Baker Hughes 2014 Annual Report Download - page 28

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Our global oilfield operations are organized into a number of geomarket organizations, which are combined into
and report to four region presidents, who in turn report to our chief executive officer. These regions form the basis
of our four geographical operating segments detailed below:
North America - headquartered in Houston, Texas
Latin America - headquartered in Houston, Texas
Europe/Africa/Russia Caspian - headquartered in London, England
Middle East/Asia Pacific - headquartered in Dubai, United Arab Emirates
Through the geographic organization, our management is located close to our customers, facilitating strong
customer relationships and allowing us to react quickly to local market conditions and customer needs. The
geographic organization supports our oilfield operations and is responsible for sales, field operations and well site
execution. In addition to the above, we have an Industrial Services segment, headquartered in Houston, Texas,
which includes the downstream chemicals business and the process and pipeline services business.
Certain support operations are organized at the enterprise level and include the supply chain and product line
technology organizations. The supply chain organization is responsible for the cost-effective procurement and
manufacturing of our products as well as product quality and reliability. The product line technology organization is
responsible for product development, technology and marketing of innovative and reliable solutions for our
customers to advance their reservoir performance. The product line technology organization also facilitates cross-
product line technology development, sales processes and integrated operations capabilities.
Further information about our segments is set forth in Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations and Note 4. "Segment Information" of the Notes to Consolidated
Financial Statements in Item 8 herein.
HALLIBURTON MERGER AGREEMENT
On November 16, 2014, Baker Hughes and Halliburton Company (“Halliburton”) entered into a definitive
agreement and plan of merger under which Halliburton will acquire all the outstanding shares of Baker Hughes in a
stock and cash transaction. Under the terms of the agreement, stockholders of Baker Hughes will receive, for each
share of common stock of Baker Hughes, a fixed exchange ratio of 1.12 Halliburton shares plus $19.00 in cash.
The transaction is subject to approvals from each company’s stockholders, regulatory approvals and customary
closing conditions. The transaction is expected to close in the second half of 2015. However, Baker Hughes cannot
predict with certainty when, or if, the pending merger will be completed because completion of the transaction is
subject to conditions beyond the control of Baker Hughes. For further information about the merger, see Note 2.
"Halliburton Merger Agreement" of the Notes to Consolidated Financial Statements in Item 8 herein.
PRODUCTS AND SERVICES
Oilfield Operations
We offer a full suite of products and services to our customers around the world. Our oilfield products and
services fall into one of two categories, Drilling and Evaluation or Completion and Production. This classification is
based on the two major phases of constructing an oil and/or natural gas well, the drilling phase and the completion
phase, and how our products and services are utilized for each phase.
• Drilling and Evaluation products and services consist of the following:
• Drill Bits - includes Tricone™, PDC or “diamond”, and Kymera™ hybrid drill bits used for performance
drilling, hole enlargement and coring.
• Drilling Services - includes conventional and rotary steerable systems used to drill wells directionally
and horizontally; measurement-while-drilling and logging-while-drilling systems used to perform
reservoir navigation services; drilling optimization services; tools for coil tubing drilling and wellbore re-
entry systems; coring drilling systems; and surface logging.