Company: BKR
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0001701605-25-000117
Chunk: 28

Company: Baker Hughes Co
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 $14.9 billion, no amounts were drawn under the Bridge Facility or the DDTL as of September 30, 2025. For the three and nine months ended September 30, 2025, the Company incurred $44.7 million in debt financing fees, which were capitalized as prepaid expenses in "All other current assets" in the Company's condensed consolidated statements of financial position and will be recognized as interest expense over the term of the facility.Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with BHH LLC of the Company's long-term debt securities. This co-obligor is a 100% owned finance subsidiary of BHH LLC that was incorporated for the sole purpose of serving as a corporate co-obligor of long-term debt securities and has no assets or operations other than those related to its sole purpose. As of September 30, 2025, Baker Hughes Co-Obligor, Inc. is a co-obligor of certain debt securities totaling $5.8 billion.

Baker Hughes Company 2025 Third Quarter Form 10-Q | 12

Baker Hughes CompanyNotes to Unaudited Condensed Consolidated Financial Statements

Certain Senior Notes contain covenants that restrict the Company's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions, and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits. At September 30, 2025, the Company was in compliance with all debt covenants.

NOTE 9. INCOME TAXES

For the three and nine months ended September 30, 2025, the provision for income taxes was $204 million and $612 million, respectively. For the three and nine months ended September 30, 2024, the provision for income taxes was $235 million and $656 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate in both periods is primarily related to income generated in jurisdictions with tax rates higher than in the U.S. and losses with no tax benefit due to valuation allowances. Further, for the period ending September 30, 2024, this impact is partially offset by income subject to U.S. tax at an effective rate less than 21% due to valuation allowances, which were subsequently released later in 2024. The Company monitors the recoverability of its