Company: BKR
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001701605-25-000107
Chunk: 19

Company: Baker Hughes Co
Filing Date: 2025-07-23
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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Total intangible assets$7,228 $(3,309)$3,919 $7,183 $(3,232)$3,951 Amortization expense for the three months ended June 30, 2025 and 2024 was $68 million and $66 million, respectively, and $134 million and $133 million for the six months ended June 30, 2025 and 2024, respectively.Estimated amortization expense for the remainder of 2025 and each of the subsequent five fiscal years is expected to be as follows:YearEstimated Amortization ExpenseRemainder of 2025$112 2026209 2027181 2028161 2029132 2030104 

NOTE 5. 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 Industrial & Energy Technology ("IET") segment. The Company's long-term equipment contracts are provided by both the IET and Oilfield Services & Equipment ("OFSE") segments. Contract assets consist of the following:June 30, 2025December 31, 2024Long-term product service agreements $350 $346 Long-term equipment contracts and certain other service agreements1,344 1,247 Contract assets (total revenue in excess of billings)1,694 1,593 Deferred inventory costs133 124 Other costs to fulfill or obtain a contract14 13 Contract and other deferred assets$1,841 $1,730 

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

Baker Hughes CompanyNotes to Unaudited Condensed Consolidated Financial Statements

Revenue recognized during the three months ended June 30, 2025 and 2024 from performance obligations satisfied (or partially satisfied) in previous periods related to long-term service agreements was $5 million and $(3) million, respectively, and $9 million and $(4) million during the six months ended June 30, 2025 and 2024, 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