Company: BKR
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0001701605-25-000117
Chunk: 23

Company: Baker Hughes Co
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 the project and it is probable that the software will be completed and used for its intended function. ASU 2025-06 is effective for the Company for annual reporting periods beginning after December 15, 2027, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its accounting for internal-use software.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 the Company's financial position or results of operations.

NOTE 2. CURRENT RECEIVABLES

Current receivables consist of the following:September 30, 2025December 31, 2024Customer receivables$5,447 $5,945 Other1,390 1,409 Total current receivables6,837 7,354 Less: Allowance for credit losses(282)(232)Total current receivables, net$6,555 $7,122 Customer receivables are recorded at the invoiced amount. The "Other" category consists primarily of advance payments to suppliers and indirect taxes.The Company's customer receivables are spread over a broad and diverse group of customers across many countries. As of September 30, 2025, 16% of the Company's gross customer receivables were from customers in the U.S. As of December 31, 2024, 16% of the Company's gross customer receivables were from customers in the U.S. and 10% were from customers in Mexico. No other country accounted for more than 10% of the Company's gross customer receivables at these dates.

Baker Hughes Company 2025 Third Quarter Form 10-Q | 8

Baker Hughes CompanyNotes to Unaudited Condensed Consolidated Financial Statements

NOTE 3. INVENTORIES

Inventories, net of reserves of $391 million and $390 million as of September 30, 2025 and December 31, 2024, respectively, consist of the following:September 30, 2025December 31, 2024Finished goods$2,404 $2,494 Work in process and raw materials2,632 2,460 Total inventories, net$5,036 $4,954 

NOTE 4. GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILLThe