Baker Hughes Inc. (BKR) 2023年年度報告「NYSE」.pdf

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1、2023ar2023 Annual Report2023 highlightsBaker Hughes continues to be recognized by our industry and leading sustainability organizations.Aligned to our strategy and commitment to strong financial returns,these achievements are a further reflection of our progress as a differentiated energy technology

2、 company and as a top employer in many of the communities where we conduct business:#1top ranked company by Institutional Investor magazineAwards&recognitionPerformanceTechnology and innovationESG LeadershipAbout Baker Hughes$30.5Bin orders$658Min research and developmentAAESG rating by MSCI58,000em

3、ployees26%increase in adjusted EBITDA*2,000patents granted28%reduction in Scope 1&2 GHG emissions*$25.5Bin revenue$2.0Bin free cash flow*$750Min new energy orders199HSE Perfect Days120+countries where we conduct business *Adjusted EBITDA,free cash flow,and EBITDA margin rate are non-GAAP measures.Pl

4、ease refer to the Baker Hughes Reconciliation of GAAP to non-GAAP Financial Measures section at the end of this Annual Report.*2022 actual compared to 2019 base yearLorenzo SimonelliChairman,President,and Chief Executive OfficerDear fellow shareholders,In 2023,Baker Hughes delivered a record-breakin

5、g year across the Company.Our order backlog has reached historic levels,led by over 80 million tons per annum(MTPA)of liquified natural gas(LNG)awards.At the same time,we are making significant progress in transforming our organization.We continue to see the growing benefits of our strategic positio

6、ning as a differentiated energy and industrial technology company.Today,we are uniquely placed to support our customers in their endeavors to make the energy they produce and consume more sustainable.While there is growing consensus that the energy transition will take longer and be more complex tha

7、n expected,we are fully committed to supporting our customers as they take on this challenge.Irrespective of the pace of the energy transition,our portfolio is set to benefit as we drive progress across the energy ecosystem in 2024 and beyond.Our strategy first launched in 2020 is built on three key

8、 pillars:transform the core,invest for growth,and position for new energy frontiers.This strategy is driving our execution over three time horizons that look out to 2030 and beyond,culminating in a Baker Hughes which has an elevated margin and returns profile,differentiated shareholder returns and s

9、trong exposure across the industrial and energy growth vectors.As our strategy continues to evolve,we are seeing that more efficient energy solutions and emissions abatement are becoming non-negotiables for all projects regardless of the end market.We believe our transformation over these three hori

10、zons will deliver significant long-term value to our shareholders and achieve our purpose of taking energy forward.During the year,our transformation activities continued to lay the foundation for a more durable earnings and free cash flow growth profile,and structurally increasing shareholder retur

11、ns.Through optimizing our organizations structure,improving internal processes and upgrading our financial and operating systems,we are becoming more agile and responsive to a dynamic market.Our unique portfolio of assets,technologies,and long-term strategy has allowed us to maintain a strong balanc

12、e sheet and invest in differentiated solutions while we transform our operations to better deliver for energy and industrial customers and enhance shareholder value.Executing our strategy across three time horizonsDelivering on near-term targets while laying the foundations for long-term success acr

13、oss our two business segments,Oilfield Services&Equipment(OFSE)and Industrial&Energy Technology(IET)HORIZON ONETHROUGH 2025HORIZON TWOMID TO LATE 2020SHORIZON THREETO 2030 and BEYONDMarket LandscapeMulti-year growth cycles underway in LNG and upstreamGrowth moderates in upstream-new energy starts to

14、 scaleDecarbonization becomes the prerequisite for all energy projectsTransform our coreTransforming our business and simplifying the way we workStrong aftermarket services growth driven by increasing LNG installed baseLeveraging current capabilities in new ways as traditional markets matureInvest f

15、or growthOptimizing the portfolio and integrating recent acquisitionsScaling digital offerings as customers focus on efficiencies and emissions reductionsSignificant recurring revenue from digital and services franchisesPosition for new frontiersLeveraging world class capabilities to progress digita

16、l and new energy technologySuccessful commercialization of digital and new energy technologyNew energy inflects,driving significant order growth across decarbonization offeringsBaker Hughes targets20%OFSE/IET EBITDA margins20+%OFSE/IET EBITDA margins$6-7Bnew energy orders15%/20%ROIC OFSE/IET15%/20%R

17、OIC OFSE/IET2023 Annual Report2023 Annual ReportThe macro environmentAmidst global economic uncertainty and geopolitical risk at levels not seen in decades,the need to push ahead in a balanced energy transition became more apparent with another year of extreme climate impacts worldwide.These events

18、have sharpened policymakers focus on better balancing the energy trilemma across energy security,sustainability and affordability.To resolve the energy trilemma over the longer term,all forms of energy will be required with heightened focus on lowering and/or eliminating emissions.Technologies for s

19、ustainable energy development will continue to require public incentives to scale up,whether in the form of grants,tax credits,loans,or other forms of assistance.We believe that natural gas and within it,LNG will remain critical to meet global energy demand and further reduce use of other more carbo

20、n-intensive sources of energy,including coal.In the near term,we remain constructive on the outlook for oil and gas,and we believe underlying macroeconomic fundamentals remain supportive of a multi-year upturn in upstream spending led by international markets.While resilient oil demand and productio

21、n cuts tightened the market,the pace of oil demand growth in the face of economic uncertainty,and geopolitical risk will be important factors to monitor as we navigate 2024.Additionally,our customers are focused on remaining disciplined in their capital and operating expenditures.They expect new par

22、tnerships,commercial models and new technology solutions to deliver sustainable productivity improvements with a lower carbon footprint.In turn,we see opportunities to create strategic customer relationships where we are recognized and rewarded financially for the risk that we take in building and d

23、elivering these new technology solutions.Baker Hughes achieved strong results during another year of volatility thanks to a strong commitment to our strategy and generally favorable market forces.In 2023,our operations continued to benefit from the transformation efforts initiated in 2022,growing or

24、ders,revenues and margins.We booked$30.5 billion in orders,increased adjusted EBITDA*by 26%,and generated strong free cash flow*of$2.0 billion.Our Oilfield Services and Equipment(OFSE)segment enjoyed another strong year of market growth internationally,solidifying its presence in the Middle East,and

25、 expanding its presence in the North Sea and sub-Saharan Africa.Offshore continued to be a strong market,with Baker Hughes capturing just over 25%of the subsea tree market.We are encouraged by the level of activity in our focus markets,and also pleased with the progress we have made on our cost-out

26、initiatives in Subsea&Surface Pressure Systems.We are very pleased with our 2023 acquisition of Altus Intervention,providing key differentiation in OFSE for well intervention.As operators look to increase efficiency,decarbonize operations and prolong the life of their assets,well intervention and pr

27、oduction enhancement will be critical and long-term growth drivers for the industry.In OFSE,we are pleased with the margin performance improvement in 2023.As the supply chain stabilized for our chemicals business,we worked hard to manage commodity price increases and production cuts to continue marg

28、in improvements that we expect to normalize in 2024.OFSEs EBITDA*margin rate reached 17.9%in the fourth quarter,reflecting a strong track record of execution and growth for the Well Construction and Production Solutions product lines,including our drilling portfolio.Our Industrial&Energy Technology(

29、IET)segment booked a record number of LNG awards in 2023 of$5.6 billion,further emphasizing Baker Hughes role as the energy technology provider of choice for this critical resource.Since 2017,there have been 210 MTPA of LNG Our 2023 performanceFinal Investment Decisions(FIDs),and Baker Hughes has be

30、en selected for 207 MTPA of this new capacity.These projects are scheduled to come online over the coming years,representing an almost 50%increase in our global liquefaction installed base between now and 2028.New energy orders of$750 million exceeded our original full year guidance,and all orders w

31、ill utilize existing Baker Hughes technology a confirmation of the flexibility of our technology portfolio and ability to capitalize on new opportunities rapidly developing to address climate change.With expected total company new energy orders of$800 million to$1 billion in 2024,the customer synerg

32、ies between IET and OFSE are becoming more visible across the landscape.Additionally,the 2022 acquisition of BRUSH Power Generation saw continued traction,with IET securing several orders for our electric machinery portfolio supporting our strategic commitment to provide lower carbon solutions.Elect

33、rification across all energy projects is becoming more prevalent,and BRUSH Power Generation orders were up over 50%in 2023.With a record backlog of$30 billion,the pipeline of opportunities for IET remains robust.We are well-positioned to execute on this backlog to help drive significant revenue grow

34、th in 2024 and 2025.To ensure continued profitable growth,we will maintain our focus on driving operational and cost improvements across all IET product lines,as well as managing aeroderivative gas turbine supply chain tightness.Baker Hughes remained committed to delivering increased shareholder val

35、ue.We returned$1.3 billion to shareholders through dividends and share buybacks,and we increased our dividend to$0.20 in the third quarter.Our strong balance sheet and free cash flow continue to allow us to deliver strong shareholder returns while we continue to reinvest in the business and focus on

36、 strategic technology investments in the future.*Adjusted EBITDA,free cash flow,and EBITDA margin rate are non-GAAP measures.Please refer to the Baker Hughes Reconciliation of GAAP to non-GAAP Financial Measures section at the end of this Annual Report.2023 Annual ReportOur strategic framework conti

37、nues to allow Baker Hughes to deliver sustainable value for our shareholders and stakeholders.In 2023,our three strategic pillars each had strong examples of differentiated value creation:Transform our core:The Altus Intervention acquisition strengthened OFSEs existing portfolio of intervention solu

38、tions and enhanced the business life-of-well capabilities.As operators look for ways to increase efficiency,decarbonize operations and prolong the life of their assets,intervention and production enhancement are seen as critical long-term growth drivers for the industry.In IET,Gas Technology Service

39、s saw parallel growth alongside record-breaking Gas Tech Equipment orders and will continue to enjoy productive returns.IETs structural growth has become a key differentiator for Baker Hughes with continuing visibility through the latter part of the decade.Invest for growth:We unveiled new digital s

40、olutions for more intelligent operations and cleaner energy OFSEs Leucipa and Cordant in IET.Leucipa is an automated field production software solution designed to help oil and gas operators proactively manage production and reduce carbon emissions,and Cordant is an integrated suite of solutions sup

41、porting industrial asset performance management and process optimization.Position for new energy frontiers:We continued to make progress in strategic investments in emerging energy technologies and expanded the reach of our solutions with an agreement to develop a lower-carbon energy solution for th

42、e airline industry.Our momentum in new energy orders is growing,and 2023 marked our largest volume booked to date($750 million).This confirms not only that Baker Hughes is a leader in the energy transition but that the desire to transform the industry and solve for emissions remains strong.$1.3B sha

43、reholder returns in 202326%increase in adjusted EBITDA*vs.202245%increase in new energy orders vs.2022Executing our strategyOur performance remains focused on the execution of our strategy across three time horizons,designed to capitalize on market trends and growth opportunities into the early 2030

44、s.*Adjusted EBITDA,free cash flow,and EBITDA margin rate are non-GAAP measures.Please refer to the Baker Hughes Reconciliation of GAAP to non-GAAP Financial Measures section at the end of this Annual Report.Continued leadership in sustainabilityWe continue to view environmental,social,and governance

45、(ESG)performance as a key lever to transform our Company and our industry.Our commitments set out in previous years remain firm,and our ESG strategy remains guided by our three pillars:People,Planet and Principles.In the second quarter of 2023,we published our 2022 Corporate Responsibility Report,wh

46、ich highlighted our progress in several key areas,including environmental sustainability,our people-first culture,and governance.We also continued to show strong community leadership,contributing nearly$3 million in charitable donations through our Baker Hughes Foundation and achieving record levels

47、 of volunteer engagement by our employees.We expect to publish our next corporate responsibility report in the second quarter of 2024.We also deliver value by enabling our customers to measure,manage and reduce their environmental impact.We believe the focus on energy transition,coupled with the mar

48、ket forces of the energy trilemma,are paving a new path towards sustainable energy development in the energy and industrial ecosystems.Baker Hughes remains a partner of choice to our customers as they work towards their long-term sustainability goals.Scan to read our Corporate Responsibility Report2

49、023 Annual ReportIn 2023,our focus was on execution.We implemented new ways of working to change how we operate with heightened levels of operational rigor and efficiency.This is driving more effective management of the business,reducing revenue volatility and improving structural margin improvement

50、.We believe there is still additional optimization we can do across the business to further reduce redundancy and enable faster decision making.At the same time it is vital that we foster a culture of collaboration and innovation,intently focused on driving increased productivity and commercial succ

51、ess.I remain proud of our teams accomplishments,and we believe our cultural and organizational evolution will allow us to unlock further value in 2024 and beyond.Technology,differentiated commercial models,digital enablement,and sustainability are driving value across our businesses,as well as enhan

52、cing our competitive positioning.These four capabilities will truly differentiate the companies who are delivering on the energy trilemma,inclusive of driving a net-zero future.Baker Hughes is committed to playing a leading role in solving the energy trilemma and enabling sustainable energy developm

53、ent.Alongside the significant new energy opportunities enabled by our unique portfolio available to energy and industrial customers,we see several growth areas in which we are set for success:the upward investment cycle in upstream and LNG;innovative ways of maintaining if not growing production;new

54、 growth vectors in industrial solutions;and continued adoption of technologies required for the lower-carbon economy of the future.2024 will be a pivotal year to set up our success for 2030 goals.Internally,we remain focused on operational execution to drive higher EBITDA and structural free cash fl

55、ow growth over the next several years,and further operational enhancements to drive increasing margins and returns.For our customers,we will focus on the flawless execution and partnerships required to deliver a net-zero future.Our results demonstrate that our strategy is helping to deliver a sustai

56、nable future for people and the planet,and we are doing so in a fiscally and socially responsible manner.Throughout our strategic horizons,we remain heavily committed to creating shareholder value and helping usher the planet through sustainable energy development.I look ahead with confidence to ano

57、ther year of taking energy forward.Sincerely,Lorenzo Simonelli Chairman,President,and Chief Executive OfficerDelivering differentiated valueLorenzo SimonelliChairman,President,and Chief Executive OfficerOur leadershipW.Geoffrey BeattieLead DirectorAbdulaziz M.Al GudaimiGregory D.BrennemanCynthia B.C

58、arrollNelda J.ConnorsMichael DumaisLynn L.ElsenhansJohn G.RiceMohsen M.SohiBoard of directorsDeanna JonesExecutive Vice President,People,Communications&TransformationJeff Fleece Chief Information OfficerJim ApostolidesSenior Vice President,Enterprise Operational ExcellenceNancy BueseChief Financial

59、OfficerMaria Claudia BorrasExecutive Vice President,Oilfield Services&EquipmentGanesh RamaswamyExecutive Vice President,Industrial&Energy TechnologyGeorgia MagnoChief Legal OfficerManagement team2023 Annual ReportUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549Form 10-KANNUAL REPO

60、RT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934FOR THE FISCAL YEAR ENDED DECEMBER 31,2023ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934Commission file number 1-38143Baker Hughes Company(Exact name of registrant as specified in its c

61、harter)Delaware81-4403168(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)575 N.Dairy Ashford Rd.,Suite 100Houston,Texas77079-1121(Address of principal executive offices)(Zip Code)Registrants telephone number,including area code:(713)439-8600Securities

62、 registered pursuant to Section 12(b)of the Act:Title of each classTrading SymbolName of each exchange on which registeredClass A Common Stock,$0.0001 Par Value per ShareBKRThe Nasdaq Stock Market LLCSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the registra

63、nt is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d)of the Act.Yes No Indicate by check mark whether the registrant(1)has filed all reports required to be filed

64、by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant h

65、as submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the r

66、egistrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company or an emerging growth company.See the definitions of large accelerated filer,accelerated filer smaller reporting company and emerging growth company in Rule 12b-2 of the Exchange Act.(Chec

67、k one):Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting

68、standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S

69、.C.7262(b)by the registered public accounting firm that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previous

70、ly issued financial statements.Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b).Indicate

71、by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes No The aggregate market value of the voting and non-voting common stock held by non-affiliates of the registrant as of the last business day of the registrants most recently completed second fiscal quart

72、er(based on the closing price on June 30,2023 reported by the Nasdaq Stock Market LLC)was$31,860,362,416.As of January 26,2024,the registrant had outstanding 1,000,881,406 shares of Class A Common Stock,$0.0001 par value per share.DOCUMENTS INCORPORATED BY REFERENCEPortions of Registrants Definitive

73、 Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K.Baker Hughes CompanyTable of Contents Page No.Part IItem 1.Business1Item 1A.Risk Factors14Item 1B.Unresolved Staff Comments26Item 1C.Cybersecurity26Item 2.Properties29Item 3.Leg

74、al Proceedings29Item 4.Mine Safety Disclosures29Part IIItem 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities30Item 6.Reserved31Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations32Item 7A.Quantitative

75、 and Qualitative Disclosures About Market Risk46Item 8.Financial Statements and Supplementary Data48Managements Report on Internal Control Over Financial Reporting48Report of Independent Registered Public Accounting Firm49Consolidated Statements of Income(Loss)52Consolidated Statements of Comprehens

76、ive Income(Loss)53Consolidated Statements of Financial Position54Consolidated Statements of Changes in Equity55Consolidated Statements of Cash Flows56Notes to Consolidated Financial Statements57Item 9.Changes in and Disagreements With Accountants on Accounting and Financial Disclosure93Item 9A.Contr

77、ols and Procedures93Item 9B.Other Information93Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections93Part IIIItem 10.Directors,Executive Officers and Corporate Governance94Item 11.Executive Compensation94Item 12.Security Ownership of Certain Beneficial Owners and Management an

78、d Related Stockholder Matters94Item 13.Certain Relationships and Related Transactions,and Director Independence95Item 14.Principal Accounting Fees and Services95Part IVItem 15.Exhibits and Financial Statement Schedules96Item 16.Form 10-K Summary98Signatures99Baker Hughes Company 2023 Form 10-K|iPART

79、 IITEM 1.BUSINESSBaker Hughes Company(Baker Hughes,the Company,we,us,or our)is an energy technology company with a diversified portfolio of technologies and services that span the energy and industrial value chain.Built on a century of experience and conducting business in over 120 countries,our inn

80、ovative technologies and services are taking energy forward.OUR VISION&STRATEGYWith the breadth of our portfolio,leading technology,and unique partnership models,we are positioned to deliver outcome-based solutions across the energy and industrial markets.By integrating health,safety&environment(HSE

81、)into everything we do,we protect our people,our customers,and the environment.The oil and gas macroeconomic environment continues to be complex.While we believe that the worlds reliance on hydrocarbons will not disappear,and oil and gas will continue to remain relevant in meeting global energy dema

82、nd,we also acknowledge the need to transition to new energy sources.Over the last several years,this transition has been progressing,with governments and society focused on a long-term goal of net-zero emissions while trying to balance the energy trilemma-energy security,sustainability,and affordabi

83、lity.There is a growing consensus that the energy transition will likely take longer than many expected due to the energy trilemma.We believe the industry is going through a transformation that requires a change in how we work with our existing and new customers expecting new partnerships and commer

84、cial models and new technology solutions to deliver sustainable productivity improvements and leverage economies of scale,with a lower carbon footprint.That is why our strategy is focused on improving our core competitiveness and delivering higher-productivity solutions today,while positioning to le

85、ad the energy transition and solving the energy trilemma.Our unique portfolio is expected to benefit regardless of how quickly the energy transition develops.Our strategy is based on three key pillars:Transform the core:We are transforming our current business to improve margins and cash flow,which

86、we are achieving through portfolio rationalization,cost improvement,and new business models.Invest for growth:We are driving organic and inorganic growth in high potential markets where we have a strong position,including industrial power and processes,industrial asset management,non-metallics,and c

87、hemicals.Position for new energy frontiers:We are making strategic investments to drive lower carbon emissions in the energy and industrial sectors,including hydrogen;geothermal;carbon capture,utilization and storage(CCUS);and clean power solutions.We expect to benefit from our strategy in the follo

88、wing ways:Scope and scale:We have a global presence and a broad,diversified portfolio.Our products,services,and expertise serve the upstream,midstream/liquefied natural gas(LNG)and downstream sectors of the oil and gas industry,as well as broader chemical and industrial segments.We deliver through o

89、ur two operating segments:Oilfield Services&Equipment(OFSE)and Industrial&Energy Technology(IET)as discussed below under Products and Services,and each are among the top providers for the majority of the product lines in the markets they serve.Technology:Our culture is built on a heritage of innovat

90、ion and invention through research and development,with complementary capabilities.Technology remains a differentiator for us,and a key enabler to drive the efficiency and productivity gains our customers need.We also have a range of technologies that support our customers efforts to reduce their ca

91、rbon footprint.We remain committed to investing in our products and services to maintain our leadership position across our offerings,including$658 million research and development(R&D)spend and being granted more than 2,000 patents worldwide in 2023.We have also made strategic acquisitions to stren

92、gthen our core technology portfolio,including Altus Intervention which adds significant well intervention capabilities to our OFSE segment.Baker Hughes Company 2023 Form 10-K|1Energy transition solutions:We are positioned to support our customers efforts to reduce their carbon footprint with a range

93、 of emissions-abatement products and services,which we refer to as new energy.This includes more efficient power generation and compression technology,as well as sensor technology that reduces flaring and overall carbon emissions,technology for CCUS,hydrogen production,transportation,storage and dis

94、tribution,and geothermal solutions.Over the past several years,we have made progress in strategic investments and acquisitions in emerging energy technologies to advance CCUS,hydrogen,clean power and e-fuels with companies such as Mosaic,Nemesys,HIF Global,and NET Power,among others.We also continue

95、 to expand our low to zero-carbon solutions capabilities,helping customers to detect,quantify,and reduce emissions more efficiently and accurately,and complementing our existing solutions available today.Digital capabilities:We expect to benefit from the emerging demand for intelligent operations an

96、d artificial intelligence(AI)based solutions as part of our customers digital transformation initiatives.In 2023,we launched several key digital solutions across our portfolio for existing customers,including Cordant for industrial and energy customers and the Leucipa automated field production solu

97、tion for oilfield customers.We also continued our investments in digital partners,including Corva.In addition to enhancing our technology portfolio with new AI applications,we are embedding digital elements in our core OFSE product lines,helping them to deliver efficiency,predictability,and a better

98、 experience for our customers and ourselves.PRODUCTS AND SERVICESOur two operating segments are organized based on the nature of our markets and customers and consist of similar products and services and growth profiles.We sell to our customers through direct and indirect channels.Our primary sales

99、channel is through our direct sales force,which has a strong regional focus with local teams close to the customer,who are able to draw support from centers of excellence in each of our major product lines.Our products and services are sold in highly competitive markets and the competitive environme

100、nt varies by product line.See discussion below by segment.Oilfield Services&EquipmentThe OFSE segment designs and manufactures products and provides related services for onshore and offshore oilfield operations across the lifecycle of an asset,ranging from exploration,appraisal,and development to pr

101、oduction,rejuvenation,and decommissioning.Beyond its traditional oilfield concentration,OFSE is also expanding its capabilities and technology portfolio to meet the challenges of the energy transition,including focusing on new energy areas,such as geothermal and CCUS,strengthening its digital archit

102、ecture,and addressing key energy market themes.The OFSE segment is organized into four product lines.Well Construction focuses on drilling and includes drilling services(directional drilling,logging-while-drilling,surface logging,and remote operations),drill bits(polycrystalline,roller cone,hybrid,a

103、nd in-bit sensing),and drilling&completion fluids(emulsion-based,water-based,specialty,drill-in,and completion fluids;and waste management).Completions,Intervention,&Measurements encompasses completions(wellbore construction,upper and lower completions,unconventional multistage completions,intellige

104、nt production systems,workover systems,and fishing and through-tubing services),pressure pumping(cementing,production enhancement,coiled tubing,and tubular running services),and wireline services(openhole logging services,cased-hole logging services,and perforating and drill stem-testing services).P

105、roduction Solutions spans artificial lift systems(electrical submersible pumping systems,surface pumping systems,rigless deployment systems,and sensors and gauges)and oilfield&industrial chemicals(upstream,downstream,and AquanessTM wholesale chemicals).Subsea&Surface Pressure Systems includes subsea

106、 projects and services(subsea trees,controls,manifolds,wellheads,premium casing connectors,installation and commissioning,repairs and Baker Hughes Company 2023 Form 10-K|2maintenance,well intervention,life-of-field solutions,and plug and abandonment),flexible pipe systems(subsea risers,subsea flowli

107、nes and jumpers,onshore reinforced thermoplastic pipe,and rehabilitation),and surface pressure control systems(surface trees and wellheads).These product lines are supported by an OFSE digital group,which combines the segments domain expertise with a deep understanding of digital technology to impro

108、ve operational safety,performance,and sustainability.Reservoir analysis proficiencies are rooted in evaluation technologies,a team of reservoir experts,and software.Together,these capabilities provide customers with a greater understanding of the subsurface,enabling smoother,faster drilling and prec

109、ise wellbore placement that can lead to improved recovery and project economics.OFSE also provides integrated well services and solutions to plan and execute projects ranging from well construction and production through well abandonment,in addition to integrated services and solutions for the subse

110、a environment.OFSE customers include large integrated major and super-major oil and natural gas companies;U.S.and international independent oil and natural gas companies;national or state-owned oil and natural gas companies;engineering,procurement,and construction contractors;geothermal companies;an

111、d other oilfield services companies.OFSE believes that its principal competitive differentiators in the industries and markets it serves are the quality,efficiency,reliability,and availability of its products and services.A continued commitment to service delivery,HSE standards,technical proficiency

112、,and competitive pricing is also a key factor in its success.OFSE products and services are sold in highly competitive markets.While OFSE may have contracts that include multiple well projects and that may extend over a period ranging from two to four years,its services and products are generally pr

113、ovided on a well-by-well basis.Most contracts cover pricing of the products and services,along with various limitations on liability,but do not necessarily establish an obligation to use OFSE products and services.OFSE competitors include SLB and Halliburton(Well Construction;Completions,Interventio

114、n,&Measurements;Production Solutions;Subsea&Surface Pressure Systems);ChampionX(Production Solutions);and TechnipFMC,Aker Solutions,and NOV(Subsea&Surface Pressure Systems).Industrial&Energy TechnologyThe IET segment combines a broad array of domain expertise,technologies,software,and services for e

115、nergy customers including on-and offshore,LNG,pipeline and gas storage,refining,petrochemical,distributed gas,nuclear,hydrogen,carbon capture,utilization and storage,clean power and renewables.It also provides cutting edge technology for consumers of energy and/or organizations who are reliant on in

116、frastructure integrity.IET solutions unlock the ability to transform,transfer,and transport energy efficiently,while capturing and cutting emissions,addressing a fundamental challenge behind the energy trilemma:reducing environmental impact,while maximizing efficiency,safety,productivity,reliability

117、 and availability.Effective October 1,2023,IET re-aligned its product lines and began operating through five product lines-Gas Technology Equipment,Gas Technology Services,Industrial Products,Industrial Solutions,and Climate Technology Solutions.Gas Technology Equipment delivers highly efficient mec

118、hanical and electric drive compression and power generation technology for projects across the natural gas value chain.The product lines portfolio includes drivers,driven equipment,flow control,and turnkey solutions:Drivers include aero-derivative gas turbines,heavy-duty gas turbines,small-to medium

119、-sized industrial gas turbines,steam turbines,and hot gas and turboexpanders.Driven equipment includes generators and reciprocating,centrifugal,integrated zero emission compressors,and centrifugal pumps.Turnkey solutions includes power generation and gas compression modules,waste heat/energy/pressur

120、e recovery,energy storage,modularized small and large liquefaction plants,CO2 compression,and storage/use solutions.Gas Technology Services provides advanced aftermarket support and uptime availability in critical environments and through every stage of our customers equipment and plant lifecycle.Th

121、e product lines portfolio includes:Baker Hughes Company 2023 Form 10-K|3Designing,manufacturing,maintaining,upgrading rotating equipment combining sophisticated hardware technologies with enterprise-class software products.Analytics to connect customers assets,providing them with the data,safety and

122、 security needed to improve operations reliably and efficiently.Genuine spare parts,system upgrades,conversion solutions,digital advanced services,and turnkey solutions to refurbish and improve the output from a single machine up to an entire plant.Industrial Products includes a broad portfolio of c

123、omponent products and service offerings that enable industrial safety and productivity across diverse industry verticals.The product lines portfolio includes:Waygate Technologies,which comprises non-destructive testing technology,software,and services,including industrial radiography,ultrasonic sens

124、ors,testing machines and gauges,non-destructive testing film,and remote visual inspection.Process&Pipeline Services,which comprises pre-commissioning and maintenance services to improve throughput and asset integrity for process facilities and pipelines as well as inline inspection solutions to supp

125、ort pipeline integrity.Valves and Gears,which comprises flow technology including industrial valves,regulators,control systems,gears and other flow and process control technologies.Industrial Solutions offers a unique suite of hardware,software,and edge device solutions that enable asset performance

126、 and process optimization.Industrial Solutions combines several product lines to leverage our critical equipment hardware capability to migrate to full plant offerings and through Cordant,a full-stack,edge-to-enterprise solution that encompasses our hardware,software and services offerings.The produ

127、ct lines portfolio includes:Precision Sensors&Instrumentation device technology including the Panametrics,Druck,and Reuter-Stokes product brands,provides instrumentation and sensor-based technologies to better detect and analyze pressure,flow,gas,moisture,radiation,and related conditions.Condition M

128、onitoring includes the Bently Nevada and System 1 product brands,providing rack-based vibrating monitoring equipment and sensors for both power generation and oil and gas operations,as well as industrial applications.The product line also provides integrated asset performance management.Climate Tech

129、nology Solutions(CTS)includes CCUS,hydrogen,clean power,and emissions abatement capabilities to enable energy operators as well as users of energy in the broader industry,in particular the hard-to-abate sectors,to achieve their emission reduction goals.This product line is the primary driver of the

130、Companys new energy orders and is designed to accelerate the decarbonization of both energy and hard-to-abate industries.IET customers for Gas Technology Equipment and Gas Technology Services product lines are upstream,midstream,and downstream,onshore,and offshore,and small to large scale.Midstream

131、and downstream customers include LNG plants,pipelines,storage facilities,refineries,and a wide range of industrial and engineering,procurement,and construction companies.Products and services for the remaining IET product lines are primarily sold in a diversified arena to a broad range of customers

132、and across multiple verticals including aerospace,automotive,nuclear,oil and gas,mining,cement,metals,refinery and petrochemical,food and beverage,pulp&paper,and textile.IET believes that its principal competitive factors in the industries and markets it serves are product range coverage,product tec

133、hnology,efficiency,product reliability and quality,availability,project execution and service capabilities,emissions,and price.IET differentiates itself from competitors with its expertise in technology and project management,local presence,and partnerships,to provide fully integrated equipment and

134、services solutions with state-of-art technology from design and manufacture through to operations.IET competes across a wide range of industries,including oil and gas,power generation,aerospace,and light and heavy industrials.IET competitors for Gas Technology Equipment product line includes Siemens

135、 Energy,Solar(a Caterpillar company),and MAN Energy Solutions.Our Gas Technology Services product line competes with Baker Hughes Company 2023 Form 10-K|4independent service providers such as Masaood John Brown,EthosEnergy,and Sulzer.IET competitors for the Industrial Products product line include E

136、merson,Flowserve,and Metso Outotec.Competitors for the Industrial Solutions product line include Emerson,Honeywell Process Solutions,and ABB.CTS competitors are varied across application.For CCUS,competitors include Aker Carbon Capture,Svante,and SLB.For hydrogen,competitors include Siemens Energy,H

137、owden(a Chart Industries company),and Burckhardt.CONTRACTSWe conduct our business under various types of contracts in the upstream,midstream,and downstream sectors of the oil and gas industry,including fixed-fee or turnkey contracts,transactional agreements for products and services,and long-term af

138、termarket service agreements.We also conduct business in a number of industrial markets and provide critical equipment hardware capability for full plant offerings,asset performance management and process optimization.We benefit from stable relationships with many of our customers based on long-term

139、 project contracts and master service agreements.Several of those contracts require us to commit to a fixed price based on the customers technical specifications with little or no relief available due to changes in circumstances.In some cases,failure to deliver products or perform services within co

140、ntractual commitments may lead to liquidated damages claims.We seek to mitigate these exposures through close collaboration with our customers.We strive to negotiate the terms of our customer contracts consistent with what we consider to be industry best practices.In connection with oil&gas operatio

141、ns,our customers typically indemnify us for certain claims arising from:the injury or death of their employees and often their contractors;the loss of or damage to their facility and equipment,and often that of their contractors;pollution originating from their equipment or facility;and all liabilit

142、ies related to the well and subsurface operations,including loss or damage to the well or reservoir,loss of well control,fire,explosion,or any uncontrolled flow of oil or gas.Conversely,we typically indemnify our customers for certain claims arising from:the injury or death of our employees and ofte

143、n that of our subcontractors;the loss of or damage to our equipment;and surface pollution originating from our equipment while under our control.Where the above indemnities do not apply or are not consistent with industry best practices(e.g.,in connection with industrial and/or digital sectors),we t

144、ypically provide a capped indemnity for damages caused to the customer by our negligence and include an overall limitation of liability clause.It is also our general practice to include a limitation of liability for consequential loss,including loss of profits and loss of revenue,in all customer con

145、tracts.Our indemnity structure may not protect us in every case.Certain U.S.states have enacted oil and natural gas specific anti-indemnity statutes that can void the allocation of liability agreed to in a contract.Applicable law or the negotiated terms of a customer contract may also limit indemnit

146、y obligations in the event of gross negligence or willful misconduct,or in the event of breaches of applicable laws or breach of confidentiality and/or intellectual property rights.We sometimes contract with customers that are not the end user of our products.It is our practice to seek to obtain an

147、indemnity from our customer for any end-user claims,but this is not always possible.Similarly,government agencies and other third parties may make claims in respect of which we are not indemnified and for which responsibility is assessed proportionate to fault.We have an established process to revie

148、w any risk deviations from our standard contracting practices.The Company maintains a commercial general liability insurance policy program that covers against certain operating hazards,including product liability claims and personal injury claims,as well as certain limited environmental pollution c

149、laims for damage to a third party or its property arising out of contact with pollution for which the Company is liable;however,clean up and well control costs are not covered by such program.All of the insurance policies purchased by the Company are subject to deductible and/or self-insured retenti

150、on amounts for which we are responsible for payment,specific terms,conditions,limitations,and exclusions.There can be no assurance that the nature and amount of Company insurance will be sufficient to fully indemnify us against liabilities related to our business.Baker Hughes Company 2023 Form 10-K|

151、5ORDERS AND REMAINING PERFORMANCE OBLIGATIONSRemaining performance obligations,a defined term under U.S.generally accepted accounting principles(U.S.GAAP),are unfilled customer orders for products and product services excluding any purchase order that provides the customer with the ability to cancel

152、 or terminate without incurring a substantive penalty,even if the likelihood of cancellation is remote based on historical experience.For product services,an amount is included for the expected life of the contract.We recognized orders of$30.5 billion and$26.8 billion in 2023 and 2022,respectively.W

153、e recognized OFSE orders of$16.3 billion and$14.1 billion,and IET orders of$14.2 billion and$12.7 billion in 2023 and 2022,respectively.As of December 31,2023,the remaining performance obligations totaled$33.5 billion.As of December 31,2023,OFSE remaining performance obligations totaled$3.5 billion,

154、and IET remaining performance obligations totaled$29.9 billion.RESEARCH AND DEVELOPMENTWe engage in R&D activities across both operating segments directed toward the development of new products,services,technology,and other solutions,as well as bringing about a significant improvement to existing pr

155、oducts and services,and the design of specialized products to meet specific customer needs.We also continue to invest and develop a range of technologies that support our customers efforts to reduce their carbon footprint.For the year ended December 31,2023,we incurred$658 million of R&D expense.In

156、OFSE,we continue to fund a range of formation evaluation,drilling,completions,and production capabilities and products.In parallel,and in strong collaboration with the IET technology organization,we are investing in strategic themes that fuel our future product and service portfolios.These include t

157、hemes such as digital,automation,electrification,chemistry and materials,electronics,CCUS,and geothermal.Specifically for OFSE,in our Well Construction product line,we are improving reliability in high-temperature and high shock and vibration environments(harsh-drilling conditions),through a combina

158、tion of optimized design,automated operations,and integrated solutions that leverage our drilling tools,drill bits,and drilling fluids technologies.In our Completions,Intervention,and Measurements product line,we are investing in intelligent solutions and advanced measurements while creating a leade

159、rship position in the well-intervention domain through the integration of our wireline measurement capabilities with the conveyance and intervention capabilities.In our Production Solutions product line,we are leveraging our artificial lift technologies with our chemical solutions to provide an opti

160、mized and automated portfolio of production-enhancing solutions.In our Subsea and Surface Pressure Solutions product line,we continue to develop subsea production systems that improve performance and reduce emissions through lighter design,automated operations,and electrification.Our offshore flexib

161、le pipe systems optimized for higher pressure temperature and CO2 content continue to deliver greater sustainability and performance.In IET,we continue to invest in and develop foundational technologies which will enable our journey for the energy transition.Such technologies include advanced materi

162、als,advanced manufacturing technologies,novel process technologies,and digital technologies such as advanced sensing&diagnostics,data sciences,and artificial intelligence.Within Gas Technology Equipment and Gas Technology Services product lines,we are focusing on our latest generation of gas turbine

163、s for energy efficiency and reduced carbon footprint such as our LM9000TM and Nova LTTM products,as well as Allam Cycle turboexpander,CCUS,and hydrogen and geothermal technologies.Within Industrial Technology,we are investing in advanced digital solutions designed to improve the efficiency,reliabili

164、ty,and safety of oil and gas,aerospace,energy,and broader industrial production and operations.This includes our Orbit 60 Bently Nevada product for critical asset monitoring in turbine systems,including wind,hydro,and gas turbines.The IET segment is also enhancing its process and safety valve busine

165、ss bringing new digital applications including analytics to our customers.Investments in Industrial Technology also include technologies to measure,monitor,and minimize carbon emissions,new inspection technologies for nondestructive evaluation of materials and structures as well as solutions for ind

166、ustrial asset management.INTELLECTUAL PROPERTYOur technology,brands and other intellectual property(IP)rights are important elements of our business.We rely on patent,trademark,copyright,and trade secret laws,as well as non-disclosure and employee invention Baker Hughes Company 2023 Form 10-K|6assig

167、nment agreements to protect our IP rights.Many patents and patent applications comprise the Baker Hughes portfolio and are owned by us.Other patents and patent applications applicable to our products and services are licensed to us by General Electric(GE)and,in some cases,third parties.In particular

168、,we have an IP cross-license agreement with GE that allows both parties to have continued and permanent rights to commercially utilize certain IP of the other pursuant to the terms of the agreement.The IP cross-licenses remain in place following GE exiting its ownership position in us.We do not cons

169、ider any individual patent to be material to our business operations.We follow a policy of seeking patent and trademark protection in numerous countries and regions throughout the world for products and methods that appear to have commercial significance.We believe that maintenance,protection and en

170、forcement of our patents,trademarks,and related IP rights is central to the conduct of our business,and aggressively pursue protection of our IP rights against infringement,misappropriation,or other violation worldwide as may be necessary to protect our business.Additionally,we consider the quality

171、and timely delivery of our products,the service we provide to our customers,and the technical knowledge and skills of our personnel to be other important components of the portfolio of capabilities and assets supporting our ability to compete.SEASONALITYOur operations can be affected by seasonal eve

172、nts,which can temporarily affect the delivery and performance of our products and services,and our customers budgetary cycles.Examples of seasonal events that can impact our business are set forth below:In OFSE,adverse weather conditions,such as hurricanes in the Gulf of Mexico or extreme heat in th

173、e Middle East during the summer months,may impact our operations or our customers operations,cause supply disruptions and result in a loss of revenue and/or damage to our equipment and facilities,which may or may not be insured.For more information on seasonal and weather conditions,see the Operatio

174、nal Risks section of Part 1 of Item 1A herein.Severe weather during the winter months normally results in reduced activity levels in the North Sea in OFSE generally in the first quarter and may interrupt or curtail our operations,or our customers operations,in those areas and result in a loss of rev

175、enue.Many of our international OFSE customers may increase activity for certain products and services in the fourth quarter as they seek to fully utilize their annual budgets.Our broader IET businesses typically experience higher customer activity as a result of spending patterns in the second half

176、of the year.RAW MATERIALSWe purchase various raw materials and component parts for use in manufacturing our products and delivering our services.The principal raw materials we use include steel alloys,chromium,nickel,titanium,barite,beryllium,copper,lead,tungsten carbide,synthetic and natural diamon

177、ds,gels,sand and other proppants,printed circuit boards and other electronic components,and hydrocarbon-based chemical feed stocks.Raw materials that are essential to our business are normally readily available from multiple sources but may be subject to price volatility.We have also seen prices rem

178、ain elevated for ferrous and non-ferrous metals and other raw materials.Our procurement teams utilize advanced planning and may enter into strategic agreements with our global suppliers to minimize price impacts and other availability challenges.We anticipate some pricing and fulfillment volatility

179、for certain raw materials,components,and certain logistics lanes to continue through 2024.In addition to raw materials and component parts,we also use the products and services of metal fabricators,machine shops,foundries,forge shops,assembly operations,contract manufacturers,logistics providers,pac

180、kagers,indirect material providers,and others in order to produce and deliver products to customers.These materials and services are generally available from multiple sources.Baker Hughes Company 2023 Form 10-K|7ENVIRONMENTAL,SOCIAL AND GOVERNANCE(ESG)EnvironmentalWe believe we have an important rol

181、e to play in society as an industry leader and partner.We view ESG as a lever to transform the performance of our Company.In 2019,we made a commitment to reduce Scope 1 and 2 carbon dioxide equivalent emissions from our operations by 50%by 2030 and achieve net-zero emissions by 2050.This goal encomp

182、asses emissions from our operations(Scope 1 and 2 carbon emissions)in alignment with the Paris Agreement and the specific recommendations of the United Nations(UN)Intergovernmental Panel on Climate Changes Special Report on Global Warming of 1.5oC.We continue to make progress on emissions reductions

183、.We reported in our 2022 Corporate Sustainability Report a 28%reduction in our Scope 1 and 2 carbon dioxide equivalent emissions compared to our 2019 base year.This reduction was primarily due to implementing energy efficiency initiatives,facility consolidation,increasing electric power consumption

184、from renewable energy sources,and improvements in our vehicle fleet,among other reasons.We plan to continue to employ a broad range of emissions reduction initiatives across manufacturing,supply chain,logistics,energy sourcing,and generation.Our latest Corporate Sustainability report is available on

185、 the Company section of our website at .Information contained on or connected to our website is not incorporated by reference into this annual report on Form 10-K for the year ended December 31,2023(Annual Report)and should not be considered part of this Annual Report or any other filing we make wit

186、h the Securities and Exchange Commission(SEC).Our sustainability commitments include our formal participation in the UN Global Compact(UNGC)and our commitment to the UNGCs Ten Principles including human rights,labor,environment,and anti-corruption,as well as the UNGCs Sustainable Development Goals.W

187、e have annually renewed our commitment to the UNGC since joining in 2019.Social&Human CapitalAt Baker Hughes,our people are central contributors to our purpose of taking energy forward.As an energy technology company with operations around the world,we believe that a diverse workforce is critical to

188、 our success,and we aim to attract the best and most diverse talent to support the energy transition.We strive to be an inclusive and safe workplace,with opportunities for our employees to grow and develop in their careers,supported by learning and development opportunities,competitive compensation,

189、benefits,health and wellness programs,and by programs that build connections between our employees and their communities.As of December 31,2023,we had approximately 58,000 employees.More than 45,000 of our employees work outside the U.S.in over 85 different countries with more than 155 nationalities

190、 represented.This diversity of global perspectives makes our Company stronger,more resilient,and more responsive to our global customers.Diversity,Equity,and Inclusion(DEI)We believe unique ideas and perspectives fuel innovation and our differences make us stronger.We value difference in gender,race

191、,ethnicity,age,gender identity,sexual orientation,ability,cultural background,religion,veteran status,experience,thought,and more across the globe.We recognize the importance of diverse teams,an equitable workplace and an inclusive culture in driving innovation and competitiveness as both are critic

192、al to our business success and our mission of taking energy forward for our customers and the industry.We believe that our DEI strategic framework and our commitment to DEI will enable us to continue to recruit and retain a diverse workforce,promote an inclusive culture,expand our supplier diversity

193、,and be a stronger partner to our customers and our community.As we continue to prioritize DEI,we are focused on progressing on diversity,equity and inclusion across our organization,with a particular emphasis on supporting gender representation.In 2023,the percentage of people who identify as women

194、 in our workforce,senior leadership positions,and on the Board of Directors(the Board),was 19%,18%,and 33%,respectively.Specific to the U.S.,38%of our employees identify as people of color.We work to ensure we have access to and support diverse pipelines of talent across the globe while prioritizing

195、 development and retention.We hold leadership accountable for integrating DEI principles into their respective parts Baker Hughes Company 2023 Form 10-K|8of the business.Our enterprise-wide strategy allows us to measure the outcomes and progress of our DEI efforts,assign goals,develop accountability

196、,and ensure transparency.And our corporate memberships with respected nonprofits,such as Ally Energy,Catalyst,Disability:IN,and the Womens Energy Network,provide partnership and guidance to support our goals.Our talent acquisition efforts as well as our eight global employee resource groups support

197、the engagement,development and retention of diverse talent.Talent Acquisition:We have enacted a number of initiatives to support our global goals related to DEI.We have conducted training on unconscious bias and have launched pilot projects on blind resumes and debiasing job descriptions,interview t

198、emplates,and assessments as well as expanded our talent acquisition focus to include executive search services and initiatives with universities to expand our new talent pipeline.Employee Resource Groups(ERGs):ERGs consist of employees who have joined together based on shared interests,characteristi

199、cs,or life experiences.These groups can have a powerful influence on driving change by elevating the conversation and awareness around key issues and engaging with the communities where we operate while also providing opportunities for employee development,education,and professional growth.In 2023,w

200、e continued our support of the ERGs in several ways,including the opportunity for ERGs to nominate charitable organizations to receive grants from the Baker Hughes Foundation.We also formalized and enhanced support and impact for our five communities of interest groups,which bring together employees

201、 based on shared interests and enable employees to share information and ideas,find opportunities to participate in philanthropy and volunteerism,and learn best practices by engaging with colleagues on a specific topic or area of interest.These efforts have helped our DEI focus and have fostered clo

202、ser connections between employees in communities around the world.Inclusive Culture:We have several programs and initiatives that cultivate an inclusive culture.The Baker Hughes Culture&Inclusion Council,comprised of executives across the organization,supports the success of our DEI mission and work

203、place culture ambitions and meets regularly to review progress and discuss ways in which to continue to advance our efforts.The DEI Community of Practice facilitates sharing best practices across the enterprise.Our DEI Knowledge Center,located on the Baker Hughes intranet,enables us to provide our w

204、orkforce with tools,resources,and learning opportunities that raise awareness,foster inclusive behaviors,and build cross-cultural competences.Compensation and BenefitsWe are committed to paying for performance and supporting our employees wellbeing,as well as the wellbeing of their families,by offer

205、ing flexible and competitive benefits tailored by location to meet the specific needs of our employees.We regularly assess our total compensation and benefits programs through benchmarking with industry peers and local markets.We strive to ensure that our compensation programs are fair and equitable

206、 for all employees.Healthcare plans and life insurance are a core benefit of the Company and are provided in most locations.Baker Hughes offers various leaves of absence options for certain quality-of-life needs,including family care.We also continue to assess and provide programs that support our e

207、mployees work arrangements such as flexible schedules,compressed work weeks,hybrid work,remote work,and other options.Learning and DevelopmentLearning and Development is a personal journey at Baker Hughes.We empower our employees to follow their passion for personal knowledge,job related skills,deve

208、lopment,and the domain expertise needed for professional and personal growth.In alignment with this,in 2023,we built upon the progress in our social learning communities,by transitioning to an improved learning delivery platform.This change in the learning ecosystem simplified the user experience fo

209、r our learners and enabled rich analytics for the team to continuously make the learning experience more engaging,impactful,and easy.Our learning communities CORE Values,CORE Strengths and JOURNEY continue to provide opportunities for all employees to learn,share and practice their learning with the

210、ir peers no matter where they are in their career.CORE Values,is a curated learning space centered around our Baker Hughes Values:Grow,Care,Collaborate,and Lead,and the behaviors associated with each.CORE Strengths adds focus to the critical skills(for example Data Analytics,Project Management,Chang

211、e Management)that will help transform our organization,and JOURNEY is targeted for people leaders to help them transition into their leadership roles.We continue to offer in-person learning opportunities to complement the robust virtual learning catalog with workshops and team development.Baker Hugh

212、es Company 2023 Form 10-K|9Our formal leadership development programs play a pivotal role in attracting,retaining,and developing talent and increasing the pipeline of diverse talent into and within the organization.As an example,Aspire is a two-year rotational leadership program for recent graduates

213、 and early-career employees to grow functional and leadership skills through challenging assignments,learning plans,and global cross-functional projects.Health,Safety,Environment,and WellnessHSE is at the core of our culture as we are committed to doing the right thing to protect our employees,custo

214、mers,the communities where we live and work,and the environment.We take a risk-based approach with proactive and preventive programs to deliver safe,secure,and sustainable operations.We have established a stringent set of standards which meet or exceed global HSE regulatory requirements.Our commitme

215、nt to HSE starts at the highest levels of our Company and is embedded throughout all layers of the organization.We encourage and empower all employees to take an active role in owning HSE by stopping work when conditions and/or behaviors are unsafe and reporting observations,near misses,and stop-wor

216、k events through open reporting channels.Our employees are required to complete recurring HSE training.We offer over 200 unique HSE courses including foundational training required for all employees,workplace and job-specific training,and human-performance leadership training for managers.Our ambiti

217、on is to make every day a Perfect HSE Dayone without serious injuries,accidents,or harm to the environment.In 2023,we achieved 199 Perfect HSE Days,down 8%versus 2022.Our commitment to HSE goes beyond safety alone.Occupational health and wellness is a key competency jointly managed within our HSE an

218、d Human Resources(HR)teams.The importance of physical health,ergonomics,preventative health care,and mental wellness cannot be overstated in promoting a healthy,engaged,and productive workplace.We work with our health benefit providers and internal teams to offer employees health and wellness progra

219、ms,telemedicine access,health screenings,immunizations,fitness reimbursements,and virtual wellness tools.In 2023,the mental health and emotional well-being of our employees continued to be a critical priority.We hosted numerous events with Baker Hughes leaders and external experts,further embedded m

220、ental well-being into leadership engagements,and provided resources and tools to employees.Our Employee Assistance Program(EAP)provides employees and their family members direct access to professional coaches for in-the-moment counseling or referrals to community experts and extended care providers

221、to navigate daily life and cope with major life events.Community InvolvementBaker Hughes seeks to make a positive impact in the communities where we conduct business around the world.Consistent with our purpose and values,we work to advance environmental quality,educational opportunities,health,and

222、wellness.We benefit our communities through financial contributions,in-kind donations of goods and services,and volunteer projects.The Baker Hughes Foundation makes strategic philanthropic contributions,matches Baker Hughes employee charitable contributions,and awards volunteer recognition grants fo

223、r outstanding employee community service.GovernanceThe Board believes the purpose of corporate governance is to maximize shareholder value in a manner consistent with legal requirements and the highest standards of integrity.The Board has adopted and adheres to corporate governance practices,which t

224、he Board and management believe promote this purpose,are sound,and represent best practices.The Board periodically reviews these governance practices,Delaware law(the state in which the Company is incorporated),the rules and listing standards of Nasdaq and the SEC regulations,as well as best practic

225、es suggested by recognized governance authorities.The Board monitors and provides oversight over our ESG policies,programs,and practices regarding corporate responsibility and sustainability and plays an active role in overseeing our human capital management efforts.Our Human Capital and Compensatio

226、n Committee provides oversight of our social strategy,policies,programs,and initiatives focusing on DEI as well as pay equity,culture,talent development,succession planning,and executive compensation and benefits.Our Governance and Corporate Responsibility Committee provides oversight of the Baker H

227、ughes Company 2023 Form 10-K|10Companys environmental matters,including monitoring its sustainability strategy and initiatives,the management of employee health,safety,and wellness matters,and oversight of our positions on corporate social responsibilities and public issues of significance which aff

228、ect investors and other key stakeholders.The Audit Committee provides oversight over the Companys risk assessment and risk management policies and processes,including data privacy,and compliance reporting.GOVERNMENTAL REGULATIONEnvironmental MattersWe are committed to the health and safety of people

229、,protection of the environment and compliance with environmental laws,regulations and our policies.Our past and present operations include activities that are subject to extensive domestic(including U.S.federal,state and local)and international regulations concerning,among other things,air and water

230、 quality,waste management,occupational health and safety,and land protection.Environmental regulations continue to evolve,and changes in standards of enforcement of existing regulations,as well as the enactment of new legislation,may require us and our customers to modify,supplement or replace equip

231、ment or facilities,obtain new or updated permits to conduct regulated activities,initiate investigatory and/or remedial measures,apply specific HSE criteria addressing employee protection and/or to change or discontinue present methods of operation.Our environmental compliance expenditures and our c

232、apital costs for environmental control equipment may change accordingly.Ongoing environmental compliance costs,such as obtaining environmental permits,installation and maintenance of pollution control equipment and waste disposal,are expensed as incurred.Based upon current information,we believe tha

233、t our overall environmental regulatory compliance obligations,including investigatory and/or remediation obligations,environmental compliance costs and capital expenditures for environmental control equipment,will not have a material adverse effect on our capital expenditures,earnings or competitive

234、 position because we have either established adequate reserves or our compliance cost,based on available information,is not expected to be material to our consolidated financial statements.While we seek to embed and verify sound environmental practices throughout our business,we are,and may in the f

235、uture be,involved in investigation and/or remediation projects at current and former properties,typically related to historical operations and operations of our predecessor companies.In some cases,our remediation activities are conducted as specified by a government agency-issued consent decree or a

236、greed order.Remediation costs at these properties are accrued using currently available facts,existing environmental permits,technology and presently enacted laws and regulations.For sites where we have primary responsibility for the remediation,our cost estimates are developed based on internal eva

237、luations and are not discounted.We record accruals when it is probable that we will be obligated to pay amounts for environmental site evaluation,investigation and/or remediation or related activities,and such amounts can be reasonably estimated.Accruals are recorded even if significant uncertaintie

238、s exist over the ultimate cost of the remediation.Our total accrual for environmental remediation was$58 million and$63 million at December 31,2023 and 2022,respectively.Other Regulatory MattersWe are subject to regulation by various U.S.federal regulatory agencies and by the applicable regulatory a

239、uthorities in countries in which our products are manufactured or sold.Such regulations principally relate to the ingredients,classification,labeling,safety,manufacturing,packaging,transportation,advertising,and marketing of our products.Additionally,as a U.S.entity operating through subsidiaries in

240、 non-U.S.jurisdictions,we are subject to foreign exchange control,transfer pricing and customs laws that regulate the import and export of goods as well as the flow of funds between us and our subsidiaries.In particular,the shipment of goods,services and technology across international borders subje

241、cts us to extensive trade laws and regulations.Our import activities are governed by the unique customs laws and regulations in each of the countries where we operate.Pursuant to their laws and regulations,governments may impose economic sanctions against certain countries,persons and entities that

242、may restrict or prohibit transactions involving such countries,persons and entities,which may limit or prevent our conduct of business in certain jurisdictions.We are also required to be in compliance with transfer pricing,securities laws,and other statutes and regulations,such as the U.S.Foreign Co

243、rrupt Practices Act and other countries anti-corruption and anti-bribery regimes.Baker Hughes Company 2023 Form 10-K|11As a result of the conflict between Russia and Ukraine that began in February of 2022,governments in the U.S.,United Kingdom(U.K.),European Union(EU),and other countries enacted san

244、ctions against Russia and certain Russian interests.As previously announced on March 19,2022,we suspended any new investments in our Russia operations,but continued to comply with applicable laws and regulations as we fulfilled existing contractual obligations.Over the course of the second quarter o

245、f 2022,we closely monitored the developments in Ukraine and Russia and changes to sanctions all of which continued to make ongoing operations increasingly complex and significantly more challenging.As a result,we completed a number of actions during the course of 2022 including the sale of part of o

246、ur OFSE Russia business and suspended substantially all of our remaining operational activities in Russia.In 2023,our focus in Russia has been to continue to close local entities within the scope of western sanctions and local regulation.For further information see Note 20.Restructuring,Impairment a

247、nd Other and Note 21.Business Dispositions and Acquisitions of the Notes to Consolidated Financial Statements in Item 8 herein.We are also subject to laws relating to data privacy and security and consumer credit,protection and fraud.An increasing number of governments worldwide have established law

248、s and regulations,and industry groups also have promoted various standards,regarding data privacy and security,including with respect to the protection and processing of personal data.The legal and regulatory environment related to data privacy and security is increasingly rigorous,with new and cons

249、tantly changing requirements applicable to our business,and enforcement practices are likely to remain uncertain for the foreseeable future.We are also subject to labor and employment laws,including regulations established by the U.S.Department of Labor and other local regulatory agencies,which sets

250、 laws governing working conditions,paid leave,workplace safety,wage and hour standards,and hiring and employment practices.While there are no current environmental or regulatory matters that we expect to be material to our results of operations,financial position or cash flows or have a material adv

251、erse effect on our capital expenditures,earnings or competitive position,there can be no assurances that existing or future environmental laws and other laws,regulations and standards applicable to our operations or products will not lead to such a material adverse impact.AVAILABILITY OF INFORMATION

252、 FOR STOCKHOLDERSOur Annual Reports on Form 10-K,quarterly reports on Form 10-Q,current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a)or 15(d)of the Securities Exchange Act of 1934,as amended(Exchange Act),are made available free of charge on our int

253、ernet website at as soon as reasonably practicable after these reports have been electronically filed with,or furnished to,the SEC,and can be found at their internet website www.sec.gov.In addition,our Corporate Sustainability reports are available on the Company section of our website at .Informati

254、on contained on or connected to our website is not incorporated by reference into this Annual Report on Form 10-K and should not be considered part of this Annual Report or any other filing we make with the SEC.We have a Code of Conduct to provide guidance to our directors,officers,and employees on

255、matters of business conduct and ethics,including compliance standards and procedures.We also require our principal executive officer,principal financial officer,and principal accounting officer to sign a Code of Ethical Conduct Certification annually.The Code of Conduct,referred to as Our Way:The Ba

256、ker Hughes Code of Conduct,and the Code of Ethical Conduct Certifications are available on the Investor section of our website at .We will disclose on a current report on Form 8-K or on our website information about any amendment or waiver of these codes for our executive officers and directors.Waiv

257、er information disclosed on our website will remain on the website for at least 12 months after the initial disclosure of a waiver.Our Governance Principles and the charters of our Audit Committee,Finance Committee,Human Capital and Compensation Committee,and Governance and Corporate Responsibility

258、Committee of the Board are also available on the Investor section of our website at .In addition,a copy of the Code of Conduct,Code of Ethical Conduct Certifications,Governance Principles,and the charters of the committees referenced above are available in print at no cost to any shareholder who req

259、uests them.Baker Hughes Company 2023 Form 10-K|12EXECUTIVE OFFICERS OF BAKER HUGHES COMPANYThe following table shows,as of February 5,2024,the name of each of our executive officers,together with his or her age and office presently or previously held.There are no family relationships among our execu

260、tive officers.Lorenzo Simonelli50Chairman,President and Chief Executive OfficerLorenzo Simonelli has been the Chairman of the Board of Directors of the Company since October 2017,and a Director,President and Chief Executive Officer of the Company since July 2017.Prior to joining the Company in July

261、2017,Mr.Simonelli was Senior Vice President,GE and President and Chief Executive Officer,GE Oil&Gas from October 2013 to July 2017.Before joining GE Oil&Gas,he was the President and Chief Executive Officer of GE Transportation from July 2008 to October 2013.Mr.Simonelli joined GE in 1994 and held va

262、rious finance and leadership roles from 1994 to 2008.Nancy Buese54Chief Financial OfficerNancy Buese is the Chief Financial Officer of the Company.Prior to joining the Company in November 2022,she served as Executive Vice President(EVP)and Chief Financial Officer(CFO)of Newmont Corporation,a gold mi

263、ning company,since October 2016.Prior to her role at Newmont,Ms.Buese spent more than a decade as EVP&CFO of MarkWest Energy Partners,a leader in gathering,processing,and transportation of hydrocarbons,as well as EVP&CFO of MPLX(a subsidiary of Marathon Petroleum)following MPLXs acquisition of MarkW

264、est.She began her career in public accounting,starting as an accountant for Arthur Andersen and rising to be a partner at Ernst&Young until 2003.James E.Apostolides46Senior Vice President,Enterprise Operational ExcellenceJames E.Apostolides is the Senior Vice President of Enterprise Operational Exce

265、llence of the Company.He previously served as Senior Vice President of Enterprise Excellence from February 2020 to September 2022.In July 2017,he was appointed VP of Materials Management,Logistics,and Cash Operations.He began his career in 1999 with GE and held roles of increasing responsibility,inc

266、luding managerial positions in Shop Operations,Materials,Sourcing,and Fulfillment across multiple continents.Maria Claudia Borras55Executive Vice President,Oilfield Services and EquipmentMaria Claudia Borras is the Executive Vice President,Oilfield Services and Equipment of the Company.She previousl

267、y served as Executive Vice President,of Oilfield Services from July 2017 to September 2022.Prior to joining the Company in July 2017,she served as the Chief Commercial Officer of GE Oil&Gas from January 2015 to July 2017.Prior to joining GE Oil&Gas,she held various leadership positions at Baker Hugh

268、es Incorporated including President,Latin America from October 2013 to December 2014,President,Europe Region from August 2011 to October 2013,Vice President,Global Marketing from May 2009 to July 2011 and other leadership roles at Baker Hughes Incorporated from 1994 to April 2009.Ganesh Ramaswamy55E

269、xecutive Vice President,Industrial&Energy TechnologyGanesh Ramaswamy is the Executive Vice President,Industrial&Energy Technology.Prior to joining the Company in January 2023,he served as President of Global Services for Johnson Controls from December 2019 to December 2022.Prior to joining Johnson C

270、ontrols,he served at Danaher Corporation from April 2015 to December 2019 in various executive roles including Group Executive for Marking&Coding;President of Videojet Technologies;and Senior Vice President of High Growth Markets at Beckman Coulter Diagnostics.Prior to his career with Danaher,he hel

271、d executive roles at Hoya Corporation,including as President of Pentax Medical,from June 2011 to April 2015.He began his career in product development and general management at GE Global Research and GE Healthcare.Georgia Magno45Chief Legal OfficerGeorgia Magno is the Chief Legal Officer of the Comp

272、any.She previously served as Vice President and General Counsel for the IET segment.Georgia joined the Company in 2010,first as General Counsel for the global supply chain and holding subsequent legal roles across commercial,operational,and product line organizations in multiple countries including

273、Italy and the U.S.Prior to joining the Company,she was an international litigator with the law firms of Cleary Gottlieb and Weil,Gotshal&Manges LLP.NameAgePosition and BackgroundBaker Hughes Company 2023 Form 10-K|13ITEM 1A.RISK FACTORSAn investment in our common stock involves various risks.When co

274、nsidering an investment in the Company,one should carefully consider all of the risk factors described below,as well as other information included and incorporated by reference in this Annual Report.There may be additional risks,uncertainties and matters not listed below,that we are unaware of,or th

275、at we currently consider immaterial.Any of these may adversely affect our business,financial condition,results of operations and cash flows and,thus,the value of an investment in the Company.OPERATIONAL RISKSWe operate in a highly competitive environment,which may adversely affect our ability to suc

276、ceed.Our investments in new technologies,equipment,and facilities may not provide competitive returns.We operate in a highly competitive environment for marketing our products and services and securing equipment across our portfolio.Our ability to continually provide competitive products and service

277、s can impact our ability to defend,maintain or increase prices for our products and services,maintain market share,and negotiate acceptable contract terms with our customers.In order to be competitive,we must provide new and differentiating technologies,reliable products and services that perform as

278、 expected and that create value for our customers.We continue to invest in new technologies,equipment,and facilities and to expand our capabilities and technology portfolio to meet the challenges of a net-zero future.These efforts include expanding into new energy areas such as geothermal and carbon

279、 capture,utilization and storage,strengthening our digital architecture and addressing key energy market themes.Our ability to defend,maintain or increase prices for our products and services is in part dependent on the industrys capacity relative to customer demand,on our ability to differentiate t

280、he value delivered by our products and services from our competitors products and services and to provide innovative and competitive products and services to meet our clients evolving needs with respect to new energy areas.Managing development of competitive technology and new product introductions

281、on a forecasted schedule and at a forecasted cost can impact our financial results.If we are unable to continue to develop and produce competitive and innovative technology or deliver it to our clients in a timely and cost-competitive manner in response to changes in the market,customer requirements

282、,competitive pressures,or as a result of the energy transition to lower carbon emitting technology,or if competing technology accelerates the obsolescence of any of our products or services,any competitive advantage that we may hold,and in turn,our business,financial condition,results of operations

283、and cash flows could be materially and adversely affected.We have,and may in the future enter into,agreements with third parties to jointly develop certain technologies which may include financial or other commitments.Under the terms of these agreements,we may agree to share in the associated develo

284、pment and marketing costs for the developed technologies.There can be no assurances that we will be able to successfully develop these technologies in collaboration with these third parties that will adequately meet our customers needs.Also,there can be no assurances that these joint development agr

285、eements will be commercially viable,successful or profitable.As a result,these joint development agreements could have a material adverse effect on our financial condition,results of operations and cash flows.The potential transition risks posed by moving to a lower carbon economy could have an adve

286、rse effect on the demand for our technologies and services.There is increased focus by governments and our customers,investors and other stakeholders on a climate change,sustainability,and energy transition matters.Transitioning to a low-carbon economy will likely require extensive policy,legal,tech

287、nology,and market changes.These changes may result in the enactment of climate change-related regulations,policies and initiatives(at the government,regulator,corporate and/or investor community levels);technological advances with respect to the generation,transmission,storage and consumption of ene

288、rgy;increased availability of,and increased demand from consumers and industry for,energy sources other than oil and natural gas and development of,and increased demand from consumers and industry for,lower-emission products and services as well as more efficient products and services.Baker Hughes C

289、ompany 2023 Form 10-K|14Our future success may depend on our ability to effectively execute on our energy transition strategy and the pace at which the energy transition unfolds.Our strategy depends on our ability to develop additional innovative technologies and work with our customers and partners

290、 to advance new energy solutions such as geothermal,CCUS,hydrogen energy,and other integrated solutions.If the energy transition occurs faster than anticipated or faster than we can transition,or if we are unable to execute our energy transition strategy as planned,demand for our technologies and se

291、rvices or access to capital could be adversely affected.If the energy transition occurs slower than anticipated,we could be developing technologies and services that are not responsive to the commercial needs of our customers.In addition,negative attitudes toward or perceptions of our industry or fo

292、ssil fuel products and their relationship to the environment have led governments,non-governmental organizations,and companies to implement initiatives to conserve energy and promote the use of alternative energy sources,which may reduce the demand for and production of oil and gas in areas of the w

293、orld where our customers operate,and thus reduce future demand for our products and services.In addition,initiatives by investors and financial institutions to limit funding to companies in fossil fuel-related industries may adversely affect our liquidity or access to capital.Disruptions in our supp

294、ly chain,the high cost or unavailability of raw materials,equipment,and supplies essential to our business could adversely affect our ability to execute our operations on a timely basis.Our manufacturing operations are dependent on having sufficient raw materials,component parts and manufacturing ca

295、pacity,including labor,available to meet our manufacturing plans on a timely basis,at a reasonable cost while minimizing inventories.Additional disruptions within our supply chain resulting from factors including,but not limited to,pandemic,inflation,rising interest rates,and shortages in labor supp

296、ly,have had and may continue to have an impact on our business and reputation.Many of the raw materials essential to our business require the use of rail,storage,and trucking services to transport the materials to our job sites.These services,particularly during times of high demand,may cause delays

297、 in the arrival of or otherwise constrain our supply of raw materials.These constraints could have a material adverse effect on our business and consolidated results of operations.In addition,price increases imposed by our vendors for raw materials and transportation providers used in our business,a

298、nd the inability to pass these increases through to our customers,could have a material adverse effect on our business and consolidated results of operations.As a result of these or any other factors,our ability to execute our operations on a timely basis,including our ability to meet our manufactur

299、ing plans and revenue goals,control costs,and avoid shortages or over-supply of raw materials and component parts,could be adversely affected.The partial or complete loss of GE as a supplier,as well as contracts with our aeroderivative joint venture(the Aero JV)with GE may adversely affect our busin

300、ess,financial condition,results of operations and cash flows.We currently have an extensive commercial relationship with GE.Although we have a long-term contractual framework in place with GE,if GE were to discontinue or reduce its business with the Company,fail to perform its obligations under exis

301、ting contracts,such as our long-term supply agreement for heavy-duty gas turbines,or experience significant disruptions,including under the intellectual property related agreements with GE,our business,financial condition,results of operations and cash flows may be adversely affected.In addition to

302、our contracts and arrangements with GE as a direct supplier,we and GE formed the Aero JV in 2019.The Aero JV is jointly controlled by GE and us,and as a result,realizing the benefits of this joint venture depends on the continued cooperation between the parties.In addition,the business and financial

303、 performance of the Aero JV may be adversely affected if GE were to fail to perform its obligations under its contracts with the Aero JV.We in turn use certain products purchased through the Aero JV for the manufacture of various end products,and therefore,failure of the Aero JV to perform for any r

304、eason could prevent us from fulfilling our contractual obligations,which may adversely affect our business,financial condition,results of operations and cash flows.If we are unable to attract and retain key personnel,we may not be able to execute our business strategy effectively and our operations

305、could be adversely affected.Our operations and future success depend on our ability to recruit,train,and retain key personnel.People are a key resource to developing,manufacturing,and delivering our products and providing technical services and Baker Hughes Company 2023 Form 10-K|15solutions to our

306、customers around the world.A competent,well-trained,highly skilled,motivated,and diverse workforce has a positive impact on our ability to attract and retain business.Difficulties in hiring or retaining key employees,or the unexpected loss of experienced employees resulting in the depletion of our i

307、nstitutional knowledge base,could have an adverse impact on our business performance,reputation,financial condition,or results of operations.Additionally,successfully executing organizational change as we restructure the Company,management transitions at leadership levels of the Company,and motivati

308、on and retention of key employees is critical to our business success.Factors that may affect our ability to attract and retain sufficient numbers of qualified employees include:employee morale,our brand reputation as an employer of choice,competition from other employers,our location strategy for k

309、ey roles,investments in technology and systems,and availability of qualified individuals with the desired skills and experiences needed to grow our business.Other factors that have,and could continue to impact our workforce,are:changes to our office environments and the impact this could have on our

310、 Company culture,the adoption of new work models,and our requirements and/or expectations about when or how often certain employees work on-site or remotely,which may not meet the expectations of our employees.The implementation of our plan to restructure our corporate organization and operating seg

311、ments may not achieve the results we anticipate,which could adversely affect our business.In the second half of 2022,we announced a plan to undertake certain corporate realignments and restructure our four operating segments to focus on two operating segments,OFSE and IET,in order to simplify and st

312、reamline our organizational structure,and create better flexibility and economies of scale across the two operating segments.Restructuring activities may be more costly than anticipated,and could lead to the diversion of managements attention from other business priorities.As a result of these or an

313、y other factors,we may not realize the anticipated benefits associated with the restructuring plan.There can be no assurance that the restructuring plan will result in cost savings or will materially increase our profitability.Even if the restructuring plan generates the benefits that we have antici

314、pated,there may be other unforeseeable and unintended factors or consequences that occur as a result of the restructuring,which could adversely affect our business.Our business could be impacted by both geopolitical and terrorism threats,including armed conflict,in countries where we or our customer

315、s do business and our business operations may be impacted by civil unrest and/or government expropriations.Geopolitical and terrorism threats continue to grow in a number of key countries where we currently or may in the future do business.Geopolitical and terrorism threats,including armed conflict

316、among countries,has had and could in the future lead to,among other things,a loss of our investment in the country,adverse impact to our employees,and impairment of our or our customers ability to conduct operations.Further,the broader consequences of geopolitical and terrorism threats,which may inc

317、lude further sanctions that prohibit our ability to do business in specific countries,embargoes,supply chain disruptions,the potential inability to service our remaining performance obligations and potential contractual breaches and litigation,regional instability and geopolitical shifts,and the ext

318、ent of any such threats effect on our business and results of operations as well as the global economy,cannot be predicted.Certain geopolitical conflicts,such as between Russia and Ukraine and between Israel and Hamas,have had and may continue to have the effect of heightening many other risks discl

319、osed in our public filings,any of which could materially and adversely affect our business and results of operations.Such risks include,but are not limited to,adverse effects on regional and global macroeconomic conditions;increased volatility in the price and demand of oil and natural gas,increased

320、 exposure to cyber attacks;limitations in our ability to implement and execute our business strategy;risks to employees and contractors that we have in the region;disruptions in global supply chains;exposure to foreign currency fluctuations;potential nationalizations and assets seizures;constraints

321、or disruption in the capital markets and our sources of liquidity;our potential inability to service our remaining performance obligations and potential contractual breaches and litigation.Any such risks may require us to record asset impairments and experience adverse operating impacts which could

322、have a material adverse effect on our financial condition,results of operations and cash flows.Baker Hughes Company 2023 Form 10-K|16Control of oil and natural gas reserves by national oil companies may impact the demand for our services and products and create additional risks in our operations.Muc

323、h of the worlds oil and natural gas reserves are controlled by national oil companies.National oil companies may require their contractors to meet local content requirements or other local standards,such as conducting our operations through joint ventures with local partners that could be difficult

324、or undesirable for us to meet.The failure to meet the local content requirements and other local standards may adversely impact our operations in those countries.In addition,our ability to work with national oil companies is subject to our ability to negotiate and agree upon acceptable contract term

325、s.Our operations involve a variety of operating hazards and risks that could cause losses.The products that we manufacture and the services that we provide are complex,and the failure of our equipment to operate properly or to meet specifications may greatly increase our customers costs.In addition,

326、many of these products are used in inherently hazardous industries,such as the offshore oilfield business.These hazards include blowouts,explosions,unplanned or uncontrolled releases,nuclear-related events,fires,collisions,capsizings,and severe weather conditions.We may incur substantial liabilities

327、 or losses as a result of these hazards.Our insurance and contractual indemnity protection may not be sufficient or effective to protect us under all circumstances or against all risks.The occurrence of a significant event,against which we were not fully insured or indemnified or the failure of a cu

328、stomer to meet its indemnification obligations to us,could materially and adversely affect our results of operations and financial condition.The potential physical risks posed by climate change could adversely affect our operations and those of our customers.The physical risks of climate change can

329、include extreme variability in weather patterns such as increased frequency and severity of significant weather events(e.g.flooding,hurricanes and tropical storms),natural hazards(e.g.,increased wildfire risk),rising mean temperature and sea levels,and long-term changes in precipitation patterns(e.g

330、.drought,desertification,or poor water quality).Such effects have the potential to affect business continuity and operating results,particularly at facilities in coastal areas or areas prone to chronic water scarcity,and could disrupt our operations or those of our customers or suppliers,including t

331、hrough direct damage to physical assets and indirect impacts from supply chain disruption and market volatility.While we evaluate and incorporate potential ranges of physical risks,it is difficult to predict with certainty the timing,frequency or severity of such events,any of which could have a mat

332、erial adverse effect on our financial condition,results of operations and cash flows.See also Seasonal and weather conditions,including severe weather associated with climate change,could adversely affect demand for our services and operations.Seasonal and weather conditions,including severe weather

333、 associated with climate change,could adversely affect demand for our services and operations.Variation from normal weather patterns,such as cooler or warmer summers and winters,can have a significant impact on demand for our services and operations.Adverse weather conditions,such as hurricanes in the Gulf of Mexico or extreme winter conditions in Canada or the North Sea,may interrupt or curtail o