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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-38143
Baker Hughes Company
(Exact name of registrant as specified in its charter)
Delaware81-4403168
(State or other jurisdiction(I.R.S. Employer Identification No.)
of incorporation or organization)
17021 Aldine Westfield
Houston,Texas77073-5101
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 439-8600
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A Common Stock, par value $0.0001 per shareBKRNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer" "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer☑Accelerated filer☐Non-accelerated filer☐Smaller reporting company☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☑
As of October 16, 2020, the registrant had outstanding 685,817,013 shares of Class A Common Stock, $0.0001 par value per share and 349,439,701 shares of Class B Common Stock, $0.0001 par value per share.


Baker Hughes Company
Table of Contents

Page No.


Baker Hughes Company 2020 Third Quarter FORM 10-Q | i


PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Baker Hughes Company
Condensed Consolidated Statements of Income (Loss)
(Unaudited)


Three Months Ended September 30,Nine Months Ended September 30,
(In millions, except per share amounts)2020201920202019
Revenue:
Sales of goods$3,290 $3,339 $9,240 $9,886 
Sales of services1,759 2,543 5,970 7,604 
Total revenue 5,049 5,882 15,210 17,490 
Costs and expenses:
Cost of goods sold2,920 2,901 8,296 8,647 
Cost of services sold1,372 1,880 4,724 5,705 
Selling, general and administrative565 679 1,830 2,083 
Goodwill impairment— — 14,773 — 
Restructuring, impairment and other209 71 1,637 183 
Separation related32 54 110 128 
Total costs and expenses5,098 5,585 31,370 16,746 
Operating income (loss)(49)297 (16,160)744 
Other non-operating loss, net(149)(14)(367)(124)
Interest expense, net(66)(59)(195)(174)
Income (loss) before income taxes(264)224 (16,722)446 
Benefit (provision) for income taxes(6)(107)10 (269)
Net income (loss)(270)117 (16,712)177 
Less: Net income (loss) attributable to noncontrolling interests(100)60 (6,120)97 
Net income (loss) attributable to Baker Hughes Company$(170)$57 $(10,592)$80 
Per share amounts:
Basic and diluted earnings (loss) per Class A common stock$(0.25)$0.11 $(16.01)$0.15 
Cash dividend per Class A common stock$0.18 $0.18 $0.54 $0.54 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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Baker Hughes Company
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2020201920202019
Net income (loss)$(270)$117 $(16,712)$177 
Less: Net income (loss) attributable to noncontrolling interests(100)60 (6,120)97 
Net income (loss) attributable to Baker Hughes Company(170)57 (10,592)80 
Other comprehensive income (loss):
Investment securities— (1)(2)— 
Foreign currency translation adjustments135 (123)(101)(96)
Cash flow hedges2 2 (6)3 
Benefit plans(54)7 (24)(6)
Other comprehensive income (loss)83 (115)(133)(99)
Less: Other comprehensive income (loss) attributable to noncontrolling interests
29 (42)(52)(33)
Other comprehensive income (loss) attributable to Baker Hughes Company
54 (73)(81)(66)
Comprehensive income (loss)(187)2 (16,845)78 
Less: Comprehensive income (loss) attributable to noncontrolling interests
(71)18 (6,172)64 
Comprehensive income (loss) attributable to Baker Hughes Company
$(116)$(16)$(10,673)$14 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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Baker Hughes Company
Condensed Consolidated Statements of Financial Position
(Unaudited)
(In millions, except par value)
September 30, 2020December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents (1)
$4,061 $3,249 
Current receivables, net5,647 6,416 
Inventories, net4,469 4,608 
All other current assets1,031 949 
Total current assets15,208 15,222 
Property, plant and equipment (net of accumulated depreciation of $4,744 and $4,384)
5,536 6,240 
Goodwill5,923 20,690 
Other intangible assets, net4,377 5,381 
Contract and other deferred assets1,971 1,881 
All other assets3,019 3,001 
Deferred income taxes1,305 954 
Total assets (1)
$37,339 $53,369 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$3,482 $4,268 
Short-term debt and current portion of long-term debt (1)
935 321 
Progress collections and deferred income 3,623 2,870 
All other current liabilities2,599 2,555 
Total current liabilities10,639 10,014 
Long-term debt6,754 6,301 
Deferred income taxes172 51 
Liabilities for pensions and other postretirement benefits1,147 1,079 
All other liabilities1,378 1,425 
Equity:
Class A Common Stock, $0.0001 par value - 2,000 authorized, 685 and 650 issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
— — 
Class B Common Stock, $0.0001 par value - 1,250 authorized, 349 and 377 issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
— — 
Capital in excess of par value
23,977 23,565 
Retained loss(10,594)— 
Accumulated other comprehensive loss(1,801)(1,636)
Baker Hughes Company equity11,582 21,929 
Noncontrolling interests5,667 12,570 
Total equity17,249 34,499 
Total liabilities and equity$37,339 $53,369 
(1)Total assets include $111 million and $273 million of assets held on behalf of General Electric Company, of which $85 million and $162 million is cash and cash equivalents and $26 million and $111 million is investment securities at September 30, 2020 and December 31, 2019, respectively, and a corresponding amount of liability is reported in short-term debt. See "Note 16. Related Party Transactions" for further details.
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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Baker Hughes Company
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
(In millions, except per share amounts)
Class A and Class B
Common Stock		Capital in
Excess of
Par Value		Retained
Loss		Accumulated
Other
Comprehensive
Loss		Non-
controlling
Interests		Total Equity
Balance at December 31, 2019$— $23,565 $— $(1,636)$12,570 $34,499 
Comprehensive income (loss):
Net loss(10,592)(6,120)(16,712)
Other comprehensive loss(81)(52)(133)
Dividends on Class A common stock ($0.54 per share)
(359)(359)
Distributions to GE(199)(199)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock608 (84)(524)— 
Stock-based compensation cost164 164 
Other(1)(2)(8)(11)
Balance at September 30, 2020$— $23,977 $(10,594)$(1,801)$5,667 $17,249 


(In millions, except per share amounts)Class A and Class B
Common Stock		Capital in
Excess of
Par Value		Retained
Loss		Accumulated
Other
Comprehensive
Loss		Non-
controlling
Interests		Total Equity
Balance at June 30, 2020$— $23,432 $(10,424)$(1,771)$6,328 $17,565 
Comprehensive income (loss):
Net loss(170)(100)(270)
Other comprehensive income54 29 83 
Dividends on Class A common stock ($0.18 per share)
(123)(123)
Distributions to GE(63)(63)
Effect of exchange of Class B common stock and associated BHH LLC Units for Class A common stock608 (84)(524)— 
Stock-based compensation cost52 52 
Other8 (3)5 
Balance at September 30, 2020$— $23,977 $(10,594)$(1,801)$5,667 $17,249 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.


















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Baker Hughes Company
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
(In millions, except per share amounts)
Class A and Class B
Common Stock		Capital in
Excess of
Par Value		Retained
Earnings (Loss)		Accumulated
Other
Comprehensive
Loss		Non-
controlling
Interests		Total Equity
Balance at December 31, 2018$— $18,659 $25 $(1,219)$17,548 $35,013 
Comprehensive income (loss):
Net income80 97 177 
Other comprehensive loss(66)(33)(99)
Dividends on Class A common stock ($0.54 per share)
(172)(106)(278)
Distributions to GE(282)(282)
Effect of exchange of Class B common stock and associated BHH LLC Units4,740 (332)(4,408)— 
Repurchase and cancellation of Class B common stock and associated BHH LLC Units107 (18)(339)(250)
Stock-based compensation cost136 136 
Other100 1 (59)(23)19 
Balance at September 30, 2019$— $23,570 $— $(1,694)$12,560 $34,436 

(In millions, except per share amounts)Class A and Class B
Common Stock		Capital in
Excess of
Par Value		Retained
Earnings (Loss)		Accumulated
Other
Comprehensive
Loss		Non-
controlling
Interests		Total Equity
Balance at June 30, 2019$— $18,668 $(9)$(1,271)$17,393 $34,781 
Comprehensive income (loss):
Net income57 60 117 
Other comprehensive loss(73)(42)(115)
Dividends on Class A common stock ($0.18 per share)
(45)(48)(93)
Distributions to GE(94)(94)
Effect of exchange of Class B common stock and associated BHH LLC Units4,740 (332)(4,408)— 
Repurchase and cancellation of Class B common stock and associated BHH LLC Units107 (18)(339)(250)
Stock-based compensation cost50 50 
Other50 (10)40 
Balance at September 30, 2019$— $23,570 $— $(1,694)$12,560 $34,436 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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Baker Hughes Company
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Nine Months Ended September 30,
(In millions)20202019
Cash flows from operating activities:
Net income (loss)$(16,712)$177 
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization1,010 1,065 
Goodwill impairment14,773 — 
Intangible assets impairment729 — 
Property, plant and equipment impairment290 — 
Inventory impairment218 — 
Loss on sale of business217 138 
Write-down of assets held for sale129 — 
Benefit for deferred income taxes(265)(46)
Changes in operating assets and liabilities:
Current receivables579 (375)
Inventories(183)(324)
Accounts payable(670)(51)
Progress collections and deferred income619 710 
Contract and other deferred assets(90)(46)
Other operating items, net283 (479)
Net cash flows from operating activities927 769 
Cash flows from investing activities:
Expenditures for capital assets(801)(873)
Proceeds from disposal of assets141 201 
Other investing items, net109 13 
Net cash flows used in investing activities(551)(659)
Cash flows from financing activities:
Net repayments of debt and other borrowings
(170)(227)
Proceeds from issuance of commercial paper737 — 
Proceeds from issuance of long-term debt500 — 
Dividends paid(359)(278)
Distributions to GE(199)(282)
Repurchase of common units from GE by BHH LLC— (250)
Other financing items, net(15)41 
Net cash flows from (used in) financing activities494 (996)
Effect of currency exchange rate changes on cash and cash equivalents(58)(29)
Increase (decrease) in cash and cash equivalents812 (915)
Cash and cash equivalents, beginning of period3,249 3,723 
Cash and cash equivalents, end of period$4,061 $2,808 
Supplemental cash flows disclosures:
Income taxes paid, net of refunds$317 $286 
Interest paid$188 $196 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DESCRIPTION OF THE BUSINESS
Baker Hughes Company (Baker Hughes, the Company, we, us, or our) is an energy technology company with a diversified portfolio of technologies and services that span the entire energy value chain. 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).
We are a holding company and have no material assets other than our 66.2% ownership interest in Baker Hughes Holdings LLC (BHH LLC, formerly known as Baker Hughes, a GE company, LLC), the Baker Hughes trade name, and certain intercompany and tax related balances. BHH LLC is a Securities and Exchange Commission (SEC) Registrant with separate filing requirements with the SEC and its separate financial information can be obtained from www.sec.gov.
BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. and such principles, U.S. GAAP) and pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated and combined financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 (2019 Annual Report).
We hold a majority economic interest in BHH LLC and conduct and exercise full control over all activities of BHH LLC without the approval of any other member. Accordingly, we consolidate the financial results of BHH LLC and report a noncontrolling interest in our condensed consolidated financial statements for the economic interest held by GE. As of September 30, 2020, GE's interest in us was 33.8%. See "Note 12. Equity" for further information.
In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries (entities in which we have a controlling financial interest, most often because we hold a majority voting interest). All intercompany accounts and transactions have been eliminated.
In the Company's financial statements and notes, certain amounts have been reclassified to conform to the current year presentation. In the notes to unaudited condensed consolidated financial statements, all dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers.
Separation related costs as reflected in our condensed consolidated statements of income (loss) include costs incurred in connection with the ongoing activities related to our separation from GE. See "Note 16. Related Party Transactions" for further information.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Please refer to "Note 1. Basis of Presentation and Summary of Significant Accounting Policies," to our consolidated financial statements from our 2019 Annual Report for the discussion of our significant accounting policies. Please refer to the "New Accounting Standards Adopted" section of this Note for changes to our accounting policies.

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Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
Cash and Cash Equivalents
As of September 30, 2020 and December 31, 2019, we had $803 million and $1,102 million, respectively, of cash held in bank accounts that cannot be released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S. Included in these amounts are $75 million and $142 million, as of September 30, 2020 and December 31, 2019, respectively, held on behalf of GE.
Cash and cash equivalents includes a total of $85 million and $162 million of cash at September 30, 2020 and December 31, 2019, respectively, held on behalf of GE, and a corresponding liability is reported in short-term debt. See "Note 16. Related Party Transactions" for further details.
NEW ACCOUNTING STANDARDS ADOPTED
On January 1, 2020, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses. The ASU introduces a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models previously used under U.S. GAAP, which generally require that a loss be incurred before it is recognized. The new standard also applies to financial assets arising from revenue transactions such as contract assets and accounts receivables. The adoption did not have a material impact on our condensed consolidated financial statements.
On January 1, 2020, we adopted FASB 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, when required to test goodwill for recoverability, an entity will perform its goodwill impairment test by comparing the fair value of the reporting unit with its carrying value and should recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. We have applied this ASU on a prospective basis. See "Note 5. Goodwill and Other Intangible Assets" for further details.
NEW ACCOUNTING STANDARDS TO BE ADOPTED
All other new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations.
NOTE 2. REVENUE RELATED TO CONTRACTS WITH CUSTOMERS
DISAGGREGATED REVENUE
We disaggregate our revenue from contracts with customers by primary geographic markets.
Three Months Ended September 30,Nine Months Ended September 30,
Total Revenue2020201920202019
U.S.$1,032 $1,500 $3,330 $4,621 
Non-U.S.4,017 4,382 11,880 12,869 
Total$5,049 $5,882 $15,210 $17,490 

Baker Hughes Company 2020 Third Quarter FORM 10-Q | 8


Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
REMAINING PERFORMANCE OBLIGATIONS
As of September 30, 2020 and 2019, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $23.0 billion and $22.2 billion, respectively. As of September 30, 2020, we expect to recognize revenue of approximately 49%, 68% and 92% of the total remaining performance obligations within 2, 5, and 15 years, respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations.
NOTE 3. CURRENT RECEIVABLES
Current receivables are comprised of the following:
September 30, 2020December 31, 2019
Customer receivables$4,657 $5,448 
Related parties526 495 
Other826 796 
Total current receivables6,009 6,739 
Less: Allowance for credit losses(362)(323)
Total current receivables, net$5,647 $6,416 
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, other tax receivables, customer retentions and advance payments to suppliers.
NOTE 4. INVENTORIES
Inventories, net of reserves of $425 million and $429 million as of September 30, 2020 and December 31, 2019, respectively, are comprised of the following:
September 30, 2020December 31, 2019
Finished goods$2,425 $2,546 
Work in process and raw materials2,044 2,062 
Total inventories, net$4,469 $4,608 
During the three and nine months ended September 30, 2020, we recorded inventory impairments of $42 million and $218 million, respectively, predominantly in our Oilfield Services segment as a result of certain restructuring activities initiated by the Company. Charges for inventory impairments are predominantly reported in the "Cost of goods sold" caption of the condensed consolidated statements of income (loss).

Baker Hughes Company 2020 Third Quarter FORM 10-Q | 9


Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL
The changes in the carrying value of goodwill are detailed below by segment:
Oilfield
Services		Oilfield
Equipment		Turbo-
machinery &
Process
Solutions		Digital
Solutions		Total
Balance at December 31, 2018, gross$15,676 $4,177 $2,186 $2,432 $24,471 
Accumulated impairment at December 31, 2018(2,633)(867)— (254)(3,754)
Balance at December 31, 201813,043 3,310 2,186 2,178 20,717 
Currency exchange and others
— 9 (15)(21)(27)
Balance at December 31, 201913,043 3,319 2,171 2,157 20,690 
Impairment(11,484)(3,289)— — (14,773)
Currency exchange and others(20)(24)43 7 6 
Balance at September 30, 2020$1,539 $6 $2,214 $2,164 $5,923 
We perform our annual goodwill impairment test for each of our reporting units as of July 1 of each fiscal year, in conjunction with our annual strategic planning process. Our reporting units are the same as our four reportable segments. We also test goodwill for impairment whenever events or circumstances occur which, in our judgment, could more likely than not reduce the fair value of one or more reporting units below its carrying value. Potential impairment indicators include, but are not limited to, (i) the results of our most recent annual or interim impairment testing, in particular the magnitude of the excess of fair value over carrying value observed, (ii) downward revisions to internal forecasts, and the magnitude thereof, if any, and (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, if any.
During the first quarter of 2020, our market capitalization declined significantly compared to the fourth quarter of 2019. Our closing stock price fell to a historic low of $9.33 on March 23, 2020. Over the same period, the equity value of our peer group companies and the overall U.S. stock market also declined significantly amid market volatility. In addition, the Oilfield Services Index (OSX), an indicator of investors’ view of the earnings prospects and cost of capital of the oil and gas services industry, traded at prices that were the lowest in its history. These declines were driven by the uncertainty surrounding the outbreak of the coronavirus (COVID-19) and other macroeconomic events such as the geopolitical tensions between OPEC and Russia, which also resulted in a significant drop in oil prices. Based on these factors, we concluded that a triggering event occurred and, accordingly, an interim quantitative impairment test was performed as of March 31, 2020 (“testing date”).
In performing the interim quantitative impairment test and consistent with our prior practice, we determined the fair value of each of our reporting units using a combination of the income approach and the market approach by assessing each of these valuation methodologies based upon availability and relevance of comparable company data and determining the appropriate weighting.
Under the income approach, the fair value for each of our reporting units was determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. We used our internal forecasts, updated for recent events, to estimate future cash flows with cash flows beyond the specific operating plans estimated using a terminal value calculation, which incorporates historical and forecasted trends, including an estimate of long-term future growth rates, based on our most recent views of the long-term outlook for each reporting unit. Our internal forecasts include assumptions about future commodity pricing and expected demand for our goods and services. Due to the inherent uncertainties involved in making estimates and assumptions, actual results may differ from those assumed in our forecasts.
We derived our discount rates using a capital asset pricing model and analyzing published rates for industries relevant to our reporting units to estimate the cost of equity financing. We used discount rates that are

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Baker Hughes Company
Notes to Unaudited Condensed Consolidated Financial Statements
commensurate with the risks and uncertainties inherent in the respective businesses and in our internally developed forecasts, updated for recent events.
Valuations using the market approach were derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses was based on the markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services.
Based upon the results of our interim quantitative impairment test performed during the first quarter of 2020, we concluded that the carrying value of the Oilfield Services (OFS) and Oilfield Equipment (OFE) reporting units exceeded their estimated fair value as of the testing date, which resulted in goodwill impairment charges of $11,484 million and $3,289 million, respectively. The goodwill impairment was calculated as the amount that the carrying value of the reporting unit, including any goodwill, exceeded its fair value. As of March 31, 2020, the carrying value of our OFS and OFE reporting units equaled their fair value upon completion of the goodwill impairment test whereas our other reporting units still maintained a headroom that was substantially in excess of their carrying values.
During the third quarter of 2020, we completed our annual impairment test for each reporting unit. As a result of this assessment, we concluded that no indicators existed that would lead to a determination that it is more likely than not that the fair value of each reporting unit is less than its carrying value. There can be no assurances that future sustained declines in macroeconomic or business conditions affecting our industry will not occur, which could result in goodwill impairment charges in future periods.

OTHER INTANGIBLE ASSETS
Intangible assets are comprised of the following:
September 30, 2020December 31, 2019
Gross
Carrying
Amount		Accumulated
Amortization		NetGross
Carrying
Amount		Accumulated
Amortization		Net
Customer relationships (1)
$2,243 $(888)$1,355 $3,027 $(1,045)$1,982 
Technology (1)
1,097 (663)434 1,075 (