Baker Hughes 2010 Annual Report Download - page 86

4 B a k e r H u g h e s I n c o r p o r a t e d
SEASONALITY
Our operations can be affected by seasonal weather,
which can temporarily affect the delivery and performance
of our products and services, as well as customers’ budgetary
cycles. The widespread geographic locations of our operations
and the timing of seasonal events serve to reduce the impact
of individual events. Examples of seasonal events which can
impact our business include:
• The severity and duration of both the summer and the
winter in North America can have a significant impact on
gas storage levels and drilling activity for natural gas.
• In Canada, the timing and duration of the spring thaw
directly affects activity levels beginning late in the first
quarter and most severely in the second quarter.
• Hurricanes can disrupt coastal and offshore drilling and
production operations.
• Severe weather during the winter months normally results
in reduced activity levels in the North Sea and Russia
generally in the first quarter.
• Scheduled repair and maintenance of offshore facilities
in the North Sea can reduce activity in the second and
third quarters.
• Our Industrial Services and Other segment records its stron-
gest sales in the second and third quarters of the year and
weakest sales during the first and fourth quarters of the
year due to the Northern Hemisphere winter.
RAW MATERIALS
We purchase various raw materials and component parts
for use in manufacturing our products. The principal materials
we purchase are steel alloys (including chromium and nickel),
titanium, beryllium, copper, lead, tungsten carbide, synthetic
and natural diamonds, guar, sand and other proppants,
printed circuit boards and other electronic components and
hydrocarbon-based chemical feed stocks. These materials are
generally available from multiple sources and may be subject
to price volatility. We have not experienced significant short-
ages of these materials and normally do not carry inventories
of such materials in excess of those reasonably required to
meet our production schedules. We do not expect significant
interruptions in supply, but there can be no assurance that
there will be no price or supply issues over the long term.
EMPLOYEES
On December 31, 2010, we had approximately 53,100
employees, of which the majority are outside the U.S. Less
than 10% of these employees are represented under collective
bargaining agreements or similar-type labor arrangements.
Based upon the geographic diversification of these employees,
we believe any risk of loss from employee strikes or other col-
lective actions would not be material to the conduct of our
operations taken as a whole.
EXECUTIVE OFFICERS OF BAKER HUGHES INCORPORATED
The following table shows, as of February 23, 2011, the
name of each of our executive officers, together with his age
and all offices presently held.
Name Age
Chad C. Deaton 58
Chairman of the Board and Chief Executive Officer of
the Company since 2004. President of the Company
from 2008 to 2010. President and Chief Executive Offi-
cer of Hanover Compressor Company from 2002 to
2004. Senior Advisor to Schlumberger Oilfield Services
from 1999 to 2001. Executive Vice President of Schlum-
berger from 1998 to 1999. Employed by the Company
in 2004.
Peter A. Ragauss 53
Senior Vice President and Chief Financial Officer of
the Company since 2006. Segment Controller of
Refining and Marketing for BP plc from 2003 to 2006.
Mr. Ragauss joined BP plc in 1998 as Assistant to the
Group Chief Executive until 2000 when he became
Chief Executive Officer of Air BP. Vice President of
Finance and Portfolio Management for Amoco Energy
International immediately prior to its merger with BP
in 1998. Vice President of Finance for El Paso Energy
International from 1996 to 1998 and Vice President
of Corporate Development for Tenneco Energy in 1996.
Employed by the Company in 2006.
Alan R. Crain 59
Senior Vice President and General Counsel of the Com-
pany since 2007. Vice President and General Counsel
from 2000 to 2007. Executive Vice President, General
Counsel and Secretary of Crown, Cork & Seal Company,
Inc. from 1999 to 2000. Vice President and General
Counsel from 1996 to 1999, and Assistant General
Counsel from 1988 to 1996, of Union Texas Petroleum
Holdings, Inc. Employed by the Company in 2000.
Martin S. Craighead 51
President since 2010 and Chief Operating Officer since
2009. Senior Vice President from 2009 to 2010. Group
President of Drilling and Evaluation since 2007 and Vice
President of the Company from 2005 until 2009. Presi-
dent of INTEQ from 2005 to 2007. President of Baker
Atlas from February 2005 to August 2005. Vice Presi-
dent of Worldwide Operations for Baker Atlas from
2003 to 2005 and Vice President, Marketing and Busi-
ness Development for Baker Atlas from 2001 to 2003;
Region Manager for Baker Atlas in Latin America and
Asia and Region Manager for E&P Solutions from 1995
to 2001. Employed by the Company in 1986.