Baker Hughes 2004 Annual Report Download - page 115

ITEM฀9.฀CHANGES฀IN฀AND฀DISAGREEMENTS฀฀
WITH฀ACCOUNTANTS฀ON฀ACCOUNTING฀AND฀฀
FINANCIAL฀DISCLOSURE
None.
ITEM฀9A.฀CONTROLS฀AND฀PROCEDURES
Evaluation฀of฀Disclosure฀Controls฀and฀Procedures
Our฀management฀has฀established฀and฀maintains฀a฀system฀
of฀disclosure฀controls฀and฀procedures฀to฀provide฀reasonable฀
assurances฀that฀information฀required฀to฀be฀disclosed฀by฀us฀in฀
the฀reports฀that฀we฀file฀or฀submit฀under฀the฀Exchange฀Act฀is฀
recorded,฀processed,฀summarized฀and฀reported฀within฀the฀time฀
periods฀specified฀in฀the฀SEC’s฀rules฀and฀forms.฀As฀of฀Decem-
ber฀31,฀2004,฀our฀management,฀including฀our฀principal฀execu-
tive฀officer฀and฀principal฀financial฀officer,฀conducted฀an฀
evaluation฀of฀our฀disclosure฀controls฀and฀procedures.฀Based฀on฀
this฀evaluation,฀our฀principal฀executive฀officer฀and฀our฀principal฀
financial฀officer฀concluded฀that฀our฀disclosure฀controls฀and฀
procedures฀as฀of฀December฀31,฀2004฀are฀effective฀in฀ensuring฀
that฀the฀information฀required฀to฀be฀disclosed฀by฀us฀in฀reports฀
filed฀under฀the฀Exchange฀Act฀is฀recorded,฀processed,฀summa-
rized฀and฀reported฀within฀the฀time฀periods฀specified฀in฀the฀
rules฀and฀forms฀of฀the฀SEC.
Design฀and฀Evaluation฀of฀Internal฀฀
Control฀Over฀Financial฀Reporting
Pursuant฀to฀Section฀404฀of฀the฀Sarbanes-Oxley฀Act฀of฀
2002,฀our฀management฀included฀a฀report฀of฀their฀assessment฀
of฀the฀design฀and฀effectiveness฀of฀our฀internal฀controls฀as฀part฀
of฀this฀Annual฀Report฀on฀Form฀10-K฀for฀the฀fiscal฀year฀ended฀
December฀31,฀2004.฀Our฀management’s฀assessment฀of฀the฀
effectiveness฀of฀our฀internal฀control฀over฀financial฀reporting฀as฀of฀
December฀31,฀2004฀has฀been฀audited฀by฀Deloitte฀&฀Touche฀LLP,฀
an฀independent฀registered฀public฀accounting฀firm,฀as฀stated฀in฀
their฀report฀which฀is฀included฀herein.฀Management’s฀report฀and฀
the฀independent฀registered฀public฀accounting฀firm’s฀attestation฀
report฀are฀included฀in฀Item฀8฀under฀the฀captions฀entitled฀“Man-
agement’s฀Report฀on฀Internal฀Control฀Over฀Financial฀Reporting”฀
and฀“Report฀of฀Independent฀Registered฀Public฀Accounting฀
Firm”฀and฀are฀incorporated฀herein฀by฀reference.
Changes฀in฀Internal฀Control฀Over฀Financial฀Reporting
There฀has฀been฀no฀change฀in฀our฀internal฀control฀over฀
financial฀reporting฀during฀the฀quarter฀ended฀December฀31,฀
2004฀that฀has฀materially฀affected,฀or฀is฀reasonably฀likely฀to฀
materially฀affect,฀our฀internal฀control฀over฀financial฀reporting.
ITEM฀9B.฀OTHER฀INFORMATION
None.
PART฀III
ITEM฀10.฀DIRECTORS฀AND฀EXECUTIVE฀฀
OFFICERS฀OF฀THE฀REGISTRANT
Information฀concerning฀our฀directors฀is฀set฀forth฀in฀the฀฀
sections฀entitled฀“Proposal฀No.฀1,฀Election฀of฀Directors,”฀฀
“Information฀Concerning฀Directors฀Not฀Standing฀for฀Election”฀
and฀“Corporate฀Governance฀–฀Committees฀of฀the฀Board฀–฀
Audit/Ethics฀Committee”฀in฀our฀Proxy฀Statement฀for฀the฀
Annual฀Meeting฀of฀Stockholders฀to฀be฀held฀April฀28,฀2005฀
(“Proxy฀Statement”),฀which฀sections฀are฀incorporated฀herein฀
by฀reference.฀For฀information฀regarding฀our฀executive฀officers,฀
see฀“Item฀1.฀Business฀–฀Executive฀Officers”฀in฀this฀annual฀
report฀on฀Form฀10-K.฀Additional฀information฀regarding฀฀
compliance฀by฀directors฀and฀executive฀officers฀with฀Section฀
16(a)฀of฀the฀Exchange฀Act฀is฀set฀forth฀under฀the฀section฀฀
entitled฀“Compliance฀with฀Section฀16(a)฀of฀the฀Securities฀
Exchange฀Act฀of฀1934”฀in฀our฀Proxy฀Statement,฀which฀section฀
is฀incorporated฀herein฀by฀reference.฀For฀information฀concern-
ing฀our฀code฀of฀ethics,฀see฀“Item฀1.฀Business”฀in฀this฀annual฀
report฀on฀Form฀10-K.
ITEM฀11.฀EXECUTIVE฀COMPENSATION
Information฀for฀this฀item฀is฀set฀forth฀in฀the฀sections฀entitled฀
“Executive฀Compensation฀–฀Summary฀Compensation฀Table,”฀
“Corporate฀Governance฀–฀Board฀of฀Directors,”฀“Stock฀Options฀
Granted฀During฀2004,”฀“Aggregated฀Option฀Exercises฀During฀
2004฀and฀Option฀Values฀at฀December฀31,฀2004,”฀“Long-Term฀
Incentive฀Plan฀Awards฀During฀2004,”฀“Pension฀Plan฀Table,”฀
“Employment,฀Change฀in฀Control,฀Severance฀and฀Indemni-
fication฀Agreements,”฀“Compensation฀Committee฀Report,”฀
“Compensation฀Committee฀Interlocks฀and฀Insider฀Participa-
tion,”฀and฀“Corporate฀Performance฀Graph”฀in฀our฀Proxy฀State-
ment,฀which฀sections฀are฀incorporated฀herein฀by฀reference.
ITEM฀12.฀SECURITY฀OWNERSHIP฀OF฀CERTAIN฀BENEFICIAL฀
OWNERS฀AND฀MANAGEMENT
Information฀concerning฀security฀ownership฀of฀certain฀ben-
eficial฀owners฀and฀our฀management฀is฀set฀forth฀in฀the฀sections฀
entitled฀“Voting฀Securities”฀and฀“Security฀Ownership฀of฀Man-
agement”฀in฀our฀Proxy฀Statement,฀which฀sections฀are฀incorpo-
rated฀herein฀by฀reference.
Our฀Board฀of฀Directors฀has฀approved฀procedures฀for฀use฀
under฀our฀Securities฀Trading฀and฀Disclosure฀Policy฀to฀permit฀
our฀employees,฀officers฀and฀directors฀to฀enter฀into฀written฀
trading฀plans฀complying฀with฀Rule฀10b5-1฀under฀the฀Exchange฀
Act.฀Rule฀10b5-1฀provides฀criteria฀under฀which฀such฀an฀individ-
ual฀may฀establish฀a฀prearranged฀plan฀to฀buy฀or฀sell฀a฀specified฀
number฀of฀shares฀of฀a฀company’s฀stock฀over฀a฀set฀period฀of฀
time.฀Any฀such฀plan฀must฀be฀entered฀into฀in฀good฀faith฀at฀a฀
time฀when฀the฀individual฀is฀not฀in฀possession฀of฀material,฀non-
public฀information.฀If฀an฀individual฀establishes฀a฀plan฀satisfying฀
the฀requirements฀of฀Rule฀10b5-1,฀such฀individual’s฀subsequent฀
receipt฀of฀material,฀nonpublic฀information฀will฀not฀prevent฀
transactions฀under฀the฀plan฀from฀being฀executed.
2004฀Form฀10-K฀฀฀฀฀65