Company: BKR
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001701605-25-000107
Chunk: 75

Company: Baker Hughes Co
Filing Date: 2025-07-23
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 and refining, nuclear, aviation, automotive, mining, cement, metals, pulp and paper, and food and beverage. IET is organized into five product lines - Gas Technology Equipment, Gas Technology Services, Industrial Products, Industrial Solutions, and Climate Technology Solutions.In the first quarter of 2025, the Company changed the internal financial information regularly provided to the CODM to formalize the transition to evaluation of the performance of the Company's reportable segments utilizing segment Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") as the measure of profit. This accompanied a change to the captions and subtotals included on the Company's income statement. The CODM assesses the performance of each segment based on segment EBITDA, which is defined as income (loss) before income taxes and before the following: net interest expense, costs associated with significant restructuring programs, depreciation and amortization, and unallocated corporate costs and other income (expense). The CODM uses segment EBITDA as the measure to make resource (including financial or capital resources) allocation decisions for each segment, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis when evaluating performance for each segment and making decisions about capital allocation. Accounting policies have been applied consistently by all segments within the Company for all reporting periods. Intercompany revenue and expense amounts have been eliminated within each segment to report on the basis that management uses internally for evaluating segment performance.

Baker Hughes Company 2025 Second Quarter Form 10-Q | 19

Baker Hughes CompanyNotes to Unaudited Condensed Consolidated Financial Statements

Summarized financial information for the Company's segments is shown in the following tables.Three Months Ended June 30,Six Months Ended June 30,20252025OFSEIETTotalOFSEIETTotalRevenue$3,617 $3,293 $6,910 $7,116 $6,221 $13,337 Cost of goods and services sold(2,891)(2,389)(5,280)(5,710)(4,501)(10,211)Research and development costs(65)(96)(161)(126)(181)(307)Selling, general and administrative(219)(283)(502)(440)(567)(1,007)Other income (expense)1 4 5 1 5 6 Add: Depreciation and amortization233 56 289 459