Baker Hughes 2010 Annual Report Download - page 139

2 0 1 0 F o r m 1 0 - K 57
The table below presents the fair values of the assets in the U.S. Plan by asset category and by levels of fair value as of December 31:
2010 2009
Total Total
Asset Category Asset Value Level One Level Two Level Three Asset Value Level One Level Two Level Three
Cash and Cash Equivalents $ 95 $ – $ 95 $ – $ – $ – $ – $ –
Fixed Income(a) 99 – 99 – 95 – 95 –
Non-U.S. Equity(b) 93 – 93 – 78 – 78 –
U.S. Small Cap Equity(c) 50 – 50 – 55 – 55 –
S&P 500 Index Fund(d) 1 – 1 – 48 – 48 –
U.S. Large Cap Growth Equity(e) 34 – 34 – 30 – 30 –
U.S. Large Cap Value Equity(f) 26 – 26 – 23 – 23 –
Real Estate Fund(g) 14 – – 14 13 – – 13
Real Estate Investment Trust Equity 4 – 4 – 4 – 4 –
Total $ 416 $ – $ 402 $ 14 $ 346 $ – $ 333 $ 13
(a) A pooled fund with a strategy of investing in fixed income securities. The current allocation includes: 35% in corporate bonds; 24% in government bonds;
16% in government agencies; 10% in asset-backed securities; 8% in government mortgage-backed securities; and 7% in cash.
(b) Multi-manager strategy investing in common stocks of non-U.S. listed companies using both value and growth approaches.
(c) Multi-manager strategy investing in common stocks of smaller U.S. listed companies using both value and growth approaches.
(d) A passively managed commingled fund investing in common stocks of the S&P 500 Index.
(e) Multi-manager growth strategy investing in common stocks of U.S. listed, large capitalization companies.
(f) Multi-manager value strategy investing in common stocks of U.S. listed, large capitalization companies.
(g) Commingled fund investing in a diversified portfolio of U.S. based properties. The current allocation includes: 30% Apartments, 27% Office, 24% Retail,
11% Industrial and 8% Hotel.
Plan Assets – Non-U.S. Pension Plans
The investment policies of our pension plans with plan assets, which are primarily in Canada and the U.K., (the “Non-U.S.
Plans”) cover the asset allocations that the governing boards believe are the most appropriate for these Non-U.S. Plans in the long
term, taking into account the nature of the liabilities they expect to incur. The suitability of asset allocations and investment policies
are reviewed periodically to ensure alignment with plan liabilities.
The table below presents the fair values of the assets in our Non-U.S. Plans by asset category and by levels of fair value as of
December 31:
2010 2009
Total Total
Asset Category Asset Value Level One Level Two Level Three Asset Value Level One Level Two Level Three
Cash and Cash Equivalents $ 31 $ – $ 31 $ – $ 10 $ – $ 10 $ –
Asset Allocation(a) 80 – 80 – – – – –
Bonds – U.K. – Corporate(b) 40 – 40 – 39 – 39 –
Bonds – U.K. – Government(c) 114 – 114 – 51 – 51 –
Equities(d) 174 – 174 – 122 – 122 –
Property – U.K.(e) 19 – – 19 19 – – 19
Insurance contracts 16 – – 16 7 – – 7
Total $ 474 $ – $ 439 $ 35 $ 248 $ – $ 222 $ 26
(a) Invests in mixes of global common stocks and bonds to achieve broad diversification.
(b) Invests passively in Sterling-denominated investment grade corporate bonds.
(c) Invests passively in Sterling-denominated government issued bonds.
(d) Invests in broad equity funds based on securities offered in various regions or countries. Equity funds are allocated by region as follows: 47% Global, 25% U.K.,
8% North America, 8% Asia Pacific, 7% Europe, excluding the U.K., 3% U.S., and 2% Canada Small Cap.
(e) Invests in a diversified range of property throughout the U.K., principally in the retail, office and industrial/warehouse sectors.