Baker Hughes(BKR) - 2024 Q2 - Quarterly Report

Part I - Financial Information This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) This section presents unaudited condensed consolidated financial statements, including income, comprehensive income, financial position, equity, and cash flows, with detailed notes Condensed Consolidated Statements of Income (Loss) This statement details the company's net income, earnings per share, total revenue, and operating income for the reported periods Net Income and EPS (Q2 2024 vs Q2 2023): | Metric | Q2 2024 | Q2 2023 | | :------------------------------------ | :------ | :------ | | Net income attributable to Baker Hughes Company | $579M | $410M | | Basic income per Class A common stock | $0.58 | $0.41 | | Diluted income per Class A common stock | $0.58 | $0.40 | Net Income and EPS (6M 2024 vs 6M 2023): | Metric | 6M 2024 | 6M 2023 | | :------------------------------------ | :------ | :------ | | Net income attributable to Baker Hughes Company | $1,034M | $985M | | Basic income per Class A common stock | $1.04 | $0.98 | | Diluted income per Class A common stock | $1.03 | $0.97 | Total Revenue and Operating Income (Q2 2024 vs Q2 2023): | Metric | Q2 2024 | Q2 2023 | | :---------------- | :------ | :------ | | Total Revenue | $7,139M | $6,315M | | Operating Income | $833M | $514M | Total Revenue and Operating Income (6M 2024 vs 6M 2023): | Metric | 6M 2024 | 6M 2023 | | :---------------- | :------ | :------ | | Total Revenue | $13,557M | $12,030M | | Operating Income | $1,486M | $952M | Condensed Consolidated Statements of Comprehensive Income (Loss) This statement presents comprehensive income, including foreign currency translation adjustments, for the three and six months ended June 30 Comprehensive Income Attributable to Baker Hughes Company: | Period | 2024 | 2023 | | :------------------------------------ | :------ | :------ | | Three Months Ended June 30, | $453M | $641M | | Six Months Ended June 30, | $849M | $1,162M | Foreign Currency Translation Adjustments: | Period | 2024 | 2023 | | :------------------------------------ | :-------- | :------ | | Three Months Ended June 30, | $(128)M | $231M | | Six Months Ended June 30, | $(192)M | $169M | Condensed Consolidated Statements of Financial Position This statement provides a snapshot of the company's assets, liabilities, and equity at specific reporting dates Key Financial Position Data: | Metric | June 30, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | | Total Assets | $36,656M | $36,945M | | Cash and cash equivalents | $2,284M | $2,646M | | Total Current Liabilities | $12,586M | $12,991M | | Total Equity | $15,721M | $15,519M | Condensed Consolidated Statements of Changes in Equity This statement details changes in total equity, including dividends and share repurchases, for the reported periods Total Equity: | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $15,721M | | December 31, 2023 | $15,519M | Dividends and Share Repurchases (Six Months Ended June 30): | Metric | 2024 | 2023 | | :------------------------------------ | :-------- | :------- | | Dividends on Class A common stock | $(419)M | $(384)M | | Repurchase and cancellation of Class A common stock | $(324)M | $(99)M | Condensed Consolidated Statements of Cash Flows This statement outlines cash flows from operating, investing, and financing activities for the reported periods Cash Flows (Six Months Ended June 30): | Activity | 2024 | 2023 | | :-------------------------- | :-------- | :-------- | | Operating activities | $1,132M | $1,320M | | Investing activities | $(530)M | $(414)M | | Financing activities | $(929)M | $(550)M | | Expenditures for capital assets | $(625)M | $(587)M | | Repurchase of Class A common stock | $(324)M | $(99)M | Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note describes the basis of financial statement presentation and summarizes significant accounting policies, including new standards - The financial statements consolidate all subsidiaries and eliminate intercompany accounts, prepared in accordance with U.S. GAAP and SEC rules for interim financial information[279] - The company is evaluating the impact of new accounting standards ASU 2023-09 (Income Taxes) and ASU 2023-07 (Segment Reporting), effective for periods beginning after December 15, 2024 and 2023 respectively[13][14] Supply Chain Finance Program Liabilities: | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $448M | | December 31, 2023 | $332M | NOTE 2. CURRENT RECEIVABLES This note provides details on the company's current receivables, including customer receivables, at specific reporting dates Current Receivables, Net: | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $7,051M | | December 31, 2023 | $7,075M | Customer Receivables: | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $6,042M | | December 31, 2023 | $6,033M | NOTE 3. INVENTORIES This note details total inventories, net, and inventory impairment charges for the reported periods Total Inventories, Net: | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $5,126M | | December 31, 2023 | $5,094M | Inventory Impairments (Three Months Ended June 30): | Year | Amount | | :--- | :------- | | 2023 | $15M | Inventory Impairments (Six Months Ended June 30): | Year | Amount | | :--- | :------- | | 2023 | $33M | NOTE 4. OTHER INTANGIBLE ASSETS This note provides information on total intangible assets, net, and associated amortization expense for the reported periods Total Intangible Assets, Net: | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $4,019M | | December 31, 2023 | $4,093M | Amortization Expense (Three Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $66M | | 2023 | $63M | Amortization Expense (Six Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $133M | | 2023 | $126M | NOTE 5. CONTRACT AND OTHER DEFERRED ASSETS This note details the company's contract and other deferred assets at specific reporting dates Contract and Other Deferred Assets: | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $1,868M | | December 31, 2023 | $1,756M | NOTE 6. PROGRESS COLLECTIONS AND DEFERRED INCOME This note outlines progress collections and deferred income (contract liabilities) and revenue recognized from them Progress Collections and Deferred Income (Contract Liabilities): | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $5,506M | | December 31, 2023 | $5,542M | Revenue Recognized from Contract Liabilities (Beginning of Period): | Period | 2024 | 2023 | | :------------------------------------ | :-------- | :------- | | Three Months Ended June 30, | $1,392M | $507M | | Six Months Ended June 30, | $2,868M | $1,468M | NOTE 7. LEASES This note provides information on total operating lease expense and the weighted-average remaining lease term Total Operating Lease Expense (Three Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $223M | | 2023 | $210M | Total Operating Lease Expense (Six Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $461M | | 2023 | $422M | - The weighted-average remaining lease term for operating leases was approximately seven years as of June 30, 2024[349] NOTE 8. DEBT This note details total debt, short-term and current portions, and compliance with debt covenants Total Debt: | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $5,895M | | December 31, 2023 | $6,020M | Short-term and Current Portion of Long-term Debt: | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $34M | | December 31, 2023 | $148M | - The company has a $3.0 billion committed unsecured revolving credit facility maturing in November 2028, with no borrowings outstanding as of June 30, 2024[172][350] - The company was in compliance with all debt covenants as of June 30, 2024[199][318] NOTE 9. INCOME TAXES This note presents the provision for income taxes and discusses factors affecting the effective tax rate Provision for Income Taxes (Three Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $243M | | 2023 | $200M | Provision for Income Taxes (Six Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $421M | | 2023 | $379M | - The difference between the U.S. statutory tax rate of 21% and the effective tax rate is primarily related to income in jurisdictions with higher tax rates and losses with no tax benefit, partially offset by income subject to U.S. tax at an effective rate less than 21% due to valuation allowances[25][319] - The estimated impact of the Pillar Two Global Minimum Tax is immaterial to the Company for 2024[162] NOTE 10. EQUITY This note provides details on Class A common stock outstanding, repurchases, and cash dividends Class A Common Stock Outstanding (in thousands): | Date | Shares | | :---------------- | :------- | | June 30, 2024 | 992,941 | | January 1, 2024 | 997,709 | Repurchase and Cancellation of Class A Common Stock (in thousands): | Period | 2024 | 2023 | | :------------------------------------ | :------- | :------- | | Six Months Ended June 30, | 10,539 | 3,596 | Cash Dividend Per Class A Common Stock: | Period | 2024 | 2023 | | :------------------------------------ | :----- | :----- | | Three Months Ended June 30, | $0.21 | $0.19 | | Six Months Ended June 30, | $0.42 | $0.38 | NOTE 11. EARNINGS PER SHARE This note presents basic and diluted net income per share attributable to common stockholders Net Income Per Share Attributable to Common Stockholders (Three Months Ended June 30): | Metric | 2024 | 2023 | | :---------------- | :----- | :----- | | Class A basic | $0.58 | $0.41 | | Class A diluted | $0.58 | $0.40 | Net Income Per Share Attributable to Common Stockholders (Six Months Ended June 30): | Metric | 2024 | 2023 | | :---------------- | :----- | :----- | | Class A basic | $1.04 | $0.98 | | Class A diluted | $1.03 | $0.97 | NOTE 12. FINANCIAL INSTRUMENTS This note details investment securities, equity securities, derivatives, and related fair values and gains Investment Securities (Estimated Fair Value): | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $1,046M | | December 31, 2023 | $1,042M | Equity Securities with Readily Determinable Fair Values: | Date | Amount | | :---------------- | :------- | | June 30, 2024 | $1,039M | | December 31, 2023 | $975M | Gains Recorded to Earnings from Equity Securities (Three Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $19M | | 2023 | $29M | Gains Recorded to Earnings from Equity Securities (Six Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $71M | | 2023 | $421M | Total Derivatives (Fair Value): | Date | Assets | Liabilities | | :---------------- | :------- | :---------- | | June 30, 2024 | $15M | $(64)M | | December 31, 2023 | $34M | $(76)M | - The notional amount of derivatives outstanding was $4.3 billion at June 30, 2024, primarily related to hedges of anticipated sales and purchases in foreign currency, commodity purchases, and changes in interest rates[363] NOTE 13. REVENUE RELATED TO CONTRACTS WITH CUSTOMERS This note provides total revenue and segment revenue, along with information on remaining performance obligations Total Revenue (Three Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $7,139M | | 2023 | $6,315M | Total Revenue (Six Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $13,557M | | 2023 | $12,030M | Segment Revenue (Three Months Ended June 30, 2024): | Segment | Amount | | :-------------------------- | :------- | | Oilfield Services & Equipment | $4,011M | | Industrial & Energy Technology | $3,128M | - The aggregate amount of the transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was $33.5 billion as of June 30, 2024. Approximately 63%, 75%, and 91% of this is expected to be recognized within 2, 5, and 15 years, respectively[40][149] NOTE 14. SEGMENT INFORMATION This note details the company's operating segments, Oilfield Services & Equipment and Industrial & Energy Technology, and their performance - The company operates through two segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET)[41] Segment Operating Income (Three Months Ended June 30): | Segment | 2024 | 2023 | | :-------------------------- | :------- | :------- | | Oilfield Services & Equipment | $493M | $417M | | Industrial & Energy Technology | $442M | $311M | Segment Operating Income (Six Months Ended June 30): | Segment | 2024 | 2023 | | :-------------------------- | :------- | :------- | | Oilfield Services & Equipment | $915M | $789M | | Industrial & Energy Technology | $772M | $552M | NOTE 15. RELATED PARTY TRANSACTIONS This note describes transactions with related parties, including purchases from the Aero JV, where the company holds a 50% interest - The company has a 50% ownership interest in an aeroderivative joint venture (Aero JV) with GE Vernova Inc[46] Purchases from Aero JV (Three Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $173M | | 2023 | $131M | Purchases from Aero JV (Six Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $276M | | 2023 | $245M | NOTE 16. COMMITMENTS AND CONTINGENCIES This note outlines legal proceedings, including a securities class action, and off-balance sheet arrangements - The company is involved in legal proceedings, including an arbitration with International Engineering & Construction S.A. (IEC) and a securities class action related to C3.ai, Inc. Claims against the company in the C3.ai action were reasserted in April 2024[47][48][79] - Management does not expect the ultimate outcome of currently pending legal proceedings to have a material adverse effect on results of operations, financial position, or cash flows[78] - Total off-balance sheet arrangements were approximately $5.3 billion at June 30, 2024, and are not expected to have a material effect on financial position, results of operations, or cash flows[95] NOTE 17. RESTRUCTURING, IMPAIRMENT AND OTHER This note details restructuring, impairment, and other charges, primarily related to employee termination and exit activities Restructuring, Impairment and Other Charges (Three Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $14M | | 2023 | $102M | Restructuring, Impairment and Other Charges (Six Months Ended June 30): | Year | Amount | | :--- | :------- | | 2024 | $21M | | 2023 | $158M | - Charges in 2023 primarily related to employee termination expenses for segment reorganization and corporate restructuring, and exit activities at specific locations[82][158] NOTE 18. BUSINESS ACQUISITIONS AND DISPOSITIONS This note summarizes business acquisitions and dispositions, noting no activity in 2024 but significant events in 2023 - No business acquisitions or dispositions occurred during the six months ended June 30, 2024[245] - During the first six months of 2023, the company acquired Altus Intervention for $282 million cash and sold its Nexus Controls business for $293 million cash[178][246][247] ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section provides a detailed discussion of the company's financial performance, market conditions, and liquidity, highlighting strong Q2 2024 momentum EXECUTIVE SUMMARY This summary highlights strong Q2 2024 momentum, revenue growth, margin expansion, and balanced outlook for energy markets - The company experienced strong momentum in Q2 2024, with meaningful improvements in financial results, including revenue growth and operating margin expansion[87] - Outlook remains balanced for oil and gas, with optimism for LNG and gas infrastructure, and continued momentum in new energy solutions[88][111] - Transformation efforts continue, focusing on efficiency improvements and cost-optimization initiatives in the OFSE segment[90] - The company returned $375 million to shareholders in Q2 2024 through dividends and share repurchases, balancing cash returns with investments in growth opportunities[102] BUSINESS ENVIRONMENT This section analyzes trends in oil and natural gas prices and Baker Hughes rig counts across various regions Oil and Natural Gas Prices (Three Months Ended June 30): | Metric | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Brent oil price ($/Bbl) | $84.68 | $77.99 | | WTI oil price ($/Bbl) | $81.81 | $73.54 | | Natural gas price ($/mmBtu) | $2.07 | $2.16 | Oil and Natural Gas Prices (Six Months Ended June 30): | Metric | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Brent oil price ($/Bbl) | $83.79 | $79.58 | | WTI oil price ($/Bbl) | $79.69 | $74.73 | | Natural gas price ($/mmBtu) | $2.11 | $2.40 | Baker Hughes Rig Count (Three Months Ended June 30): | Region | 2024 | 2023 | % Change | | :-------------------------- | :--- | :--- | :------- | | North America | 738 | 836 | (12)% | | International | 963 | 960 | — % | | Worldwide | 1,701 | 1,796 | (5)% | Baker Hughes Rig Count (Six Months Ended June 30): | Region | 2024 | 2023 | % Change | | :-------------------------- | :--- | :--- | :------- | | North America | 785 | 909 | (14)% | | International | 964 | 938 | 3 % | | Worldwide | 1,749 | 1,847 | (5)% | RESULTS OF OPERATIONS This section details the company's financial performance, including orders, revenue, and operating income by segment Orders and Remaining Performance Obligations This section reports total orders and remaining performance obligations, broken down by operating segment - Total orders for the three months ended June 30, 2024, were $7.5 billion, consistent with the prior year[253] Orders (Six Months Ended June 30): | Segment | 2024 | 2023 | | :-------------------------- | :-------- | :-------- | | Total Orders | $14.1 billion | $15.1 billion | | OFSE Orders | $7.7 billion | $8.3 billion | | IET Orders | $6.4 billion | $6.8 billion | - Remaining Performance Obligations (RPO) totaled $33.5 billion as of June 30, 2024, with $3.3 billion for OFSE and $30.2 billion for IET[149] Revenue and Operating Income This section analyzes total revenue and operating income, including segment-specific performance and corporate expenses Total Revenue (Q2 2024 vs Q2 2023): | Metric | Q2 2024 | Q2 2023 | Change | % Change | | :---------------- | :------ | :------ | :----- | :------- | | Total Revenue | $7,139M | $6,315M | $825M | 13% | | Operating Income | $833M | $514M | $319M | 62% | Total Revenue (6M 2024 vs 6M 2023): | Metric | 6M 2024 | 6M 2023 | Change | % Change | | :---------------- | :------ | :------ | :----- | :------- | | Total Revenue | $13,557M | $12,030M | $1,527M | 13% | | Operating Income | $1,486M | $952M | $534M | 56% | OFSE Segment Performance (Q2 2024 vs Q2 2023): | Metric | Q2 2024 | Q2 2023 | Change | % Change | | :---------------- | :------ | :------ | :----- | :------- | | Revenue | $4,011M | $3,877M | $134M | 3% | | Operating Income | $493M | $417M | $76M | 18% | OFSE Segment Performance (6M 2024 vs 6M 2023): | Metric | 6M 2024 | 6M 2023 | Change | % Change | | :---------------- | :------ | :------ | :----- | :------- | | Revenue | $7,794M | $7,454M | $340M | 5% | | Operating Income | $915M | $789M | $126M | 16% | IET Segment Performance (Q2 2024 vs Q2 2023): | Metric | Q2 2024 | Q2 2023 | Change | % Change | | :---------------- | :------ | :------ | :----- | :------- | | Revenue | $3,128M | $2,438M | $691M | 28% | | Operating Income | $442M | $311M | $131M | 42% | IET Segment Performance (6M 2024 vs 6M 2023): | Metric | 6M 2024 | 6M 2023 | Change | % Change | | :---------------- | :------ | :------ | :----- | :------- | | Revenue | $5,763M | $4,576M | $1,187M | 26% | | Operating Income | $772M | $552M | $220M | 40% | Corporate Expenses: | Period | 2024 | 2023 | Change | | :------------------------------------ | :----- | :----- | :----- | | Three Months Ended June 30, | $88M | $97M | $(9)M | | Six Months Ended June 30, | $180M | $197M | $(17)M | Other Non-Operating Income, Net: | Period | 2024 | 2023 | Change | | :------------------------------------ | :----- | :----- | :----- | | Three Months Ended June 30, | $38M | $158M | $(120)M | | Six Months Ended June 30, | $67M | $544M | $(477)M | Net Interest Expense: | Period | 2024 | 2023 | Change | | :------------------------------------ | :----- | :----- | :----- | | Three Months Ended June 30, | $47M | $58M | $(11)M | | Six Months Ended June 30, | $88M | $122M | $(34)M | LIQUIDITY AND CAPITAL RESOURCES This section discusses the company's financial strength, cash flows, capital expenditures, and cash balance distribution - The company maintains solid financial strength and liquidity, with $2.3 billion in cash and cash equivalents as of June 30, 2024[142] Net Cash Flows (Six Months Ended June 30): | Activity | 2024 | 2023 | | :-------------------------- | :-------- | :-------- | | Operating activities | $1,132M | $1,320M | | Investing activities | $(530)M | $(414)M | | Financing activities | $(929)M | $(550)M | - Capital expenditures in 2024 are expected to be up to 5% of annual revenue, primarily for normal, recurring items[206] - Anticipated income tax payments for 2024 are in the range of $900 million to $950 million[183] - 75% of the total cash balance is held outside the U.S. as of June 30, 2024, which may be subject to currency controls[208] ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The company's exposure to market risk has not materially changed since December 31, 2023, with further details in the 2023 Annual Report - The company's exposure to market risk has not materially changed since December 31, 2023[188] ITEM 4. CONTROLS AND PROCEDURES The company's disclosure controls were effective as of June 30, 2024, with no material changes in internal controls over financial reporting - The company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2024[189] - There has been no material change in internal controls over financial reporting during the quarter ended June 30, 2024[226] Part II - Other Information This section provides additional information on legal proceedings, risk factors, equity sales, and other disclosures ITEM 1. LEGAL PROCEEDINGS The company is subject to legal proceedings, including a reasserted securities class action, but management expects no material adverse effect - Claims against the company were reasserted in April 2024 in a putative securities class action related to C3.ai, Inc[48] - Management does not expect the ultimate outcome of currently pending legal proceedings to have a material adverse effect on the company's results of operations, financial position, or cash flows[78] ITEM 1A. RISK FACTORS The company continues to be subject to the risk factors previously discussed in its 2023 Annual Report - The company and its operations continue to be subject to the risk factors previously discussed in the 'Risk Factors' sections of the 2023 Annual Report[227] ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS The company repurchased 5.1 million shares for $166 million in Q2 2024, with approximately $1.9 billion remaining authorized Class A Common Stock Repurchases (Three Months Ended June 30, 2024): | Metric | Amount | | :------------------------------------ | :------- | | Total Number of Shares Purchased | 5,180,385 | | Average Price Paid Per Share | $32.20 | | Total Number of Shares Purchased as Part of a Publicly Announced Program | 5,139,574 | | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | $1,893,645,541 | - The Board of Directors authorized a $4 billion repurchase program for Class A common stock, with approximately $1.9 billion remaining as of June 30, 2024[26][217] ITEM 3. DEFAULTS UPON SENIOR SECURITIES No defaults upon senior securities were reported during the period - No defaults upon senior securities were reported[229] ITEM 4. MINE SAFETY DISCLOSURES Information concerning mine safety violations or other regulatory matters is included in Exhibit 95 of this Quarterly Report - Information concerning mine safety violations or other regulatory matters is included in Exhibit 95 to this Quarterly Report[219] ITEM 5. OTHER INFORMATION Certain officers and directors adopted or terminated Rule 10b5-1 trading arrangements for the sale of Class A common stock during the three months ended June 30, 2024 - During the three months ended June 30, 2024, certain officers and directors, including Nancy Buese, adopted or terminated Rule 10b5-1 trading arrangements for the sale of Class A common stock[220][230] ITEM 6. EXHIBITS This section lists all exhibits filed as part of the report, including articles of incorporation, director deferral plans, certifications, mine safety disclosure, and XBRL documents - Exhibits include the Fourth Amended and Restated Articles of Incorporation, Non-Employee Director Deferral Plan, certifications from the President/CEO and EVP/CFO, Mine Safety Disclosure, and various XBRL documents[220] SIGNATURES The report was duly signed on behalf of Baker Hughes Company by its EVP/CFO and SVP/Controller on July 26, 2024 - The report was signed by Nancy Buese, Executive Vice President and Chief Financial Officer, and Rebecca Charlton, Senior Vice President, Controller and Chief Accounting Officer, on July 26, 2024[222]