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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, 2022
OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-09397
Baker Hughes Holdings LLC
(Exact name of registrant as specified in its charter)
Delaware76-0207995
(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: (713439-8600
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
5.125% Senior Notes due 2040-The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer" "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerAccelerated filerNon-accelerated filerSmaller 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 13, 2022, the registrant had outstanding 1,008,467,549 common units. None of the common units are publicly traded.



Baker Hughes Holdings LLC
Table of Contents
Page No.

Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | i



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

Three Months Ended September 30,Nine Months Ended September 30,
(In millions, except per unit amounts)2022202120222021
Revenue:
Sales of goods$3,084 $2,984 $8,710 $8,997 
Sales of services2,285 2,109 6,541 6,020 
Total revenue 5,369 5,093 15,251 15,017 
Costs and expenses:
Cost of goods sold2,639 2,561 7,502 7,769 
Cost of services sold1,606 1,522 4,686 4,404 
Selling, general and administrative620 607 1,865 1,836 
Restructuring, impairment and other230 14 653 219 
Separation related5 11 23 53 
Total costs and expenses5,100 4,715 14,729 14,281 
Operating income269 378 522 736 
Other non-operating loss, net(60)(102)(657)(791)
Interest expense, net(65)(67)(188)(205)
Income (loss) before income taxes144 209 (323)(260)
Provision for income taxes(145)(189)(422)(422)
Net income (loss)(1)20 (745)(682)
Less: Net income attributable to noncontrolling interests8 5 20 24 
Net income (loss) attributable to Baker Hughes Holdings LLC$(9)$15 $(765)$(706)
Cash distribution per common unit$0.18 $0.18 $0.54 $0.54 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 1



Baker Hughes Holdings LLC
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2022202120222021
Net income (loss)$(1)$20 $(745)$(682)
Less: Net income attributable to noncontrolling interests8 5 20 24 
Net income (loss) attributable to Baker Hughes Holdings LLC(9)15 (765)(706)
Other comprehensive income (loss):
Foreign currency translation adjustments(321)(158)(474)(51)
Cash flow hedges (2)1 (13)
Benefit plans(27)25 5 78 
Other comprehensive income (loss)(348)(135)(468)14 
Less: Other comprehensive income (loss) attributable to noncontrolling interests1 (1)(2)(1)
Other comprehensive income (loss) attributable to Baker Hughes Holdings LLC(349)(134)(466)15 
Comprehensive loss(349)(115)(1,213)(668)
Less: Comprehensive income attributable to noncontrolling interests9 4 18 23 
Comprehensive loss attributable to Baker Hughes Holdings LLC$(358)$(119)$(1,231)$(691)
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 2



Baker Hughes Holdings LLC
Condensed Consolidated Statements of Financial Position
(Unaudited)
(In millions)
September 30,
2022
December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents$2,848 $3,843 
Current receivables, net5,722 5,718 
Inventories, net4,111 3,979 
All other current assets1,790 1,582 
Total current assets14,471 15,122 
Property, plant and equipment (net of accumulated depreciation of $4,961 and $5,003)
4,381 4,877 
Goodwill5,196 5,721 
Other intangible assets, net3,980 4,131 
Contract and other deferred assets1,526 1,598 
All other assets2,976 3,102 
Deferred income taxes701 735 
Total assets$33,231 $35,286 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$3,801 $3,745 
Current portion of long-term debt43 40 
Progress collections and deferred income 3,262 3,232 
All other current liabilities2,415 2,163 
Total current liabilities9,521 9,180 
Long-term debt6,612 6,687 
Deferred income taxes119 73 
Liabilities for pensions and other postretirement benefits1,020 1,110 
All other liabilities1,500 1,510 
Members' Equity:
Members' capital, common units, 1,019 and 1,026 issued and outstanding as of September 30, 2022 and December 31, 2021, respectively
34,560 35,589 
Retained loss(17,075)(16,311)
Accumulated other comprehensive loss(3,158)(2,691)
Baker Hughes Holdings LLC equity14,327 16,587 
Noncontrolling interests132 139 
Total equity14,459 16,726 
Total liabilities and equity$33,231 $35,286 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 3



Baker Hughes Holdings LLC
Condensed Consolidated Statements of Changes in Members' Equity
(Unaudited)

(In millions, except per unit amounts)
Members' CapitalRetained
Loss
Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests
Total Equity
Balance at December 31, 2021$35,589 $(16,311)$(2,691)$139 $16,726 
Comprehensive loss:
Net income (loss)(765)20 (745)
Other comprehensive loss(466)(2)(468)
Regular cash distribution to Members ($0.54 per unit)
(552)(552)
Repurchase and cancellation of common units(727)(727)
Baker Hughes stock-based compensation cost155 155 
Other95 1 (1)(25)70 
Balance at September 30, 2022$34,560 $(17,075)$(3,158)$132 $14,459 


(In millions, except per unit amounts)
Members' CapitalRetained
Loss
Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests
Total Equity
Balance at June 30, 2022$34,923 $(17,067)$(2,809)$108 $15,155 
Comprehensive loss:
Net income (loss)(9)8 (1)
Other comprehensive income (loss)(349)1 (348)
Regular cash distribution to Members ($0.18 per unit)
(183)(183)
Repurchase and cancellation of common units(265)(265)
Baker Hughes stock-based compensation cost52 52 
Other33 1 15 49 
Balance at September 30, 2022$34,560 $(17,075)$(3,158)$132 $14,459 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
















Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 4



Baker Hughes Holdings LLC
Condensed Consolidated Statements of Changes in Members' Equity
(Unaudited)

(In millions, except per unit amounts)
Members' CapitalRetained
Loss
Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests
Total Equity
Balance at December 31, 2020$36,512 $(15,939)$(2,542)$132 $18,163 
Comprehensive income (loss):
Net income (loss)(706)24 (682)
Other comprehensive income (loss)15 (1)14 
Regular cash distribution to Members ($0.54 per unit)
(563)(563)
Repurchase and cancellation of common units(106)(106)
Baker Hughes stock-based compensation cost153 153 
Other42 (13)29 
Balance at September 30, 2021$36,038 $(16,645)$(2,527)$142 $17,008 


(In millions, except per unit amounts)
Members' CapitalRetained
Loss
Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests
Total Equity
Balance at June 30, 2021$36,266 $(16,660)$(2,393)$142 $17,355 
Comprehensive income (loss):
Net income15 5 20 
Other comprehensive loss(134)(1)(135)
Regular cash distribution to Members ($0.18 per unit)
(188)(188)
Repurchase and cancellation of common units(106)(106)
Baker Hughes stock-based compensation cost51 51 
Other15 (4)11 
Balance at September 30, 2021$36,038 $(16,645)$(2,527)$142 $17,008 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 5



Baker Hughes Holdings LLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Nine Months Ended September 30,
(In millions)20222021
Cash flows from operating activities:
Net loss$(745)$(682)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization806 832 
Loss on assets held for sale426  
Loss on equity securities164 955 
Property, plant and equipment impairment, net168 21 
Inventory impairment31  
Changes in operating assets and liabilities:
Current receivables(452)319 
Inventories(626)151 
Accounts payable263 (10)
Progress collections and deferred income705 (157)
Contract and other deferred assets(151)178 
Other operating items, net408 (9)
Net cash flows from operating activities997 1,598 
Cash flows from investing activities:
Expenditures for capital assets(720)(590)
Proceeds from disposal of assets189 178 
Other investing items, net(49)200 
Net cash flows used in investing activities(580)(212)
Cash flows from financing activities:
Net repayments of debt and other borrowings(22)(60)
Repayment of commercial paper (832)
Distributions to Members(552)(563)
Repurchase of common units(727)(106)
Other financing items, net4 (24)
Net cash flows used in financing activities(1,297)(1,585)
Effect of currency exchange rate changes on cash and cash equivalents(115)(9)
Decrease in cash and cash equivalents(995)(208)
Cash and cash equivalents, beginning of period3,843 4,125 
Cash and cash equivalents, end of period$2,848 $3,917 
Supplemental cash flows disclosures:
Income taxes paid, net of refunds$395 $181 
Interest paid$190 $204 
See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 6



Baker Hughes Holdings LLC
Notes to Unaudited Condensed Consolidated Financial Statements
NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DESCRIPTION OF THE BUSINESS
Baker Hughes Holdings LLC, a Delaware limited liability company ("the Company", "BHH LLC", "we", "us", or "our") and the successor to Baker Hughes Incorporated ("BHI"), is an energy technology company with a diversified portfolio of technologies and services that span the energy and industrial value chain. As of September 30, 2022, General Electric ("GE") owns 0.7% of our common units and Baker Hughes Company ("Baker Hughes") owns directly or indirectly 99.3% of our common units (collectively, "the Members"). BHH LLC is a Securities and Exchange Commission ("SEC") Registrant with separate filing requirements with the SEC and its separate financial information can be obtained from www.sec.gov.
BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S." and such principles, "U.S. GAAP") and pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 Annual Report").
In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary by management to fairly state our results of operations, financial position and cash flows of the Company and its subsidiaries for the periods presented and are not indicative of the results that may be expected for a full year. The Company's financial statements have been prepared on a consolidated basis. The condensed consolidated financial statements include the accounts of BHH LLC and all of its subsidiaries and affiliates which it controls or variable interest entities for which we have determined that we are the primary beneficiary. All intercompany accounts and transactions have been eliminated.
In the Company's financial statements and notes, certain prior year amounts have been reclassified to conform to the current year presentation. In the notes to the unaudited condensed consolidated financial statements, all dollar and common unit amounts in tabulations are in millions of dollars and units, respectively, unless otherwise indicated. Certain columns and rows in our financial statements and notes thereto may not add due to the use of rounded numbers.
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 2021 Annual Report for the discussion of our significant accounting policies.
Cash and Cash Equivalents
As of September 30, 2022 and December 31, 2021, we had $611 million and $601 million, respectively, of cash held in bank accounts that cannot be readily released, transferred or otherwise converted into a currency that is regularly transacted internationally, due to lack of market liquidity, capital controls or similar monetary or exchange limitations limiting the flow of capital out of the jurisdiction. These funds are available to fund operations and growth in these jurisdictions, and we do not currently anticipate a need to transfer these funds to the U.S.
NEW ACCOUNTING STANDARDS TO BE ADOPTED
New accounting 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.
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 7



Baker Hughes Holdings LLC
Notes to Unaudited Condensed Consolidated Financial Statements
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 Revenue2022202120222021
U.S.$1,286 $1,199 $3,611 $3,337 
Non-U.S.4,083 3,894 11,640 11,680 
Total$5,369 $5,093 $15,251 $15,017 
REMAINING PERFORMANCE OBLIGATIONS
As of September 30, 2022 and 2021, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $24.7 billion and $23.5 billion, respectively. As of September 30, 2022, we expect to recognize revenue of approximately 55%, 68% and 87% 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, 2022December 31, 2021
Customer receivables$4,655 $4,724 
Related parties168 548 
Other1,242 846 
Total current receivables6,065 6,118 
Less: Allowance for credit losses(343)(400)
Total current receivables, net$5,722 $5,718 
Customer receivables are recorded at the invoiced amount. Related parties as of December 31, 2021 consists of amounts owed to us primarily by GE. As of June 30, 2022, GE is no longer considered a related party. See "Note 14. Related Party Transactions" for further information. The "Other" category consists primarily of advance payments to suppliers, indirect taxes, amounts owed from GE for certain tax matters indemnified pursuant to the Tax Matters Agreement, and customer retentions.
NOTE 4. INVENTORIES
Inventories, net of reserves of $398 million and $374 million as of September 30, 2022 and December 31, 2021, respectively, are comprised of the following:
September 30, 2022December 31, 2021
Finished goods$2,197 $2,228 
Work in process and raw materials1,914 1,751 
Total inventories, net$4,111 $3,979 
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 8



Baker Hughes Holdings LLC
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, 2020, gross$15,362 $4,162 $2,234 $2,452 $24,210 
Accumulated impairment at December 31, 2020(14,061)(4,156) (254)(18,471)
Balance at December 31, 20201,301 6 2,234 2,198 5,739 
Currency exchange and other10 (3)(62)37 (18)
Balance at December 31, 20211,311 3 2,172 2,235 5,721 
Currency exchange, impairment and other3 (3)(92)(41)(133)
Total1,314  2,080 2,194 5,588 
Classified as held for sale (1)
(161)  (231)(392)
Balance at September 30, 2022$1,153 $ $2,080 $1,963 $5,196 
(1)The reduction in Oilfield Services ("OFS") and Digital Solutions ("DS") goodwill relates to transferring our OFS Russia business and DS Nexus Controls business to held for sale, respectively. See "Note 17. Businesses Held for Sale" for further information.
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 Baker Hughes' market capitalization below its book value, and the magnitude and duration of those declines, if any.
During the third quarter of 2022, we completed our annual impairment test and determined that the fair value was substantially in excess of the carrying value for each reporting unit except for Oilfield Equipment resulting in an immaterial impairment of the residual amount of goodwill for this reporting unit. 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.
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 9



Baker Hughes Holdings LLC
Notes to Unaudited Condensed Consolidated Financial Statements
OTHER INTANGIBLE ASSETS
Intangible assets are comprised of the following:
September 30, 2022December 31, 2021
Gross
Carrying
Amount
Accumulated
Amortization
NetGross
Carrying
Amount
Accumulated
Amortization
Net
Customer relationships$1,789 $(701)$1,088 $1,922 $(752)$1,170 
Technology1,089 (763)326 1,090 (747)343 
Trade names and trademarks288 (174)114 292 (169)123 
Capitalized software1,249 (999)250 1,311 (1,057)254 
Finite-lived intangible assets4,415 (2,637)1,778 4,615 (2,725)1,890 
Indefinite-lived intangible assets2,202 — 2,202 2,241 — 2,241 
Total intangible assets (1)
$6,617 $(2,637)$3,980 $6,856 $(2,725)$4,131 
(1)During the three and nine months ended September 30, 2022, we recorded intangible asset impairments to customer relationships of $12 million and capitalized software of $5 million. See "Note 16. Restructuring, Impairment and Other" for further information.
Intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 1 to 35 years. Amortization expense for the three months ended September 30, 2022 and 2021 was $54 million and $59 million, respectively, and $164 million and $193 million for the nine months ended September 30, 2022 and 2021, respectively.
Estimated amortization expense for the remainder of 2022 and each of the subsequent five fiscal years is expected to be as follows:
YearEstimated Amortization Expense
Remainder of 2022$54 
2023207 
2024194 
2025154 
2026109 
202787 
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 10



Baker Hughes Holdings LLC
Notes to Unaudited Condensed Consolidated Financial Statements
NOTE 6. CONTRACT AND OTHER DEFERRED ASSETS
Our long-term product service agreements relate to our Turbomachinery & Process Solutions segment. Contract assets reflect revenue earned in excess of billings on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements and other deferred contract related costs. Contract assets are comprised of the following:
September 30, 2022December 31, 2021
Long-term product service agreements $408 $589 
Long-term equipment contracts (1)
965 825 
Contract assets (total revenue in excess of billings)1,373 1,414 
Deferred inventory costs124 156 
Non-recurring engineering costs29 28 
Contract and other deferred assets$1,526 $1,598 
(1)Reflects revenue earned in excess of billings on our long-term contracts to construct technically complex equipment and certain other service agreements.
Revenue recognized during the three months ended September 30, 2022 and 2021 from performance obligations satisfied (or partially satisfied) in previous periods related to our long-term service agreements was $2 million and $9 million, respectively, and $14 million and $18 million during the nine months ended September 30, 2022 and 2021, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract’s total estimated profitability resulting in an adjustment of earnings.
NOTE 7. PROGRESS COLLECTIONS AND DEFERRED INCOME
Contract liabilities include progress collections, which reflects billings in excess of revenue, and deferred income on our long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities are comprised of the following:
September 30, 2022December 31, 2021
Progress collections$3,144 $3,108 
Deferred income118 124 
Progress collections and deferred income (contract liabilities)$3,262 $3,232 
Revenue recognized during the three months ended September 30, 2022 and 2021 that was included in the contract liabilities at the beginning of the period was $467 million and $448 million, respectively, and $1,720 million and $2,033 million during the nine months ended September 30, 2022 and 2021, respectively.
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 11



Baker Hughes Holdings LLC
Notes to Unaudited Condensed Consolidated Financial Statements
NOTE 8. LEASES
Our leasing activities primarily consist of operating leases for administrative offices, manufacturing facilities, research centers, service centers, sales offices and certain equipment.
Three Months Ended September 30,Nine Months Ended September 30,
Operating Lease Expense2022202120222021
Long-term fixed lease$65 $64 $190 $192 
Long-term variable lease14 7 36 24 
Short-term lease127 119 351 328 
Total operating lease expense$206 $190 $577 $544 
Cash flows used in operating activities for operating leases approximates our expense for the three and nine months ended September 30, 2022 and 2021.
The weighted-average remaining lease term as of September 30, 2022 and December 31, 2021 was approximately eight years and nine years for our operating leases, respectively. The weighted-average discount rate used to determine the operating lease liability as of September 30, 2022 and December 31, 2021 was 3.2% and 3.3%, respectively.
NOTE 9. BORROWINGS
The Company's borrowings are comprised of the following:
September 30, 2022December 31, 2021
Current borrowings
Other borrowings$43 $40 
Long-term borrowings  
1.231% Senior Notes due December 2023
648 647 
8.55% Debentures due June 2024
115 118 
2.061% Senior Notes due December 2026
597 597 
3.337% Senior Notes due December 2027
1,275 1,335 
6.875% Notes due January 2029
275 279 
3.138% Senior Notes due November 2029
523 522 
4.486% Senior Notes due May 2030
497 497 
5.125% Senior Notes due September 2040
1,288 1,292 
4.080% Senior Notes due December 2047
1,337 1,337 
Other long-term borrowings57 63 
Total long-term borrowings6,612 6,687 
Total borrowings$6,655 $6,727 
The estimated fair value of total borrowings at September 30, 2022 and December 31, 2021 was $5,696 million and $7,328 million, respectively. For a majority of our borrowings the fair value was determined using quoted period-end market prices. Where market prices are not available, we estimate fair values based on valuation methodologies using current market interest rate data adjusted for our non-performance risk.
BHH LLC has a $3 billion committed unsecured revolving credit facility ("the Credit Agreement") with commercial banks maturing in December 2024. In addition, we have a commercial paper program with
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 12



Baker Hughes Holdings LLC
Notes to Unaudited Condensed Consolidated Financial Statements
authorization up to $3 billion under which we may issue from time to time commercial paper with maturities of no more than 397 days. At September 30, 2022 and December 31, 2021, there were no borrowings under either the Credit Agreement or the commercial paper program.
Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with BHH LLC on our long-term debt securities. This co-obligor is a 100%-owned finance subsidiary of BHH LLC that was incorporated for the sole purpose of serving as a corporate co-obligor of long-term debt securities and has no assets or operations other than those related to its sole purpose. As of September 30, 2022, Baker Hughes Co-Obligor, Inc. is a co-obligor of our long-term debt securities totaling $6,555 million.
Certain Senior Notes contain covenants that restrict BHH LLC's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions, and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits. At September 30, 2022, we were in compliance with all debt covenants.
NOTE 10. INCOME TAXES
For the three and nine months ended September 30, 2022, the provision for income taxes was $145 million and $422 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances, restructuring charges for which a majority has no tax benefit, and earnings in jurisdictions with tax rates higher than the U.S. In addition, since we are a partnership for U.S. federal tax purposes, any tax benefits associated with U.S. losses are recognized by our Members and not reflected in our tax expense.
For the three and nine months ended September 30, 2021, the provision for income taxes was $189 million and $422 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to losses with no tax benefit due to valuation allowances and changes in unrecognized tax benefits related to uncertain tax positions.
NOTE 11. MEMBERS' EQUITY
COMMON UNITS
The BHH LLC Agreement provides that initially there is one class of common units ("Units"), which are currently held by the Members. If Baker Hughes issues a share of Class A common stock, including in connection with an equity incentive or similar plan, we will also issue a corresponding Unit to Baker Hughes or one of its direct subsidiaries. For the nine months ended September 30, 2022 and 2021, we issued 9,069 thousand and 7,204 thousand Units, respectively, to Baker Hughes or one of its direct subsidiaries in connection with the issuance of its Class A common stock. The Members are entitled through their Units to receive distributions on an equal amount of any dividend paid by Baker Hughes to its Class A shareholders.
In 2021, Baker Hughes' Board of Directors authorized us to repurchase up to $2 billion of our Units. We expect to fund the repurchase program from cash generated from operations, and we expect to make Unit repurchases from time to time subject to the Company's capital plan, market conditions, and other factors, including regulatory restrictions. The repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. During the three and nine months ended September 30, 2022, we repurchased and canceled 10.7 million and 25.5 million Units for $265 million and $727 million, representing an average price per Unit of $24.79 and $28.47, respectively. For the three months ended September 30, 2022, this includes 0.2 million Units totaling $7 million that were repurchased in June 2022 but not settled and canceled until July 2022. During the three months ended September 30, 2021, we repurchased and canceled 4.4 million Units for $106 million, representing an average price per Unit of $23.98. As of September 30, 2022, we had authorization remaining to repurchase up to approximately $0.8 billion of our Units.
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 13



Baker Hughes Holdings LLC
Notes to Unaudited Condensed Consolidated Financial Statements
The following table presents the changes in the number of Units outstanding (in thousands):
Units Held
by Baker Hughes
Units Held
by GE
2022202120222021
Balance at January 1909,142 723,999 116,548 311,433 
Issue of Units to Baker Hughes under equity incentive plan9,069 7,204   
Exchange of Units (1)
109,548 132,706 (109,548)(132,706)
Repurchase and cancellation of Units(25,532)(4,430)  
Balance at September 301,002,227 859,480 7,000 178,726 
(1)When shares of Class B common stock, together with associated Units, are exchanged for shares of Class A common stock pursuant to the Exchange Agreement, such shares of Class B common stock, together with associated Units, are canceled.
ACCUMULATED OTHER COMPREHENSIVE LOSS (AOCL)
The following tables present the changes in accumulated other comprehensive loss, net of tax:
Foreign Currency Translation AdjustmentsCash Flow HedgesBenefit PlansAccumulated Other Comprehensive Loss
Balance at December 31, 2021$(2,398)$(12)$(281)$(2,691)
Other comprehensive income before reclassifications(509)(2)(1)(512)
Amounts reclassified from accumulated other comprehensive loss35 3 19 57 
Deferred taxes  (13)(13)
Other comprehensive income (loss)(474)1 5 (468)
Less: Other comprehensive loss attributable to noncontrolling interests(2)  (2)
Less: Other adjustments
  1 1 
Balance at September 30, 2022$(2,870)$(11)$(277)$(3,158)
Baker Hughes Holdings LLC 2022 Third Quarter Form 10-Q | 14



Baker Hughes Holdings LLC
Notes to Unaudited Condensed Consolidated Financial Statements
Foreign Currency Translation AdjustmentsCash Flow HedgesBenefit PlansAccumulated Other Comprehensive Loss
Balance at December 31, 2020$(2,096)$5 $(451)$(2,542)
Other comprehensive income (loss) before reclassifications(82)(6)47 (41)
Amounts reclassified from accumulated other comprehensive loss31 (7)32 56 
Deferred taxes  (1)(1)
Other comprehensive income (loss)(51)(13)78 14 
Less: Other comprehensive loss attributable to noncontrolling interests(1)(1)
Balance at September 30, 2021$(2,146)$(8)$(373)$(2,527)
The amounts reclassified from accumulated other comprehensive loss during the nine months ended September 30, 2022 and 2021 represent (i) gains (losses) reclassified on cash flow hedges when the hedged transaction occurs, (ii) the amortization of net actuarial gain (loss), prior service credit, settlements, and curtailments which are included in the computation of net periodic pension cost, and (iii) the release of foreign currency translation adjustments (see "Note 16. Restructuring, Impairment, and Other" for additional details).
NOTE 12. FINANCIAL INSTRUMENTS
RECURRING FAIR VALUE MEASUREMENTS
Our assets and liabilities measured at fair value on a recurring basis consists of derivative instruments and investment securities.
September 30, 2022December 31, 2021
Level 1Level 2Level 3Net BalanceLevel 1Level 2Level 3Net Balance
Assets   
Derivatives
$ $60 $ $60 $ $29 $ $29 
Investment securities