Company: BKR
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0001701605-25-000075
Chunk: 63

Company: Baker Hughes Co
Filing Date: 2025-04-23
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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 related to long-term service agreements was $4 million and $(1) million, respectively. This includes revenue recognized from revisions to cost or billing estimates that may affect a contract's total estimated profitability.

NOTE 6. PROGRESS COLLECTIONS AND DEFERRED INCOME

Contract liabilities include progress collections, which reflects billings in excess of revenue, and deferred income on long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities consist of the following:March 31, 2025December 31, 2024Progress collections$5,456 $5,550 Deferred income133 122 Progress collections and deferred income (contract liabilities)$5,589 $5,672 

Revenue recognized during the three months ended March 31, 2025 and 2024 that was included in the contract liabilities at the beginning of the period was $1,546 million and $1,476 million, respectively.

NOTE 7. LEASES

The Company's leasing activities primarily consist of operating leases for service centers, manufacturing facilities, sales and administrative offices, and certain equipment.Three Months Ended March 31,Operating Lease Expense20252024Long-term fixed lease$69 $74 Long-term variable lease17 24 Short-term lease119 140 Total operating lease expense$205 $238 Cash flows used in operating activities for operating leases approximate lease expense for the three months ended March 31, 2025 and 2024.The weighted-average remaining lease term as of March 31, 2025 and December 31, 2024 was approximately seven years for operating leases. The weighted-average discount rate used to determine the operating lease liability as of March 31, 2025 and December 31, 2024 was 4.3%.

Baker Hughes Company 2025 First Quarter Form 10-Q | 9

Baker Hughes CompanyNotes to Unaudited Condensed Consolidated Financial Statements

NOTE 8. DEBT

The carrying value of the Company's short-term and long-term debt consists of the following:March 31, 2025December 31, 2024Short-term debtOther debt$55 $53 Total short-term debt55 53    Long-term debt  2.061% Senior Notes due December 2026599 599 3.337% Senior Notes due December 20271,310 1,302 6.875% Notes due January 2029260