Company: BKR
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001701605-25-000107
Chunk: 80

Company: Baker Hughes Co
Filing Date: 2025-07-23
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 Condensed Consolidated Financial Statements

NOTE 17. OTHER (INCOME) EXPENSE, NET

Other (income) expense, net consists of the following:Three Months Ended June 30,Six Months Ended June 30,2025202420252024Change in fair value of equity securities$(119)$(19)$21 $(71)Other charges and credits (1)(15)(8)(15)22 Total$(134)$(26)$6 $(48)(1)Other charges and credits of $(5) million and $(6) million for the three and six months ended June 30, 2025, respectively, consist of other income within OFSE and IET.The Company recorded other (income) expense, net of $(134) million and $(26) million for the three months ended June 30, 2025 and 2024, respectively, and $6 million and $(48) million for the six months ended June 30, 2025 and 2024, respectively, primarily due to change in fair value of equity securities.

NOTE 18. ACQUISITIONS AND BUSINESSES HELD FOR SALE

ACQUISITIONSOn June 16, 2025, the Company entered into an agreement to acquire Continental Disc Corporation ("CDC") in the IET segment in an all-cash transaction for approximately $540 million. CDC is a leading provider of safety-critical pressure management solutions. The acquisition is expected to close in the third quarter of 2025, subject to customary conditions, including regulatory approvals.BUSINESSES HELD FOR SALEThe Company classifies assets and liabilities as held for sale ("disposal group") when management commits to a plan to sell the disposal group and concludes that it meets the relevant criteria. Assets held for sale are measured at the lower of their carrying value or fair value less costs to sell. Any loss resulting from the measurement is recognized in the period the held for sale criteria are met. Conversely, gains are not recognized until the date of sale.On June 2, 2025, the Company entered into an agreement to form a joint venture with a subsidiary of Cactus, Inc. The Company will contribute the Surface Pressure Control ("SPC") business, a business within the Subsea & Surface Pressure Systems product line of its OFSE segment, to the newly formed joint venture in exchange for a 35% non-controlling interest and cash consideration of approximately $345 million. The Company expects to complete the sale at the end of 2025