View Filing Data

Number of operating segments | segment

^[1]

$ 53,369

$ 52,439

Oilfield Services | GE Transaction Agreement

Segment Reporting, Asset Reconciling Item [Line Items]

Indefinite-lived intangible assets

$ 2,100

Decrease from the corporate segment

2,100

Operating segments

Segment Reporting, Asset Reconciling Item [Line Items]

Operating segments | Oilfield Services

50,604

50,831

Segment Reporting, Asset Reconciling Item [Line Items]

Operating segments | Oilfield Equipment

30,611

30,941

Segment Reporting, Asset Reconciling Item [Line Items]

Operating segments | Turbo-machinery & Process Solutions

7,645

7,298

Segment Reporting, Asset Reconciling Item [Line Items]

Operating segments | Digital Solutions

8,365

8,529

Segment Reporting, Asset Reconciling Item [Line Items]

Corporate and eliminations

3,983

4,063

Segment Reporting, Asset Reconciling Item [Line Items]

Basic and diluted net income (loss) per share

$ 2,765

$ 1,608

[1]

Financial Instruments - Narrative (Details) - USD ($)	12 Months Ended
Financial Instruments - Narrative (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Derivative asset	$ 58,000,000	$ 74,000,000
Derivative liability	27,000,000	82,000,000
Gain (loss) earnings effects of related forecast transactions	10,000,000
Derivative, notional amount	5,700,000,000	6,400,000,000
Derivative, notional amount, net	1,800,000,000	2,800,000,000
Equity securities without readily determinable fair values	637,000,000	$ 542,000,000
Equity securities, unrealized gain	$ 19,000,000
Cash flow hedging
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, term	1 year	2 years
All other current assets
Derivative Instruments, Gain (Loss) [Line Items]
Derivative asset	$ 52,000,000	$ 67,000,000
All other assets
Derivative Instruments, Gain (Loss) [Line Items]
Derivative asset	6,000,000	7,000,000
All other current liabilities
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liability	24,000,000	79,000,000
All other liabilities
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liability	3,000,000	3,000,000
Level 3
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain (loss) on Level 3 instruments held at reporting date	0
Related party amount, due to related party \| GE \| Angola Bonds
Derivative Instruments, Gain (Loss) [Line Items]
Investment securities	$ 111,000,000	$ 149,000,000

Quarterly Data (Unaudited) - Schedule of Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								6 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Data [Abstract]
Revenue	$ 6,347	$ 5,882	$ 5,994	$ 5,615	$ 6,264	$ 5,665	$ 5,548	$ 5,399		$ 23,838	$ 22,877	$ 17,179
Gross profit	1,295	1,101	1,062	976	1,236	973	936	841		4,432	3,986
Restructuring, impairment and other	159	71	50	62	59	66	146	162		342	433	412
Separation and merger related	57	54	40	34	41	17	50	46		184	153	373
Net income (loss) attributable to Baker Hughes Company	$ 48	$ 57	$ (9)	$ 32	$ 131	$ 13	$ (19)	$ 70		$ 128	$ 195	$ (103)
Basic earnings (loss) per Class A common share (in dollars per share)	$ 0.07	$ 0.11	$ (0.02)	$ 0.06	$ 0.28	$ 0.03	$ (0.05)	$ 0.17		$ 0.23	$ 0.46	$ (0.24)
Diluted earnings (loss) per Class A common share (in dollars per share)	0.07	0.11	(0.02)	0.06	0.28	0.03	(0.05)	0.17		0.23	0.45	(0.24)
Class A
Quarterly Financial Data [Abstract]
Basic earnings (loss) per Class A common share (in dollars per share)										0.23	0.46	(0.24)
Diluted earnings (loss) per Class A common share (in dollars per share)										0.23	0.45	(0.24)
Cash dividend \| Class A
Class of Stock [Line Items]
Dividends per share (in dollars per share)	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.35	$ 0.72	$ 0.72	$ 0.35

Label	Element	Value
Stock Repurchased and Retired During Period, Value	us-gaap_StockRepurchasedAndRetiredDuringPeriodValue	$ 501,000,000
Noncontrolling Interest, Increase from Business Combination	us-gaap_NoncontrollingInterestIncreaseFromBusinessCombination	0
Parent Net Investment, Changes, Increase (Decrease)	bkr_ParentNetInvestmentChangesIncreaseDecrease	762,000,000
Contribution from Parent	bkr_ContributionfromParent	7,400,000,000
Stock Issued During Period, Value, Acquisitions	us-gaap_StockIssuedDuringPeriodValueAcquisitions	24,874,000,000
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders	251,000,000
Noncontrolling Interest, Period Increase (Decrease)	us-gaap_MinorityInterestPeriodIncreaseDecrease	4,000,000
Noncontrolling Interest, Period Increase (Decrease)	us-gaap_MinorityInterestPeriodIncreaseDecrease	(208,000,000)
Noncontrolling Interest, Increase from Sale of Parent Equity Interest	us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest	0
Noncontrolling Interest [Member]
Stock Repurchased and Retired During Period, Value	us-gaap_StockRepurchasedAndRetiredDuringPeriodValue	314,000,000
Noncontrolling Interest, Increase from Business Combination	us-gaap_NoncontrollingInterestIncreaseFromBusinessCombination	616,000,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	4,000,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	(334,000,000)
Stock Issued During Period, Value, Acquisitions	us-gaap_StockIssuedDuringPeriodValueAcquisitions	76,000,000
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders	251,000,000
Noncontrolling Interest, Period Increase (Decrease)	us-gaap_MinorityInterestPeriodIncreaseDecrease	4,000,000
Noncontrolling Interest, Period Increase (Decrease)	us-gaap_MinorityInterestPeriodIncreaseDecrease	(133,000,000)
Other Comprehensive Income (Loss), Net of Tax	us-gaap_OtherComprehensiveIncomeLossNetOfTax	3,000,000
Other Comprehensive Income (Loss), Net of Tax	us-gaap_OtherComprehensiveIncomeLossNetOfTax	77,000,000
Noncontrolling Interest, Increase from Sale of Parent Equity Interest	us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest	24,218,000,000
Retained Earnings [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	(103,000,000)
AOCI Attributable to Parent [Member]
Noncontrolling Interest, Increase from Business Combination	us-gaap_NoncontrollingInterestIncreaseFromBusinessCombination	1,234,000,000
Parent Net Investment, Changes, Increase (Decrease)	bkr_ParentNetInvestmentChangesIncreaseDecrease	(13,000,000)
Noncontrolling Interest, Period Increase (Decrease)	us-gaap_MinorityInterestPeriodIncreaseDecrease	(13,000,000)
Additional Paid-in Capital [Member]
Stock Repurchased and Retired During Period, Value	us-gaap_StockRepurchasedAndRetiredDuringPeriodValue	187,000,000
Noncontrolling Interest, Increase from Business Combination	us-gaap_NoncontrollingInterestIncreaseFromBusinessCombination	(1,850,000,000)
Stock Issued During Period, Value, Acquisitions	us-gaap_StockIssuedDuringPeriodValueAcquisitions	24,798,000,000
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	37,000,000
Noncontrolling Interest, Period Increase (Decrease)	us-gaap_MinorityInterestPeriodIncreaseDecrease	(62,000,000)
Parent Net Investment [Member]
Parent Net Investment, Changes, Increase (Decrease)	bkr_ParentNetInvestmentChangesIncreaseDecrease	775,000,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	42,000,000
Contribution from Parent	bkr_ContributionfromParent	7,400,000,000
Noncontrolling Interest, Increase from Sale of Parent Equity Interest	us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest	(24,218,000,000)
Special Dividend [Member]
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	7,498,000,000
Special Dividend [Member] \| Additional Paid-in Capital [Member]
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	7,498,000,000
Cash Dividend [Member]
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	155,000,000
Cash Dividend [Member] \| Additional Paid-in Capital [Member]
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	155,000,000
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] \| Noncontrolling Interest [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	42,000,000
Accounting Standards Update 2016-16 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 25,000,000

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

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



(In millions, except per share amounts)	2019		2018		2017
Net income (loss)	$	271	$	283	$	(391	)
Less: Net income attributable to GE O&G pre-merger	—		—		42
Less: Net income (loss) attributable to noncontrolling interests	143		88		(330		)
Net income (loss) attributable to Baker Hughes Company	$	128	$	195	$	(103	)

Weighted average shares outstanding:
Class A basic	555		427		427
Class A diluted	557		429		427
Net income (loss) per share attributable to common stockholders:
Class A basic	$	0.23	$	0.46	$	(0.24	)
Class A diluted	$	0.23	$	0.45	$	(0.24	)

Employee Benefit Plans - Schedule of Future Expected Benefit Payments (Details) $ in Millions	Dec. 31, 2019 USD ($)
Pension Benefits
Defined Benefit Plan Disclosure
2020	$ 136
2021	134
2022	136
2023	137
2024	142
2025-2029	749
Other Postretirement Benefits
Defined Benefit Plan Disclosure
2020	11
2021	9
2022	7
2023	6
2024	6
2025-2029	$ 24

Stock-Based Compensation - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jul. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation cost		$ 37,000,000	$ 187,000,000	$ 121,000,000	$ 37,000,000
Vesting period			3 years
Expected volatility term			6 years	6 years	6 years
Options outstanding, weighted average remaining contractual term			5 years 4 months 24 days
Options exercisable, weighted average remaining contractual term			3 years 4 months 24 days
Options vested (in shares)			867,000	505,000
Fair value of options vested	$ 10,000,000	$ 0	$ 10,000,000	$ 6,000,000	$ 0
Unrecognized compensation cost, unvested	16,000,000		16,000,000
Stock option exercised, intrinsic value			2,000,000
Options outstanding, intrinsic value	7,000,000		7,000,000
Stock option exercised	$ 2,000,000		$ 2,000,000
Share price (in dollars per share)	$ 25.63		$ 25.63
Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized (in shares)	2,000,000,000		2,000,000,000	2,000,000,000
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, maximum weighted average contractual term			9 years 1 month 6 days
Unvested, weighted average period			1 year 7 months 6 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, unvested	$ 180,000,000		$ 180,000,000
Unvested, weighted average period			1 year 8 months 12 days
Award of common stock, right to receive (in shares)			1
Intrinsic value, vested			$ 68,000,000
Intrinsic value, outstanding	289,000,000		289,000,000
Fair value options vested in period			101,000,000
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, unvested	31,000,000		$ 31,000,000
Unvested, weighted average period			1 year 8 months 12 days
Intrinsic value, vested			$ 52,000,000
Stock-based compensation, service period			3 years
Performance Share Units \| Non-employee director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation, service period			1 year
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee purchase, maximum per quarter	$ 3,000
Employee purchase, maximum			$ 12,000
Employee Stock \| Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount of the fair market value			15.00%
Common stock authorized (in shares)	15,000,000		15,000,000
Common stock reserved for future issuance (in share)	12,900,000		12,900,000
Employee Stock \| Class A \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
After-tax basis			1.00%
Employee Stock \| Class A \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
After-tax basis			20.00%
Long-Term Inventive Plan (LTI Plan) \| Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	35,500,000		35,500,000			57,400,000

Inventories

12 Months Ended

Dec. 31, 2019

Inventory, Net [Abstract]

Inventories

INVENTORIES

Inventories, net of reserves of $429 million and $430 million in 2019 and 2018, respectively, are comprised of the following at December 31:



	2019		2018
Finished goods	$	2,546	$	2,575
Work in process and raw materials	2,062		2,045
Total inventories, net	$	4,608	$	4,620

See "Note 18. Segment Information" for additional information on inventory impairments.

Income Taxes - Narrative (Details) $ in Millions	12 Months Ended
Income Taxes - Narrative (Details) $ in Millions	Dec. 31, 2019 USD ($) country	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Total Gross Unrecognized Tax Benefits
Tax Cuts and Jobs Act, tax expense (benefit)	$ (107)
Operating loss carryforwards	1,654	$ 1,525
Valuation allowances	2,883	2,372
Deferred tax assets, operating loss carryforwards, foreign	290
Deferred tax liability not provided for temporary difference	6,700
Tax liabilities for gross unrecognized tax benefits	451	$ 472	$ 395
Interest accrued on income taxes for unrecognized tax benefits	93
Penalties accrued on income taxes for unrecognized tax benefits	29
Uncertain tax positions	573
Unrecognized tax benefits that would impact effective tax rate	515
Deferred tax asset that we did not prevail on all uncertain tax position	58
Deferred tax asset that we did not prevail on all uncertain tax position, foreign taxing jurisdiction	21
Deferred tax asset that we did not prevail on all uncertain tax position, increased valuation allowances	37
Uncertain tax positions, liabilities	$ 67
Number of countries in which entity operates (more than) \| country	120
Foreign Net Operating Loss
Total Gross Unrecognized Tax Benefits
Valuation allowances	$ 1,257
US And Foreign Tax Credit Carryforward
Total Gross Unrecognized Tax Benefits
Valuation allowances	909
Other United States Net Operating Loss Tax Credit Carryforward
Total Gross Unrecognized Tax Benefits
Valuation allowances	109
Other US And Foreign Deferred Tax Assets
Total Gross Unrecognized Tax Benefits
Valuation allowances	608
Five year carryforward
Total Gross Unrecognized Tax Benefits
Operating loss carryforwards	$ 331
Expiration of operation loss carryforwards over the next 5 years	5 years
Six to twenty year carryforward
Total Gross Unrecognized Tax Benefits
Operating loss carryforwards	$ 326
Minimum \| Six to twenty year carryforward
Total Gross Unrecognized Tax Benefits
Expiration of operation loss carryforwards over the next six to 20 years	6 years
Maximum \| Six to twenty year carryforward
Total Gross Unrecognized Tax Benefits
Expiration of operation loss carryforwards over the next six to 20 years	20 years
Indefinite Foreign Tax
Total Gross Unrecognized Tax Benefits
Deferred tax assets, tax credit carryforwards, foreign	$ 366
Definite Foreign Tax
Total Gross Unrecognized Tax Benefits
Deferred tax assets, tax credit carryforwards, foreign	543
Other Tax
Total Gross Unrecognized Tax Benefits
Deferred tax assets, tax credit carryforwards	$ 32

Employee Benefit Plans - Schedule of Information for Plans with ABOs in Excess of Plan Assets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Projected benefit obligation	$ 1,814	$ 1,621
Accumulated benefit obligation	1,763	1,585
Fair value of plan assets	1,288	1,179
Other Postretirement Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Accumulated benefit obligation	$ 80	$ 107

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (U.S. tax reform) that lowers the statutory tax rate on U.S. earnings, taxes historic foreign earnings previously deferred from U.S. taxation at a reduced rate of tax (transition tax), establishes a territorial tax system and enacts new taxes associated with global operations.

The impact of U.S. tax reform was initially recorded on a provisional basis as the legislation provided for additional guidance to be issued by the U.S. Department of the Treasury on several provisions including the computation of the transition tax. Based on guidance received to date, finalization of purchase accounting for the BHI acquisition, and finalization of our 2017 U.S. income tax returns, we have recorded a $107 million tax benefit in 2018 for the impact of tax reform primarily related to the revaluation of deferred taxes.

Additionally, as part of U.S. tax reform, the U.S. has enacted a tax on "base eroding" payments from the U.S. and a minimum tax on foreign earnings (global intangible low-taxed income). We have made an accounting policy election to account for these taxes as period costs.

The provision or benefit for income taxes is comprised of the following for the years ended December 31:



	2019			2018			2017
Current:
U.S.	$	(12	)	$	63		$	(75	)
Foreign	443			444			453
Total current	431			507			378
Deferred:
U.S.	(12		)	(211		)	(150		)
Foreign	63			(38		)	(183		)
Total deferred	51			(249		)	(333		)
Provision for income taxes	$	482		$	258		$	45

The geographic sources of income (loss) before income taxes, inclusive of equity in loss of affiliate, are as follows for the years ended December 31:



	2019			2018			2017
U.S.	$	(693	)	$	(672	)	$	(1,189	)
Foreign	1,446			1,213			843
Income (loss) before income taxes, inclusive of equity in loss of affiliate	$	753		$	541		$	(346	)



	2019			2018			2017
Income (loss) before income taxes, inclusive of equity in loss of affiliate	$	753		$	541		$	(346	)
Taxes at the U.S. federal statutory income tax rate	158			114			(121		)
Effect of foreign operations	85			103			(19		)
Tax impact of partnership structure	17			80			171
Change in valuation allowances	241			87			169
Tax Cuts and Jobs Act enactment	—			(107		)	(132		)
Other - net	(19		)	(19		)	(23		)
Provision for income taxes	$	482		$	258		$	45
Actual income tax rate	64.0		%	47.7		%	(13.0		)%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss and tax credit carryforwards.

The tax effects of our temporary differences and carryforwards are as follows at December 31:



	2019			2018
Deferred tax assets:
Receivables	$	79		$	117
Inventory	91			79
Property	137			191
Goodwill and other intangibles	117			132
Employee benefits	98			97
Investment in partnership	381			228
Other accrued expenses	47			74
Operating loss carryforwards	1,654			1,525
Tax credit carryforwards	941			653
Other	270			232
Total deferred income tax asset	3,815			3,328
Valuation allowances	(2,883		)	(2,372		)
Total deferred income tax asset after valuation allowance	932			956
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries	—			(9		)
Other	(29		)	(18		)
Total deferred income tax liability	(29		)	(27		)
Net deferred tax asset	$	903		$	929

At December 31, 2019, we had approximately $366 million of non-U.S. tax credits which may be carried forward indefinitely under applicable foreign law, $543 million of foreign tax credits and $32 million of other credits, the majority of which will expire after tax year 2027 under U.S. tax law. Additionally, we had $1,654 million of net operating loss carryforwards, of which approximately $331 million will expire within five years, $326 million will expire between 6 years and 20 years, and the remainder can be carried forward indefinitely.

We record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character in the future and in the appropriate taxing jurisdictions. At December 31, 2019, $2,883 million of valuation allowances are recorded against various deferred tax assets, including foreign net operating losses (NOL) of $1,257 million, U.S. federal and foreign tax credit carryforwards of $909 million, other U.S. NOL's and tax credit carryforwards of $109 million, and certain other U.S. and foreign deferred tax assets of $608 million. There are $290 million of deferred tax assets related to foreign net operating loss carryforwards without a valuation allowance as we expect that the deferred tax assets will be realized within the carryforward period.

Substantially all of our undistributed earnings of our foreign subsidiaries are indefinitely reinvested. Indefinite reinvestment is determined by management’s intentions concerning the future operations of the Company. Substantially all of these earnings have been reinvested in active non-U.S. business operations. As of December 31, 2019, the cumulative amount of indefinitely reinvested foreign earnings is approximately $6.7 billion. Computation of the potential deferred tax liability associated with these undistributed earnings and any other basis differences is not practicable.

At December 31, 2019, we had $451 million of tax liabilities for total gross unrecognized tax benefits related to uncertain tax positions. In addition to these uncertain tax positions, we had $93 million and $29 million related to interest and penalties, respectively, for total liabilities of $573 million for uncertain positions. If we were to prevail on all uncertain positions, the net effect would result in an income tax benefit of approximately $515 million. The remaining $58 million comprised of $21 million for deferred tax assets that represent tax benefits that would be received in different taxing jurisdictions in the event that we did not prevail on all uncertain tax positions and increased valuation allowances of $37 million.

The following table presents the changes in our gross unrecognized tax benefits included in the consolidated and combined statements of financial position.



Asset / (Liability)	2019			2018
Balance at beginning of year	$	(472	)	$	(395	)
Balance acquired from BHI	—			(142		)
Additions for tax positions of the current year	(25		)	(21		)
Additions for tax positions of prior years	(27		)	(95		)
Reductions for tax positions of prior years	55			101
Settlements with tax authorities	6			35
Lapse of statute of limitations	12			45
Balance at end of year	$	(451	)	$	(472	)

It is expected that the amount of unrecognized tax benefits will change in the next twelve months due to expiring statutes, audit activity, tax payments, and competent authority proceedings related to transfer pricing or final decisions in matters that are the subject of litigation in various taxing jurisdictions in which we operate. At December 31, 2019, we had approximately $67 million of tax liabilities related to uncertain tax positions, each of which are individually insignificant, and each of which are reasonably possible of being settled within the next twelve months.

We conduct business in more than 120 countries and are subject to income taxes in most taxing jurisdictions in which we operate. All Internal Revenue Service examinations have been completed and closed through year end 2016 for the most significant U.S. returns. We believe there are no other jurisdictions in which the outcome of

unresolved issues or claims is likely to be material to our results of operations, financial position or cash flows. We further believe that we have made adequate provision for all income tax uncertainties.

Income Taxes - Schedule of Difference between Provision and U.S. Statutory Income Tax Rate (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income (loss) before income taxes, inclusive of equity in loss of affiliate	$ 753	$ 541	$ (346)
Taxes at the U.S. federal statutory income tax rate	158	114	(121)
Effect of foreign operations	85	103	(19)
Tax impact of partnership structure	17	80	171
Change in valuation allowances	241	87	169
Tax Cuts and Jobs Act enactment	0	(107)	(132)
Other - net	(19)	(19)	(23)
Provision for income taxes	$ 482	$ 258	$ 45
Actual income tax rate	64.00%	47.70%	(13.00%)

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are comprised of the following at December 31:



	Useful Life	2019			2018
Land and improvements ⁽¹⁾	8 - 20 years ⁽¹⁾	$	430		$	432
Buildings, structures and related equipment	5 - 40 years	2,870			2,854
Machinery, equipment and other	2 - 20 years	7,324			6,567
Total cost		10,624			9,853
Less: Accumulated depreciation		(4,384		)	(3,625		)
Property, plant and equipment, less accumulated depreciation		$	6,240		$	6,228


⁽¹⁾	Useful life excludes land.

Depreciation expense relating to property, plant and equipment was $1,053 million, $1,031 million and $716 million in 2019, 2018 and 2017, respectively. See "Note 21. Restructuring, Impairment and Other" for additional information on property, plant and equipment impairments.

Borrowings - Maturities of Debt Schedule (Details) $ in Millions	Dec. 31, 2019 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2020	$ 321
2021	40
2022	1,275
2023	28
2024	148
Thereafter	$ 4,810

Financial Instruments - Derivatives and hedging (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Derivatives	$ 58	$ 74
Derivative liability	(27)	(82)
Currency exchange contracts \| Designated as hedging instrument
Derivatives, Fair Value [Line Items]
Derivatives	11	0
Derivative liability	0	(7)
Currency exchange contracts \| Not designated as hedging instrument
Derivatives, Fair Value [Line Items]
Derivatives	47	74
Derivative liability	$ (27)	$ (75)

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) employee in Thousands, $ in Millions				1 Months Ended		12 Months Ended
	Dec. 31, 2019 USD ($) employee country	Sep. 30, 2019	Aug. 31, 2019	Sep. 30, 2019 USD ($) shares	Nov. 30, 2018 USD ($) shares	Dec. 31, 2019 USD ($) employee country	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 16, 2019	Jan. 01, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of countries in which entity operates (more than) \| country	120					120
Number of our employees \| employee	68					68
Payments for repurchase of common stock						$ 0	$ 387	$ 174
Research and development expenses						687	700	$ 501
Restricted cash and cash equivalents held in bank accounts	$ 1,102					1,102	1,208
Operating lease, liability	842					$ 842
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use asset										$ 844
Operating lease, liability										$ 844
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Performance obligations expected to be satisfied, expected timing						P10Y
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Performance obligations expected to be satisfied, expected timing						P20Y
General Electric Company
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Restricted cash and cash equivalents held in bank accounts	142					$ 142	461
Joint venture, GE aero-derivative gas turbine products and services \| JV aero-derivative gas turbine products and services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Related party transaction, joint venture ownership percentage		50.00%		50.00%					50.00%
Related party amount, due to related party \| GE
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash	$ 162					$ 162	$ 747
BHGE LLC \| General Electric Company
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Approximate interest					50.40%
Class A \| BHGE LLC \| General Electric Company
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock Repurchased and Retired During Period, Shares \| shares				132,300,000	101,200,000
Class B \| BHGE LLC \| General Electric Company
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sale of stock, number of shares issued in transaction (in shares) \| shares					65,000,000
Payments for repurchase of common stock				$ 250	$ 1,500
Approximate interest					62.50%
Stock repurchased (in shares) \| shares				11,865,211
Class B \| Baker Hughes Incorporated \| General Electric Company
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Approximate interest	36.70%	36.80%	50.30%

Contract and Other Deferred Assets (Tables)

12 Months Ended

Dec. 31, 2019

Preliminary identifiable assets acquired and liabilities assumed

Contract assets

Contract assets are comprised of the following at December 31:



	2019		2018
Long-term product service agreements	$	603	$	609
Long-term equipment contracts ⁽¹⁾	1,097		1,085
Contract assets (total revenue in excess of billings)	1,700		1,694
Deferred inventory costs	130		179
Non-recurring engineering costs	51		21
Contract and other deferred assets	$	1,881	$	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.

Contract liabilities are comprised of the following at December 31:



	2019		2018
Progress collections	$	2,760	$	1,600
Deferred income	110		165
Progress collections and deferred income (contract liabilities)	$	2,870	$	1,765

Equity - Non-Controlling Interest (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019	Aug. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Noncontrolling Interest [Line Items]
GE's interest in BHGE LLC	$ 12,570			$ 17,548
Total equity	34,499			35,013	$ 38,410	$ 14,280
General Electric Company
Noncontrolling Interest [Line Items]
GE's interest in BHGE LLC	12,454			17,438
Other noncontrolling interests	116			110
Total equity	$ 12,570			$ 17,548
Baker Hughes Incorporated \| Class B \| General Electric Company
Noncontrolling Interest [Line Items]
Approximate interest	36.70%	36.80%	50.30%

Business Acquisition and Disposition (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

The tables below present the final fair value of assets acquired and liabilities assumed and the associated fair value of the noncontrolling interest related to the acquired net assets of BHI. The final determination of the fair value of assets and liabilities was concluded in the second quarter of 2018.



Preliminary identifiable assets acquired and liabilities assumed	Fair Value at July 3, 2017
Assets
Cash and equivalents	$	4,133
Current receivables	2,342
Inventories	1,712
Property, plant and equipment	4,514
Intangible assets ⁽¹⁾	4,005
All other assets	1,335
Liabilities
Accounts payable	$	(1,213	)
Borrowings	(3,370		)
Deferred income taxes ⁽²⁾	(258		)
Liabilities for pension and other postretirement benefits	(654		)
All other liabilities	(1,676		)
Total identifiable net assets	$	10,870
Noncontrolling interest associated with net assets acquired	(35		)
Goodwill ⁽³⁾	13,963
Total purchase consideration	$	24,798

⁽¹⁾

Intangible assets, as provided in the table below, are recorded at fair value, as determined by management based on available information. The useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows. We consider the Baker Hughes trade name to be an indefinite life intangible asset, which will not be amortized and will be subject to an annual impairment test.



	Fair Value		Weighted Average Life (Years)
Trade name - Baker Hughes	$	2,100	Indefinite life
Customer relationships	1,240		15
Patents and technology	465		10
In-process research and development	70		Indefinite life
Capitalized software	64		2
Trade names - other	45		10
Favorable lease contracts & others	21		10
Total	$	4,005


⁽²⁾	Includes approximately $500 million of net deferred tax liabilities related to the fair value of intangible assets included in the purchase consideration and approximately $242 million of other net deferred tax assets, including non-U.S. loss carryforwards net of valuation allowances partially offset by liabilities for unrecognized benefits.

⁽³⁾

Goodwill resulting from the Transactions has been primarily allocated to the Oilfield Services segment, of which $67 million is deductible for tax purposes.

Intangible assets



	Fair Value		Weighted Average Life (Years)
Trade name - Baker Hughes	$	2,100	Indefinite life
Customer relationships	1,240		15
Patents and technology	465		10
In-process research and development	70		Indefinite life
Capitalized software	64		2
Trade names - other	45		10
Favorable lease contracts & others	21		10
Total	$	4,005

Pro forma information

Significant adjustments to the pro forma information below include amortization associated with an estimate of the acquired intangible assets and reduction of interest expense for fair value adjustments to debt. Excluded from the proforma information below are non-recurring direct incremental acquisition costs from 2017.



	2017
Revenue	$	21,841
Net loss	(485		)
Net loss attributable to the Company	(147		)
Loss per Class A share - basic and diluted ⁽¹⁾	(0.34		)

⁽¹⁾

The calculation of diluted loss per Class A share excludes shares potentially issuable under stock-based incentive compensation plans and the exchange of Class B shares with Class A shares under the Exchange Agreement, as their effect, if included, would be antidilutive.

Earnings Per Share - Narrative (Details) - Class A shares in Millions		12 Months Ended
	Jul. 03, 2017	Dec. 31, 2019 shares	Dec. 31, 2018 shares
Class of Stock [Line Items]
Conversion ratio	1
Options
Class of Stock [Line Items]
Antidilutive securities excluded from diluted EPS calculation (in options)		6,000,000	4,000,000

Employee Benefit Plans - Schedule of Assumptions Used for Net Periodic Cost (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	3.43%	2.99%	3.24%
Expected long-term return on plan assets	5.48%	5.94%	6.26%
Other Postretirement Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate	3.92%	3.32%	3.72%

Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2017	Jul. 02, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance		$ 14,280	$ 35,013	$ 38,410	$ 14,280
Other comprehensive loss before reclassifications			(54)	(579)
Amounts reclassified from accumulated other comprehensive loss			27	6
Deferred taxes			19	0
Other comprehensive income (loss)	$ 123	(66)	(8)	(573)	57
Less: Other comprehensive loss attributable to noncontrolling interests			(1)	(343)	80
Less: Reallocation of AOCL based on change in ownership of BHGE LLC Units			350	282
Less: Activity related to noncontrolling interest				4
Less: Other adjustments			60
Ending balance	38,410		34,499	35,013	38,410
Investment Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			0	1
Other comprehensive loss before reclassifications			2	(1)
Amounts reclassified from accumulated other comprehensive loss			0	0
Deferred taxes			0	(2)
Other comprehensive income (loss)			2	(3)
Less: Other comprehensive loss attributable to noncontrolling interests			1	(2)
Less: Reallocation of AOCL based on change in ownership of BHGE LLC Units			0	0
Less: Activity related to noncontrolling interest				0
Less: Other adjustments			0
Ending balance	1		1	0	1
Foreign Currency Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			(1,152)	(682)
Other comprehensive loss before reclassifications			53	(502)
Amounts reclassified from accumulated other comprehensive loss			0	0
Deferred taxes			0	0
Other comprehensive income (loss)			53	(502)
Less: Other comprehensive loss attributable to noncontrolling interests			23	(303)
Less: Reallocation of AOCL based on change in ownership of BHGE LLC Units			314	271
Less: Activity related to noncontrolling interest				0
Less: Other adjustments			0
Ending balance	(682)		(1,436)	(1,152)	(682)
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			(1)	1
Other comprehensive loss before reclassifications				(6)
Amounts reclassified from accumulated other comprehensive loss				1
Deferred taxes				1
Other comprehensive income (loss)				(4)
Less: Other comprehensive loss attributable to noncontrolling interests				(2)
Less: Reallocation of AOCL based on change in ownership of BHGE LLC Units				0
Less: Activity related to noncontrolling interest				0
Ending balance	1			(1)	1
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive loss before reclassifications			13
Amounts reclassified from accumulated other comprehensive loss			1
Deferred taxes			(2)
Other comprehensive income (loss)			12
Less: Other comprehensive loss attributable to noncontrolling interests			4
Less: Reallocation of AOCL based on change in ownership of BHGE LLC Units			0
Less: Other adjustments			1
Ending balance			6
Benefit Plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			(66)	(23)
Other comprehensive loss before reclassifications			(122)	(70)
Amounts reclassified from accumulated other comprehensive loss			26	5
Deferred taxes			21	1
Other comprehensive income (loss)			(75)	(64)
Less: Other comprehensive loss attributable to noncontrolling interests			(29)	(36)
Less: Reallocation of AOCL based on change in ownership of BHGE LLC Units			36	11
Less: Activity related to noncontrolling interest				4
Less: Other adjustments			59
Ending balance	(23)		(207)	(66)	(23)
Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance		(1,888)	(1,219)	(703)	(1,888)
Other comprehensive income (loss)	46	$ (69)	(7)	(230)
Ending balance	$ (703)		$ (1,636)	$ (1,219)	$ (703)

Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions				1 Months Ended		3 Months Ended								6 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Aug. 31, 2019	Sep. 30, 2019	Nov. 30, 2018	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Preferred stock authorized (in shares)	50,000,000					50,000,000									50,000,000
Common stock par value (in dollars per share)	$ 0.0001					$ 0.0001									$ 0.0001
Effect of exchange of BHGE LLC Units and Class B common stock for Class A common stock				$ 4,497	$ 3,761										$ 250	$ 2,087
Class A
Class of Stock [Line Items]
Common stock authorized (in shares)	2,000,000,000					2,000,000,000				2,000,000,000					2,000,000,000	2,000,000,000
Common stock par value (in dollars per share)	$ 0.0001					$ 0.0001				$ 0.0001					$ 0.0001	$ 0.0001
Common stock outstanding (in shares)	650,000,000					650,000,000				513,000,000					650,000,000	513,000,000
Class B
Class of Stock [Line Items]
Common stock authorized (in shares)	1,250,000,000					1,250,000,000				1,250,000,000					1,250,000,000	1,250,000,000
Common stock par value (in dollars per share)	$ 0.0001					$ 0.0001				$ 0.0001					$ 0.0001	$ 0.0001
Common stock outstanding (in shares)	377,000,000					377,000,000				522,000,000					377,000,000	522,000,000
Cash dividend \| Class A
Class of Stock [Line Items]
Dividends per share (in dollars per share)						$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.35	$ 0.72	$ 0.72	$ 0.35
Accumulated Other Comprehensive Loss
Class of Stock [Line Items]
Effect of exchange of BHGE LLC Units and Class B common stock for Class A common stock				350	282
Capital in Excess of Par Value
Class of Stock [Line Items]
Effect of exchange of BHGE LLC Units and Class B common stock for Class A common stock				$ 4,847	$ 4,043
BHGE LLC \| General Electric Company
Class of Stock [Line Items]
Approximate interest					50.40%
BHGE LLC \| General Electric Company \| Class B
Class of Stock [Line Items]
Dividends per share (in dollars per share)				$ 21.07
Approximate interest					62.50%
Baker Hughes Incorporated \| General Electric Company \| Class B
Class of Stock [Line Items]
Approximate interest	36.70%	36.80%	50.30%

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of operating lease expense

The following table presents operating lease expense for the year ended December 31:



Operating Lease Expense	2019
Long-term fixed lease	$	233
Long-term variable lease	48
Short-term lease ⁽¹⁾	706
Total operating lease expense	$	987

⁽¹⁾

Leases with a term of one year or less, including leases with a term of one month or less

Maturities of lease liabilities, operating leases

As of December 31, 2019, maturities of our operating lease liabilities are as follows:



Year	Operating Leases
2020	$	230
2021	173
2022	139
2023	95
2024	65
Thereafter	318
Total lease payments	1,020
Less: imputed interest	178
Total	$	842

Schedule of liabilities

Amounts recognized in the consolidated statement of financial position as of December 31, 2019:



	Operating Leases
All other current liabilities	$	201
All other liabilities	641
Total	$	842

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2019	Feb. 06, 2020	Jun. 30, 2019
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	1-38143
Entity Registrant Name	Baker Hughes Company
Entity Central Index Key	0001701605
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-4403168
Entity Address, Address Line One	17021 Aldine Westfield Road
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77073-5101
City Area Code	713
Local Phone Number	439-8600
Title of 12(b) Security	Class A Common Stock, $0.0001 Par Value per Share
Trading Symbol	BKR
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 9,854,020,448
Documents Incorporated by Reference	Portions of Registrant's Definitive Proxy Statement for the 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K.
Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		653,509,914
Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		377,427,884

Quarterly Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Data [Abstract]

Quarterly Data (Unaudited)

QUARTERLY DATA (UNAUDITED)



(In millions, except per share amounts)	First Quarter		Second Quarter			Third Quarter		Fourth Quarter		Total Year
2019
Revenue	$	5,615	$	5,994		$	5,882	$	6,347	$	23,838
Gross profit ⁽¹⁾	976		1,062			1,101		1,295		4,432
Restructuring, impairment and other ⁽²⁾	62		50			71		159		342
Separation and merger related	34		40			54		57		184
Net income (loss) attributable to Baker Hughes Company	32		(9		)	57		48		128
Basic earnings (loss) per Class A common share	0.06		(0.02		)	0.11		0.07		0.23
Diluted earnings (loss) per Class A common share	0.06		(0.02		)	0.11		0.07		0.23
Cash dividend per Class A common share	0.18		0.18			0.18		0.18		0.72

2018
Revenue	$	5,399	$	5,548		$	5,665	$	6,264	$	22,877
Gross profit ⁽¹⁾	841		936			973		1,236		3,986
Restructuring, impairment and other ⁽²⁾	162		146			66		59		433
Separation and merger related	46		50			17		41		153
Net income (loss) attributable to Baker Hughes Company	70		(19		)	13		131		195
Basic earnings (loss) per Class A common share	0.17		(0.05		)	0.03		0.28		0.46
Diluted earnings (loss) per Class A common share	0.17		(0.05		)	0.03		0.28		0.45
Cash dividend per Class A common share	0.18		0.18			0.18		0.18		0.72


⁽¹⁾	Represents revenue less cost of sales and cost of services.

⁽²⁾

Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

GE MULTI-EMPLOYER PLANS

Historically, we were allocated relevant participation costs for certain employees who participated in GE employee benefit plans as part of multi-employer plans. Certain of our U.S. employees were covered under various U.S. GE employee benefit plans, including GE's retirement plans (pension, retiree health and life insurance, and savings benefit plans). From January 1, 2019, these U.S. employees ceased to participate in the GE U.S. plans. In addition, certain United Kingdom (UK) employees participated in the GE UK Pension Plan. From May 1, 2019, these UK employees ceased to participate in the GE UK Pension Plan. Expenses associated with our participation in these plans were $3 million, $158 million and $132 million in the years ended December 31, 2019, 2018 and 2017, respectively. In 2019, the assets and liabilities of the GE UK Pension Plan related to the oil & gas businesses were transferred to us on a fully funded basis.

DEFINED BENEFIT PLANS

In addition to these GE plans, certain of our employees are also covered by company sponsored pension plans. Our primary pension plans in 2019 included four U.S. plans and seven non-U.S. pension plans, primarily in the UK, Germany, and Canada, all with pension assets or obligations greater than $20 million. We use a December 31 measurement date for these plans. These defined benefit plans generally provide benefits to employees based on formulas recognizing length of service and earnings; however, over half of these plans are either frozen or closed to new entrants. We also provide certain postretirement health care benefits (Other Postretirement Benefits), through an unfunded plan, to a closed group of U.S. employees who retire and meet certain age and service requirements.

Funded Status

The funded status position represents the difference between the benefit obligation and the plan assets. The projected benefit obligation (PBO) for pension benefits represents the actuarial present value of benefits attributed to employee services and compensation and includes an assumption about future compensation levels. The accumulated benefit obligation (ABO) is the actuarial present value of pension benefits attributed to employee

service to date at present compensation levels. The ABO differs from the PBO in that the ABO does not include any assumptions about future compensation levels. Below is the reconciliation of the beginning and ending balances of benefit obligations, fair value of plan assets and the funded status of our plans.



	Pension Benefits						Other Postretirement Benefits
	2019			2018			2019			2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	2,261		$	2,418		$	107		$	187
Service cost	21			21			1			2
Interest cost	90			71			4			5
Plan amendment	—			20			—			1
Actuarial loss (gain)	301			(93		)	(16		)	(23		)
Benefits paid	(102		)	(67		)	(16		)	(21		)
Curtailments	(21		)	(7		)	—			(5		)
Settlements	(36		)	(59		)	—			—
Transfer from GE - UK Plan	837			—			—			—
Other	15			16			—			(39		)
Foreign currency translation adjustments	85			(59		)	—			—
Benefit obligation at end of year	3,451			2,261			80			107

Change in plan assets:
Fair value of plan assets at beginning of year	1,866			2,059			—			—
Actual return on plan assets	314			(60		)	—			—
Employer contributions	23			51			16			21
Benefits paid	(102		)	(67		)	(16		)	(21		)
Settlements	(36		)	(59		)	—			—
Transfer from GE - UK Plan	851			—			—			—
Other	—			(9		)	—			—
Foreign currency translation adjustments	88			(49		)	—			—
Fair value of plan assets at end of year	3,004			1,866			—			—

Funded status - underfunded at end of year	$	(447	)	$	(395	)	$	(80	)	$	(107	)

Accumulated benefit obligation	$	3,401		$	2,225		$	80		$	107

The amounts recognized in the consolidated and combined statements of financial position consist of the following at December 31:



	Pension Benefits						Other Postretirement Benefits
	2019			2018			2019			2018
Noncurrent assets	$	78		$	47		$	—		$	—
Current liabilities	(17		)	(13		)	(11		)	(19		)
Noncurrent liabilities	(508		)	(429		)	(69		)	(88		)
Net amount recognized	$	(447	)	$	(395	)	$	(80	)	$	(107	)

Information for the plans with ABOs in excess of plan assets is as follows at December 31:



	Pension Benefits				Other Postretirement Benefits
	2019		2018		2019		2018
Projected benefit obligation	$	1,814	$	1,621	n/a		n/a
Accumulated benefit obligation	$	1,763	$	1,585	$	80	$	107
Fair value of plan assets	$	1,288	$	1,179	n/a		n/a

Net Periodic Cost (Income)

The components of net periodic cost (income) are as follows for the years ended December 31:



	Pension Benefits										Other Postretirement Benefits
	2019			2018			2017				2019			2018			2017
Service cost	$	21		$	21		$	37			$	1		$	2		$	2
Interest cost	90			71			51				4			5			6
Expected return on plan assets	(122		)	(121		)	(81		)		—			—			—
Amortization of prior service credit	1			—			—				(3		)	(5		)	(3		)
Amortization of net actuarial loss (gain)	17			10			12				(7		)	(2		)	(2		)
Curtailment / settlement loss (gain)	9			2			(45		)	⁽¹⁾	—			(5		)	2
Net periodic cost (income)	$	16		$	(17	)	$	(26	)		$	(5	)	$	(5	)	$	5

⁽¹⁾

As a result of the acquisition of BHI, we obtained a non-contributory pension plan (the Baker Hughes Incorporated Pension Plan or BHIPP). In 2017, the Compensation Committee of the Board of Directors approved amendments to the BHIPP to close the plan to new participants and freeze accruals of future service-related benefits effective as of December 31, 2017. As a result of these actions, the Company recorded a curtailment gain of $45 million. The curtailment was recorded by the Company during the fourth quarter of 2017 and included in the “Other non operating income (loss), net” caption of the consolidated and combined statements of income (loss).

The service cost component of the net periodic cost (benefit) is included in "operating income (loss)" and all other components are included in "Other non operating income, net" caption of the consolidated and combined statements of income (loss).

Assumptions Used in Benefit Calculations

Accounting requirements necessitate the use of assumptions to reflect the uncertainties and the length of time over which the pension obligations will be paid. The actual amount of future benefit payments will depend upon when participants retire, the amount of their benefit at retirement and how long they live. To reflect the obligation in today’s dollars, we discount the future payments using a rate that matches the time frame over which the payments will be made. We also need to assume a long-term rate of return that will be earned on investments used to fund these payments.

Weighted average assumptions used to determine benefit obligations for these plans are as follows for the years ended December 31:



	Pension Benefits				Other Postretirement Benefits
	2019		2018		2019		2018
Discount rate	2.34	%	3.43	%	2.89	%	3.92	%
Rate of compensation increase	3.11	%	3.78	%	n/a		n/a

Weighted average assumptions used to determine net periodic cost for these plans are as follows for the years ended December 31:



	Pension Benefits						Other Postretirement Benefits
	2019		2018		2017		2019		2018		2017
Discount rate	3.43	%	2.99	%	3.24	%	3.92	%	3.32	%	3.72	%
Expected long-term return on plan assets	5.48	%	5.94	%	6.26	%	n/a		n/a		n/a

We determine the discount rate using a bond matching model, whereby the weighted average yields on high-quality fixed-income securities have maturities consistent with the timing of benefit payments. Lower discount rates increase the size of the benefit obligations and pension expense in the following year; higher discount rates reduce the size of the benefit obligation and subsequent-year pension expense. The compensation assumption is used in our active plans to estimate the annual rate at which the pay for plan participants will grow. If the rate of growth assumed increases, the size of the pension obligations will increase.

The expected return on plan assets is the estimated long-term rate of return that will be earned on the investments used to fund the pension obligations. To determine this rate, we consider the current and target composition of plan investments, our historical returns earned, and our expectations about the future.

Assumed health care cost trend rates can have a significant effect on the amounts reported for Other Postretirement Benefits. As of December 31, 2019, the health care cost trend rate was 6.50%, declining gradually each successive year until it reaches 4.50%. A one percentage point change in assumed health care cost trend rates would have been immaterial in 2019.

Accumulated Other Comprehensive Loss

The amount recorded before-tax in accumulated other comprehensive loss related to employee benefit plans consists of the following at December 31:



	Pension Benefits				Other Postretirement Benefits
	2019		2018		2019			2018
Net actuarial loss (gain)	$	395	$	177	$	(38	)	$	(29	)
Net prior service cost (credit)	19		20		(15		)	(18		)
Total	$	414	$	197	$	(53	)	$	(47	)

The estimated net actuarial loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss and included in net periodic benefit cost in 2020 is $32 million and $1 million, respectively. The estimated net actuarial gain and prior service credit for the other postretirement benefits that will be amortized from accumulated other comprehensive loss and included in net periodic benefit cost in 2020 is $3 million and $3 million, respectively.

Plan Assets

We have investment committees that meet regularly to review the portfolio returns and to determine asset-mix targets based on asset/liability studies. Third-party investment consultants assist such committees in developing asset allocation strategies to determine our expected rates of return and expected risk for various investment portfolios. The investment committees considered these strategies in the formal establishment of the current asset-mix targets based on the projected risk and return levels for all major asset classes.

The table below presents the fair value of the pension assets at December 31:



	2019		2018
Equity securities
U.S. equity securities ⁽¹⁾	$	258	$	215
Global equity securities ⁽¹⁾	333		338
Debt securities
Fixed income and cash investment funds	1,858		937
Other debt securities	3		4
Private equities	51		60
Real estate	84		35
Other investments ⁽²⁾	417		277
Total plan assets	$	3,004	$	1,866


⁽¹⁾	Include direct investments and investment funds.


⁽²⁾	Consists primarily of asset allocation fund investments.

Plan assets valued using Net Asset Value (NAV) as a practical expedient amounted to $2,988 million and $1,802 million as of December 31, 2019 and 2018, respectively. The percentages of plan assets valued using NAV by investment fund type for equity securities, fixed income and cash, and alternative investments were 20%, 62%, and 18% as of December 31, 2019, respectively, and 30%, 48%, and 19% as of December 31, 2018, respectively. Those investments that were measured at fair value using NAV as practical expedient were excluded from the fair value hierarchy. The practical expedient was not applied for investments with a fair value of $14 million and $64 million as of December 31, 2019 and 2018, respectively. There were no investments classified within Level 3 in 2019 and 2018. The remaining investments were considered Level 1 and 2.

Funding Policy

The funding policy for our Pension Benefits is to contribute amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws plus such additional amounts as we may determine to be appropriate. In 2019, we contributed approximately $23 million. We expect to contribute approximately $21 million to our pension plans in 2020.

We fund our Other Postretirement Benefits on a pay-as-you-go basis. In 2019, we funded $16 million and in 2020, we expect to fund approximately $11 million to such benefits.

The following table presents the expected benefit payments over the next 10 years. The U.S. and non-U.S. pension benefit payments are made by the respective pension trust funds.



Year	Pension Benefits			Other Postretirement Benefits
2020		$	136		$	11
2021		134			9
2022		136			7
2023		137			6
2024		142			6
2025-2029		749			24

Defined Contribution Plans

Our primary defined contribution plan during 2019 was the Company sponsored U.S. 401(k) plan (401(k) Plan). The 401(k) Plan allows eligible employees to elect to contribute portions of their eligible compensation to an investment trust. Employee contributions are matched by the Company in cash at the rate of $1.00 per $1.00 employee contribution for the first 5% of the employee's eligible compensation, and such contributions vest immediately. In addition, we make cash contributions for all eligible employees of 4% of their eligible compensation and such contributions are fully vested to the employee after three years of employment. During 2018, the legacy BHI employees participated in the 401(k) Plan whereas the legacy GE O&G employees continued to participate in the GE sponsored plan. Beginning in 2019, certain legacy GE O&G employees were eligible to participate in our defined contribution plans, including our 401(k) Plan. Legacy BHI employees continued to participate in the 401(k) Plan during 2019. The 401(k) Plan provides several investment options, for which the employee has sole investment discretion, however, the 401(k) Plan does not offer the Company's common stock as an investment option. Our costs for the 401(k) Plan and several other U.S. and non-U.S. defined contribution plans amounted to $235 million and $137 million, in 2019 and 2018, respectively.

Other

We have two non-qualified defined contribution plans that are invested through trusts. The assets and corresponding liabilities were $276 million and $233 million at December 31, 2019 and 2018, respectively, and are included in "All other assets" and "Liabilities for pensions and other employee benefits" captions in our consolidated and combined statements of financial position.

Restructuring, Impairment and Other - Schedule of Restructuring Charges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 314	$ 304	$ 385
Property, plant & equipment, net
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	107	80	131
Employee-related termination expenses
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	179	123	186
Asset relocation costs
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	4	28	10
EHS remediation costs
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	11	6	9
Contract termination fees
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	12	44	26
Other incremental costs
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	1	23	23
Corporate
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	22	31	29
Oilfield Services \| Operating segments
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	211	160	187
Oilfield Equipment \| Operating segments
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	18	25	114
Turbo-machinery & Process Solutions \| Operating segments
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	48	71	21
Digital Solutions \| Operating segments
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 15	$ 17	$ 34

Employee Benefit Plans - Narrative (Details)	12 Months Ended
Employee Benefit Plans - Narrative (Details)	Dec. 31, 2019 USD ($) plan	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Multiemployer plan, contributions by employer	$ 3,000,000	$ 158,000,000	$ 132,000,000
Health care cost trend rate assumed next fiscal year	6.50%
Health care cost trend rate	4.50%
Defined contribution plan, employer matching contribution per dollar	$ 1.00
Defined contribution plan, employer matching contribution	5.00%
Defined contribution plan, employers matching contribution for vesting plan	4.00%
Defined contribution plan, employers matching contribution for vesting, period	3 years
Defined contribution plans, cost	$ 235,000,000	137,000,000
Number of non-qualified defined contribution plans \| plan	2
Defined contribution plan, assets and liabilities	$ 276,000,000	233,000,000
Pension plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension assets or obligations, threshold, per plan	20,000,000
Expected amortization of gain (loss), next fiscal year	(32,000,000)
Expected amortization of prior service cost (credit), next fiscal year	1,000,000
Fair values of the plan assets	3,004,000,000	1,866,000,000	2,059,000,000
Employer contributions	23,000,000	51,000,000
Estimated future employer contributions in next fiscal year	21,000,000
Pension plan \| Fixed income and cash investment funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets	1,858,000,000	937,000,000
Other Postretirement Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected amortization of gain (loss), next fiscal year	3,000,000
Expected amortization of prior service cost (credit), next fiscal year	3,000,000
Fair values of the plan assets	0	0	$ 0
Employer contributions	16,000,000	21,000,000
Estimated future employer contributions in next fiscal year	$ 11,000,000
U.S. \| Pension plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of retirement plans \| plan	4
Foreign \| Pension plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of retirement plans \| plan	7
Fair value measured at Net Asset Value per share
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets	$ 2,988,000,000	$ 1,802,000,000
Fair value measured at Net Asset Value per share \| Equity securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Percent of plan assets valued using NAV	20.00%	30.00%
Fair value measured at Net Asset Value per share \| Fixed income and cash investment funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Percent of plan assets valued using NAV	62.00%	48.00%
Fair value measured at Net Asset Value per share \| Alternative investments
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Percent of plan assets valued using NAV	18.00%	19.00%
Fair Value, Inputs, Level 1, 2 and 3 \| Pension plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets	$ 14,000,000	$ 64,000,000
Level 3 \| Pension plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets	$ 0	$ 0

Equity - Changes in Number of Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		12 Months Ended
	Sep. 30, 2019	Nov. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issue of shares upon vesting of restricted stock units (in shares)			867,000	505,000
Issue of shares on exercises of stock options (in shares)			491,000
Payments for repurchase of common stock			$ 0	$ 387	$ 174
Common Stock \| Class A
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)			513,399,000	422,208,000
Issue of shares for employee stock purchase plan			2,081,000	0
Exchange of Class B common stock for Class A common stock			132,250,000	101,200,000
Stock repurchase program (in shares)			0	(11,500,992)
Ending balance (in shares)			650,065,000	513,399,000	422,208,000
Stock repurchase program (in shares)			0	11,500,992
Stock repurchase program, acquired value				$ 374
Common Stock \| Class A \| Restricted Stock Units (RSUs)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issue of shares upon vesting of restricted stock units (in shares)			1,973,000	835,000
Common Stock \| Class A \| Options
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issue of shares on exercises of stock options (in shares)			362,000	657,000
Common Stock \| Class B
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)			521,543,000	706,985,000
Issue of shares for employee stock purchase plan			0	0
Exchange of Class B common stock for Class A common stock			(132,250,000)	(101,200,000)
Stock repurchase program (in shares)			(11,865,000)	(84,241,000)
Ending balance (in shares)			377,428,000	521,543,000	706,985,000
Stock repurchase program (in shares)			11,865,000	84,241,000
Common Stock \| Class B \| Restricted Stock Units (RSUs)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issue of shares upon vesting of restricted stock units (in shares)			0	0
Common Stock \| Class B \| Options
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issue of shares on exercises of stock options (in shares)			0	0
Common Stock and BHGE LLC Units \| Class B
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock repurchase program (in shares)				(19,241,160)
Stock repurchase program (in shares)				19,241,160
Stock repurchase program, acquired value				$ 626
BHGE LLC Units
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchased, aggregate amount of units		$ 1,461
Repurchased, per unit (in dollars per unit)		$ 22.48
BHGE LLC \| General Electric Company \| Class A
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exchange of Class B common stock for Class A common stock	132,300,000	101,200,000
BHGE LLC \| General Electric Company \| Class B
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock repurchased (in shares)	11,865,211
Payments for repurchase of common stock	$ 250	$ 1,500
Dividends per share (in dollars per share)	$ 21.07

Segment Information - Schedule of Net Property, Plant and Equipment by Geographic Location (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue from geographic segments
Property, plant and equipment, less accumulated depreciation	$ 6,240	$ 6,228	$ 6,959
U.S.
Revenue from geographic segments
Property, plant and equipment, less accumulated depreciation	2,594	2,654	3,369
Non-U.S.
Revenue from geographic segments
Property, plant and equipment, less accumulated depreciation	$ 3,646	$ 3,574	$ 3,590

Consolidated and Combined Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 271	$ 283	$ (391)
Less: Net income attributable to GE O&G pre-merger	0	0	42
Less: Net income (loss) attributable to noncontrolling interests	143	88	(330)
Net income (loss) attributable to Baker Hughes Company	128	195	(103)
Other comprehensive income (loss):
Investment securities	2	(3)	4
Foreign currency translation adjustments	53	(502)	(14)
Cash flow hedges	12
Cash flow hedges		(4)	12
Benefit plans	(75)	(64)	55
Other comprehensive income (loss)	(8)	(573)	57
Less: Other comprehensive loss attributable to GE O&G pre-merger	0	0	(69)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(1)	(343)	80
Other comprehensive income (loss) attributable to Baker Hughes Company	(7)	(230)	46
Comprehensive income (loss)	263	(290)	(334)
Less: Comprehensive loss attributable to GE O&G pre-merger	0	0	(27)
Less: Comprehensive income (loss) attributable to noncontrolling interests	142	(255)	(250)
Comprehensive income (loss) attributable to Baker Hughes Company	$ 121	$ (35)	$ (57)

Restructuring, Impairment and Other - Narrative (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring and Related Activities [Abstract]
Restructuring, impairment and other	$ 159	$ 71	$ 50	$ 62	$ 59	$ 66	$ 146	$ 162	$ 342	$ 433	$ 412
Restructuring charges									314	304	385
Estimated remaining charges	$ 11								11
Restructuring Cost and Reserve [Line Items]
Amortization expense for intangible assets included in net income									365	455	387
Corporate
Restructuring and Related Activities [Abstract]
Restructuring charges									22	31	29
Trade names and trademarks
Restructuring Cost and Reserve [Line Items]
Amortization expense for intangible assets included in net income										80
Restructuring, impairment and other charges
Restructuring Cost and Reserve [Line Items]
Other asset impairment charges and foreign currency translation gain (loss), realized									$ 28	129	27
Currency gain (loss)											$ (12)
Restructuring, impairment and other charges \| Corporate
Restructuring Cost and Reserve [Line Items]
Legal fees										25
Restructuring, impairment and other charges \| Operating segments \| Turbomachinery and Process Solutions and Oilfield Services
Restructuring Cost and Reserve [Line Items]
Business exit costs										$ 13

Consolidated and Combined Statements of Changes in Equity (Parenthetical) - $ / shares	6 Months Ended	12 Months Ended
	Jul. 02, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Special dividend
Dividends (in dollars per share)	$ 17.5
Special dividend \| Class A
Dividends (in dollars per share)				$ 17.50
Cash dividend \| Class A
Dividends (in dollars per share)		$ 0.72	$ 0.72	$ 0.35

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 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	$	15,838		$	3,901		$	1,906		$	2,036		$	23,681
Accumulated impairment at December 31, 2017	(2,633		)	(867		)	—			(254		)	(3,754		)
Balance at December 31, 2017	13,205			3,034			1,906			1,782			19,927
Purchase accounting adjustments ⁽¹⁾	(136		)	293			394			429			980
Currency exchange and others	(26		)	(17		)	(114		)	(33		)	(190		)
Balance at December 31, 2018	13,043			3,310			2,186			2,178			20,717
Currency exchange and others	—			9			(15		)	(21		)	(27		)
Balance at December 31, 2019	$	13,043		$	3,319		$	2,171		$	2,157		$	20,690

⁽¹⁾

Schedule of finite-lived intangible assets

Intangible assets are comprised of the following at December 31:



	2019							2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Technology	$	1,075	$	(626	)	$	449	$	1,107	$	(526	)	$	581
Customer relationships	3,027		(1,045		)	1,982		3,085		(944		)	2,141
Capitalized software	1,193		(928		)	265		1,118		(824		)	294
Trade names and trademarks	696		(254		)	442		698		(229		)	469
Other	3		(2		)	1		14		(2		)	12
Finite-lived intangible assets	5,994		(2,855		)	3,139		6,022		(2,525		)	3,497
Indefinite-lived intangible assets ⁽¹⁾	2,242		—			2,242		2,222		—			2,222
Total intangible assets	$	8,236	$	(2,855	)	$	5,381	$	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 at December 31:



	2019							2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Technology	$	1,075	$	(626	)	$	449	$	1,107	$	(526	)	$	581
Customer relationships	3,027		(1,045		)	1,982		3,085		(944		)	2,141
Capitalized software	1,193		(928		)	265		1,118		(824		)	294
Trade names and trademarks	696		(254		)	442		698		(229		)	469
Other	3		(2		)	1		14		(2		)	12
Finite-lived intangible assets	5,994		(2,855		)	3,139		6,022		(2,525		)	3,497
Indefinite-lived intangible assets ⁽¹⁾	2,242		—			2,242		2,222		—			2,222
Total intangible assets	$	8,236	$	(2,855	)	$	5,381	$	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 each of the subsequent five fiscal years is expected to be as follows:



Year	Estimated Amortization Expense
2020	$	335
2021	287
2022	243
2023	226
2024	216

Financial Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

FINANCIAL INSTRUMENTS

RECURRING FAIR VALUE MEASUREMENTS

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



	2019										2018
	Level 1		Level 2			Level 3		Net Balance			Level 1		Level 2			Level 3		Net Balance
Assets
Derivatives	$	—	$	58		$	—	$	58		$	—	$	74		$	—	$	74
Investment securities	24		—			259		283			39		—			288		327
Total assets	24		58			259		341			39		74			288		401

Liabilities
Derivatives	—		(27		)	—		(27		)	—		(82		)	—		(82		)
Total liabilities	$	—	$	(27	)	$	—	$	(27	)	$	—	$	(82	)	$	—	$	(82	)

There were no transfers between Level 1, 2 and 3 during 2019.

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



	2019			2018
Balance at beginning of year	$	288		$	304
Purchases	7			75
Proceeds at maturity	(38		)	(90		)
Unrealized gains (losses) recognized in accumulated other comprehensive income (loss)	2			(1		)
Balance at end of year	$	259		$	288

The most significant unobservable input used in the valuation of our Level 3 instruments is the discount rate. Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value of our investment securities. There are no unrealized gains or losses recognized in the consolidated and combined statement of income (loss) on account of any Level 3 instrument still held at the reporting date. We hold $111 million and $149 million of these investment securities on behalf of GE at December 31, 2019 and 2018, respectively.



	2019								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⁾	$	257	$	2	$	—	$	259	$	288	$	—	$	—	$	288
Equity securities ⁽²⁾	24		—		—		24		39		—		—		39
Total	$	281	$	2	$	—	$	283	$	327	$	—	$	—	$	327


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


⁽²⁾	Gains (losses) recorded to earnings related to these securities were $2 million, $(25) million and $30 million for the years ended December 31, 2019, 2018, and 2017, respectively.

FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS

Our financial instruments include cash and equivalents, current receivables, investments, accounts payable, short and long-term debt, and derivative financial instruments. Except for long-term debt, the estimated fair value of these financial instruments at December 31, 2019 and 2018 approximates their carrying value as reflected in our consolidated and combined financial statements. For further information on the fair value of our debt, see "Note 11. 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.



	2019					2018
	Assets		(Liabilities)			Assets		(Liabilities)
Derivatives accounted for as hedges
Currency exchange contracts	$	11	$	—		$	—	$	(7	)

Derivatives not accounted for as hedges
Currency exchange contracts and other	47		(27		)	74		(75		)
Total derivatives	$	58	$	(27	)	$	74	$	(82	)

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

As of December 31, 2019 and 2018, $52 million and $67 million of derivative assets are recorded in "All other current assets" and $6 million and $7 million are recorded in "All other assets" of the consolidated statements of financial position, respectively. As of December 31, 2019 and 2018, $24 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 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.

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.



	Gain (Loss) Recognized in AOCI							Gain (Loss) Reclassified from AOCI to Earnings
	2019		2018			2017		2019			2018			2017
Currency exchange contracts	$	13	$	(6	)	$	8	$	(1	)	$	(1	)	$	(7	)

We expect to transfer $10 million to earnings as a gain in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. At December 31, 2019 and 2018, the maximum term of derivative instruments that hedge forecasted transactions was one year and two years, respectively.

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. The effects are reported in "Selling, general and administrative" in the consolidated and combined statement of income (loss). In general, the income (loss) effects of the hedged item are recorded in the same consolidated and combined financial statement line as the derivative. The income (loss) effect of economic hedges, after considering offsets related to income (loss) effects of hedged assets and liabilities, is substantially offset by changes in the fair value of forecasted transactions that have not yet affected income (loss).

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



Derivatives not designated as hedging instruments	Consolidated and combined statement of income caption	2019			2018			2017
Currency exchange contracts ⁽¹⁾	Cost of goods sold	$	(6	)	$	(12	)	$	76
Currency exchange contracts	Selling, general and administrative	(22		)	9			45
Commodity derivatives	Cost of goods sold	2			(1		)	1
Other derivatives	Other non operating income (loss), net	2			—			—
Total ⁽²⁾		$	(24	)	$	(4	)	$	122


⁽¹⁾	Excludes losses on embedded derivatives of $7 million, $3 million and $76 million at December 31, 2019, 2018 and 2017, 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.

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 $5.7 billion and $6.4 billion at December 31, 2019 and 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 $1.8 billion at December 31, 2019 and $2.8 billion at December 31, 2018.

COUNTERPARTY CREDIT RISK

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

OTHER EQUITY INVESTMENTS

As of December 31, 2019 and 2018, the carrying amount of equity securities without readily determinable fair values was $637 million and $542 million, respectively. In 2019, certain of these equity instruments were remeasured to fair value as of the date that an observable transaction occurred, which resulted in the Company recording an unrealized gain of $19 million.

Revenue Related to Contracts With Customers (Tables)

12 Months Ended

Dec. 31, 2019

Disaggregated revenue from contracts with customers by primary geographical markets

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



Total Revenue	2019		2018		2017
U.S.	$	6,188	$	6,576	$	4,409
Non-U.S.	17,650		16,301		12,770
Total	$	23,838	$	22,877	$	17,179

Progress Collections and Deferred Income

12 Months Ended

Dec. 31, 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.



Total Revenue	2019		2018		2017
U.S.	$	6,188	$	6,576	$	4,409
Non-U.S.	17,650		16,301		12,770
Total	$	23,838	$	22,877	$	17,179

REMAINING PERFORMANCE OBLIGATIONS

As of December 31, 2019 and 2018, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $22.9 billion and $21.0 billion, respectively. As of December 31, 2019, we expect to recognize revenue of approximately 53%, 65% and 91% 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 at December 31:



	2019		2018
Progress collections	$	2,760	$	1,600
Deferred income	110		165
Progress collections and deferred income (contract liabilities)	$	2,870	$	1,765

Revenue recognized during the year ended December 31, 2019 and 2018 that was included in the contract liabilities at the beginning of the year was $1,690 million and $1,392 million, respectively.

Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Our reportable segments, which are the same as our operating segments, are organized based on the nature of markets and customers. We report our operating results through our four operating segments that consist of similar products and services within each segment as described below. Our operating results are reviewed regularly by the chief operating decision maker, who is our Chief Executive Officer, in deciding how to allocate resources and assess performance.

OILFIELD SERVICES

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

OILFIELD EQUIPMENT

Oilfield Equipment provides a broad portfolio of products and services required to facilitate the safe and reliable flow of hydrocarbons from the 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. Oilfield Equipment 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

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

DIGITAL SOLUTIONS

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

SEGMENT RESULTS



Segment revenue	2019		2018		2017
Oilfield Services	$	12,889	$	11,617	$	5,881
Oilfield Equipment	2,921		2,641		2,661
Turbomachinery & Process Solutions	5,536		6,015		6,295
Digital Solutions	2,492		2,604		2,342
Total	$	23,838	$	22,877	$	17,179



Segment income (loss) before income taxes	2019			2018			2017
Oilfield Services	$	917		$	785		$	67
Oilfield Equipment	55			—			26
Turbomachinery & Process Solutions	719			621			665
Digital Solutions	343			390			357
Total segment	2,035			1,796			1,115
Corporate	(433		)	(405		)	(370		)
Inventory impairment and related charges ⁽¹⁾	—			(105		)	(244		)
Restructuring, impairment and other	(342		)	(433		)	(412		)
Separation and merger related	(184		)	(153		)	(373		)
Other non operating income, net	(84		)	202			80
Interest expense, net	(237		)	(223		)	(131		)
Total	$	753		$	680		$	(335	)


⁽¹⁾	Inventory impairments and related charges are reported in the "Cost of goods sold" caption of the consolidated and combined statements of income (loss). 2017 includes $87 million of adjustments to write-up the acquired inventory to its estimated fair value on acquisition of BHI as this inventory was used or sold in the six months ended December 31, 2017.

The following table presents total assets by segment at December 31:



Segment assets	2019		2018
Oilfield Services	$	30,611	$	30,941
Oilfield Equipment	7,645		7,298
Turbomachinery & Process Solutions	8,365		8,529
Digital Solutions	3,983		4,063
Total segment	50,604		50,831
Corporate and eliminations ⁽¹⁾	2,765		1,608
Total	$	53,369	$	52,439

⁽¹⁾

The following table presents depreciation and amortization by segment for the years ended December 31:



Segment depreciation and amortization	2019		2018		2017
Oilfield Services	$	985	$	1,003	$	613
Oilfield Equipment	175		173		187
Turbomachinery & Process Solutions	116		156		174
Digital Solutions	103		112		119
Total Segment	1,379		1,444		1,093
Corporate	39		42		10
Total	$	1,418	$	1,486	$	1,103

The following table presents net property, plant and equipment by its geographic location at December 31:



Property, plant and equipment - net	2019		2018		2017
U.S.	$	2,594	$	2,654	$	3,369
Non-U.S.	3,646		3,574		3,590
Total	$	6,240	$	6,228	$	6,959

Contract and Other Deferred Assets

12 Months Ended

Dec. 31, 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 at December 31:



	2019		2018
Long-term product service agreements	$	603	$	609
Long-term equipment contracts ⁽¹⁾	1,097		1,085
Contract assets (total revenue in excess of billings)	1,700		1,694
Deferred inventory costs	130		179
Non-recurring engineering costs	51		21
Contract and other deferred assets	$	1,881	$	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.

Revenue recognized during the year ended December 31, 2019 and 2018 from performance obligations satisfied (or partially satisfied) in previous years related to our long-term service agreements was $(1) million and $26 million, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract’s total estimated profitability resulting in an adjustment of earnings.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

In July 2017, we adopted the Baker Hughes 2017 Long-Term Incentive Plan (LTI Plan) under which we may grant stock options and other equity-based awards to employees and non-employee directors providing services to the Company and our subsidiaries. A total of up to 57.4 million shares of Class A common stock are authorized for issuance pursuant to awards granted under the LTI Plan over its term which expires on the date of the annual meeting of the Company in 2027. A total of 35.5 million shares of Class A common stock are available for issuance as of December 31, 2019.

Stock-based compensation cost was $187 million, $121 million and $37 million in 2019, 2018 and 2017, respectively. Stock-based compensation cost is measured at the date of grant based on the calculated fair value of the award and is generally recognized on a straight-line basis over the vesting period of the equity grant. The compensation cost is determined based on awards ultimately expected to vest; therefore, we have reduced the cost for estimated forfeitures based on historical forfeiture rates. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods to reflect actual forfeitures. There were no stock-based compensation costs capitalized as the amounts were not material.

Stock Options

We may grant stock options to our officers, directors and key employees. Stock options generally vest in equal amounts over a vesting period of 3 years provided that the employee has remained continuously employed by the Company through such vesting date. The fair value of each stock option granted is estimated using the Black-Scholes option pricing model. The following table presents the weighted average assumptions used in the option pricing model for options granted under the LTI Plan. The expected life of the options represents the period of time the options are expected to be outstanding. The expected life is based on a simple average of the vesting term and original contractual term of the awards. The expected volatility is based on the historical volatility of our five main competitors over a six year period. The risk-free interest rate is based on the observed U.S. Treasury yield curve in effect at the time the options were granted. In 2019, the dividend yield is based on Baker Hughes' current annual cash dividend divided by the valuation date stock price. Prior to 2019, the dividend yield was based on a five year history of dividend payouts by BHI.



	2019			2018			2017
Expected life (years)	6			6			6
Risk-free interest rate	2.6		%	2.5		%	2.1		%
Volatility	36.5		%	33.7		%	36.4		%
Dividend yield	3.1		%	2.0		%	1.2		%
Weighted average fair value per share at grant date	$	6.37		$	10.34		$	12.32

The following table presents the changes in stock options outstanding and related information (in thousands, except per option prices):



	Number of Options		Weighted Average Exercise Price Per Option
Outstanding at December 31, 2018	7,538		$	34.76
Granted	2,301		22.98
Exercised	(491	)	18.96
Forfeited	(305	)	29.42
Expired	(633	)	36.85
Outstanding at December 31, 2019	8,410		$	32.50
Exercisable at December 31, 2019	5,155		$	35.68

The weighted average remaining contractual term for options outstanding and options exercisable at December 31, 2019 were 5.4 years and 3.4 years, respectively. The maximum contractual term of options outstanding is 9.1 years.

There were 867 thousand and 505 thousand options that vested in 2019 and 2018, respectively. The total fair value of options vested in 2019 and 2018 was $10 million and $6 million, respectively. There were no options vested during 2017. As of December 31, 2019, there was $16 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 1.6 years.

The total intrinsic value of stock options exercised (defined as the amount by which the market price of our common stock on the date of exercise exceeds the exercise price of the option) in 2019 was $2 million. There is no income tax benefit realized from stock options exercised in 2019.

The total intrinsic value of stock options outstanding at December 31, 2019 was $7 million, of which $2 million are exercisable. The intrinsic value of stock options outstanding is calculated as the amount by which the quoted price of $25.63 of our common stock as of the end of 2019 exceeds the exercise price of the options.

Restricted Stock

In addition to stock options, our officers, directors and key employees may be granted restricted stock awards (RSA), which is an award of common stock with no exercise price, or restricted stock units (RSU), where each unit represents the right to receive, at the end of a stipulated period, one unrestricted share of stock with no exercise price. Certain RSAs and RSUs are subject to cliff or graded vesting, generally ranging over a period of 3 years, or over a one year period for non-employee directors. Cash dividend equivalents are accrued on RSUs and are payable upon vesting of the awards. We determine the fair value of restricted stock awards and restricted stock units based on the market price of our common stock on the date of grant, discounted by the present value of future dividends.

The following table presents the changes in RSUs outstanding and related information (in thousands, except per unit prices):



	Number of Units		Weighted Average Grant Date Fair Value Per Unit
Unvested balance at December 31, 2018	6,882		$	36.18
Granted	8,267		23.10
Vested	(2,813	)	35.98
Forfeited	(1,051	)	29.54
Unvested balance at December 31, 2019	11,285		$	27.26

In 2019, the total intrinsic value of RSUs vested (defined as the value of shares awarded based on the price of our common stock at vesting date) was $68 million and unvested RSUs was $289 million. The total fair value of RSUs vested in 2019 was $101 million. As of December 31, 2019, there was $180 million of total unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted average period of 1.7 years.

Performance Share Units

During 2018, we initiated a new plan where we grant performance share units (PSUs) to certain officers and key employees. The PSUs are stock-based awards tied to predefined company metrics and total shareholder return (TSR), which determine the number of units to be received. PSUs generally cliff vest after a service period of 3 years. Cash dividend equivalents are accrued only on PSUs tied to predefined company metrics and are payable upon vesting of the awards. The fair value of the awards determined for the predefined company metrics are based on the market price of our common stock on the date of grant, discounted by the present value of future dividends. The fair value of the TSR awards are determined based on a Monte Carlo simulation method.

The following table presents the changes in PSUs outstanding and related information (in thousands, except per unit prices):



	Number of Units		Weighted Average Grant Date Fair Value Per Unit
Unvested balance at December 31, 2018	927		$	35.13
Granted	1,275		22.72
Vested	—		—
Forfeited	(158	)	28.34
Unvested balance at December 31, 2019	2,044		$	27.91

The total intrinsic value of PSUs (defined as the value of the shares awarded at the year end market price) outstanding was $52 million as of December 31, 2019. Total unrecognized compensation cost related to unvested PSUs, which is expected to be recognized over a weighted average period of 1.7 years, was $31 million as of December 31, 2019.

Employee Stock Purchase Plan

The Employee Stock Purchase Plan (ESPP) provides for eligible employees to purchase shares of Class A common stock quarterly on an after-tax basis in an amount between 1% and 20% of their annual pay on March 31, June 30, September 30 and December 31 of each year at a 15% discount of the fair market value of our Class A common stock on March 31, June 30, September 30 and December 31. An employee may not purchase more than $3,000 in any of the three-month measurement periods described above or $12,000 annually.

A total of 15 million shares of Class A common stock are authorized for issuance, and at December 31, 2019, there were 12.9 million shares of Class A common stock reserved for future issuance.

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

Dec. 31, 2019

Dec. 31, 2018

Current Assets:

Cash and cash equivalents

^[1]

$ 3,249

$ 3,723

Current receivables, net

6,416

5,969

Inventories, net

4,608

4,620

All other current assets

949

659

Total current assets

15,222

14,971

Property, plant and equipment, less accumulated depreciation

6,240

6,228

Goodwill

20,690

20,717

Other intangible assets, net

5,381

5,719

Contract and other deferred assets

1,881

1,894

All other assets

3,001

1,838

Deferred income taxes

954

1,072

Total assets

^[1]

53,369

52,439

Current Liabilities:

Accounts payable

4,268

4,025

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

^[1]

321

942

Progress collections and deferred income

2,870

1,765

All other current liabilities

2,555

2,288

Total current liabilities

10,014

9,020

Long-term debt

6,301

6,285

Deferred income taxes

143

Liabilities for pensions and other employee benefits

1,079

1,018

All other liabilities

1,425

960

Equity:

Capital in excess of par value

23,565

18,659

Retained earnings (loss)

Accumulated other comprehensive loss

(1,636)

(1,219)

Baker Hughes Company equity

21,929

17,465

Noncontrolling interests

12,570

17,548

Total equity

34,499

35,013

Total liabilities and equity

53,369

52,439

Equity:

Equity:

$ 0

[1]

Business Acquisition and Dispositions - Preliminary identifiable assets acquired and liabilities assumed (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jul. 03, 2017
Liabilities
Goodwill	$ 20,690	$ 20,717	$ 19,927
Operating loss carryforwards	$ 1,654	$ 1,525
GE Transaction Agreement
Assets
Cash and equivalents				$ 4,133
Current receivables				2,342
Inventories				1,712
Property, plant and equipment				4,514
Intangible assets				4,005
All other assets				1,335
Liabilities
Accounts payable				(1,213)
Borrowings				(3,370)
Deferred income taxes				(258)
Liabilities for pension and other postretirement benefits				(654)
All other liabilities				(1,676)
Total identifiable net assets				10,870
Noncontrolling interest associated with net assets acquired				(35)
Goodwill				13,963
Total purchase consideration				24,798
Deferred tax liabilities				500
Operating loss carryforwards				242
Tax deductible goodwill				$ 67

Segment Information - Schedule of Summarized Financial Information for CAPEX and DD&A (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information
Depreciation and Amortization	$ 1,418	$ 1,486	$ 1,103
Operating segments
Segment Reporting Information
Depreciation and Amortization	1,379	1,444	1,093
Operating segments \| Oilfield Services
Segment Reporting Information
Depreciation and Amortization	985	1,003	613
Operating segments \| Oilfield Equipment
Segment Reporting Information
Depreciation and Amortization	175	173	187
Operating segments \| Turbo-machinery & Process Solutions
Segment Reporting Information
Depreciation and Amortization	116	156	174
Operating segments \| Digital Solutions
Segment Reporting Information
Depreciation and Amortization	103	112	119
Corporate
Segment Reporting Information
Depreciation and Amortization	$ 39	$ 42	$ 10

Borrowings - Narrative (Details) - USD ($)		1 Months Ended	12 Months Ended
Borrowings - Narrative (Details) - USD ($)	Jul. 03, 2017	Nov. 30, 2019	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Line of Credit Facility [Line Items]
Estimated fair value of debt				$ 6,847,000,000	$ 6,629,000,000
BHGE LLC \| Baker Hughes Co-Obligor, Inc.
Line of Credit Facility [Line Items]
Ownership percentage			100.00%
2019 Credit Agreement \| BHGE LLC
Line of Credit Facility [Line Items]
Commercial paper outstanding				0
2019 Credit Agreement \| BHGE LLC \| Commercial Paper
Line of Credit Facility [Line Items]
Debt instrument term	397 days
2019 Credit Agreement \| BHGE LLC \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 3,000,000,000			3,000,000,000
Line of credit outstanding				0	0
2017 Credit Agreement \| BHGE LLC
Line of Credit Facility [Line Items]
Commercial paper outstanding					0
2017 Credit Agreement \| BHGE LLC \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 3,000,000,000
Line of credit facility, term	5 years
Line of credit outstanding				$ 0	$ 0
Senior Notes \| BHGE LLC \| Baker Hughes Co-Obligor, Inc.
Line of Credit Facility [Line Items]
Debt instrument, principal			$ 3,950,000,000
Senior Notes \| 3.138% Senior Notes due November 2029
Line of Credit Facility [Line Items]
Stated interest rate				3.138%
Senior Notes \| 3.138% Senior Notes due November 2029 \| BHGE LLC
Line of Credit Facility [Line Items]
Debt instrument, principal		$ 525,000,000
Stated interest rate		3.138%
Debt issuance costs		$ 3,000,000
Senior Notes \| 3.2% Senior Notes due August 2021
Line of Credit Facility [Line Items]
Stated interest rate		3.20%			3.20%
Repayments of Senior Debt		$ 526,000,000
Gain (loss) on repurchase of debt instrument		$ (7,000,000)

Leases - Operating Lease Expense (Details) $ in Millions	12 Months Ended
Leases - Operating Lease Expense (Details) $ in Millions	Dec. 31, 2019 USD ($)
Leases [Abstract]
Long-term fixed lease	$ 233
Long-term variable lease	48
Short-term lease	706
Total operating lease expense	$ 987

Borrowings

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

Short-term and long-term borrowings are comprised of the following at December 31:



	2019				2018
	Amount		Weighted Average Rate⁽¹⁾		Amount		Weighted Average Rate⁽¹⁾
Short-term borrowings
Short-term borrowings from GE	$	273	n/a		$	896	n/a
Other short-term borrowings	48		4.8	%	46		9.9	%
Total short-term borrowings	321				942

Long-term borrowings
3.2% Senior Notes due August 2021 ⁽²⁾	—		n/a		523		2.5	%
2.773% Senior Notes due December 2022	1,246		2.9	%	1,245		2.9	%
8.55% Debentures due June 2024 ⁽²⁾	127		4.1	%	131		4.1	%
3.337% Senior Notes due December 2027	1,343		3.4	%	1,343		3.4	%
6.875% Notes due January 2029 ⁽²⁾	289		3.9	%	294		3.9	%
3.138% Senior Notes due November 2029	522		3.2	%	—		n/a
5.125% Notes due September 2040 ⁽²⁾	1,301		4.2	%	1,306		4.2	%
4.080% Senior Notes due December 2047	1,337		4.1	%	1,336		4.1	%
Other long-term borrowings	136		3.4	%	107		5.3	%
Total long-term borrowings	6,301				6,285
Total borrowings	$	6,622			$	7,227


⁽¹⁾	Weighted average effective interest rate is based on the carrying value including step-up adjustments, as applicable, recorded upon the acquisition of BHI.


⁽²⁾	Represents long-term fixed rate debt obligations assumed in connection with the acquisition of BHI, net of amounts repurchased subsequent to the closing of the Transactions.

In November 2019, BHGE LLC issued $525 million of 3.138% Senior Notes due November 2029. These Senior Notes are presented net of issuance costs of $3 million in our consolidated statements of financial position. We used the proceeds from this offering to repurchase all of our outstanding 3.2% Senior Notes due August 2021. The total cash consideration paid for this repurchase excluding interest was $526 million, resulting in a loss of $7 million which was recorded in the "Interest expense, net" caption of the consolidated and combined statements of income (loss).

The estimated fair value of total borrowings at December 31, 2019 and 2018 was $6,847 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.

Maturities of debt for each of the five years in the period ending December 31, 2024, and in the aggregate thereafter, are listed in the table below:



	2020		2021		2022		2023		2024		Thereafter
Total debt	$	321	$	40	$	1,275	$	28	$	148	$	4,810

In December 2019, BHGE LLC entered into a $3 billion committed unsecured revolving credit facility (the 2019 Credit Agreement) with commercial banks maturing in December 2024. The 2019 Credit Agreement contains

certain customary representations and warranties, certain customary affirmative covenants and certain customary negative covenants. Upon the occurrence of certain events of default, BHGE LLC's obligations under the 2019 Credit Agreement may be accelerated. Such events of default include payment defaults to lenders under the 2019 Credit Agreement and other customary defaults. No such events of default have occurred. In connection with BHGE LLC’s entry into the 2019 Credit Agreement, BHGE LLC terminated its then-existing five-year committed $3 billion revolving credit agreement dated as of July 3, 2017 (the 2017 Credit Agreement). During 2019 and 2018, there were no borrowings under the 2019 or 2017 Credit Agreement.

BHGE LLC has a commercial paper program under which it may issue from time to time up to $3 billion in commercial paper with maturities of no more than 397 days. At December 31, 2019 and 2018, we had no borrowings outstanding under the commercial paper program.

Concurrent with the Transactions associated with the acquisition of BHI on July 3, 2017, Baker Hughes Co-Obligor, Inc. became a co-obligor, jointly and severally with BHGE LLC, on our registered debt securities. This co-obligor is a 100%-owned finance subsidiary of BHGE LLC 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 BHGE LLC in a private placement and subsequently registered in January 2018.

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

See "Note 19. Related Party Transactions" for additional information on the short-term borrowings from GE, and see "Note 17. Financial Instruments" for additional information about borrowings and associated swaps.

Business Acquisition and Dispositions - Pro forma (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2017	Jul. 02, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Net loss attributable to the Company	$ (437)	$ 46	$ 271	$ 283	$ (391)
GE Transaction Agreement
Business Acquisition [Line Items]
Revenue					21,841
Net loss					(485)
Net loss attributable to the Company					$ (147)
Loss per Class A share - basic (in dollars per share)					$ (0.34)
Loss per Class A share - diluted (in dollars per share)					$ (0.34)

- Definition

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

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+ Details

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
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 arbitration proceedings against us on June 19, 2015, under the rules of the German Institute of Arbitration e.V. (DIS). On August 3, 2016, the customer amended its claims and alleged damages of €202 million plus interest at an annual rate of prime + 5%. Hearings before the arbitration panel were held January 16, 2017 through January 23, 2017, and March 20, 2017 through March 21, 2017. In addition, on September 21, 2015, TRIUVA Kapitalverwaltungsgesellschaft mbH filed a lawsuit in the United States District Court for the Southern District of Texas, Houston Division against the Company and Baker Hughes Oilfield Operations, Inc. alleging that the plaintiff is the owner of gas storage caverns in Etzel, Germany in which the Company provided certain equipment in connection with the development of the gas storage caverns. The plaintiff further alleges that the Company supplied equipment that was either defectively designed or failed to warn of risks that the equipment posed, and that these alleged defects caused damage to the plaintiff's property. The plaintiff seeks recovery of alleged compensatory and punitive damages of an unspecified amount, in addition to reasonable attorneys' fees, court costs and pre-judgment and post-judgment interest. The allegations in this lawsuit are related to the claims made in the June 19, 2015 German arbitration referenced above. On June 7, 2018, the DIS arbitration panel issued a confidential Arbitration Ruling which addressed all claims asserted by the customer. The estimated financial impact of the Arbitration Ruling has been reflected in the Company's financial statements and did not have a material impact. Further, on March 11, 2019, the customer initiated a second arbitral proceeding against us, under the rules of the German Institute of Arbitration e.V. (DIS). The customer alleged damages of €142 million plus interest at an annual rate of prime + 5% since June 20, 2015. The allegations in this second arbitration proceeding are related to the claims made in the June 19, 2015 German arbitration and Houston Federal Court proceedings referenced above. The Company is contesting the claims made by TRIUVA in the Houston Federal Court and the claims made by the customer in the second arbitration proceeding. At this time, we are not able to predict the outcome of the claims asserted in the Houston Federal Court or the second 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 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. 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 May 2, 2019, the USPTO issued a final written decision in an IPR on U.S. 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. On November 13, 2019, the U.S. Court of Appeals for the Federal Circuit affirmed the USPTO’s unpatentability findings with respect to U.S. Patent No. 7,134,505, and 7,543,634. On November 26, 2019, the USPTO issued a final written decision in the inter-partes review of U.S. Patent No. 7,861,774 finding all challenged claims unpatentable, and Rapid Completions did not timely appeal that decision. On January 21, 2020, the Federal Circuit affirmed the USPTO’s unpatentability finding as to all asserted claims of the U.S. Patent No. 9,303,501. 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. This patent relates primarily to certain specific downhole completions equipment. The plaintiff 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. 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 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 December 19, 2019, the Supreme Court of Canada dismissed Rapid Completion's appeal. 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. 2 of the Company's subsidiaries (and 17 other companies) were notified to participate in the proceedings. The proceedings are ongoing, and at this time, there is no indication that the Company's subsidiaries were involved in the incident. Although the outcome of the claims remains uncertain, our insurer has accepted coverage and is defending the Company in the expertise proceeding. 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 Baker Hughes contracts, expected to be mainly in our TPS business. We have provided all requested documents to GE. 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 Baker Hughes entities to participate in the arbitration filed by IEC. The complaint is captioned International Engineering & Construction S.A. et al. v. Baker Hughes, a GE company, LLC, et al. No. 18-cv-09241 (S.D.N.Y 2018); this action was dismissed by the Court on August 13, 2019. In the arbitration, IEC alleges breach of contract and other claims against the Company and its subsidiaries and seeks recovery of alleged compensatory damages, in addition to reasonable attorneys' fees, expenses and arbitration costs. On March 15, 2019, IEC amended its request for arbitration to alleged damages of $591 million of lost profits plus unspecified additional costs based on alleged non-performance of the contracts in dispute. The arbitration hearing was held from December 9, 2019 to December 20, 2019. The Company and its subsidiaries have 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 the Company’s behalf against GE, the then-current members of the Board of Directors of the Company and the Company as a nominal defendant, related to the decision to (i) terminate the contractual prohibition barring GE from selling any of the Company’s shares before July 3, 2019; (ii) repurchase $1.5 billion in the Company’s stock from GE; (iii) permit GE to sell approximately $2.5 billion in the Company’s stock through a secondary offering; and (iv) enter into a series of other agreements and amendments that will govern the ongoing relationship between the Company and GE (collectively, the “2018 Transactions”). The complaints in both lawsuits allege, among other things, that GE, as the Company’s controlling stockholder, and the members of the Company’s Board of Directors breached their fiduciary duties by entering into the 2018 Transactions. The relief sought in the complaints includes a request for a declaration that the defendants breached their fiduciary duties, that GE was unjustly enriched, disgorgement of profits, an award of damages sustained by the Company, pre- and post-judgment interest, and attorneys’ fees and costs. On March 21, 2019, the Chancery Court entered an order consolidating the Schippnick and City of Riviera Beach complaints under consolidated C.A. No. 2019-0201-AGB, styled in re Baker Hughes, a GE company derivative litigation. On May 10, 2019, Plaintiffs voluntarily dismissed their claims against the members of the Company’s Conflicts Committee, and on May 15, 2019, Plaintiffs voluntarily dismissed their claims against former Baker Hughes director Martin Craighead. On June 7, 2019, the defendants and nominal defendant filed a motion to dismiss the lawsuit on the ground that the derivative plaintiffs failed to make a demand on the Company’s Board of Directors to pursue the claims itself, and GE and the Company’s Board of Directors filed a motion to dismiss the lawsuit on the ground that the complaint failed to state a claim on which relief can be granted. The Chancery Court denied the motions on October 8, 2019, except granted GE’s motion to dismiss the unjust enrichment claim against it. On October 31, 2019, the Company’s Board of Directors designated a Special Litigation Committee and empowered it with full authority to investigate and evaluate the allegations and issues raised in the derivative litigation. The Special Litigation Committee filed a motion to stay the derivative litigation during its investigation. On December 3, 2019, the Chancery Court granted the motion and stayed the derivative litigation until June 1, 2020. The Special Litigation Committee’s investigation and evaluation remains ongoing. At this time, we are not able to predict the outcome of the Special Litigation Committee investigation or these claims. In March 2019, the Company received a document request from the United States Department of Justice (the “DOJ”) related to certain of the Company’s operations in Iraq and its dealings with Unaoil Limited and its affiliates. In December 2019, the Company received a similar document request from the Securities Exchange Commission (the "SEC"). The Company is cooperating with the DOJ and SEC in connection with their requests and any related matters. In addition, the Company has agreed to toll any statute of limitations in connection with the matters subject to the DOJ’s document request. 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. On or around September 11, 2019, the grand jury issued an indictment on 25 counts, including 10 counts of Assault in the First Degree, 10 counts of Assault in the Second Degree, and 5 counts of Assault in the Third Degree. On or around December 3, 2019, the State agreed to dismiss the indictment against Baker Hughes Oilfield Operations, Inc. The Company and other Defendants have pled not guilty and intend to defend the charges. At this time, we are not able to predict the outcome of the criminal proceeding. On August 13, 2019, Tri-State Joint Fund filed in the Delaware Court of Chancery, a shareholder class action lawsuit for and on the behalf of itself and all similarly situated public stockholders of Baker Hughes Incorporated (“BHI”) against the General Electric Company, the former members of the Board of Directors of BHI, and certain former BHI Officers alleging breaches of fiduciary duty, aiding and abetting, and other claims in connection with the Transactions. On October 28, 2019, City of Providence filed in the Delaware Court of Chancery a shareholder class action lawsuit for and on behalf of itself and all similarly situated public shareholders of BHI against GE, the former members of the Board of Directors of BHI, and certain former BHI Officers alleging substantially the same claims in connection with the Transactions. The relief sought in these complaints include a request for a declaration that Defendants breached their fiduciary duties, an award of damages, pre- and post-judgment interest, and attorneys’ fees and costs. The lawsuits have been consolidated, and plaintiffs filed a consolidated class action complaint on December 17, 2019 against certain former BHI officers alleging breaches of fiduciary duty and against GE for aiding and abetting those breaches. The December 2019 complaint omitted the former members of the Board of Directors of BHI, except for Mr. Craighead who also served as President and CEO of BHI. Mr. Craighead and Ms. Ross, who served as Senior Vice President and Chief Financial Officer of BHI, remain named in the December 2019 complaint along with GE. The relief sought in the consolidated complaint includes a declaration that the former BHI officers breached their fiduciary duties and that GE aided and abetted those breaches, an award of damages, pre- and post-judgment interest, and attorneys’ fees and costs. At this time, we are not able to predict the outcome of these claims. On December 11, 2019, BMC Software, Inc. (“BMC”) filed a lawsuit in federal court in the Southern District of Texas against Baker Hughes, a GE company, LLC alleging trademark infringement, unfair competition, and unjust enrichment, arising out of the Company’s use of its new logo and affiliated branding. On January 1, 2020, BMC amended its complaint to add Baker Hughes Company. The relief sought in the complaint includes a request for injunctive relief, an award of damages (including punitive damages), pre- and post-judgment interest, and attorneys’ fees and costs. At this time, we are not able to predict the outcome of these claims. We insure against risks arising from our business to the extent deemed prudent by our management and to the extent insurance is available, but no assurance can be given that the nature and amount of that insurance will be sufficient to fully indemnify us against liabilities arising out of pending or future legal proceedings or other claims. Most of our insurance policies contain deductibles or self-insured retentions in amounts we deem prudent and for which we are responsible for payment. In determining the amount of self-insurance, it is our policy to self-insure those losses that are predictable, measurable and recurring in nature, such as claims for automobile liability, general liability and workers compensation. ENVIRONMENTAL MATTERS Estimated remediation costs are accrued using currently available facts, existing environmental permits, technology and enacted laws and regulations. Our cost estimates are developed based on internal evaluations and are not discounted. Accruals are recorded when it is probable that we will be obligated to pay for environmental site evaluation, remediation or related activities, and such costs can be reasonably estimated. As additional information becomes available, accruals are adjusted to reflect current cost estimates. Ongoing environmental compliance costs, such as obtaining environmental permits, installation of pollution control equipment and waste disposal are expensed as incurred. Where we have been identified as a potentially responsible party in a U.S. federal or state Comprehensive Environmental Response, Compensation and Liability Act (Superfund) site, we accrue our share of the estimated remediation costs of the site. This share is based on the ratio of the estimated volume of waste we contributed to the site to the total volume of waste disposed at the site. OTHER In the normal course of business with customers, vendors and others, we have entered into off-balance sheet arrangements, such as surety bonds for performance, letters of credit and other bank issued guarantees, which totaled approximately $3.9 billion at December 31, 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. We also had commitments outstanding for purchase obligations for each of the five years in the period ending December 31, 2024 of $1,304 million, $170 million, $61 million, $9 million and $12 million, respectively, and $15 million in the aggregate thereafter. We sometimes enter into consortium or similar arrangements for certain projects primarily in our Oilfield Equipment segment. Under such arrangements, each party is responsible for performing a certain scope of work within the total scope of the contracted work, and the obligations expire when all contractual obligations are completed. The failure or inability, financially or otherwise, of any of the parties to perform their obligations could impose additional costs and obligations on us. These factors could result in unanticipated costs to complete the project, liquidated damages or contract disputes.

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 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 Company (Baker Hughes, the Company, we, us, or our) is an energy technology company with a diversified portfolio of technologies and services that span the energy and industrial value chain. We conduct business in more than 120 countries and employ approximately 68,000 employees. The Company was formed as the result of a combination between Baker Hughes Incorporated (BHI) and the oil and gas business (GE O&G) of General Electric Company (GE). As of September 16, 2019, GE ceased to hold more than 50% of the voting power of all classes of our outstanding voting stock. Subsequently, on October 17, 2019, the Company changed its name from Baker Hughes, a GE company to Baker Hughes Company. On October 18, 2019, the Company began trading as BKR on the New York Stock Exchange.

BASIS OF PRESENTATION

The accompanying consolidated and combined financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. and such principles, U.S. GAAP) and pursuant to the rules and regulations of the SEC for annual financial information. All intercompany accounts and transactions have been eliminated.

On July 3, 2017, we closed the business combination (the Transactions) of GE O&G and BHI. As a result, substantially all of the businesses of GE O&G and of BHI were transferred to a subsidiary of the Company, Baker Hughes, a GE company, LLC (BHGE LLC). Following the Transactions, we held a minority economic interest in BHGE LLC. However, we conducted and exercised full control over all activities of BHGE LLC without the approval of any other member. Accordingly, we consolidated the financial results of BHGE LLC and reported a noncontrolling interest in our consolidated and combined financial statements for the economic interest in BHGE LLC not held by us.

The Company's financial statements have been prepared on a consolidated basis, effective July 3, 2017. 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). For all periods prior to July 3, 2017, the Company's financial statements were prepared on a combined basis. The combined financial statements combine certain accounts of GE and its subsidiaries that were historically managed as part of its oil & gas business and contributed to BHGE LLC as part of the Transactions. Additionally, it also includes certain assets, liabilities and results of operations of other businesses of GE that were also contributed to BHGE LLC as part of the Transactions on a fully retrospective basis (in accordance with the guidance applicable to transactions between entities under common control) based on their carrying values, as reflected in the accounting records of GE. The consolidated and combined statements of income reflect intercompany expense allocations made to us by GE for certain corporate functions and for shared services provided by GE. Where possible, these allocations were made on a specific identification basis, and in other cases, these expenses were allocated by GE based on relative percentages of net operating costs or some other basis depending on the nature of the allocated cost. See "Note 19. Related Party Transactions" for further information on expenses allocated by GE. The historical financial results in the consolidated and combined financial statements presented may not be indicative of the results that would have been achieved had GE O&G operated as a separate, stand-alone entity during those periods.

We are a holding company and have no material assets other than our ownership interest in BHGE LLC and certain intercompany and tax related balances. BHGE LLC is a Securities and Exchange Commission (SEC) Registrant with separate filing requirements with the SEC and its separate financial information can be obtained from www.sec.gov. The 2019 and 2018 results may not be comparable to 2017 as the 2017 results include the results of BHI from July 3, 2017 forward.

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

SEPARATION FROM GE

In June 2018, GE announced their intention to pursue an orderly separation from Baker Hughes over time. To that end, in November 2018, we completed a secondary public offering in which GE and its affiliates sold 101.2 million shares of our Class A common stock. We did not receive any proceeds from the shares sold by GE and its affiliates. The offering included the exchange by GE and its affiliates of common units of BHGE LLC (LLC Units), together with the corresponding shares of our Class B common stock, for our Class A common stock. Also, in November 2018, we repurchased 65 million of our Class B common stock, together with an equal number of associated LLC Units, from GE and its affiliates for $1.5 billion. In connection with this repurchase, the corresponding shares of Class B common stock and LLC Units were canceled. As a result of this secondary offering and repurchase, GE's interest in Baker Hughes was reduced from approximately 62.5% to approximately 50.4%.

In September 2019, we completed a secondary public offering in which GE and its affiliates sold 132.3 million shares of our Class A common stock. We did not receive any proceeds from the shares sold by GE and its affiliates in this offering. The offering included the exchange by GE and its affiliates of LLC Units, together with the corresponding shares of our Class B common stock, for our Class A common stock. Also, in September 2019, we repurchased 11.9 million shares of our Class B common stock, together with an equal number of associated LLC Units, from GE and its affiliates for $250 million. In connection with this repurchase, the corresponding shares of Class B common stock and LLC Units were canceled. As a result of this secondary offering and repurchase, GE's interest in Baker Hughes was reduced to approximately 36.8%, and therefore, GE ceased to hold more than 50% of the voting power of all classes of our outstanding voting stock. As of December 31, 2019, GE's interest in us was 36.7%.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of any contingent assets or liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We base our estimates and judgments on historical experience and on various other assumptions and information that we believe to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty, and accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. While we believe that the estimates and assumptions used in the preparation of the consolidated and combined financial statements are appropriate, actual results could differ from those estimates. Estimates are used for, but are not limited to, determining the following: allowance for doubtful accounts and inventory valuation reserves; recoverability of long-lived assets, including revenue recognition on long-term contracts, valuation of goodwill; useful lives used in depreciation and amortization; income taxes and related valuation allowances; accruals for contingencies; actuarial assumptions to determine costs and liabilities related to employee benefit plans; stock-based compensation expense; valuation of derivatives and the fair value of assets acquired and liabilities assumed in acquisitions; and expense allocations for certain corporate functions and shared services provided by GE.

Foreign Currency

Assets and liabilities of non-U.S. operations with a functional currency other than the U.S. dollar have been translated into U.S. dollars using our period end exchange rates, and revenue, expenses, and cash flows have been translated at average rates for the respective periods. Any resulting translation gains and losses are included in other comprehensive income (loss).

Gains and losses from foreign currency transactions, such as those resulting from the settlement of receivables or payables in the non-functional currency and those resulting from remeasurements of monetary items, are included in the consolidated and combined statement of income (loss).

Revenue from Sale of Equipment

Performance Obligations Satisfied Over Time

We recognize revenue on agreements for sales of goods manufactured to unique customer specifications including long-term construction projects, on an over time basis utilizing cost inputs as the measurement criteria in assessing the progress toward completion. Our estimate of costs to be incurred to fulfill our promise to a customer is based on our history of manufacturing similar assets for customers and is updated routinely to reflect changes in quantity or pricing of the inputs. We begin to recognize revenue on these contracts when the contract specific inventory becomes customized for a customer, which is reflective of our initial transfer of control of the incurred costs. We provide for potential losses on any of these agreements when it is probable that we will incur the loss.

Our billing terms for these over time contracts vary, but are generally based on achieving specified milestones. The differences between the timing of our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract asset or contract liability positions.

Performance Obligations Satisfied at a Point In Time

We recognize revenue for non-customized equipment at the point in time that the customer obtains control of the good. Equipment for which we recognize revenue at a point in time include goods we manufacture on a standardized basis for sale to the market. We use proof of delivery for certain large equipment with more complex logistics associated with the shipment, whereas the delivery of other equipment is generally determined based on historical data of transit times between regions.

On occasion we sell products with a right of return. We use our accumulated experience to estimate and provide for such returns when we record the sale. In situations where arrangements include customer acceptance provisions based on seller or customer-specified objective criteria, we recognize revenue when we have concluded that the customer has control of the goods and that acceptance is likely to occur.

Our billing terms for these point in time equipment contracts vary, but are generally based on shipment of the goods to the customer.

Revenue from Sale of Services

Performance Obligations Satisfied Over Time

We sell product services under long-term product maintenance or extended warranty agreements in our Turbomachinery & Process Solutions and Oilfield Equipment segments. These agreements require us to maintain the customers' assets over the service agreement contract terms, which generally range from 10 to 20 years. In general, these are contractual arrangements to provide services, repairs, and maintenance of a covered unit (gas turbines for mechanical drive or power generation, primarily on LNG applications, drilling rigs). These services are performed at various times during the life of the contract, thus the costs of performing services are incurred on other than a straight-line basis. We recognize related sales based on the extent of our progress toward completion measured by actual costs incurred in relation to total expected costs. We provide for any loss that we expect to incur on any of these agreements when that loss is probable. The Company utilizes historical customer data, prior product performance data, statistical analysis, third-party data, and internal management estimates to calculate contract-specific margins. In certain contracts, the total transaction price is variable based on customer utilization, which is excluded from the contract margin until the period that the customer has utilized to appropriately reflect the revenue activity in the period earned. In addition, revenue for certain oilfield services is recognized on an over time basis as performed.

Our billing terms for these contracts are generally based on asset utilization (i.e. usage per hour) or the occurrence of a major maintenance event within the contract. The differences between the timing of our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract asset or contract liability positions.

Performance Obligations Satisfied at a Point In Time

We sell certain tangible products, largely spare equipment, through our services business. We recognize revenues for this equipment at the point in time that the customer obtains control of the good, which is at the point in time we deliver the spare part to the customer. Our billing terms for these point in time service contracts vary, but are generally based on shipment of the goods to the customer.

Research and Development

Research and development costs are expensed as incurred and relate to the research and development of new products and services. These costs amounted to $687 million, $700 million and $501 million for the years ended December 31, 2019, 2018 and 2017, respectively. Research and development expenses were reported in cost of goods sold and cost of services sold.

Separation and Merger Related

Separation and merger related costs primarily include costs incurred in connection with the separation from GE and the finalization of the Master Agreement Framework and Omnibus Agreement. See "Note 19. Related Party Transactions" for further information on the Master Agreement Framework.

Prior to 2019, separation and merger related costs primarily include costs associated with the combination of BHI and GE O&G. Such costs include professional fees of advisors and integration and synergy costs related to the combination of BHI and GE O&G.

Cash and Cash Equivalents

Short-term investments with original maturities of three months or less are included in cash equivalents unless designated as available-for-sale and classified as investment securities.

As of December 31, 2019 and 2018, we had $1,102 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 $142 million and $461 million, as of December 31, 2019 and 2018, respectively, held on behalf of GE.

Cash and cash equivalents includes a total of $162 million and $747 million of cash at December 31, 2019 and 2018, respectively, held on behalf of GE, and a corresponding liability is reported in short-term borrowings. See "Note 19. Related Party Transactions" for further details.

Allowance for Doubtful Accounts

We establish an allowance for doubtful accounts based on various factors including the payment history and financial condition of our debtors and the economic environment. Provisions for doubtful accounts are recorded based on the aging status of the debtor accounts or when it becomes evident that the debtor will not make the required payments at either contractual due dates or in the future.

Concentration of Credit Risk

We grant credit to our customers who primarily operate in the oil and natural gas industry. Although this concentration affects our overall exposure to credit risk, our current receivables are spread over a diverse group of customers across many countries, which mitigates this risk. We perform periodic credit evaluations of our customers' financial conditions, including monitoring our customers' payment history and current credit worthiness to manage this risk. We do not generally require collateral in support of our current receivables, but we may require payment in advance or security in the form of a letter of credit or a bank guarantee.

Inventories

All inventories are stated at the lower of cost or net realizable values and they are measured on a first-in, first-out (FIFO) basis or average cost basis. As necessary, we record provisions and maintain reserves for excess, slow moving and obsolete inventory. To determine these reserve amounts, we regularly review inventory quantities on hand and compare them to estimates of future product demand, market conditions, production requirements and technological developments.

Property, Plant and Equipment (PP&E)

Property, plant and equipment is initially stated at cost and is depreciated over its estimated economic life. Subsequently, property, plant and equipment is measured at cost less accumulated depreciation and impairment losses. We manufacture a substantial portion of our tools and equipment in our OFS segment and the cost of these items, which includes direct and indirect manufacturing costs, is capitalized and carried in inventory until it is completed.

Other Intangible Assets

We amortize the cost of other intangible assets over their estimated useful lives unless such lives are deemed indefinite. The cost of intangible assets is generally amortized on a straight-line basis over the asset's estimated economic life. Amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In these circumstances, they are tested for impairment based on undiscounted cash flows and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested annually for impairment and written down to fair value as required. Refer to the Impairment of Goodwill and Other Long-Lived Assets accounting policy.

Impairment of Goodwill and Other Long-lived Assets

We perform an annual impairment test of goodwill on a qualitative or quantitative basis for each of our reporting units as of July 1, or more frequently when circumstances indicate an impairment may exist at the reporting unit level. When performing the annual impairment test we have the option of first performing a qualitative assessment to determine the existence of events and circumstances that would lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If such a conclusion is reached, we would then be required to perform a quantitative impairment assessment of goodwill. However, if the assessment leads to a determination that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then no further assessments are required. A quantitative assessment for the determination of impairment is made by comparing the carrying amount of each reporting unit with its fair value, which is generally calculated using a combination of market, comparable transaction and discounted cash flow approaches. See "Note 7. Goodwill and Other Intangible Assets" for further information on valuation methodology and impairment of goodwill.

We review PP&E, intangible assets and certain other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable and at least annually for indefinite-lived intangible assets. When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group). The determination of recoverability is made based upon the estimated undiscounted future net cash flows. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flow analysis, with the carrying value of the related assets.

Financial Instruments

Our financial instruments include cash and equivalents, current receivables, investments, accounts payables, short and long-term debt, and derivative financial instruments.

We monitor our exposure to various business risks including commodity prices and foreign currency exchange rates and we regularly use derivative financial instruments to manage these risks. At the inception of a new

derivative, we designate the derivative as a hedge or we determine the derivative to be undesignated as a hedging instrument. We document the relationships between the hedging instruments and the hedged items, as well as our risk management objectives and strategy for undertaking various hedge transactions. We assess whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item at both the inception of the hedge and on an ongoing basis.

We have a program that utilizes foreign currency forward contracts to reduce the risks associated with the effects of certain foreign currency exposures. Under this program, our strategy is to have gains or losses on the foreign currency forward contracts mitigate the foreign currency transaction and translation gains or losses to the extent practical. These foreign currency exposures typically arise from changes in the value of assets (for example, current receivables) and liabilities (for example, current payables) which are denominated in currencies other than the functional currency of the respective entity. We record all derivatives as of the end of our reporting period in our consolidated statement of financial position at fair value. For the forward contracts held as undesignated hedging instruments, we record the changes in fair value of the forward contracts in our consolidated and combined statements of income (loss) along with the change in the fair value, related to foreign exchange movements, of the hedged item. Changes in the fair value of forward contracts designated as cash flow hedging instruments are recognized in other comprehensive income until the hedged item is recognized in earnings.

Fair Value Measurements

For financial assets and liabilities measured at fair value on a recurring basis, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.

Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:


•	Level 1 - Quoted prices for identical instruments in active markets.


•	Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.


•	Level 3 - Significant inputs to the valuation model are unobservable.

We maintain policies and procedures to value instruments using the best and most relevant data available. In addition, we perform reviews to assess the reasonableness of the valuations. With regard to Level 3 valuations (including instruments valued by third parties), we perform a variety of procedures to assess the reasonableness of the valuations. Such reviews include an evaluation of instruments whose fair value change exceeds predefined thresholds (and/or does not change) and consider the current interest rate, currency and credit environment, as well as other published data, such as rating agency market reports and current appraisals.

Recurring Fair Value Measurements

Derivatives

When we have Level 1 derivatives, which are traded either on exchanges or liquid over-the-counter markets, we use closing prices for valuation. The majority of our derivatives are valued using internal models and are included in Level 2. These internal models maximize the use of market observable inputs including interest rate curves and both forward and spot prices for currencies and commodities. Derivative assets and liabilities included in Level 2 primarily represent foreign currency and commodity forward contracts for the Company.

Investments in Debt and Equity Securities

When available, we use quoted market prices to determine the fair value of investment securities, and they are included in Level 1. Level 1 securities primarily include publicly traded equity securities.

For investment securities for which market prices are observable for identical or similar investment securities but not readily accessible for each of those investments individually (that is, it is difficult to obtain pricing information for each individual investment security at the measurement date), we use pricing models that are consistent with what other market participants would use. The inputs and assumptions to the models are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data. Thus, certain securities may not be priced using quoted prices, but rather determined from market observable information. These investments are included in Level 2. When we use valuations that are based on significant unobservable inputs we classify the investment securities in Level 3.

Non-Recurring Fair Value Measurements

Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments only in certain circumstances. These assets can include long-lived assets that have been reduced to fair value when they are held for sale, equity securities without readily determinable fair value and equity method investments and long-lived assets that are written down to fair value when they are impaired and the remeasurement of retained investments in formerly consolidated subsidiaries upon a change in control that results in a deconsolidation of a subsidiary, if we sell a controlling interest and retain a noncontrolling stake in the entity. Assets that are written down to fair value when impaired and retained investments are not subsequently adjusted to fair value unless further impairment occurs.

Investments in Equity Securities

Investments in equity securities (of entities in which we do not have either a controlling financial interest or significant influence, most often because we hold a voting interest of 0% to 20%) with readily determinable fair values are measured at fair value with changes in fair value recognized in earnings and reported in the "other non operating income, net" caption in the consolidated and combined statements of income (loss). Equity securities that do not have readily determinable fair values are recorded at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar equity securities of the same issuer.

Associated companies are entities in which we do not have a controlling financial interest, but over which we have significant influence, most often because we hold a voting interest of 20% to 50%. Associated companies are accounted for as equity method investments. The results of associated companies are presented in the consolidated and combined statements of income (loss) as follows: (i) if the associated company is integral to our operations, their results are included in "Selling, general and administrative," (ii) if the associated company is not integral to our operations, their results are included in "Other non operating income, net," and (iii) our equity method investment in BJ Services, which is a U.S. limited liability corporation, is presented in "Equity in loss of affiliate." Investments in, and advances to, associated companies are presented on a one-line basis in the caption "All other assets" in our consolidated statement of financial position.

Income Taxes

We file U.S. federal and state income tax returns which after the closing of the Transactions primarily includes our distributive share of items of income, gain, loss and deduction of BHGE LLC which is treated as a partnership for U.S. tax purposes. As such, BHGE LLC will not itself be subject to U.S. federal income tax under current U.S. tax laws. Non-U.S. current and deferred income taxes owed by the subsidiaries of BHGE LLC are reflected in the financial statements.

Prior to the closing of the Transactions, GE O&G was included in the consolidated U.S. federal, foreign and state income tax returns of GE, where allowable by law. Our prior year current and deferred taxes were determined based upon the separate return method (i.e., as if we were a taxpayer separate from GE).

We account for taxes under the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities as well as from net operating losses and tax credit carryforwards, based on enacted tax rates expected to be in effect when taxes actually are paid or recovered and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized in income in the period in which such change is enacted. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes may not be realized.

We provide U.S. deferred taxes on our outside basis difference in our investment in BHGE LLC. In determining the basis difference, we exclude non-deductible goodwill and the basis difference related to certain foreign corporations owned by BHGE LLC where the undistributed earnings of the foreign corporation have been, or will be, reinvested indefinitely.

Due to the enactment of U.S. tax reform, repatriations of foreign earnings will generally be free of U.S. federal tax but may incur other taxes, such as withholding or state taxes. Indefinite reinvestment is determined by management’s judgment about and intentions concerning the future operations of the Company. Most of these earnings have been reinvested in active non-U.S. business operations. It is not practicable to determine the income tax liability that would be payable if such earnings were not reinvested indefinitely.

Significant judgment is required in determining our tax expense and in evaluating our tax positions, including evaluating uncertainties. We operate in more than 120 countries and our tax filings are subject to audit by the tax authorities in the jurisdictions where we conduct business. These audits may result in assessments of additional taxes that are resolved with the tax authorities or through the courts. We have provided for the amounts that we believe will ultimately result from these proceedings. We recognize uncertain tax positions that are “more likely than not” to be sustained if the relevant tax authority were to audit the position with full knowledge of all the relevant facts and other information. For those tax positions that meet this threshold, we measure the amount of tax benefit based on the largest amount of tax benefit that has a greater than 50% chance of being realized in a final settlement with the relevant authority. We classify interest and penalties associated with uncertain tax positions as income tax expense. The effects of tax adjustments and settlements from taxing authorities are presented in the combined financial statements in the period they are recorded.

Additionally, as part of U.S. tax reform, the U.S. has enacted a tax on "base eroding" payments from the U.S. and a minimum tax on foreign earnings (global intangible low-taxed income). In 2018, we made an accounting policy election to account for these taxes as period costs.

Environmental Liabilities

We are involved in numerous remediation actions to clean up hazardous waste as required by federal and state laws. Liabilities for remediation costs exclude possible insurance recoveries and, when dates and amounts of such costs are not known, are not discounted. When there appears to be a range of possible costs with equal likelihood, liabilities are based on the low end of such range. It is reasonably possible that our environmental remediation exposure will exceed amounts accrued. However, due to uncertainties about the status of laws, regulations, technology and information related to individual sites, such amounts are not reasonably estimable. The determination of the required accruals for remediation costs is subject to uncertainty, including the evolving nature of environmental regulations and the difficulty in estimating the extent and type of remediation activity that is necessary.

NEW ACCOUNTING STANDARDS ADOPTED

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 10. 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 and combined statements of equity and no related impact on our consolidated and combined 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 and combined 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 17. Financial Instruments" for additional information.

NEW ACCOUNTING STANDARDS TO BE ADOPTED

In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments - Credit Losses. The ASU introduced 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 financial assets arising from revenue transactions such as contract assets and accounts receivables and is effective for fiscal years beginning after December 15, 2019. Upon adoption, the new standard will not have a material impact on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other -Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating the requirement to calculate the fair value of the individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the new ASU, an entity will perform its goodwill impairment test by comparing the fair value of the reporting unit with its carrying value and should recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. The new standard is effective for goodwill impairment tests in annual reporting periods beginning after December 15, 2019, and should be applied on a prospective basis, with early adoption permitted. The Company adopted this ASU on January 1, 2020 on a prospective basis.

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.

Financial Instruments - Investment Securities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Investment securities, gross unrealized gains	$ 2	$ 0
Investment securities, gross unrealized losses	0	0
Equity securities, amortized cost	24	39
Equity securities, estimated fair value	24	39
Total, amortized cost	281	327
Total, estimated fair value	283	327
Net unrealized gain (loss)	2	(25)
Net unrealized gain (loss)			$ 30
Non-U.S. debt securities
Debt Securities, Available-for-sale [Line Items]
Investment securities, amortized cost	257	288
Investment securities, gross unrealized gains	2	0
Investment securities, gross unrealized losses	0	0
Investment securities	$ 259	$ 288
Debt securities, term	3 years

Business Acquisition and Dispositions

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Business Acquisition and Dispositions

BUSINESS ACQUISITION AND DISPOSITIONS

BUSINESS ACQUISITION

On July 3, 2017, we closed the Transactions to combine GE O&G and BHI. The Transactions were executed using a partnership structure, pursuant to which GE O&G and BHI each contributed their operating assets to a newly formed partnership, BHGE LLC. The fair value of the consideration exchanged was $24,798 million.



Preliminary identifiable assets acquired and liabilities assumed	Fair Value at July 3, 2017
Assets
Cash and equivalents	$	4,133
Current receivables	2,342
Inventories	1,712
Property, plant and equipment	4,514
Intangible assets ⁽¹⁾	4,005
All other assets	1,335
Liabilities
Accounts payable	$	(1,213	)
Borrowings	(3,370		)
Deferred income taxes ⁽²⁾	(258		)
Liabilities for pension and other postretirement benefits	(654		)
All other liabilities	(1,676		)
Total identifiable net assets	$	10,870
Noncontrolling interest associated with net assets acquired	(35		)
Goodwill ⁽³⁾	13,963
Total purchase consideration	$	24,798

⁽¹⁾



	Fair Value		Weighted Average Life (Years)
Trade name - Baker Hughes	$	2,100	Indefinite life
Customer relationships	1,240		15
Patents and technology	465		10
In-process research and development	70		Indefinite life
Capitalized software	64		2
Trade names - other	45		10
Favorable lease contracts & others	21		10
Total	$	4,005


⁽²⁾	Includes approximately $500 million of net deferred tax liabilities related to the fair value of intangible assets included in the purchase consideration and approximately $242 million of other net deferred tax assets, including non-U.S. loss carryforwards net of valuation allowances partially offset by liabilities for unrecognized benefits.


⁽³⁾	Goodwill resulting from the Transactions has been primarily allocated to the Oilfield Services segment, of which $67 million is deductible for tax purposes.

UNAUDITED PRO FORMA INFORMATION

The following unaudited pro forma information has been presented as if the Transactions occurred on January 1, 2016. This information has been prepared by combining the historical results of GE O&G and historical results of BHI. The unaudited pro forma combined financial data were adjusted to give effect to pro forma events that 1) are directly attributable to the Transactions, 2) factually supportable, and 3) expected to have a continuing impact on the consolidated results of operations. The unaudited pro forma results do not include any incremental cost savings that may result from the integration.

The unaudited combined pro forma information is for informational purposes only and is not necessarily indicative of what the combined company's results actually would have been had the acquisition been completed as of the beginning of the periods as indicated. In addition, the unaudited pro forma information does not purport to project the future results of the combined company.



	2017
Revenue	$	21,841
Net loss	(485		)
Net loss attributable to the Company	(147		)
Loss per Class A share - basic and diluted ⁽¹⁾	(0.34		)


⁽¹⁾	The calculation of diluted loss per Class A share excludes shares potentially issuable under stock-based incentive compensation plans and the exchange of Class B shares with Class A shares under the Exchange Agreement, as their effect, if included, would be antidilutive.

BUSINESS DISPOSITIONS

In July 2019, the Company completed the sale of its high-speed reciprocating compression (Recip) business for a total consideration of $77 million. Recip, based in Houston, Texas, was part of our TPS segment and provided high-speed reciprocating compression equipment and aftermarket parts and services for oil and gas production, gas processing, gas distribution and independent power industries. The sale resulted in a loss before income tax of $138 million reported in the "Other non operating income (loss), net" caption of the consolidated and combined statements of income (loss).

In October 2018, the Company completed the sale of its Natural Gas Solution (NGS) business for a sales price of $375 million. NGS was part of our TPS segment and provided commercial and industrial products such as gas meters, chemical injection pumps, pipeline repair products and electric actuators. The sale resulted in a gain before income tax of $171 million reported in the "Other non operating income (loss), net" caption of the consolidated and combined statements of income (loss).

Business Acquisition and Dispositions - Estimated fair value and average life (Details) - USD ($) $ in Millions	Jul. 03, 2017	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Indefinite-lived intangible assets		$ 2,242	$ 2,222
Total		$ 5,381	$ 5,719
GE Transaction Agreement
Business Acquisition [Line Items]
Total	$ 4,005
GE Transaction Agreement \| Trade name - Baker Hughes
Business Acquisition [Line Items]
Indefinite-lived intangible assets	2,100
GE Transaction Agreement \| In-process research and development
Business Acquisition [Line Items]
Indefinite-lived intangible assets	70
GE Transaction Agreement \| Customer relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 1,240
Weighted Average Life (Years)	15 years
GE Transaction Agreement \| Patents and technology
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 465
Weighted Average Life (Years)	10 years
GE Transaction Agreement \| Capitalized software
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 64
Weighted Average Life (Years)	2 years
GE Transaction Agreement \| Trade names - other
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 45
Weighted Average Life (Years)	10 years
GE Transaction Agreement \| Favorable lease contracts & others
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 21
Weighted Average Life (Years)	10 years

Income Taxes - Schedule of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ (472)	$ (395)
Balance acquired from BHI	0	(142)
Additions for tax positions of the current year	(25)	(21)
Additions for tax positions of prior years	(27)	(95)
Reductions for tax positions of prior years	55	101
Settlements with tax authorities	6	35
Lapse of statute of limitations	12	45
Balance at end of year	$ (451)	$ (472)

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Weighted average assumptions used in the option pricing model

The following table presents the weighted average assumptions used in the option pricing model for options granted under the LTI Plan. The expected life of the options represents the period of time the options are expected to be outstanding. The expected life is based on a simple average of the vesting term and original contractual term of the awards. The expected volatility is based on the historical volatility of our five main competitors over a six year period. The risk-free interest rate is based on the observed U.S. Treasury yield curve in effect at the time the options were granted. In 2019, the dividend yield is based on Baker Hughes' current annual cash dividend divided by the valuation date stock price. Prior to 2019, the dividend yield was based on a five year history of dividend payouts by BHI.



	2019			2018			2017
Expected life (years)	6			6			6
Risk-free interest rate	2.6		%	2.5		%	2.1		%
Volatility	36.5		%	33.7		%	36.4		%
Dividend yield	3.1		%	2.0		%	1.2		%
Weighted average fair value per share at grant date	$	6.37		$	10.34		$	12.32

Changes in stock options outstanding

The following table presents the changes in stock options outstanding and related information (in thousands, except per option prices):



	Number of Options		Weighted Average Exercise Price Per Option
Outstanding at December 31, 2018	7,538		$	34.76
Granted	2,301		22.98
Exercised	(491	)	18.96
Forfeited	(305	)	29.42
Expired	(633	)	36.85
Outstanding at December 31, 2019	8,410		$	32.50
Exercisable at December 31, 2019	5,155		$	35.68

Changes of RSUs and related information

The following table presents the changes in RSUs outstanding and related information (in thousands, except per unit prices):



	Number of Units		Weighted Average Grant Date Fair Value Per Unit
Unvested balance at December 31, 2018	6,882		$	36.18
Granted	8,267		23.10
Vested	(2,813	)	35.98
Forfeited	(1,051	)	29.54
Unvested balance at December 31, 2019	11,285		$	27.26

Changes of PSUs and related information

The following table presents the changes in PSUs outstanding and related information (in thousands, except per unit prices):



	Number of Units		Weighted Average Grant Date Fair Value Per Unit
Unvested balance at December 31, 2018	927		$	35.13
Granted	1,275		22.72
Vested	—		—
Forfeited	(158	)	28.34
Unvested balance at December 31, 2019	2,044		$	27.91

Restructuring, Impairment and Other

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring, Impairment and Other

RESTRUCTURING, IMPAIRMENT AND OTHER

We recorded restructuring, impairment and other charges of $342 million, $433 million, and $412 million during the years ended December 31, 2019, 2018 and 2017, 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 $314 million, $304 million and $385 million for the years ended December 31, 2019, 2018 and 2017, respectively. These restructuring initiatives are expected to generate charges of approximately $11 million in future periods as these restructuring plans come to completion.

These charges are included in the "Restructuring, impairment and other" caption in the consolidated and combined statements of income (loss).

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



	2019		2018		2017
Oilfield Services	$	211	$	160	$	187
Oilfield Equipment	18		25		114
Turbomachinery & Process Solutions	48		71		21
Digital Solutions	15		17		34
Corporate	22		31		29
Total	$	314	$	304	$	385

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 other incremental costs that were a direct result of the restructuring plans.



	2019		2018		2017
Property, plant & equipment, net	$	107	$	80	$	131
Employee-related termination expenses	179		123		186
Asset relocation costs	4		28		10
EHS remediation costs	11		6		9
Contract termination fees	12		44		26
Other incremental costs	1		23		23
Total	$	314	$	304	$	385

OTHER CHARGES

Other charges included in "Restructuring, impairment and other" caption of the consolidated and combined statements of income (loss) was $28 million, $129 million and $27 million for the years ended December 31, 2019, 2018 and 2017, respectively. In 2019, such items primarily relate to currency devaluations in our OFS segment. In 2018, other charges consist primarily of accelerated amortization of $80 million related to trade names and technology in our OFS segment, litigation charges of $25 million in Corporate and costs of $13 million to exit certain operations that impacted our TPS and OFS segments. In 2017, other charges primarily relate to currency devaluations of $12 million.

Financial Instruments - Reconciliation of recurring Level 3 fair value measurements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 288	$ 304
Purchases	7	75
Proceeds at maturity	(38)	(90)
Unrealized gains (losses) recognized in accumulated other comprehensive income (loss)	2	(1)
Ending balance	$ 259	$ 288

Business Acquisition and Dispositions - Narrative (Details) - USD ($) $ in Millions		1 Months Ended
	Jul. 03, 2017	Jul. 31, 2019	Oct. 31, 2018	Oct. 01, 2018
GE Transaction Agreement
Business Acquisition [Line Items]
Consideration transferred	$ 24,798
Recip \| Disposal group, disposed of by sale, not discontinued operations
Business Acquisition [Line Items]
Sales price		$ 77
Other non operating income (loss)		$ 138
Natural Gas Solutions (NGS) \| Disposal group, disposed of by sale, not discontinued operations
Business Acquisition [Line Items]
Sales price				$ 375
Other non operating income (loss)			$ 171

Related Party Transactions

12 Months Ended

Dec. 31, 2019

Related Party Transactions

RELATED PARTY TRANSACTIONS

GE is our largest shareholder, and we enter into various related party transactions with it. On September 16, 2019 (the Trigger Date), as a result of the secondary offering and the repurchase of Class B common stock and associated LLC Units, GE's ownership in us was reduced from approximately 50.3% to approximately 36.8%, and GE ceased to be our controlling shareholder. At December 31, 2019, GE's interest in us was 36.7%.

Following the Transactions, we have entered into various agreements with GE and its affiliates that govern our relationship with GE including an Intercompany Services Agreement pursuant to which GE and its affiliates and the Company provide certain services to each other. GE provided certain administrative services, GE proprietary technology and use of certain GE trademarks for an annual intercompany services fee of $55 million. Under the terms of the Master Agreement Framework, entered into on November 13, 2018, the annual intercompany services fee of $55 million was reduced by 50% to $27.5 million per year beginning on January 1, 2019. The Intercompany Services Agreement terminated on December 15, 2019 except with respect to certain provisions, including relating to certain tools access.

We sold products and services to GE and its affiliates for $337 million, $363 million and $639 million during the years ended December 31, 2019, 2018 and 2017, respectively. Purchases from GE and its affiliates were $1,498 million, $1,791 million and $1,512 million during the years ended December 31, 2019, 2018 and 2017, respectively.

MASTER AGREEMENT FRAMEWORK

In June 2018, GE announced their intention to pursue an orderly separation from us 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 LLC (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 contemplated long-term agreements between us, BHGE LLC 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.

On February 28, 2019, we 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. These jet engine aero-derivative products are mainly used in our Turbomachinery & Process Solutions segment. Consequently, on November 1, 2019, BHGE LLC contributed $289 million in certain assets, inventory, cash and service facilities into Aero Products and Services JV, LLC, a Delaware limited liability company, and both GE and BHGE LLC jointly control its operations. In addition to the contributions to the JV, we paid $60 million to GE in order to equalize each party's interests in the JV at 50%. The JV has a supply and technology development agreement with GE’s aviation business, which, among other things, revised and extended certain pricing arrangements for applicable aero-derivative products. The Company's interest in the JV is accounted for as an equity method investment.

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 a 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 became effective at the Trigger Date. Under this agreement, BHGE LLC is 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 Baker Hughes and GE to jointly innovate on leading technology.

Access to GE Digital software & technology

As part of the Master Agreement Framework, BHGE LLC agreed with GE Digital to maintain, subject to certain conditions, BHGE LLC's status as the exclusive reseller of GE Digital offerings in the oil & gas space. As part of such agreement, BHGE LLC and GE Digital also revised and extended certain pricing arrangements and established service level obligations. However, these commercial arrangements were further modified pursuant to the Omnibus Agreement, described below, including by modifying the relationship between BHGE LLC and GE Digital to be nonexclusive with respect to digital offerings in the oil and gas space.

Other key agreements

• We agreed with GE to maintain current operations and pricing levels with regards to Control upgrade services we offer through our Digital Solutions segment division for the 4 years commencing on the Trigger Date.

• In 2019, GE transferred to us certain UK pension liabilities related to our oil and gas businesses and certain specified former oil and gas businesses of GE. The assets associated with these liabilities were also transferred on a fully funded basis. No liabilities associated with GE’s broad-based U.S. defined benefit pension plan were transferred to us.

• The Tax Matters Agreement with GE that was negotiated at the time of the Transactions 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 was reduced by 50% to $27.5 million per year beginning on January 1, 2019. The Intercompany Services Agreement terminated on December 15, 2019 except with respect to certain tools access.

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 our outstanding common stock, GE shall be entitled to designate one person for nomination to our board of directors.

OMNIBUS AGREEMENT

On July 31, 2019, we entered into an Omnibus Agreement, a general framework agreement that addresses certain outstanding matters under existing long-term commercial agreements between us and GE. The Omnibus Agreement contains provisions regarding, among other things, (i) the repayment of certain outstanding amounts mutually owed by the parties, (ii) certain employee and assets transfers (including the allocation of costs and expenses associated therewith), and (iii) certain matters related to three international joint ventures.

Material terms agreed to between the parties include:


i.	Provision of certain transition services by each of BHGE LLC and GE, including providing for the development and use of certain service related intellectual property at the end of the transition period and the management of certain data and information for future business needs;


ii.	Sale of certain digital business assets of Baker Hughes to GE for consideration of $50 million, which closed on September 3, 2019;


iii.	Modification of certain sales arrangements between the parties and the ability of each party to directly market offerings of its digital business to customers in the oil and gas industry;


iv.	Research and development efforts and the purchase of products and services related to aero-derivative turbines;


v.	Supply and distribution terms for certain trailer-mounted gas turbine generator-based engine units and related parts and services; and


vi.	Repayment by Baker Hughes to GE of amounts due under the promissory note (see Other Related Party discussion below), net of certain costs and tax adjustments;

OTHER RELATED PARTY

In connection with the Transactions, on July 3, 2017, we executed a promissory note with GE (which was amended and restated on July 31, 2019 in connection with the entry into the Omnibus Agreement referenced above) 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 December 31, 2019, of the $273 million due to GE, $162 million was held in the form of cash and $111 million was held in the form of investment securities. 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 consolidated and combined statements of financial position.

The Company has $536 million and $538 million of accounts payable at December 31, 2019 and 2018, respectively, for goods and services provided by GE in the ordinary course of business; this excludes any liability associated with our participation in the trade payables accelerated payment program (see below). The Company has $495 million and $653 million of current receivables at December 31, 2019 and 2018, respectively, for goods and services provided to GE in the ordinary course of business.

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

Prior to our separation from GE, our North American operations participated in supply chain finance programs funded through GE Capital. Invoices were settled with suppliers per our payment terms to obtain cash discounts. GE Capital provided funding for invoices eligible for a cash discount. Our liability associated with the GE Capital funded participation in the accounts payable programs was $38 million and $471 million as of December 31, 2019 and 2018, respectively.

As a result of separation, our participation in this program ended, and we have begun transitioning to a program administered by a third party. Under these supply chain finance programs, our suppliers are given the opportunity to sell receivables from us to participating financial institutions at their sole discretion. A third party administers the program. Our responsibility is limited to making payment on the terms originally negotiated with our supplier, regardless of whether the supplier sells its receivable to a financial institution. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the program. These liabilities continue to be presented as accounts payable in our consolidated statements of financial position and reflected as cash flow from operating activities when settled.

Stock-Based Compensation - RSUs (Details) - Restricted Stock Units (RSUs) shares in Thousands	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Number of Units
Outstanding, beginning balance (in shares) \| shares	6,882
Granted (in shares) \| shares	8,267
Vested (in shares) \| shares	(2,813)
Forfeited (in shares) \| shares	(1,051)
Outstanding, ending balance (in shares) \| shares	11,285
Weighted Average Grant Date Fair Value Per Unit
Unvested, beginning balance (in dollars per share) \| $ / shares	$ 36.18
Granted (in dollars per share) \| $ / shares	23.10
Vested (in dollars per share) \| $ / shares	35.98
Forfeited (in dollars per share) \| $ / shares	29.54
Unvested, ending balance (in dollars per share) \| $ / shares	$ 27.26

Consolidated and Combined Statements of Changes in Equity - USD ($) $ in Millions	Total	Common Stock	Capital in Excess of Par Value	Parent's Net Investment	Retained Earnings (Loss)	Accumulated Other Comprehensive Loss	Non-controlling Interests	Cash dividend	Cash dividend Capital in Excess of Par Value	Cash dividend Retained Earnings (Loss)
Beginning balance at Dec. 31, 2016	$ 14,280	$ 0	$ 0	$ 16,001	$ 0	$ (1,888)	$ 167
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(391)
Other comprehensive income (loss)	57
Stock-based compensation cost	37
Ending balance at Dec. 31, 2017	38,410	0	15,083	0	(103)	(703)	24,133
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	283				195		88
Other comprehensive income (loss)	(573)					(230)	(343)
Dividend								$ (315)	$ (224)	$ (91)
Distributions to GE	(495)						(495)
Effect of exchange of Class B common stock and associated BHGE LLC Units	0		4,043			(282)	(3,761)
Repurchase and cancellation of Class B common stock and associated BHGE LLC Units	(2,087)						(2,087)
Repurchase and cancellation of common stock	(374)		(374)
Stock-based compensation cost	121		121
Other	(24)		10		(1)	(4)	(29)
Ending balance at Dec. 31, 2018	35,013	0	18,659	0	25	(1,219)	17,548
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	271				128		143
Other comprehensive income (loss)	(8)					(7)	(1)
Dividend								$ (395)	$ (241)	$ (154)
Distributions to GE	(350)						(350)
Effect of exchange of Class B common stock and associated BHGE LLC Units	0		4,847			(350)	(4,497)
Repurchase and cancellation of Class B common stock and associated BHGE LLC Units	(250)						(250)
Stock-based compensation cost	187		187
Other	31		113		1	(60)	(23)
Ending balance at Dec. 31, 2019	$ 34,499	$ 0	$ 23,565	$ 0	$ 0	$ (1,636)	$ 12,570

Progress Collections and Deferred Income (Tables)

12 Months Ended

Dec. 31, 2019

Revenue Recognition and Deferred Revenue [Abstract]

Contract liabilities

Contract assets are comprised of the following at December 31:



	2019		2018
Long-term product service agreements	$	603	$	609
Long-term equipment contracts ⁽¹⁾	1,097		1,085
Contract assets (total revenue in excess of billings)	1,700		1,694
Deferred inventory costs	130		179
Non-recurring engineering costs	51		21
Contract and other deferred assets	$	1,881	$	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.

Contract liabilities are comprised of the following at December 31:



	2019		2018
Progress collections	$	2,760	$	1,600
Deferred income	110		165
Progress collections and deferred income (contract liabilities)	$	2,870	$	1,765

Financial Instruments - Cash flow hedges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in AOCI	$ 12
Gain (loss) recognized in AOCI		$ (4)	$ 12
Cash flow hedging \| Currency exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in AOCI	13
Gain (loss) recognized in AOCI		(6)	8
Gain (loss) reclassified from AOCI to earnings	$ (1)
Gain (loss) reclassified from AOCI to earnings		$ (1)	$ (7)

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

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

Use of Estimates

Foreign Currency

Revenue from Sale of Equipment and Services

Revenue from Sale of Equipment

Performance Obligations Satisfied Over Time

Performance Obligations Satisfied at a Point In Time

Our billing terms for these point in time equipment contracts vary, but are generally based on shipment of the goods to the customer.

Revenue from Sale of Services

Performance Obligations Satisfied Over Time

Performance Obligations Satisfied at a Point In Time

Research and Development

Separation and Merger Related

Cash, Cash Equivalents

Cash and Cash Equivalents

Short-term investments with original maturities of three months or less are included in cash equivalents unless designated as available-for-sale and classified as investment securities.

Allowance for Doubtful Accounts

Concentration of Credit Risk

Inventories

Property, Plant and Equipment (PP&E)

Other Intangible Assets

Impairment of Goodwill

Impairment of Other Long-Lived Assets

Financial Instruments

Our financial instruments include cash and equivalents, current receivables, investments, accounts payables, short and long-term debt, and derivative financial instruments.

Fair Value Measurements


•	Level 1 - Quoted prices for identical instruments in active markets.


•	Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.


•	Level 3 - Significant inputs to the valuation model are unobservable.

Recurring Fair Value Measurements

Derivatives

Investments in Debt and Equity Securities

Non-Recurring Fair Value Measurements

Investments in Equity Securities

Income Taxes

Additionally, as part of U.S. tax reform, the U.S. has enacted a tax on "base eroding" payments from the U.S. and a minimum tax on foreign earnings (global intangible low-taxed income). In 2018, we made an accounting policy election to account for these taxes as period costs.

Environmental Liabilities

New Accounting Standards Adopted and To Be Adopted

NEW ACCOUNTING STANDARDS ADOPTED

Leases

Derivatives and Hedging

NEW ACCOUNTING STANDARDS TO BE ADOPTED

Financial Instruments - Recurring fair value measurements (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Assets
Derivatives	$ 58	$ 74
Investment securities	283	327
Liabilities
Derivatives	(27)	(82)
Fair value, measurements, recurring
Assets
Derivatives	58	74
Investment securities	283	327
Assets, fair value	341	401
Liabilities
Derivatives	(27)	(82)
Total liabilities	(27)	(82)
Fair value, measurements, recurring \| Level 1
Assets
Derivatives	0	0
Investment securities	24	39
Assets, fair value	24	39
Liabilities
Derivatives	0	0
Total liabilities	0	0
Fair value, measurements, recurring \| Level 2
Assets
Derivatives	58	74
Investment securities	0	0
Assets, fair value	58	74
Liabilities
Derivatives	(27)	(82)
Total liabilities	(27)	(82)
Fair value, measurements, recurring \| Level 3
Assets
Derivatives	0	0
Investment securities	259	288
Assets, fair value	259	288
Liabilities
Derivatives	0	0
Total liabilities	$ 0	$ 0

Employee Benefit Plans - Schedule Fair Value of the Pension Assets (Details) - Pension Benefits - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets by asset category and by levels of fair value	$ 3,004	$ 1,866	$ 2,059
U.S. equity securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets by asset category and by levels of fair value	258	215
Global equity securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets by asset category and by levels of fair value	333	338
Fixed income and cash investment funds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets by asset category and by levels of fair value	1,858	937
Other debt securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets by asset category and by levels of fair value	3	4
Private equities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets by asset category and by levels of fair value	51	60
Real estate
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets by asset category and by levels of fair value	84	35
Other investments
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Fair values of the plan assets by asset category and by levels of fair value	$ 417	$ 277

Supplementary Information - Other Current Liabilities and Product Warranties (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Other current liabilities, employee related	$ 1,121	$ 955
Movement in Standard Product Warranty Accrual [Roll Forward]
Product warranties, beginning balance	236	164
Provisions	4	47
Expenditures	(14)	(96)
Other	(6)	121
Product warranties, ending balance	$ 220	$ 236

Borrowings (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Short-term and long-term borrowings

Short-term and long-term borrowings are comprised of the following at December 31:



	2019				2018
	Amount		Weighted Average Rate⁽¹⁾		Amount		Weighted Average Rate⁽¹⁾
Short-term borrowings
Short-term borrowings from GE	$	273	n/a		$	896	n/a
Other short-term borrowings	48		4.8	%	46		9.9	%
Total short-term borrowings	321				942

Long-term borrowings
3.2% Senior Notes due August 2021 ⁽²⁾	—		n/a		523		2.5	%
2.773% Senior Notes due December 2022	1,246		2.9	%	1,245		2.9	%
8.55% Debentures due June 2024 ⁽²⁾	127		4.1	%	131		4.1	%
3.337% Senior Notes due December 2027	1,343		3.4	%	1,343		3.4	%
6.875% Notes due January 2029 ⁽²⁾	289		3.9	%	294		3.9	%
3.138% Senior Notes due November 2029	522		3.2	%	—		n/a
5.125% Notes due September 2040 ⁽²⁾	1,301		4.2	%	1,306		4.2	%
4.080% Senior Notes due December 2047	1,337		4.1	%	1,336		4.1	%
Other long-term borrowings	136		3.4	%	107		5.3	%
Total long-term borrowings	6,301				6,285
Total borrowings	$	6,622			$	7,227


⁽¹⁾	Weighted average effective interest rate is based on the carrying value including step-up adjustments, as applicable, recorded upon the acquisition of BHI.

⁽²⁾

Represents long-term fixed rate debt obligations assumed in connection with the acquisition of BHI, net of amounts repurchased subsequent to the closing of the Transactions.

Schedule of maturities of debt

Maturities of debt for each of the five years in the period ending December 31, 2024, and in the aggregate thereafter, are listed in the table below:



	2020		2021		2022		2023		2024		Thereafter
Total debt	$	321	$	40	$	1,275	$	28	$	148	$	4,810

Employee Benefit Plans - Schedule of Amounts Recognized in the Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure
Noncurrent liabilities	$ (1,079)	$ (1,018)
Pension Benefits
Defined Benefit Plan Disclosure
Noncurrent assets	78	47
Current liabilities	(17)	(13)
Noncurrent liabilities	(508)	(429)
Net amount recognized	(447)	(395)
Other Postretirement Benefits
Defined Benefit Plan Disclosure
Noncurrent assets	0	0
Current liabilities	(11)	(19)
Noncurrent liabilities	(69)	(88)
Net amount recognized	$ (80)	$ (107)

Stock-Based Compensation - Changes in Stock Options Outstanding (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Number of Options
Outstanding, beginning balance (in shares) \| shares	7,538
Granted (in shares) \| shares	2,301
Exercised (in shares) \| shares	(491)
Forfeited (in shares) \| shares	(305)
Expired (in shares) \| shares	(633)
Outstanding, ending balance (in shares) \| shares	8,410
Weighted Average Exercise Price Per Option
Outstanding, beginning (in dollars per share) \| $ / shares	$ 34.76
Granted (in dollars per share) \| $ / shares	22.98
Exercised (in dollars per share) \| $ / shares	18.96
Forfeited (in dollars per share) \| $ / shares	29.42
Expired (in dollars per share) \| $ / shares	36.85
Outstanding, ending (in dollars per share) \| $ / shares	$ 32.50
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options exercisable (in shares) \| shares	5,155
Options exercisable (in dollars per share) \| $ / shares	$ 35.68

Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill, Impaired, Accumulated Impairment Loss [Abstract]
Balance at December 31, 2017, gross				$ 23,681
Accumulated impairment at December 31, 2017				(3,754)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		$ 20,717	$ 19,927
Acquisitions and purchase accounting adjustments		(27)	980
Currency exchange and others			(190)
Goodwill, net, ending balance		20,690	20,717
GE Transaction Agreement
Goodwill [Roll Forward]
Goodwill, acquired	$ 13,963
Oilfield Services
Goodwill, Impaired, Accumulated Impairment Loss [Abstract]
Balance at December 31, 2017, gross				15,838
Accumulated impairment at December 31, 2017				(2,633)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		13,043	13,205
Acquisitions and purchase accounting adjustments		0	(136)
Currency exchange and others			(26)
Goodwill, net, ending balance		13,043	13,043
Oilfield Services \| GE Transaction Agreement
Goodwill [Roll Forward]
Goodwill, acquired	$ 12,898
Oilfield Equipment
Goodwill, Impaired, Accumulated Impairment Loss [Abstract]
Balance at December 31, 2017, gross				3,901
Accumulated impairment at December 31, 2017				(867)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		3,310	3,034
Acquisitions and purchase accounting adjustments		9	293
Currency exchange and others			(17)
Goodwill, net, ending balance		3,319	3,310
Turbo-machinery & Process Solutions
Goodwill, Impaired, Accumulated Impairment Loss [Abstract]
Balance at December 31, 2017, gross				1,906
Accumulated impairment at December 31, 2017				0
Goodwill [Roll Forward]
Goodwill, net, beginning balance		2,186	1,906
Acquisitions and purchase accounting adjustments		(15)	394
Currency exchange and others			(114)
Goodwill, net, ending balance		2,171	2,186
Digital Solutions
Goodwill, Impaired, Accumulated Impairment Loss [Abstract]
Balance at December 31, 2017, gross				2,036
Accumulated impairment at December 31, 2017				$ (254)
Goodwill [Roll Forward]
Goodwill, net, beginning balance		2,178	1,782
Acquisitions and purchase accounting adjustments		(21)	429
Currency exchange and others			(33)
Goodwill, net, ending balance		$ 2,157	$ 2,178

Stock-Based Compensation - PSU (Details) - Performance Share Units shares in Thousands	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding, beginning balance (in shares) \| shares	927
Granted (in shares) \| shares	1,275
Vested (in shares) \| shares	0
Forfeited (in shares) \| shares	(158)
Outstanding, ending balance (in shares) \| shares	2,044
Weighted Average Grant Date Fair Value Per Unit
Unvested, beginning balance (in dollars per share) \| $ / shares	$ 35.13
Granted (in dollars per share) \| $ / shares	22.72
Vested (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	28.34
Unvested, ending balance (in dollars per share) \| $ / shares	$ 27.91

Inventories (Tables)

12 Months Ended

Dec. 31, 2019

Inventory, Net [Abstract]

Inventories, net of reserves

Inventories, net of reserves of $429 million and $430 million in 2019 and 2018, respectively, are comprised of the following at December 31:



	2019		2018
Finished goods	$	2,546	$	2,575
Work in process and raw materials	2,062		2,045
Total inventories, net	$	4,608	$	4,620

Restructuring, Impairment and Other (Tables)

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Impairment and restructuring charges

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



	2019		2018		2017
Oilfield Services	$	211	$	160	$	187
Oilfield Equipment	18		25		114
Turbomachinery & Process Solutions	48		71		21
Digital Solutions	15		17		34
Corporate	22		31		29
Total	$	314	$	304	$	385



	2019		2018		2017
Property, plant & equipment, net	$	107	$	80	$	131
Employee-related termination expenses	179		123		186
Asset relocation costs	4		28		10
EHS remediation costs	11		6		9
Contract termination fees	12		44		26
Other incremental costs	1		23		23
Total	$	314	$	304	$	385

Current Receivables - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables, gross	$ 6,739	$ 6,296
Less: Allowance for doubtful accounts	(323)	(327)
Total current receivables, net	6,416	5,969
Customer receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables, gross	5,448	4,974
Related parties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables, gross	495	653
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current receivables, gross	$ 796	$ 669

Financial Instruments - Economic Hedges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Embedded derivatives, loss	$ 7	$ 3	$ 76
Derivatives not designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total	(24)	(4)	122
Derivatives not designated as hedging instruments \| Currency exchange contracts \| Cost of goods sold
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gains (losses) from derivatives	(6)	(12)	76
Derivatives not designated as hedging instruments \| Currency exchange contracts \| Selling, general and administrative
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gains (losses) from derivatives	(22)	9	45
Derivatives not designated as hedging instruments \| Commodity derivatives \| Cost of goods sold
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gains (losses) from derivatives	2	(1)	1
Derivatives not designated as hedging instruments \| Other derivatives \| Other non operating income (loss), net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gains (losses) from derivatives	$ 2	$ 0	$ 0

Revenue Related to Contracts With Customers

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

REVENUE RELATED TO CONTRACTS WITH CUSTOMERS

DISAGGREGATED REVENUE

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



Total Revenue	2019		2018		2017
U.S.	$	6,188	$	6,576	$	4,409
Non-U.S.	17,650		16,301		12,770
Total	$	23,838	$	22,877	$	17,179

REMAINING PERFORMANCE OBLIGATIONS

PROGRESS COLLECTIONS AND DEFERRED INCOME



	2019		2018
Progress collections	$	2,760	$	1,600
Deferred income	110		165
Progress collections and deferred income (contract liabilities)	$	2,870	$	1,765

Revenue recognized during the year ended December 31, 2019 and 2018 that was included in the contract liabilities at the beginning of the year was $1,690 million and $1,392 million, respectively.

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, plant and equipment

Property, plant and equipment are comprised of the following at December 31:



	Useful Life	2019			2018
Land and improvements ⁽¹⁾	8 - 20 years ⁽¹⁾	$	430		$	432
Buildings, structures and related equipment	5 - 40 years	2,870			2,854
Machinery, equipment and other	2 - 20 years	7,324			6,567
Total cost		10,624			9,853
Less: Accumulated depreciation		(4,384		)	(3,625		)
Property, plant and equipment, less accumulated depreciation		$	6,240		$	6,228

⁽¹⁾

Useful life excludes land.

Contract and Other Deferred Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (total revenue in excess of billings)	$ 1,700	$ 1,694
Deferred inventory costs	130	179
Non-recurring engineering costs	51	21
Contract and other deferred assets	1,881	1,894
Revenue recognized from performance obligations satisfied in previous periods	(1)	26
Long-term product service agreements
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (total revenue in excess of billings)	603	609
Long-term equipment contract
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets (total revenue in excess of billings)	$ 1,097	$ 1,085

Property, Plant and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 10,624	$ 9,853
Less: Accumulated depreciation	(4,384)	(3,625)
Property, plant and equipment, less accumulated depreciation	6,240	6,228	$ 6,959
Depreciation on property, plant and equipment	1,053	1,031	$ 716
Land and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	430	432
Buildings, structures and related equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,870	2,854
Machinery, equipment and other
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 7,324	$ 6,567
Minimum \| Land and improvements
Property, Plant and Equipment [Line Items]
Useful Life	8 years
Minimum \| Buildings, structures and related equipment
Property, Plant and Equipment [Line Items]
Useful Life	5 years
Minimum \| Machinery, equipment and other
Property, Plant and Equipment [Line Items]
Useful Life	2 years
Maximum \| Land and improvements
Property, Plant and Equipment [Line Items]
Useful Life	20 years
Maximum \| Buildings, structures and related equipment
Property, Plant and Equipment [Line Items]
Useful Life	40 years
Maximum \| Machinery, equipment and other
Property, Plant and Equipment [Line Items]
Useful Life	20 years

Supplementary Information - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts
Balance at beginning of year	$ 323	$ 327	$ 330
Additions	48	47
Amounts written off	(42)	(43)
Other	(10)	(7)
Balance at end of year	$ 323	$ 327

Supplementary Information

12 Months Ended

Dec. 31, 2019

Other Liabilities Disclosure [Abstract]

Supplementary Information

SUPPLEMENTARY INFORMATION

All Other Current Liabilities

All other current liabilities as of December 31, 2019 and 2018 include $1,121 million and $955 million, respectively, of employee related liabilities.

Product Warranties

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



	2019			2018
Balance at beginning of year	$	236		$	164
Provisions	4			47
Expenditures	(14		)	(96		)
Other ⁽¹⁾	(6		)	121
Balance at end of year	$	220		$	236


⁽¹⁾	2018 amounts primarily related to the acquisition of BHI.

Allowance for doubtful accounts

The change in allowance for doubtful accounts is as follows:



	2019			2018
Balance at beginning of year	$	327		$	330
Additions	48			47
Amounts written off	(42		)	(43		)
Other	(10		)	(7		)
Balance at end of year	$	323		$	327

Segment Information (Details)	12 Months Ended
Segment Information (Details)	Dec. 31, 2019 segment
Segment Reporting [Abstract]
Number of operating segments	4

Current Receivables

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Current Receivables

CURRENT RECEIVABLES

Current receivables are comprised of the following at December 31:



	2019			2018
Customer receivables	$	5,448		$	4,974
Related parties	495			653
Other	796			669
Total current receivables	6,739			6,296
Less: Allowance for doubtful accounts	(323		)	(327		)
Total current receivables, net	$	6,416		$	5,969

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

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Defined benefit plan funded status of plan

Below is the reconciliation of the beginning and ending balances of benefit obligations, fair value of plan assets and the funded status of our plans.



	Pension Benefits						Other Postretirement Benefits
	2019			2018			2019			2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	2,261		$	2,418		$	107		$	187
Service cost	21			21			1			2
Interest cost	90			71			4			5
Plan amendment	—			20			—			1
Actuarial loss (gain)	301			(93		)	(16		)	(23		)
Benefits paid	(102		)	(67		)	(16		)	(21		)
Curtailments	(21		)	(7		)	—			(5		)
Settlements	(36		)	(59		)	—			—
Transfer from GE - UK Plan	837			—			—			—
Other	15			16			—			(39		)
Foreign currency translation adjustments	85			(59		)	—			—
Benefit obligation at end of year	3,451			2,261			80			107

Change in plan assets:
Fair value of plan assets at beginning of year	1,866			2,059			—			—
Actual return on plan assets	314			(60		)	—			—
Employer contributions	23			51			16			21
Benefits paid	(102		)	(67		)	(16		)	(21		)
Settlements	(36		)	(59		)	—			—
Transfer from GE - UK Plan	851			—			—			—
Other	—			(9		)	—			—
Foreign currency translation adjustments	88			(49		)	—			—
Fair value of plan assets at end of year	3,004			1,866			—			—

Funded status - underfunded at end of year	$	(447	)	$	(395	)	$	(80	)	$	(107	)

Accumulated benefit obligation	$	3,401		$	2,225		$	80		$	107

Amounts recognized in the consolidated balance sheets

The amounts recognized in the consolidated and combined statements of financial position consist of the following at December 31:



	Pension Benefits						Other Postretirement Benefits
	2019			2018			2019			2018
Noncurrent assets	$	78		$	47		$	—		$	—
Current liabilities	(17		)	(13		)	(11		)	(19		)
Noncurrent liabilities	(508		)	(429		)	(69		)	(88		)
Net amount recognized	$	(447	)	$	(395	)	$	(80	)	$	(107	)

Accumulated benefit obligations in excess of plan assets

Information for the plans with ABOs in excess of plan assets is as follows at December 31:



	Pension Benefits				Other Postretirement Benefits
	2019		2018		2019		2018
Projected benefit obligation	$	1,814	$	1,621	n/a		n/a
Accumulated benefit obligation	$	1,763	$	1,585	$	80	$	107
Fair value of plan assets	$	1,288	$	1,179	n/a		n/a

Schedule of net period costs (income)

The components of net periodic cost (income) are as follows for the years ended December 31:



	Pension Benefits										Other Postretirement Benefits
	2019			2018			2017				2019			2018			2017
Service cost	$	21		$	21		$	37			$	1		$	2		$	2
Interest cost	90			71			51				4			5			6
Expected return on plan assets	(122		)	(121		)	(81		)		—			—			—
Amortization of prior service credit	1			—			—				(3		)	(5		)	(3		)
Amortization of net actuarial loss (gain)	17			10			12				(7		)	(2		)	(2		)
Curtailment / settlement loss (gain)	9			2			(45		)	⁽¹⁾	—			(5		)	2
Net periodic cost (income)	$	16		$	(17	)	$	(26	)		$	(5	)	$	(5	)	$	5

⁽¹⁾

Weighted average assumptions used to determine benefit obligations

Weighted average assumptions used to determine benefit obligations for these plans are as follows for the years ended December 31:



	Pension Benefits				Other Postretirement Benefits
	2019		2018		2019		2018
Discount rate	2.34	%	3.43	%	2.89	%	3.92	%
Rate of compensation increase	3.11	%	3.78	%	n/a		n/a

Weighted average assumptions used to determine net periodic cost

Weighted average assumptions used to determine net periodic cost for these plans are as follows for the years ended December 31:



	Pension Benefits						Other Postretirement Benefits
	2019		2018		2017		2019		2018		2017
Discount rate	3.43	%	2.99	%	3.24	%	3.92	%	3.32	%	3.72	%
Expected long-term return on plan assets	5.48	%	5.94	%	6.26	%	n/a		n/a		n/a

Accumulated other comprehensive loss

The amount recorded before-tax in accumulated other comprehensive loss related to employee benefit plans consists of the following at December 31:



	Pension Benefits				Other Postretirement Benefits
	2019		2018		2019			2018
Net actuarial loss (gain)	$	395	$	177	$	(38	)	$	(29	)
Net prior service cost (credit)	19		20		(15		)	(18		)
Total	$	414	$	197	$	(53	)	$	(47	)

Fair values of the assets in U.S. Plan

The table below presents the fair value of the pension assets at December 31:



	2019		2018
Equity securities
U.S. equity securities ⁽¹⁾	$	258	$	215
Global equity securities ⁽¹⁾	333		338
Debt securities
Fixed income and cash investment funds	1,858		937
Other debt securities	3		4
Private equities	51		60
Real estate	84		35
Other investments ⁽²⁾	417		277
Total plan assets	$	3,004	$	1,866


⁽¹⁾	Include direct investments and investment funds.

⁽²⁾

Consists primarily of asset allocation fund investments.

Expected future benefit payments

The following table presents the expected benefit payments over the next 10 years. The U.S. and non-U.S. pension benefit payments are made by the respective pension trust funds.



Year	Pension Benefits			Other Postretirement Benefits
2020		$	136		$	11
2021		134			9
2022		136			7
2023		137			6
2024		142			6
2025-2029		749			24

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Receivables	$ 79	$ 117
Inventory	91	79
Property	137	191
Goodwill and other intangibles	117	132
Employee benefits	98	97
Investment in partnership	381	228
Other accrued expenses	47	74
Operating loss carryforwards	1,654	1,525
Tax credit carryforwards	941	653
Other	270	232
Total deferred income tax asset	3,815	3,328
Valuation allowances	(2,883)	(2,372)
Total deferred income tax asset after valuation allowance	932	956
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries	0	(9)
Other	(29)	(18)
Total deferred income tax liability	(29)	(27)
Net deferred tax asset	$ 903	$ 929

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

Dec. 31, 2019

Nov. 30, 2019

Dec. 31, 2018

Total short-term borrowings

3.40%

5.30%

Short-term borrowings

^[1]

$ 321

$ 942

Other long-term borrowings

136

107

Total long-term borrowings

6,301

6,285

Total debt

6,622

$ 7,227

Senior Notes | 3.2% Senior Notes due August 2021

3.20%

2.50%

Senior Notes | 2.773% Senior Notes due December 2022

$ 0

$ 523

2.773%

2.90%

Senior Notes | 3.337% Senior Notes due December 2027

$ 1,246

$ 1,245

3.337%

3.40%

Senior Notes | 6.875% Notes due January 2029

$ 1,343

6.875%

3.90%

Senior Notes | 3.138% Senior Notes due November 2029

$ 289

$ 294

3.138%

3.20%

Senior Notes | 5.125% Notes due September 2040

$ 522

$ 0

5.125%

4.20%

Senior Notes | 4.080% Senior Notes due December 2047

$ 1,301

$ 1,306

4.08%

4.10%

Debentures | 8.55% Debentures due June 2024

$ 1,337

$ 1,336

8.55%

4.10%

Short-term borrowings from GE

$ 127

$ 131

Short-term borrowings

Short-term borrowings

$ 273

$ 896

Other short-term borrowings