Company: BKR
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001701605-25-000035
Chunk: 23

Company: Baker Hughes Co
Filing Date: 2025-02-04
Form: 10-K
Item: Item 8
Chunk 23
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)94 290 (186)104 Capitalized software1,522 (1,172)350 1,413 (1,107)306 Finite-lived intangible assets4,981 (3,232)1,749 4,901 (3,010)1,891 Indefinite-lived intangible assets2,202 — 2,202 2,202 — 2,202 Total intangible assets$7,183 $(3,232)$3,951 $7,103 $(3,010)$4,093 Finite-lived intangible assets are generally amortized on a straight-line basis with estimated useful lives ranging from 1 to 35 years. Amortization expense was $266 million, $257 million and $222 million for the years ended December 31, 2024, 2023 and 2022, respectively. No impairment for indefinite-lived intangible assets were recorded in 2024.Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows:YearEstimated Amortization Expense2025$235 2026192 2027171 2028148 2029122 

Baker Hughes Company 2024 Form 10-K | 68

Baker Hughes CompanyNotes to Consolidated Financial Statements

NOTE 6. CONTRACT AND OTHER DEFERRED ASSETS

Contract assets reflect revenue earned in excess of billings on long-term contracts to construct technically complex equipment, provide long-term product service and maintenance or extended warranty arrangements and other deferred contract related costs. The Company's long-term product service agreements are provided by the IET segment. The Company's long-term equipment contracts are provided by both the IET and OFSE segments. Contract assets consist of the following at December 31:20242023Long-term product service agreements$346 $418 Long-term equipment contracts and certain other service agreements1,247 1,184 Contract assets (total revenue in excess of billings)1,593 1,602 Deferred inventory costs124 126 Other costs to fulfill or obtain a contract13 28 Contract and other deferred assets$1,730 $1,756 Revenue recognized during the years ended December 31, 2024 and 2023 from performance obligations satisfied (or partially satisfied) in previous years related to long-term service agreements was $(11) million and $15 million, respectively. This includes revenue recognized from revisions