226
2024	$ 221

Contract and Other Deferred Assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Jan. 01, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (revenue in excess of billings)	$ 1,677		$ 1,677		$ 1,694	$ 1,684
Deferred inventory costs	129		129		179	$ 360
Non-recurring engineering costs	43		43		21
Contract and other deferred assets	1,849		1,849		1,894
Revenue recognized from performance obligations satisfied in previous periods	14	$ 12	21	$ 22
Long-term product service agreements
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (revenue in excess of billings)	608		608		609
Long-term equipment contracts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (revenue in excess of billings)	$ 1,069		$ 1,069		$ 1,085

Progress Collections and Deferred Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Jan. 01, 2018
Disaggregation of Revenue [Line Items]
Progress collections and deferred income (contract liabilities)	$ 2,214		$ 2,214		$ 1,765	$ 1,775
Revenue recognized, included in contract liability	295	$ 404	848	$ 1,006
Progress collections
Disaggregation of Revenue [Line Items]
Progress collections and deferred income (contract liabilities)	2,088		2,088		1,600
Deferred income
Disaggregation of Revenue [Line Items]
Progress collections and deferred income (contract liabilities)	$ 126		$ 126		$ 165

Leases - Operating Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019
Operating Lease Expense
Long-term fixed lease	$ 60		$ 108
Long-term variable lease	13		24
Short-term lease	177		342
Total operating lease expense	$ 250	$ 188	$ 474

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Leases [Abstract]
Operating lease expense	$ 250	$ 188	$ 474
Operating lease expense				$ 375
Lessee, Lease, Description [Line Items]
Operating lease, weighted-average remaining lease term	9 years		9 years
Operating lease, weighted-average discount rate	4.40%		4.40%
All other assets
Lessee, Lease, Description [Line Items]
Operating lease assets	$ 821		$ 821

Leases - Operating Lease Liabilities (Details) $ in Millions	Jun. 30, 2019 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remainder of 2019	$ 112
2020	198
2021	144
2022	117
2023	82
Thereafter	379
Total lease payments	1,032
Less: imputed interest	201
Total	$ 831

Leases - Lease Liabilities Statement of Financial Position (Details) $ in Millions	Jun. 30, 2019 USD ($)
Operating Leases
All other current liabilities	$ 190
All other liabilities	641
Total	$ 831

Borrowings - Short-term and Long-term Borrowings (Details) - USD ($)
$ in Millions

Jun. 30, 2019

Dec. 31, 2018

^[1]

$ 892

$ 942

Other long-term borrowings

107

Total long-term borrowings

6,256

6,285

Total borrowings

$ 7,148

7,227

3.2% Senior Notes due August 2021

2.773% Senior Notes due December 2022

3.20%

8.55% Debentures due June 2024

2.773%

3.337% Senior Notes due December 2027

8.55%

6.875% Notes due January 2029

3.337%

5.125% Senior Notes due September 2040

6.875%

4.08% Senior Notes due December 2047

5.125%

Senior Notes | 3.2% Senior Notes due August 2021

4.08%

Senior Notes | 2.773% Senior Notes due December 2022

$ 521

523

Senior Notes | 3.337% Senior Notes due December 2027

1,246

1,245

Senior Notes | 6.875% Notes due January 2029

1,343

Senior Notes | 5.125% Senior Notes due September 2040

291

294

Senior Notes | 4.08% Senior Notes due December 2047

1,304

1,306

Debentures | 8.55% Debentures due June 2024

1,337

1,336

Short-term borrowings from GE

129

131

856

896

Other borrowings