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Baker Hughes Incorporated73
Baker Hughes Incorporated
Notes to Consolidated Financial Statements
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:
2013 2012
Asset Category
Total
Asset
Value
Level
One
Level
Two
Level
Three
Total
Asset
Value
Level
One
Level
Two
Level
Three
Cash and Cash Equivalents $1$1
$—$—$14$14$—$—
Asset Allocation (1) 125 — 125 — 136 — 136 —
Bonds - Canada - Government (2) 32
32——————
Bonds - U.K. - Corporate (3) 79 — 79 — 72 — 72 —
Bonds - U.K. - Government (4) 200 — 200 — 170 — 170 —
Equities (5) 169 — 169 — 164 — 164 —
Real Estate Fund (6) 21 — — 21 20 — — 20
Insurance contracts 18 — — 18 16 — — 16
Total $ 645 $ 33 $ 573 $ 39 $ 592 $ 14 $ 542 $ 36
(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: 57% Global; 15% U.K.; 9% Emerging Markets; 7% North America; 6% Asia
Pacific; and 6% Europe.
(6) Invests in a diversified range of property throughout the U.K., principally in the retail, office and industrial/
warehouse sectors.
The following table presents the changes in the fair value of assets determined using level 3 unobservable
inputs:
U.S.
Private
Equity
Fund
U.S.
Real
Estate
Fund
U.S.
Hedge
Funds
Non-U.S.
Real
Estate
Fund
Non-U.S.
Insurance
Contracts Total
Balance at December 31, 2010 $—$ 14 $ — $ 19 $ 16 $ 49
Unrealized gains —2
——— 2
Sales —(15) — — (2) (17)
Purchases —4
110 — 1 115
Balance at December 31, 2011 —5
110 19 15 149
Unrealized (losses) gains (2) — 10 1 4 13
Sales —— — — (5) (5)
Purchases 18 2 52 — 2 74
Balance at December 31, 2012 16 7 172 20 16 231
Unrealized gains 2— 12 1 2 17
Realized gains —
—7——7
Sales (10) — (84) — (2) (96)
Purchases 82
83 — 2 95
Balance at December 31, 2013 $16 $9$ 190 $ 21 $ 18 $ 254