Company: BKR
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001701605-25-000035
Chunk: 21

Company: Baker Hughes Co
Filing Date: 2025-02-04
Form: 10-K
Item: Item 8
Chunk 21
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 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 the Company's financial position or results of operations.

NOTE 2. CURRENT RECEIVABLES

Current receivables consist of the following at December 31:20242023Customer receivables$5,945 $6,033 Other1,409 1,392 Total current receivables7,354 7,425 Less: Allowance for credit losses(232)(350)Total current receivables, net$7,122 $7,075 Customer receivables are recorded at the invoiced amount. The "Other" category consists primarily of advance payments to suppliers and indirect taxes.

Baker Hughes Company 2024 Form 10-K | 66

Baker Hughes CompanyNotes to Consolidated Financial Statements

The Company's customer receivables are spread over a broad and diverse group of customers across many countries. As of December 31, 2024, 16% of our gross customer receivables were from customers in the U.S. and 10% were from customers in Mexico. As of December 31, 2023, 19% of our gross customer receivables were from customers in the U.S. and 11% were from customers in Mexico. No other country accounted for more than 10% of our gross customer receivables at this date. See "Note 22. Supplementary Information" for further information on the changes in the allowance for credit losses.

NOTE 3. INVENTORIES

Inventories, net of reserves of $390 million and $389 million in 2024 and 2023, respectively, consist of the following at December 31:20242023Finished goods$2,494 $2,626 Work in process and raw materials2,460 2,468 Total inventories, net$4,954 $5,094 For the years ended December 31, 2024 and 2023, the Company recorded inventory impairments of $73 million and $35 million, respectively, primarily in the OFSE segment. See "Note 20. Restructuring, Impairment and Other" for further information.

NOTE 4. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following at December 31:Useful Life20242023Land and improvements8 - 10 years