Summary
This 10-Q filing for Baker Hughes, a GE Company, covers the period ending June 30, 2017. It is important to note that the financial statements presented are for a "shell company" and do not reflect the operational results of the combined Baker Hughes and GE Oil & Gas (GE O&G) businesses. The significant event for investors during this period was the impending completion of the merger between Baker Hughes and GE O&G, which was finalized on July 3, 2017, shortly after the reporting period's end. The filing primarily details the formation of the new entity, Baker Hughes, a GE Company (BHGE), and the subsequent transactions that combined Baker Hughes' operations with GE O&G. Investors should focus on the "Subsequent Events" section (Note 6) for details on the merger's closing, the new ownership structure (GE holding approximately 62.5% and former Baker Hughes shareholders holding 37.5%), and the Special Dividend of $17.50 per share paid to former Baker Hughes shareholders. The report also mentions a settlement in principle for a class-action lawsuit challenging the merger, which was resolved with additional disclosures.
Financial Highlights
32 data points| Revenue | $3.02B |
| Cost of Revenue | $1.94B |
| Gross Profit | $539.00M |
| R&D Expenses | $0 |
| SG&A Expenses | $461.00M |
| Operating Expenses | $3.08B |
| Operating Income | -$66.00M |
| Net Income | $0 |
| Shares Outstanding (Basic) | 100 |
Key Highlights
- 1The financial statements for the period ending June 30, 2017, represent a "shell company" and do not include the operating results of the combined Baker Hughes and GE O&G businesses.
- 2The merger between Baker Hughes and GE O&G was completed on July 3, 2017, subsequent to the reporting period.
- 3The combined entity, Baker Hughes, a GE Company (BHGE), is now structured with GE holding approximately 62.5% and former Baker Hughes shareholders holding approximately 37.5%.
- 4Former Baker Hughes shareholders received a special one-time cash dividend of $17.50 per share upon completion of the transaction.
- 5GE contributed $7.4 billion in cash to fund substantially all of the Special Dividend.
- 6A class-action lawsuit filed by Baker Hughes stockholders challenging the merger agreement was settled in principle, with the company making additional disclosures.
- 7The accounting for the business combination is preliminary and will be further detailed in future filings, with GE O&G treated as the acquirer for accounting purposes.