Baker Hughes 2004 Annual Report Download - page 64
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Please find page 64 of the 2004 Baker Hughes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.deliveredtoIraqfrom1995through2003duringtheUnited
NationsOil-for-FoodProgram(the“U.N.Program”).Wehave
alsoreceivedarequestfromtheSECtoprovideawrittenstate-
mentandcertaininformationregardingourparticipationin
theU.N.Program.Wearerespondingtoboththesubpoena
andtherequest.Othercompaniesintheenergyindustryare
believedtohavereceivedsimilarsubpoenasandrequests.
TheU.S.agencies,theSECandotherauthoritieshavea
broadrangeofcivilandcriminalsanctionstheymayseekto
imposeagainstcorporationsandindividualsinappropriate
circumstancesincluding,butnotlimitedto,injunctiverelief,
disgorgement,fines,penaltiesandmodificationstobusiness
practicesandcomplianceprograms.During2004,suchagen-
ciesandauthoritiesenteredintoagreementswith,andobtained
arangeofsanctionsagainst,severalpubliccorporationsand
individualsarisingfromallegationsofimproperpayments
anddeficienciesinbooksandrecordsandinternalcontrols,
wherebycivilandcriminalpenaltieswereimposed,including
insomecasesmulti-milliondollarfinesandothersanctions.It
isnotpossibletoaccuratelypredictatthistimewhenanyof
theinvestigationsrelatedtotheCompanywillbecompleted.
Basedoncurrentinformation,wecannotpredicttheoutcome
ofsuchinvestigationsorwhat,ifany,actionsmaybetakenby
theU.S.agencies,theSECorotherauthoritiesortheeffectit
mayhaveonourconsolidatedfinancialstatements.
OnMay10,2004,theDistrictCourtofAndrewsCounty,
TexasenteredajudgmentinfavorofLOTUS,LLCandagainst
INTEQintheamountof$14.8millionforlostprofitsresulting
fromabreachofcontractindrillingawelltocreateasaltcav-
ernfordisposingofnaturallyoccurringradioactivewaste.We
havefiledanappealandtakenotheractions.Webelievethat
anyliabilitythatwemayincurasaresultofthislitigation
wouldnothaveamaterialadversefinancialeffectonourcon-
solidatedfinancialstatements.
Furtherinformationiscontainedinthe“Environmental
Matters”sectionofItem1herein.
ITEM4.SUBMISSIONOFMATTERSTOAVOTEOF
SECURITYHOLDERS
None.
14BakerHughesIncorporated