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2010 Annual Report 1
Selected Financial Highlight s
2010 Revenues by Segment
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Total Revenues
2008–2010, by Quarter
(In millions)
$1.50
$1.25
$1.00
$0.75
$0.50
$0.25
$0
Total Operating Profit
After Tax Per Share (Diluted)
2008–2010, by Quarter
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Total Debt
2008–2010, by Quarter
(In millions)
201020092008 201020092008 201020092008
North America, 46%
Industrial Services
and Other, 7%
Middle East/
Asia Pacific, 16%
Europe/Africa/
Russia Caspian, 21%
Latin America, 11%
Year Ended December 31,
(In millions, except per share amounts) 2010(1) 2009 2008 2007 2006
As Reported:
Revenues $ 14,414 $ 9,664 $ 11,864 $ 10,428 $ 9,027
Operating income 1,417 732 2,376 2,278 1,934
Income from continuing operations 819 421 1,635 1,514 2,399
Income before cumulative effect
of accounting change 819 421 1,635 1,514 2,419
Net Income 819 421 1,635 1,514 2,419
Net Income attributable to Baker Hughes 812 421 1,635 1,514 2,419
Per share of common stock:
Income from continuing operations:
Basic $ 2.07 $ 1.36 $ 5.32 $ 4.76 $ 7.26
Diluted 2.07 1.36 5.30 4.73 7.21
Net Income:
Basic $ 2.06 $ 1.36 $ 5.32 $ 4.76 $ 7.32
Diluted 2.06 1.36 5.30 4.73 7.27
Dividends $ 0.60 $ 0.60 $ 0.56 $ 0.52 $ 0.52
Number of shares:
Weighted average common shares diluted 395 311 309 320 333
Reconciliation from As Reported to
operating profit:
Net income attributable to Baker Hughes 812 421 1,635 1,514 2,419
Non-operational items, net of tax (2) – – – – (1,035)
Discontinued operations, net of tax(3) – – – – (20)
Operating profit after tax (4) $ 812 $ 421 $ 1,635 $ 1,514 $ 1,364
Per share of common stock:
Operating profit after tax:
Basic $ 2.06 $ 1.36 $ 5.32 $ 4.76 $ 4.12
Diluted 2.06 1.36 5.30 4.73 4.10
Cash, cash equivalents and
short-term investments $ 1,706 $ 1,595 $ 1,955 $ 1,054 $ 1,104
Working capital 5,568 4,612 4,634 3,837 3,346
Total assets 22,986 11,439 11,861 9,857 8,706
Total debt 3,885 1,800 2,333 1,084 1,075
Stockholders’ equity 14,286 7,284 6,807 6,306 5,243
Total debt/capitalization 21% 20% 26% 15% 17%
Number of employees (thousands) 53.1 34.4 39.8 35.8 34.6
(1) We acquired BJ Services Company on April 28, 2010, and their financial results from the date of acquisition through the end of 2010 are included in our results.
2010 and 2009 income from continuing operations also includes costs incurred by Baker Hughes related to the acquisition and integration of BJ Services.
(2) On April 28, 2006, we sold our 30% interest in WesternGeco, a seismic venture we formed with Schlumberger in 2000, and recorded an after tax gain of
$1,035 million.
(3) The selected financial data in 2006 includes reclassifications to reflect Baker Supply Products Division as discontinued operations.
(4) Operating profit after tax is a non-GAAP measure comprised of income from continuing operations excluding the impact of certain non-operational items.
We believe that operating profit after tax is useful to investors because it is a consistent measure of the underlying results of our business. Furthermore,
management uses operating profit internally as a measure of the performance of our operations.