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Baker Hughes Incorporated
Notes to Consolidated Financial Statements
75
(5) Strategy investing in the global private real estate secondary market using a value-based investment
approach.
(6) Partnership making opportunistic investments on a global basis across asset classes, capital structures and
geographies.
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 value of the assets in our Non-U.S. Plans by asset category and by valuation
technique at December 31:
2014 2013
Asset Category
Total
Asset
Value Level
One Level
Two Level
Three
Total
Asset
Value Level
One Level
Two Level
Three
Cash and Cash Equivalents $10 $ 10 $ — $ — $ 1 $ 1 $ — $ —
Asset Allocation (1) 124 — 124 — 125 — 125 —
Bonds - Canada - Government (2) 25 — 25 — 32 32 — —
Bonds - U.K. - Corporate (3) 113 — 113 — 79 — 79 —
Bonds - U.K. - Government (4) 196 — 196 — 200 — 200 —
Equities (5) 133 — 133 — 169 — 169 —
Real Estate Fund (6) 22 — — 22 21 — — 21
Pooled Swap Funds (7) 127 —127 —————
Insurance contracts 17 — — 17 18 — — 18
Total $ 767 $ 10 $ 718 $ 39 $ 645 $ 33 $ 573 $ 39
(1) Invests in mixes of global common stocks and bonds to achieve broad diversification.
(2) Invests in Canadian Dollar-denominated government issued bonds intended to match the duration of plan
liabilities.
(3) Invests passively in British Pound Sterling-denominated investment grade corporate bonds.
(4) Invests passively in British Pound Sterling-denominated government issued bonds.
(5) Invests in broad equity funds based on securities offered in various regions or countries. Equity funds are
allocated by region as follows: 70% Global; 10% U.K.; 6% Emerging Markets; 5% North America; 5% Asia
Pacific; and 4% Europe.
(6) Invests in a diversified range of property throughout the U.K., principally in the retail, office and industrial/
warehouse sectors.
(7) Invests in a range of pooled funds which include positions in swap contracts and U.K. sovereign bonds;
pooled funds are categorized by maturities of underlying positions. Pooled funds employ leverage in order
to match the U.K. Plan's duration and inflation.