Baker Hughes 2009 Annual Report Download - page 75

2009 Form 10-K 1
PART I
ITEM 1. BUSINESS
Baker Hughes Incorporated is a Delaware corporation
engaged in the oilfield services industry. As used herein,
“Baker Hughes“, “Company”, “we”, “our” and “us” may
refer to Baker Hughes Incorporated and/or its subsidiaries. The
use of these terms is not intended to connote any particular
corporate status or relationships. Baker Hughes was formed in
April 1987 in connection with the combination of Baker Inter-
national Corporation and Hughes Tool Company. We may con-
duct our operations through subsidiaries, affiliates, ventures
and alliances.
Our annual reports on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K and amendments to
those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), are made available free of charge on
our Internet website at www.bakerhughes.com as soon as rea-
sonably practicable after these reports have been electronically
filed with, or furnished to, the Securities and Exchange Com-
mission (the “SEC”). Information contained on or connected
to our website is not incorporated by reference into this
annual report on Form 10-K and should not be considered
part of this report or any other filing we make with the SEC.
We have adopted a Business Code of Conduct to provide
guidance to our directors, officers and employees on matters of
business conduct and ethics, including compliance standards
and procedures. We have also required our principal executive
officer, principal financial officer and principal accounting officer
to sign a Code of Ethical Conduct Certification. Our Business
Code of Conduct and Code of Ethical Conduct Certifications
are available on the Investor Relations section of our website at
www.bakerhughes.com. We will disclose on a current report
on Form 8-K or on our website information about any amend-
ment or waiver of these codes for our executive officers and
directors. Waiver information disclosed on our website will
remain on the website for at least 12 months after the initial
disclosure of a waiver. Our Corporate Governance Guidelines
and the charters of our Audit/Ethics Committee, Compensa-
tion Committee, Executive Committee, Finance Committee
and Governance Committee are also available on the Investor
Relations section of our website at www.bakerhughes.com. In
addition, a copy of our Business Code of Conduct, Code of
Ethical Conduct Certifications, Corporate Governance Guide-
lines and the charters of the committees referenced above are
available in print at no cost to any stockholder who requests
them by writing or telephoning us at the following address or
telephone number:
Baker Hughes Incorporated
2929 Allen Parkway, Suite 2100
Houston, TX 77019-2118
Attention: Investor Relations
Telephone: [phone]
ABOUT BAKER HUGHES
Baker Hughes is a major supplier of wellbore-related prod-
ucts and technology services and systems. We operate in over
90 countries around the world and our corporate headquar-
ters is in Houston, Texas. We provide products and services for
drilling and evaluation of oil and gas wells; completion and
production of oil and gas wells; fluids and chemicals used in
drilling oil and gas wells and producing hydrocarbons; and
reservoir technology and consulting to the worldwide oil
and natural gas industry. As of December 31, 2009, we had
approximately 34,400 employees, of which approximately
61% work outside the United States.
Prior to May 4, 2009, our business operations were orga-
nized primarily through seven product line divisions and sec-
ondarily through four super regions – North America; Latin
America; Europe, Africa, Russia, Caspian (“EARC”); and Mid-
dle East, Asia Pacific (“MEAP”). On May 4, 2009, we reorga-
nized the Company by geography and product lines. Global
operations are now organized into a number of geomarket
organizations, which report into nine region presidents, who
in turn report into two hemisphere presidents. Separately,
product-line marketing and technology organizations report to
a president of products and technology. The presidents of the
Eastern Hemisphere, Western Hemisphere, Products and Tech-
nology, and the Vice President of Supply Chain report to our
Chief Operating Officer.
The geographic organizations are responsible for sales, field
operations and well site execution. The geographic reorganiza-
tion of operations is intended to strengthen our client-focused
operations by moving management into the countries where
we conduct our business. Western Hemisphere operations
consist of four regions – Canada, headquartered in Calgary,
Alberta; U.S. Land and Gulf of Mexico, both headquartered
in Houston, Texas; and Latin America, headquartered in Rio
de Janeiro, Brazil. Eastern Hemisphere operations consist of
five regions – Europe, headquartered in London, England;
Africa, headquartered in Paris, France; Russia Caspian, head-
quartered in Moscow, Russia; Middle East, headquartered
in Dubai, United Arab Emirates (“UAE”); and Asia Pacific,
headquartered in Kuala Lumpur, Malaysia.
The product-line marketing and technology organization is
responsible for product development, technology, marketing and
delivery of innovative and reliable solutions for our customers
to advance their reservoir performance. The new organization
is expected to improve cross-product-line technology develop-
ment, sales processes and integrated operations capabilities.
The supply chain organization is responsible for develop-
ment of cost-effective procurement and manufacturing of
our products and services. We have manufacturing operations
in various countries, including, but not limited to, the United
States (Texas, Oklahoma and Louisiana), the United Kingdom
(Scotland and Northern Ireland), Germany (Celle), South America
(Venezuela and Argentina) and the UAE (Dubai).