Company: BKR
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001701605-25-000107
Chunk: 64

Company: Baker Hughes Co
Filing Date: 2025-07-23
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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) 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 of revenue, and deferred income on long-term contracts to construct technically complex equipment, long-term product maintenance or extended warranty arrangements. Contract liabilities consist of the following:June 30, 2025December 31, 2024Progress collections$5,549 $5,550 Deferred income131 122 Progress collections and deferred income (contract liabilities)$5,680 $5,672 

Revenue recognized during the three months ended June 30, 2025 and 2024 that was included in the contract liabilities at the beginning of the period was $1,373 million and $1,392 million, respectively, and $2,919 million and $2,868 million during the six months ended June 30, 2025 and 2024, respectively.

NOTE 7. LEASES

The Company's leasing activities primarily consist of operating leases for service centers, manufacturing facilities, sales and administrative offices, and certain equipment.Three Months Ended June 30,Six Months Ended June 30,Operating Lease Expense2025202420252024Short-term lease$118 $129 $237 $270 Long-term fixed lease69 73 138 146 Long-term variable lease14 21 31 45 Total operating lease expense$201 $223 $406 $461 Cash flows used in operating activities for operating leases approximate lease expense for the three and six months ended June 30, 2025 and 2024.The weighted-average remaining lease term as of June 30, 2025 and December 31, 2024 was approximately eight years and seven years for operating leases, respectively. The weighted-average discount rate used to determine the operating lease liability as of June 30, 2025 and December 31, 2024 was 4.5% and 4.3%, respectively.

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

Baker Hughes CompanyNotes to Unaudited Condensed Consolidated Financial Statements