\n| \n (in millions except per share amounts)<\/i><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Sequential<\/b><\/p>\n<\/td>\n | \n Year-over-
\n
year<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOrders\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n4,541\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n5,188\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n5,532\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(12)%\n<\/p>\n<\/td>\n | \n \n(18)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRevenue\n<\/p>\n<\/td>\n | \n \n4,782\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n5,495\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n5,425\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(13)%\n<\/p>\n<\/td>\n | \n \n(12)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating income (loss)\n<\/p>\n<\/td>\n | \n \n164\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n182\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(16,059)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(10)%\n<\/p>\n<\/td>\n | \n \nF\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted operating income (non-GAAP)\n<\/p>\n<\/td>\n | \n \n270\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n462\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n240\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(42)%\n<\/p>\n<\/td>\n | \n \n13%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted EBITDA (non-GAAP)\n<\/p>\n<\/td>\n | \n \n562\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n770\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n594\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(27)%\n<\/p>\n<\/td>\n | \n \n(5)%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet income (loss) attributable to Baker Hughes\n<\/p>\n<\/td>\n | \n \n(452)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n653\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(10,227)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nU\n<\/p>\n<\/td>\n | \n \n96%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted net income (loss) (non-GAAP) attributable to Baker Hughes\n<\/p>\n<\/td>\n | \n \n91\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(50)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n70\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nF\n<\/p>\n<\/td>\n | \n \n30%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEPS attributable to Class A shareholders\n<\/p>\n<\/td>\n | \n \n(0.61)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.91\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(15.66)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nU\n<\/p>\n<\/td>\n | \n \n96%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted EPS (non-GAAP) attributable to Class A shareholders\n<\/p>\n<\/td>\n | \n \n0.12\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(0.07)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.11\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nF\n<\/p>\n<\/td>\n | \n \n14%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCash flow from operating activities\n<\/p>\n<\/td>\n | \n \n678\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n378\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n478\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n79%\n<\/p>\n<\/td>\n | \n \n42%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nFree cash flow (non-GAAP)\n<\/p>\n<\/td>\n | \n \n498\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n250\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n152\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n99%\n<\/p>\n<\/td>\n | \n \nF\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n “F” is used in most instances when variance is above 100%. Additionally, “U” is used in most instances when variance is below (100)%.<\/sup><\/i><\/p>\n\n\u201cWe are pleased with our first quarter results as we generated strong free cash flow, continued to drive forward our cost-out efforts, and took further meaningful steps in the execution of our strategy. During the quarter, TPS delivered solid orders and operating income while OFS continued to execute cost-out programs to help drive another strong quarter of margin performance. We also advanced our position in the energy transition, investing in strategic areas for growth and entering important partnerships to advance new energy frontiers including hydrogen and carbon capture, utilization and storage. I want to thank our employees for their continued hard work and commitment to safety,\u201d said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.\n<\/p>\n \n\u201cAs we look ahead to the rest of 2021, we remain cautiously optimistic that the global economy and oil demand will recover from the impact of the global pandemic. We expect spending and activity levels to gain momentum through the year as the macro environment improves, likely setting up the industry for stronger growth in 2022.\n<\/p>\n \n\u201cWe remain focused on executing our strategy, and are well positioned to benefit from an economic recovery while leading the energy transition and the journey to net-zero. We will continue to take energy forward by supporting our customers, staying disciplined on our strategic priorities, and delivering for our shareholders,\u201d concluded Simonelli.\n<\/p>\n Quarter Highlights<\/span><\/b><\/p>\nSupporting our Customers<\/b><\/p>\n \nThe OFS segment executed a major software deployment for Saudi Aramco, deploying its WellLink\u2122 service to deliver real-time data visualization and analysis across all Saudi Aramco drilling activities. The five-year contract was awarded in 2020 and includes a detailed planning phase to transition from the incumbent provider to Baker Hughes. Using WellLink, Saudi Aramco personnel can collaborate and make decisions using a single view of data, paving the way for the use of artificial intelligence to enhance operations. Despite significant pandemic-related challenges, the deployment was completed 50% faster than planned and used local resources extensively.\n<\/p>\n \nBaker Hughes continued to invest in localization for Saudi Arabia. In addition to the WellLink deployment project, Saudi Aramco awarded OFS a five-year drill bits contract, supported by the Baker Hughes drill bits manufacturing facility in Dhahran. The facility recently expanded its capabilities and has produced more than 15,000 drill bits since beginning operations a decade ago. OFS also inaugurated its completions manufacturing center in Saudi Arabia to support growth plans and add in-country value.\n<\/p>\n \nThe TPS segment continued to maintain its leadership in FPSO and LNG with several offshore topside contracts in Latin America and Asia. In Latin America, TPS was awarded a contract for multiple FPSOs, including one of the world\u2019s largest units, to provide power generation systems, compression trains for gas reinjection, CO2 compression services and water injection centrifugal pumps. In Asia, TPS secured a topside offshore contract to provide three aeroderivative gas turbine-driven compressor units for a fixed platform. TPS also continued to strengthen long-term relationships with key customers, achieving a major milestone by securing a 10-year services contract extension in Malaysia for one of the largest LNG facilities in the world.\n<\/p>\n \nThe DS segment continued to expand across industrial end markets, including marine, aerospace, electronics, and pulp and paper. The Bently Nevada product line signed a multi-year agreement with P&O Maritime Logistics to supply a hybrid condition-based monitoring solution that combines the VitalyX lubrication oil monitoring solution with Bently Nevada\u2019s vibration monitoring and Host Remote Monitoring & Diagnostic service. By combining oil and vibration monitoring, Bently Nevada can provide greater protection against asset loss and ensure valuable uptime for over 180 assets on 19 P&O Maritime Logistics vessels in its Caspian fleet. This cloud-based subscription contract is the first of its kind for both P&O Maritime Logistics and Bently Nevada.\n<\/p>\n \nBently Nevada also secured a contract to supply plant-wide condition monitoring solutions for Arauco\u2019s pulp and paper plant in Chile, one of the main global players in wood pulp and bioenergy. The brownfield contract includes hardware, software and services support of 900+ sensors integrated to System 1 software for 450 machines across three sites, increasing productivity and efficiency of Arauco\u2019s operations. In the industrial inspections segment, the Waygate Technologies (WT) product line secured multiple orders from one of the world’s leading battery manufacturers in Asia. The customer has initiated a global roll-out project with WT’s Phoenix CT systems to inspect lithium ion batteries for electric vehicles.\n<\/p>\n \nDS secured major contracts to advance customers\u2019 energy transition goals, helping to reduce methane and carbon emissions as well as improve efficiencies. The Panametrics product line secured several orders for the Flare.IQ advanced flare gas monitoring and optimization system, with contracts for oil and gas operators in North America, China and the U.A.E. The Druck product line secured a number of significant contracts across North America and China to supply pressure sensors to improve aircraft fuel efficiency. This included one of the largest aerospace engine contracts in Druck\u2019s history, a 25-year deal, and strengthened Baker Hughes\u2019 leadership position with aerospace OEMs.\n<\/p>\n Executing on Priorities <\/b><\/p>\n \nBaker Hughes made progress in strategically positioning the company for new frontiers, announcing new collaborations to advance industrial decarbonization and low- to zero-carbon solutions:\n<\/p>\n \n- \nSigned a cooperation agreement with PAO NOVATEK to decarbonize natural gas and LNG production by developing and implementing innovative compression and power generation technologies for NOVATEK\u2019s LNG projects. The agreement will begin with a pilot program to introduce hydrogen blends into the main process for natural gas liquefaction to reduce carbon dioxide emissions from LNG export terminals including NOVATEK\u2019s Yamal LNG complex.\n<\/li>\n
- \nSigned a memorandum of understanding (MOU) with Horisont Energi AS for the Polaris offshore carbon storage facility in Norway to explore the development and integration of technologies to minimize the footprint, cost and delivery time for carbon capture, transport and storage. The Polaris facility is part of the \u201cBarents Blue\u201d project, the first global and full-scale carbon neutral \u201cblue\u201d ammonia production plant. The project is expected to have a total carbon storage capacity of 100+ million tons, equivalent to twice Norway\u2019s annual greenhouse gas emissions.\n<\/li>\n
- \nAcquired from SRI International an exclusive license for the use of Mixed Salt Process technology for carbon capture applications including fossil-fueled power plants, gas turbines, industrial applications, and the cement industry. The agreement further expands and complements Baker Hughes\u2019 CCUS technology portfolio offering as it strategically positions to be able to offer customers a variety of solutions based on project size, design requirements and plant location.\n<\/li>\n<\/ul>\n
\nThe OFS and OFE segments continued to transform core operations and improve productivity and profitability, developing new business models and exiting product lines and geographies that did not meet strong return requirements. OFS completed the sale of pressure pumping assets in Argentina\u2019s Neuqu\u00e9n Basin to Tenaris, including a hydraulic fracturing fleet, coiled tubing unit and related equipment. OFE announced a joint venture company (JV) with Akastor ASA to combine Baker Hughes\u2019 Subsea Drilling Systems business with Akastor\u2019s subsidiary, MHWirth AS. The new JV will deliver global offshore drilling solutions to better serve customers while driving productivity and cost synergies.\n<\/p>\n \nOFS continued to see growth in the Chemicals product line with a five-year production chemicals contract from a major operator in Guyana and one of the largest Chemicals contracts in Baker Hughes history. As part of the contract, Baker Hughes developed a new oilfield chemicals technology solution in record time to meet specific regional production challenges. Notably, Chemicals also secured a five-year production chemicals contract for multiple deep-water blocks in Angola, and a five-year contract for specialty chemicals and services in offshore Norway.\n<\/p>\n \nOFE expanded its non-metallic materials portfolio and won multiple contracts in its Flexible Pipe Systems (FPS) product lines. A new onshore composite flexible pipe was launched in January, addressing the corrosion and cost of ownership challenges with conventional steel pipes for the energy and industrial sectors. The lightweight reinforced thermoplastic pipe (RTP) is manufactured at a state-of-the-art Houston facility, and the spoolable design can reduce installation costs by more than 20%. This technology has been well received and has led to early adoption by two customers within the quarter.\n<\/p>\n \nDS expanded its industrial asset performance management (APM) portfolio by acquiring ARMS Reliability, a leading global provider of reliability solutions deploying reliability engineering, data capture, integration, visualization, and analytics to improve the reliability and availability of physical assets. The acquisition closed on April 1, positioning Bently Nevada as a comprehensive industrial asset management platform with a full spectrum of APM services and extended plant-level coverage for industrial customers. ARMS Reliability\u2019s current customer base includes the mining, oil and gas, power generation, manufacturing, and utility segments.\n<\/p>\n Leading with Innovation <\/b><\/p>\n \nBaker Hughes continued to develop technologies to advance the energy transition, improve efficiencies, reduce emissions and accelerate the digital transformation of industrial segments.\n<\/p>\n \nBakerHughesC3.ai (BHC3) released its latest application, BHC3 Production Schedule Optimization (PSO). PSO improves supply chain and delivery performance for highly engineered products while minimizing manufacturing costs. The application generates industrial customer demand predictions and optimal production schedules using a holistic view of buyer activity, supply chain materials, and manufacturing and distribution options. PSO is the third BHC3 AI-based application released since the alliance was formed in 2019 and allows for further customer penetration in the downstream oil and gas segment.\n<\/p>\n \nOFS continued to innovate to reduce emissions and environmental footprint for customers. The Artificial Lift and Completions product lines secured a contract to supply equipment and services for the first wireline-retrievable electric submersible pumping (ESP) system in Italy. This latest ESP technology was developed in collaboration with channel partner AccessESP and will allow the customer to reduce its carbon footprint, minimize deferred production, and reduce workover costs by eliminating the need for a rig during ESP change-out operations.\n<\/p>\n \nOFS is also utilizing novel plug and abandonment (P&A) technologies to decommission wells in Europe in a more environmentally friendly, less emissive way. In one project in the Netherlands, the Baker Hughes HEAVY METAL section milling service was paired with a rigless P&A unit to reduce metal waste by 288,000 pounds and reduce carbon dioxide emissions by 73% compared to the incumbent\u2019s services.\n<\/p>\n Consolidated Results by Reporting Segment<\/b><\/p>\n\n\n| \n Consolidated Orders by Reporting Segment<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions)<\/i><\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Variance<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Consolidated segment orders<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Sequential<\/b><\/p>\n<\/td>\n | \n Year-over-
\n
year<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOilfield Services\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n2,200\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n2,266\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n3,147\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(3)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(30)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOilfield Equipment\n<\/p>\n<\/td>\n | \n \n345\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n561\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n492\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(39)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(30)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTurbomachinery & Process Solutions\n<\/p>\n<\/td>\n | \n \n1,447\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1,832\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1,394\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(21)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDigital Solutions\n<\/p>\n<\/td>\n | \n \n549\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n528\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n500\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n10\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total<\/b><\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n4,541\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n5,188\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n5,532\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(12)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(18)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nOrders for the quarter were $4,541 million, down 12% sequentially and down 18% year-over-year. The sequential decrease was a result of lower order intake in Oilfield Equipment and Turbomachinery & Process Solutions, partially offset by growth in Digital Solutions. Equipment orders were down 23% sequentially and service orders were down 4%.\n<\/p>\n \nYear-over-year, the decline in orders was a result of lower order intake in Oilfield Services and Oilfield Equipment, partially offset by growth in Digital Solutions and Turbomachinery & Process Solutions. Year-over-year equipment orders were down 18% and service orders were down 18%.\n<\/p>\n \nThe Company’s total book-to-bill ratio in the quarter was 0.9; the equipment book-to-bill ratio in the quarter was 0.8.\n<\/p>\n \nRemaining Performance Obligations (RPO) in the first quarter ended at $23.2 billion, a decrease of $0.2 billion from the fourth quarter of 2020. Equipment RPO was $7.5 billion, down 6% sequentially. Services RPO was $15.7 billion, up 2% sequentially.\n<\/p>\n \n\n| \n Consolidated Revenue by Reporting Segment<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions)<\/i><\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Variance<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Consolidated segment revenue<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Sequential<\/b><\/p>\n<\/td>\n | \n Year-over-
\n
year<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOilfield Services\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n2,200\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n2,282\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n3,139\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(4)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(30)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOilfield Equipment\n<\/p>\n<\/td>\n | \n \n628\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n712\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n712\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(12)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(12)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTurbomachinery & Process Solutions\n<\/p>\n<\/td>\n | \n \n1,485\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1,946\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1,085\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(24)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n37\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDigital Solutions\n<\/p>\n<\/td>\n | \n \n470\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n556\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n489\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(15)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(4)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total<\/b><\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n4,782\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n5,495\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n5,425\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(13)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(12)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nRevenue for the quarter was $4,782 million, a decrease of 13%, sequentially. The decrease in revenue was driven by lower volume across all segments.\n<\/p>\n \nCompared to the same quarter last year, revenue was down 12%, driven by lower volume across the Oilfield Services, Oilfield Equipment, and Digital Solutions segments, partially offset by Turbomachinery & Process Solutions.\n<\/p>\n \n\n| \n Consolidated Operating Income by Reporting Segment<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions)<\/i><\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Variance<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Segment operating income<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Sequential<\/b><\/p>\n<\/td>\n | \n Year-over-
\n
year<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOilfield Services\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n143\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n142\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n206\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(31)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOilfield Equipment\n<\/p>\n<\/td>\n | \n \n4\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n23\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(8)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(82)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \nF\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTurbomachinery & Process Solutions\n<\/p>\n<\/td>\n | \n \n207\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n332\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n134\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(38)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n55\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDigital Solutions\n<\/p>\n<\/td>\n | \n \n24\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n76\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n29\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(68)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(17)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal segment operating income\n<\/p>\n<\/td>\n | \n \n379\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n573\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n361\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(34)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n5\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCorporate\n<\/p>\n<\/td>\n | \n \n(109)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(111)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(122)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n2\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n11\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGoodwill impairment\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(14,773)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \nF\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInventory impairment\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(27)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(160)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nF\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \nF\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRestructuring, impairment & other\n<\/p>\n<\/td>\n | \n \n(80)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(229)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(1,325)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n65\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n94\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSeparation related\n<\/p>\n<\/td>\n | \n \n(27)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(24)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(41)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(12)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n33\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Operating income (loss)<\/b><\/p>\n<\/td>\n | \n \n164\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n182\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(16,059)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(10)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \nF\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted operating income*<\/b><\/p>\n<\/td>\n | \n \n270\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n462\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n240\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(42)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n13\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDepreciation & amortization\n<\/p>\n<\/td>\n | \n \n292\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n307\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n355\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(5)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(18)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted EBITDA*<\/b><\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n562\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n770\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n594\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(27)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(5)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n *Non-GAAP measure.<\/sup><\/i><\/p>\n“F” is used in most instances when variance is above 100%. Additionally, “U” is used in most instances when variance is below (100)%.<\/sup><\/i><\/p>\n\nOn a GAAP basis, operating income for the first quarter of 2021 was $164 million. Operating income decreased $18 million sequentially and increased $16,223 million year-over-year. Total segment operating income was $379 million for the first quarter of 2021, down 34% sequentially and up 5% year-over-year.\n<\/p>\n \nAdjusted operating income (a non-GAAP measure) for the first quarter of 2021 was $270 million, which excludes adjustments totaling $106 million before tax, mainly related to restructuring and separation related charges. A complete list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1a in the section entitled \u201cReconciliation of GAAP to non-GAAP Financial Measures.\u201d Adjusted operating income for the first quarter was down 42% sequentially, driven by declines in the Oilfield Equipment, Digital Solutions, and Turbomachinery & Process Solutions segments which were primarily seasonal, offset by margin expansion in Oilfield Services. Adjusted operating income was up 13% year-over-year driven by volume in the Turbomachinery & Process Solutions segment, and margin expansion in the Oilfield Equipment segment, partially offset by lower volume in the Oilfield Services and Digital Solutions segments.\n<\/p>\n \nDepreciation and amortization for the first quarter of 2021 was $292 million.\n<\/p>\n \nAdjusted EBITDA (a non-GAAP measure) for the first quarter of 2021 was $562 million, which excludes adjustments totaling $106 million before tax, mainly related to restructuring and separation related charges. Adjusted EBITDA for the first quarter was down 27% sequentially and down 5% year-over-year.\n<\/p>\n \nCorporate costs were $109 million in the first quarter of 2021, down 2% sequentially and down 11% year-over-year.\n<\/p>\n Other Financial Items<\/i><\/b><\/p>\n \nIncome tax expense in the first quarter of 2021 was $69 million.\n<\/p>\n \nOther non-operating loss in the first quarter of 2021 was $626 million. Included in other non-operating loss was a $788 million loss from the change in fair value of the investment in C3.ai, partially offset by the reversal of current accruals of $121 million due to the settlement of certain legal matters.\n<\/p>\n \nGAAP diluted loss per share was $(0.61). Adjusted diluted earnings per share was $0.12. Excluded from adjusted diluted earnings per share were all items listed in Table 1a in the section entitled “Reconciliation of GAAP to non-GAAP Financial Measures” as well as the “other adjustments (non-operating)” found in Table 1c.\n<\/p>\n \nCash flow from operating activities was $678 million for the first quarter of 2021. Free cash flow (a non-GAAP measure) for the quarter was $498 million. A reconciliation from GAAP has been provided in Table 1d in the section entitled “Reconciliation of GAAP to non-GAAP Financial Measures.”\n<\/p>\n \nCapital expenditures, net of proceeds from disposal of assets, were $180 million for the first quarter of 2021.\n<\/p>\n Results by Reporting Segment<\/b><\/p>\n The following segment discussions and variance explanations are intended to reflect management’s view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.<\/i><\/p>\n\n\n| \n Oilfield Services<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions)<\/i><\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Variance<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Oilfield Services<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Sequential<\/b><\/p>\n<\/td>\n | \n Year-over-
\n
year<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nRevenue\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n2,200\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n2,282\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n3,139\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(4)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(30)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating income\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n143\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n142\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n206\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(31)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating income margin\n<\/p>\n<\/td>\n | \n \n6.5\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n6.2\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n6.6\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.3\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n | \n \n(0.1)\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDepreciation & amortization\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n201\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n211\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n249\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(5)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(20)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEBITDA*\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n344\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n353\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n456\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(3)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(25)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEBITDA margin*\n<\/p>\n<\/td>\n | \n \n15.6\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n15.5\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n14.5\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.2\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n | \n \n1.1\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nOilfield Services (OFS) revenue of $2,200 million for the first quarter decreased by $82 million, or 4%, sequentially.\n<\/p>\n \nNorth America revenue was $625 million, up 1% sequentially. International revenue was $1,575 million, a decrease of 5% sequentially, driven by lower revenues in Russia CIS, the Middle East, and Europe, partially offset by Latin America.\n<\/p>\n \nSegment operating income before tax for the quarter was $143 million. Operating income for the first quarter was up $2 million, or 1% sequentially, primarily driven by productivity as a result of cost efficiencies and restructuring, partially offset by lower volume.\n<\/p>\n \n\n| \n Oilfield Equipment<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions)<\/i><\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Variance<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Oilfield Equipment<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Sequential<\/b><\/p>\n<\/td>\n | \n Year-over-
\n
year<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOrders\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n345\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n561\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n492\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(39)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(30)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRevenue\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n628\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n712\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n712\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(12)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(12)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating income (loss)\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n4\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n23\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(8)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(82)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \nF\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating income margin\n<\/p>\n<\/td>\n | \n \n0.7\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n3.2\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(1.1)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(2.6)\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n | \n \n1.8\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDepreciation & amortization\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n32\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n33\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n44\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(2)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(27)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEBITDA*\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n37\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n56\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n36\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(35)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEBITDA margin*\n<\/p>\n<\/td>\n | \n \n5.8\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n7.9\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n5.1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(2.0)\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n | \n \n0.7\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nOilfield Equipment (OFE) orders were down $147 million, or 30%, year-over-year, driven by lower order intake across most of the segment. Equipment orders were down 25% and services orders were down 35% year-over-year.\n<\/p>\n *Non-GAAP measure.<\/sup><\/i><\/p>\n\nOFE revenue of $628 million for the quarter decreased $84 million year-over-year. The decrease was driven by lower volume in the Subsea Services and the Subsea Drilling Systems businesses, and from the disposition of the Surface Pressure Control flow business in the fourth quarter of 2020, offset by higher volume in the Subsea Production Systems and the Flexible Pipe Systems businesses.\n<\/p>\n \nSegment operating income before tax for the quarter was $4 million, an increase of $12 million year-over-year. The increase was driven by higher cost productivity.\n<\/p>\n \n\n| \n Turbomachinery & Process Solutions<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions)<\/i><\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Variance<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Turbomachinery & Process Solutions<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Sequential<\/b><\/p>\n<\/td>\n | \n Year-over-
\n
year<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOrders\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n1,447\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n1,832\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n1,394\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(21)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRevenue\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n1,485\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n1,946\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n1,085\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(24)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n37\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating income\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n207\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n332\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n134\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(38)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n55\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating income margin\n<\/p>\n<\/td>\n | \n \n13.9\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n17.1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n12.3\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(3.1)\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n | \n \n1.6\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDepreciation & amortization\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n30\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n31\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n28\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(1)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n10\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEBITDA*\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n237\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n362\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n161\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(35)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n47\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEBITDA margin*\n<\/p>\n<\/td>\n | \n \n16.0\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n18.6\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n14.9\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(2.7)\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n | \n \n1.1\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nTurbomachinery & Process Solutions (TPS) orders were up 4% year-over-year. Equipment orders were up 28% and service orders were down 9%.\n<\/p>\n \nTPS revenue of $1,485 million for the quarter increased $400 million, or 37%, year-over-year. The increase was driven by higher equipment volume. Equipment revenue in the quarter represented 47% of total segment revenue, and service revenue represented 53% of total segment revenue.\n<\/p>\n \nSegment operating income before tax for the quarter was $207 million, up $73 million, or 55%, year-over-year. The increase was driven by higher volume and cost productivity, offset partially by higher equipment mix.\n<\/p>\n \n\n| \n Digital Solutions<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions)<\/i><\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Variance<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Digital Solutions<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Sequential<\/b><\/p>\n<\/td>\n | \n Year-over-
\n
year<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOrders\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n549\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n528\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n500\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n10\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRevenue\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n470\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n556\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n489\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(15)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(4)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating income\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n24\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n76\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n29\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(68)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(17)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOperating income margin\n<\/p>\n<\/td>\n | \n \n5.2\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n13.8\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n6.0\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(8.6)\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n | \n \n(0.8)\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDepreciation & amortization\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n21\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n25\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n25\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(14)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(16)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEBITDA*\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n46\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n101\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n55\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(55)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n(16)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEBITDA margin*\n<\/p>\n<\/td>\n | \n \n9.7\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n18.2\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n11.2\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(8.5)\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n | \n \n(1.5)\n<\/p>\n<\/td>\n | \n \npts\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n *Non-GAAP measure.<\/sup><\/i><\/p>\n\nDigital Solutions (DS) orders were up 10% year-over-year, driven by higher order intake in the Waygate Technologies, Process & Pipeline Services, and Panametrics businesses.\n<\/p>\n \nDS revenue of $470 million for the quarter decreased 4% year-over-year, primarily driven by lower volume across the Nexus Controls, Process & Pipeline Services, and Waygate Technologies businesses.\n<\/p>\n \nSegment operating income before tax for the quarter was $24 million, down 17% year-over-year. The decrease year-over-year was primarily driven by lower volume.\n<\/p>\n Reconciliation of GAAP to non-GAAP Financial Measures<\/span><\/b><\/p>\n\nManagement provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance and liquidity, and that these measures may be used by investors to make informed investment decisions.\n<\/p>\n \n\n| \n Table 1a. Reconciliation of GAAP and Adjusted Operating Income\/(Loss)<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions)<\/i><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOperating income (loss) (GAAP)\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n164\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n182\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(16,059)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSeparation related\n<\/p>\n<\/td>\n | \n \n27\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n24\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n41\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGoodwill impairment\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n14,773\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRestructuring, impairment & other\n<\/p>\n<\/td>\n | \n \n80\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n229\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1,325\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nInventory impairment\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n27\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n160\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal operating income adjustments\n<\/p>\n<\/td>\n | \n \n106\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n281\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n16,299\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted operating income (non-GAAP)\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n270\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n462\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n240\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nTable 1a reconciles operating income (loss), which is the directly comparable financial result determined in accordance with Generally Accepted Accounting Principles (GAAP), to adjusted operating income (a non-GAAP financial measure). Adjusted operating income excludes the impact of certain identified items.\n<\/p>\n \n\n| \n Table 1b. Reconciliation of Operating Income (Loss) to EBITDA and Adjusted EBITDA<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions)<\/i><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nOperating income (loss) (GAAP)\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n164\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n182\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(16,059)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDepreciation & amortization\n<\/p>\n<\/td>\n | \n \n292\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n307\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n355\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEBITDA (non-GAAP)\n<\/p>\n<\/td>\n | \n \n456\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n489\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(15,705)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal operating income adjustments (1)<\/sup><\/p>\n<\/td>\n| \n \n106\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n281\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n16,299\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted EBITDA (non-GAAP)\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n562\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n770\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n594\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n (1) <\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n \nSee Table 1a for the identified adjustments to operating income.\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nTable 1b reconciles operating income (loss), which is the directly comparable financial result determined in accordance with GAAP, to EBITDA (a non-GAAP financial measure). Adjusted EBITDA (a non-GAAP financial measure) excludes the impact of certain identified items.\n<\/p>\n \n\n| \n Table 1c. Reconciliation of Net Income (Loss) Attributable to Baker Hughes to Adjusted Net Income (Loss) Attributable to Baker Hughes<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (in millions, except per share amounts)<\/i><\/p>\n<\/td>\n | \n March 31,
\n
2021<\/b><\/p>\n<\/td>\n | \n December 31,
\n
2020<\/b><\/p>\n<\/td>\n | \n March 31,
\n
2020<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet income (loss) attributable to Baker Hughes (GAAP)\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(452)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n653\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(10,227)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal operating income adjustments (1)<\/sup><\/p>\n<\/td>\n| \n \n106\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n281\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n16,299\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther adjustments (non-operating) (2)<\/sup><\/p>\n<\/td>\n| \n \n663\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(1,412)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u2014\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTax on total adjustments (3)<\/sup><\/p>\n<\/td>\n| \n \n(33)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n114\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(84)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTotal adjustments, net of income tax\n<\/p>\n<\/td>\n | \n \n736\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(1,017)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n16,215\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nLess: adjustments attributable to noncontrolling interests\n<\/p>\n<\/td>\n | \n \n193\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(314)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n5,918\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjustments attributable to Baker Hughes\n<\/p>\n<\/td>\n | \n \n543\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(703)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,297\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted net income (loss) attributable to Baker Hughes (non-GAAP)\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n91\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(50)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n70\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDenominator:\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nWeighted-average shares of Class A common stock outstanding diluted\n<\/p>\n<\/td>\n | \n \n746\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n713\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n654\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted earnings (loss) per Class A share\u2014 diluted (non-GAAP)\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n0.12\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(0.07)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n0.11\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n (1)<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n \nSee Table 1a for the identified adjustments to operating income.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n (2)<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n \n1Q’21 primarily related to the unrealized loss on our investment in C3.ai, partially offset by the reversal of current accruals due to the settlement of certain legal matters. 4Q’20 primarily related to the unrealized gain on our investment in C3.ai.\n<\/p>\n<\/td>\n<\/tr>\n | \n| (3)<\/sup><\/td>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |