Baker Hughes Co - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Baker Hughes, a GE company, on November 13, 2018. The filing addresses the recasting of previously reported financial statements for the fiscal years ended December 31, 2017, and 2016, to ensure consistency with the 2018 financial statements following the adoption of new accounting standards.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it details the accounting adjustments applied to historical data:
- Revenue Recognition: Adoption of FASB ASU No. 2014-09 (ASC 606) effective for the three months ended March 31, 2018.
- Pension and Benefit Costs: Adoption of FASB ASU No. 2017-07 effective January 1, 2018, requiring the separation of service costs (operating expense) from non-operating components in the income statement.
- Cash Flow Presentation: Adoption of FASB ASU No. 2016-18 regarding restricted cash, requiring recasting of Statements of Financial Position and Cash Flows.
Material Changes Versus Prior Period
The material change reported is the revision of the 2017 and 2016 financial statements originally filed in the 2017 Form 10-K. These statements have been recast to reflect the new accounting standards adopted in 2018. Additionally, the unaudited pro forma consolidated and combined statement of income for the year ended December 31, 2017, has been updated to align with these changes.
Guidance, Outlook, and Management Commentary
This filing does not contain forward-looking guidance, outlook, or management commentary regarding future performance. The document focuses exclusively on the technical recasting of historical financial data to comply with updated FASB standards. No new risks or contingencies are disclosed in this specific report.
Investor Verification Checklist
- Review Exhibit 99.1 for the revised Management's Discussion and Analysis (MD&A) for 2017 and 2016.
- Examine Exhibit 99.2 for the revised audited consolidated and combined financial statements for 2017 and 2016.
- Analyze Exhibit 99.3 for the updated unaudited pro forma statement of income for 2017.
- Verify the impact of ASC 606 and the new pension cost presentation on year-over-year comparability.