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Document and Entity Information - USD ($)	3 Months Ended
Document and Entity Information - USD ($)	Mar. 31, 2011	Apr. 26, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	BAKER HUGHES INC
Entity Central Index Key	0000808362
Document Type	10-Q
Document Period End Date	Mar. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 17,846,385,000
Entity Common Stock, Shares Outstanding		434,634,726

Consolidated Condensed Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
Revenues:
Sales	$ 1,433	$ 1,253
Services and rentals	3,092	1,286
Total revenues	4,525	2,539
Costs and expenses:
Cost of sales	1,166	943
Cost of services and rentals	2,331	969
Research and engineering	106	94
Marketing, general and administrative	282	305
Acquisition-related costs		10
Total costs and expenses	3,885	2,321
Operating income	640	218
Interest expense, net	(52)	(24)
Income before income taxes	588	194
Income taxes	204	65
Net income	384	129
Net income attributable to noncontrolling interest	3
Net income attributable to Baker Hughes	$ 381	$ 129
Basic earnings per share attributable to Baker Hughes	$ 0.88	$ 0.41
Diluted earnings per share attributable to Baker Hughes	0.87	0.41
Cash dividend per share	$ 0.15	$ 0.15

Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2011	Dec. 31, 2010
Current Assets:
Cash and cash equivalents	$ 1,144	$ 1,456
Short-term investments	251	250
Accounts receivable - less allowance for doubtful accounts (2011 - $174; 2010 - $162)	4,371	3,942
Inventories, net	2,805	2,594
Deferred income taxes	234	234
Other current assets	240	231
Total current assets	9,045	8,707
Property, plant and equipment, net	6,432	6,310
Goodwill	5,943	5,869
Intangible assets, net	1,541	1,569
Other assets	536	531
Total assets	23,497	22,986
Current Liabilities:
Accounts payable	1,549	1,496
Short-term borrowings and current portion of long-term debt	296	331
Accrued employee compensation	566	589
Income taxes payable	197	219
Other accrued liabilities	531	504
Total current liabilities	3,139	3,139
Long-term debt	3,545	3,554
Deferred income taxes and other tax liabilities	1,332	1,360
Liabilities for pensions and other postretirement benefits	496	483
Other liabilities	$ 162	$ 164
Commitments and contingencies
Stockholders' Equity:
Common stock	$ 434	$ 432
Capital in excess of par value	7,090	7,005
Retained earnings	7,399	7,083
Accumulated other comprehensive loss	(355)	(420)
Baker Hughes stockholders' equity	14,568	14,100
Noncontrolling interest	255	186
Total stockholders' equity	14,823	14,286
Total liabilities and stockholders' equity	$ 23,497	$ 22,986

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
Cash flows from operating activities:
Net income	$ 384	$ 129
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	315	189
Stock-based compensation costs	29	19
Provision (benefit) for deferred income taxes	1	(40)
Gain on disposal of assets	(47)	(29)
Provision for doubtful accounts	15	(2)
Changes in operating assets and liabilities:
Accounts receivable	(398)	(154)
Inventories	(186)	(47)
Accounts payable	34	56
Accrued employee compensation and other accrued liabilities	(32)	(22)
Income taxes payable	(10)	(53)
Other	(29)	(41)
Net cash flows from operating activities	76	5
Cash flows from investing activities:
Expenditures for capital assets	(429)	(190)
Proceeds from disposal of assets	75	45
Other	(2)
Net cash flows from investing activities	(356)	(145)
Cash flows from financing activities:
Net (payments) borrowings of commercial paper and other short-term debt	(36)	218
Proceeds from issuance of common stock	57	2
Dividends	(65)	(47)
Excess tax benefits from stock-based compensation costs	4	1
Net cash flows from financing activities	(40)	174
Effect of foreign exchange rate changes on cash	8	(15)
(Decrease) increase in cash and cash equivalents	(312)	19
Cash and cash equivalents, beginning of period	1,456	1,595
Cash and cash equivalents, end of period	1,144	1,614
Supplemental cash flows disclosures:
Income taxes paid (net of refunds)	236	158
Interest paid	64	20
Supplemental disclosure of noncash investing activities:
Capital expenditures included in accounts payable	$ 67	$ 15

General	3 Months Ended
General	Mar. 31, 2011
General (Policies) [Abstract]
GENERAL	NOTE 1. GENERAL Nature of Operations Baker Hughes Incorporated (“Company,” “we,” “our” or “us”) is engaged in the oilfield services industry. We are a leading supplier of wellbore-related products and technology services and systems and provide products and services for drilling, pressure pumping, formation evaluation, completion and production, and reservoir technology and consulting to the worldwide oil and natural gas industry. We also provide products and services to the downstream refining, and process and pipeline industries. Basis of Presentation Our unaudited consolidated condensed financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. These unaudited consolidated condensed financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2010 (“2010 Annual Report”). We believe the unaudited consolidated condensed financial statements included herein reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. In the notes to the unaudited consolidated condensed financial statements, all dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless otherwise indicated.

Acquisitions

3 Months Ended

Mar. 31, 2011

Acquisitions [Abstract]

ACQUISITIONS

NOTE 2. ACQUISITIONS

ACQUISITION OF BJ SERVICES

On April 28, 2010, we acquired 100% of the outstanding common stock of BJ Services Company (“BJ Services”) in a cash and stock transaction valued at $6,897 million. BJ Services is a leading provider of pressure pumping and other oilfield services and was acquired to expand the product offerings of the Company. Total consideration consisted of $793 million in cash, 118 million shares valued at $6,048 million, and Baker Hughes options with a fair value of $56 million in exchange for BJ Services options. We also assumed all outstanding stock options held by BJ Services employees and directors.

Recording of Assets Acquired and Liabilities Assumed

The transaction has been accounted for using the acquisition method of accounting and accordingly, assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. The excess of the consideration transferred over those fair values totaling $4,406 million was recorded as goodwill. The following table summarizes the amounts recognized for assets acquired and liabilities assumed.


	Fair Values

Assets:
Cash and cash equivalents	$	113
Accounts receivable		951
Inventories		419
Other current assets		125
Property, plant and equipment		2,745
Intangible assets		1,404
Goodwill		4,406
Other long-term assets		109


	Fair Values

Liabilities:
Liabilities for change in control and transaction fees		210
Current liabilities		776
Deferred income taxes and other tax liabilities		1,428
Long-term debt		531
Pension and other postretirement liabilities		154
Other long-term liabilities		29
Noncontrolling interests		247

Net assets acquired	$	6,897

Property, plant and equipment (“PP&E”)

A step-up adjustment of $406 million was recorded to present the PP&E acquired at its fair value. The weighted average useful life used to calculate depreciation of the step-up related to PP&E is approximately six years.

Intangible assets

We identified intangible assets including trade names, technology, in-process research and development (“IPR&D”), and customer relationships. We consider the BJ Services trade name to be an indefinite life intangible asset, which will not be amortized and will be subject to an annual impairment test.

The following table summarizes the fair values recorded for the identifiable intangible assets and their estimated useful lives:


	Fair Values		Useful Lives

Customer relationships	$	428	3-16 years
Technology		451	5-15 years
BJ Services trade name		360	Indefinite
Other trade names		38	5-12 years
IPR&D		127	Indefinite

Total identifiable intangible assets	$	1,404

Deferred taxes

We provided deferred taxes and other tax liabilities as part of the acquisition accounting related to the fair market value adjustments for acquired intangible assets and PP&E, as well as for uncertain tax positions taken in prior year tax returns. An adjustment of $1,262 million was recorded to present the deferred taxes and other tax liabilities at fair value.

Debt

Our acquisition subsidiary assumed all of the obligations of BJ Services in respect of $250 million principal amount of 5.75% senior notes due June 2011 and $250 million principal amount of 6.00% senior notes due June 2018. A step-up adjustment of $34 million was recorded to present these notes at fair value.

Liabilities for pensions and other postretirement benefits

We assumed several defined benefit pension plans covering certain employees primarily in the U.K., Norway and Canada. Additionally, we assumed a non-qualified supplemental executive retirement plan (“SERP”), as well as postretirement benefit plans that provide certain health care and life insurance benefits for retired employees, primarily in the United States, who meet specified age and service requirements. A step-up adjustment of $32 million was recorded to present these liabilities at fair value.

Noncontrolling Interests

We obtained certain entities which were not wholly owned by BJ Services. A step-up adjustment of $202 million was recorded to present the noncontrolling interests in these entities at fair value.

Pro Forma Impact of the Acquisition

The following unaudited supplemental pro forma results present consolidated information as if the acquisition had been completed as of January 1, 2010. The pro forma results include: (i) the amortization associated with an estimate of the acquired intangible assets, (ii) interest expense associated with debt used to fund a portion of the acquisition and reduced interest income associated with cash used to fund a portion of the acquisition, (iii) the impact of certain fair value adjustments such as additional depreciation expense for adjustments to property, plant and equipment and reduction to interest expense for adjustments to debt, and (iv) costs directly related to acquiring BJ Services. The pro forma results do not include any potential synergies, cost savings or other expected benefits of the acquisition. Accordingly, the pro forma results should not be considered indicative of the results that would have occurred if the acquisition and related borrowings had been consummated as of January 1, 2010, nor are they indicative of future results.


	Three Months Ended
	March 31, 2010
	Pro Forma

Revenues	$	3,657
Net income	$	139
Basic net income per share	$	0.32
Diluted net income per share	$	0.32

Segment Information

3 Months Ended

Mar. 31, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 3. SEGMENT INFORMATION

Baker Hughes operates under five reportable segments as detailed below. The four geographic segments represent our oilfield operations.

	•		North America (Canada, U.S., and Trinidad)

	•		Latin America (Central and South America including Mexico and excluding Trinidad)

	•		Europe/Africa/Russia Caspian (“EARC”) (Europe, Africa — excluding Egypt, and Russia and the republics of the former Soviet Union)

	•		Middle East/Asia Pacific (“MEAP”) (including Egypt)

	•		Industrial Services and Other (downstream chemicals, process and pipeline services, reservoir and technology consulting businesses)

The performance of our segments is evaluated based on profit before tax, which is defined as income before income taxes, interest expense, interest income, and certain gains and losses not allocated to the segments. The financial results of BJ Services are included in each of the five reportable segments from the date of acquisition forward; therefore, the summarized financial information below does not include BJ Services financial results for the three months ended March 31, 2010.

Summarized financial information is shown in the following table:


	Three Months Ended					Three Months Ended
	March 31, 2011					March 31, 2010
Segments	Revenues		Profit (loss)			Revenues		Profit (loss)

North America	$	2,352	$	460		$	919	$	141
Latin America		473		63			272		9
Europe/Africa/Russia Caspian		771		91			720		80
Middle East/Asia Pacific		659		79			439		30
Industrial Services and Other		270		14			189		17

Total Oilfield Operations		4,525		707			2,539		277
Corporate and Other		—		(119	)		—		(83	)

Total	$	4,525	$	588		$	2,539	$	194

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2011

Goodwill and Intangible Assets [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 8. GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill are detailed below by segment:


						Europe/		Middle			Industrial
						Africa/		East/			Services
	North		Latin			Russia		Asia			and
	America		America			Caspian		Pacific			Other		Total

Balance as of December 31, 2010	$	2,731	$	879		$	936	$	895		$	428	$	5,869
Purchase price adjustments for previous acquisitions		313		(293	)		86		(42	)		8		72
Other adjustments		1		—			1		—			—		2

Balance as of March 31, 2011	$	3,045	$	586		$	1,023	$	853		$	436	$	5,943

Intangible assets are comprised of the following:


	March 31, 2011						December 31, 2010
	Gross		Less:				Gross		Less:
	Carrying		Accumulated				Carrying		Accumulated
	Amount		Amortization		Net		Amount		Amortization		Net

Definite lived intangibles:
Technology	$	758	$	193	$	565	$	760	$	181	$	579
Contract-based		19		12		7		20		11		9
Trade names		84		20		64		84		18		66
Customer relationships		495		46		449		495		39		456

Subtotal		1,356		271		1,085		1,359		249		1,110

Indefinite lived intangibles:
Trade name		360		—		360		360		—		360
IPR&D		96		—		96		99		—		99

Total	$	1,812	$	271	$	1,541	$	1,818	$	249	$	1,569

Intangible assets are amortized either on a straight-line basis with estimated useful lives ranging from 1 to 20 years, or on a basis that reflects the pattern in which the economic benefits of the intangible assets are expected to be realized, which range from 15 to 30 years.

Amortization expense for intangible assets included in net income for the three months ended March 31, 2011 was $22 million, and is estimated to be $98 million for fiscal year 2011. Estimated amortization expense for each of the subsequent five fiscal years is expected to be as follows: 2012 — $106 million; 2013 — $107 million; 2014 — $106 million; 2015 — $98 million; and 2016 — $95 million.

Financial Instruments

3 Months Ended

Mar. 31, 2011

Financial Instruments [Abstract]

FINANCIAL INSTRUMENTS

NOTE 9. FINANCIAL INSTRUMENTS

Fair Value of Financial Instruments

Our financial instruments include cash and cash equivalents and short-term investments, accounts receivable, accounts payable, debt, foreign currency forward contracts and interest rate swaps. Except as described below, the estimated fair value of such financial instruments at March 31, 2011 and December 31, 2010 approximates their carrying value as reflected in our consolidated condensed balance sheets. The fair value of our debt, foreign currency forward contracts and interest rate swaps has been estimated based on quoted period end market prices.

Short-term Investments

During the year ended December 31, 2010, we purchased short-term investments consisting of U.S. Treasury Bills, which will mature in May 2011. These investments are classified as available-for-sale and are recorded at fair value, which approximates cost, at March 31, 2011 and at December 31, 2010 of $251 million and $250 million, respectively.

Debt

The estimated fair value of total debt at March 31, 2011 and December 31, 2010, was $4,255 million and $4,298 million, respectively, which differs from the carrying amount of $3,841 million and $3,885 million, respectively, included in our consolidated condensed balance sheets.

Foreign Currency Forward Contracts

We conduct our business in over 80 countries around the world, and we are exposed to market risks resulting from fluctuations in foreign currency exchange rates. A number of our significant foreign subsidiaries have designated the local currency as their functional currency. We transact in various foreign currencies and have established a program that primarily utilizes foreign currency forward contracts to reduce the risks associated with the effects of certain foreign currency exposures. Under this program, our strategy is to have gains or losses on the foreign currency forward contracts mitigate the foreign currency transaction gains or losses to the extent practical. These foreign currency exposures typically arise from changes in the value of assets and liabilities which are denominated in currencies other than the functional currency. Our foreign currency forward contracts generally settle within 90 days. We do not use these forward contracts for trading or speculative purposes. We designate these forward contracts as fair value hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period to our consolidated balance sheet with changes in fair value recorded in our consolidated statement of operations along with the change in fair value of the hedged item.

We had outstanding foreign currency forward contracts with notional amounts aggregating $156 million to hedge exposure to currency fluctuations in various foreign currencies at March 31, 2011 and December 31, 2010. These contracts are designated and qualify as fair value hedging instruments. The fair value was determined using a model with Level 2 inputs including quoted market prices for contracts with similar terms and maturity dates.

Interest Rate Swaps

We are subject to interest rate risk on our debt and investment of cash and cash equivalents arising in the normal course of our business, as we do not engage in speculative trading strategies. We maintain an interest rate management strategy, which primarily uses a mix of fixed and variable rate debt that is intended to mitigate the exposure to changes in interest rates in the aggregate for our investment portfolio. In addition, we are currently using interest rate swaps to manage the economic effect of fixed rate obligations associated with our senior notes so that the interest payable on the senior notes effectively becomes linked to variable rates. Our interest rate swaps are designated and each qualifies as a fair value hedging instrument. The fair value of our interest rate swaps was determined using a model with Level 2 inputs including quoted market prices for contracts with similar terms and maturity dates.

Fair Value of Derivative Instruments

The fair values of derivative instruments included in our consolidated condensed balance sheets were as follows:


		Fair Value
		March 31,		December 31,
Derivative	Balance Sheet Location	2011		2010

Foreign Currency Forward Contracts	Other accrued liabilities	$	—	$	2
Interest Rate Swaps	Other assets	$	20	$	24

The effects of derivative instruments in our consolidated condensed statements of operations were as follows (amounts exclude any income tax effects):


		Amount of Gain (Loss) Recognized in Income
		Three Months Ended March 31,
Derivative	Statement of Operations Location	2011			2010

Foreign Currency Forward Contracts	Marketing, general and administrative	$	(1	)	$	(5	)
Interest Rate Swaps	Interest expense	$	3		$	7

Employee Benefit Plans

3 Months Ended

Mar. 31, 2011

Employee Benefit Plans [Abstract]

EMPLOYEE BENEFIT PLANS

NOTE 11. EMPLOYEE BENEFIT PLANS

We have both funded and unfunded noncontributory defined benefit pension plans (“Pension Benefits”) covering certain employees primarily in the U.S., Canada, the U.K., Germany and several countries in the Middle East and Asia Pacific region. We also provide certain postretirement health care benefits (“other postretirement benefits”), through an unfunded plan, to substantially all U.S. employees who retire and have met certain age and service requirements.

The components of net periodic cost (benefit) are as follows for the three months ended March 31:


	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Postretirement Benefits
	2011			2010			2011			2010			2011			2010

Service cost	$	9		$	8		$	2		$	1		$	2		$	2
Interest cost		5			6			8			5			2			3
Expected return on plan assets		(8	)		(7	)		(8	)		(4	)		—			—
Amortization of prior service cost (benefit)		—			—			—			—			(1	)		1
Amortization of net loss		2			3			1			1			—			—

Net periodic cost (benefit)	$	8		$	10		$	3		$	3		$	3		$	6

We invest the plan assets of our U.S. and Non-U.S. pension plans in investments according to the policies developed by our investment committees. The following table presents the changes in the fair value of our U.S. and Non-U.S. pension plans’ assets using Level 3 unobservable inputs:


					Non-U.S.		Non-U.S.
	U.S. Property		Hedge		Property		Insurance
	Fund		Funds		Fund		Contracts		Total

Ending balance at December 31, 2010	$	14	$	—	$	19	$	16	$	49
Unrealized gains		—		2		1		—		3
Transfers from Level 2 to Level 3		—		96		—		—		96

Ending balance at March 31, 2011	$	14	$	98	$	20	$	16	$	148

In January 2011, the U.S. pension plan purchased $96 million of shares in three hedge funds, which the Company deems to be Level 3 investments. These hedge funds take long and short positions in equities, fixed income securities, currencies and derivative contracts.

Stockholders' Equity

3 Months Ended

Mar. 31, 2011

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 13. STOCKHOLDERS’ EQUITY


			Capital
			in Excess
	Common		of			Retained			Accumulated Other			Noncontrolling
	Stock		Par Value			Earnings			Comprehensive Loss			Interest		Total

Balance, December 31, 2010	$	432	$	7,005		$	7,083		$	(420	)	$	186	$	14,286
Purchase of subsidiary shares for noncontrolling interests				(1	)										(1	)
Comprehensive income:
Net income							381						3
Foreign currency translation adjustments										66
Defined benefit pension plans, net of tax of $2										(1	)
Total comprehensive income															449
Issuance of common stock pursuant to employee stock plans		2		52											54
Tax provision on stock plans				5											5
Stock-based compensation				29											29
Cash dividends ($0.15 per share)							(65	)							(65	)
Change in noncontrolling interest associated with purchase price adjustment													66		66

Balance, March 31, 2011	$	434	$	7,090		$	7,399		$	(355	)	$	255	$	14,823


			Capital
			in Excess
	Common		of			Retained			Accumulated Other			Noncontrolling
	Stock		Par Value			Earnings			Comprehensive Loss			Interest		Total

Balance, December 31, 2009	$	312	$	874		$	6,512		$	(414	)	$	—	$	7,284
Comprehensive income:
Net income							129
Foreign currency translation adjustments										(44	)
Defined benefit pension plans, net of tax of $3										9
Total comprehensive income															94
Issuance of common stock pursuant to employee stock plans				(5	)										(5	)
Tax provision on stock plans				2											2
Stock-based compensation				19											19
Cash dividends ($0.15 per share)							(47	)							(47	)

Balance, March 31, 2010	$	312	$	890		$	6,594		$	(449	)	$	—	$	7,347

Total accumulated other comprehensive loss consisted of the following:


	March 31,			December 31,
	2011			2010

Foreign currency translation adjustments	$	(195	)	$	(261	)
Pension and other postretirement benefits		(160	)		(159	)

Total accumulated other comprehensive loss	$	(355	)	$	(420	)

General (Policies)	3 Months Ended
General (Policies)	Mar. 31, 2011
General (Policies) [Abstract]
Nature of Operations	Nature of Operations Baker Hughes Incorporated (“Company,” “we,” “our” or “us”) is engaged in the oilfield services industry. We are a leading supplier of wellbore-related products and technology services and systems and provide products and services for drilling, pressure pumping, formation evaluation, completion and production, and reservoir technology and consulting to the worldwide oil and natural gas industry. We also provide products and services to the downstream refining, and process and pipeline industries.
Basis of Presentation	Basis of Presentation Our unaudited consolidated condensed financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, certain information and disclosures normally included in our annual financial statements have been condensed or omitted. These unaudited consolidated condensed financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2010 (“2010 Annual Report”). We believe the unaudited consolidated condensed financial statements included herein reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. In the notes to the unaudited consolidated condensed financial statements, all dollar and share amounts in tabulations are in millions of dollars and shares, respectively, unless otherwise indicated.

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2011

Acquisitions (Tables) [Abstract]

Recording of assets acquired and liabilities assumed


	Fair Values

Assets:
Cash and cash equivalents	$	113
Accounts receivable		951
Inventories		419
Other current assets		125
Property, plant and equipment		2,745
Intangible assets		1,404
Goodwill		4,406
Other long-term assets		109


	Fair Values

Liabilities:
Liabilities for change in control and transaction fees		210
Current liabilities		776
Deferred income taxes and other tax liabilities		1,428
Long-term debt		531
Pension and other postretirement liabilities		154
Other long-term liabilities		29
Noncontrolling interests		247

Net assets acquired	$	6,897

Fair value estimates for identifiable intangible assets and useful lives


	Fair Values		Useful Lives

Customer relationships	$	428	3-16 years
Technology		451	5-15 years
BJ Services trade name		360	Indefinite
Other trade names		38	5-12 years
IPR&D		127	Indefinite

Total identifiable intangible assets	$	1,404

Pro Forma Impact of the Acquisition


	Three Months Ended
	March 31, 2010
	Pro Forma

Revenues	$	3,657
Net income	$	139
Basic net income per share	$	0.32
Diluted net income per share	$	0.32

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2011

Stockholders' Equity (Tables) [Abstract]

Stockholders' Equity


			Capital
			in Excess
	Common		of			Retained			Accumulated Other			Noncontrolling
	Stock		Par Value			Earnings			Comprehensive Loss			Interest		Total

Balance, December 31, 2010	$	432	$	7,005		$	7,083		$	(420	)	$	186	$	14,286
Purchase of subsidiary shares for noncontrolling interests				(1	)										(1	)
Comprehensive income:
Net income							381						3
Foreign currency translation adjustments										66
Defined benefit pension plans, net of tax of $2										(1	)
Total comprehensive income															449
Issuance of common stock pursuant to employee stock plans		2		52											54
Tax provision on stock plans				5											5
Stock-based compensation				29											29
Cash dividends ($0.15 per share)							(65	)							(65	)
Change in noncontrolling interest associated with purchase price adjustment													66		66

Balance, March 31, 2011	$	434	$	7,090		$	7,399		$	(355	)	$	255	$	14,823


			Capital
			in Excess
	Common		of			Retained			Accumulated Other			Noncontrolling
	Stock		Par Value			Earnings			Comprehensive Loss			Interest		Total

Balance, December 31, 2009	$	312	$	874		$	6,512		$	(414	)	$	—	$	7,284
Comprehensive income:
Net income							129
Foreign currency translation adjustments										(44	)
Defined benefit pension plans, net of tax of $3										9
Total comprehensive income															94
Issuance of common stock pursuant to employee stock plans				(5	)										(5	)
Tax provision on stock plans				2											2
Stock-based compensation				19											19
Cash dividends ($0.15 per share)							(47	)							(47	)

Balance, March 31, 2010	$	312	$	890		$	6,594		$	(449	)	$	—	$	7,347

Total accumulated other comprehensive loss


	March 31,			December 31,
	2011			2010

Foreign currency translation adjustments	$	(195	)	$	(261	)
Pension and other postretirement benefits		(160	)		(159	)

Total accumulated other comprehensive loss	$	(355	)	$	(420	)

Acquisitions (Details) $ in Millions	Apr. 28, 2010 USD ($)
Assets:
Cash and cash equivalents	$ 113
Accounts receivables	951
Inventories	419
Other current assets	125
Property, plant and equipment	2,745
Intangible assets	1,404
Goodwill	4,406
Other long-term assets	109
Liabilities:
Liabilities for change in control and transaction fees	210
Current liabilities	776
Deferred income taxes and other tax liabilities	1,428
Long term Debt	531
Pension and other postretirement liabilities	154
Other long-term liabilities	29
Noncontrolling interests	247
Net Assets Acquired	$ 6,897

Acquisitions (Details 1) $ in Millions	3 Months Ended
Acquisitions (Details 1) $ in Millions	Mar. 31, 2011	Apr. 28, 2010 USD ($)
Fair value estimates for identifiable intangible assets and useful lives
Total identifiable intangible assets		$ 1,404
Useful life, Minimum	1
Useful life, Maximum	20
IPR&D [Member]
Fair value estimates for identifiable intangible assets and useful lives
Fair Value		127
Estimated Useful Life	Indefinite
Technology [Member]
Fair value estimates for identifiable intangible assets and useful lives
Fair Value		451
Useful life, Minimum	5
Useful life, Maximum	15
Customer Relationships [Member]
Fair value estimates for identifiable intangible assets and useful lives
Fair Value		428
Useful life, Minimum	3
Useful life, Maximum	16
BJ Services trade name [Member]
Fair value estimates for identifiable intangible assets and useful lives
Fair Value		360
Estimated Useful Life	Indefinite
Other trade names [Member]
Fair value estimates for identifiable intangible assets and useful lives
Fair Value		$ 38
Useful life, Minimum	5
Useful life, Maximum	12

Acquisitions (Details Textual) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended
	Apr. 30, 2010 shares	Mar. 31, 2011 USD ($)	Apr. 28, 2010 USD ($)
Acqusition (Additional) (Textuals) [Abstract]
Goodwill recorded as the excess of consideration transferred		$ 72
Acqusitions (Textuals) [Abstract]
Percentage of outstanding common stock acquired of BJ Services			100.00%
Acqusition of outstanding common stock in consideration of cash and stock transaction			$ 6,897
Total amount of cash paid for merger			793
Number of shares issued for merger \| shares	118
Total valuation based upon the closing price of common stock			6,048
Consideration transferred			56
Adjustment related to property, plant and equipment			406
Weighted average useful life of property plant and equipment		approximately six years
Adjustment related to deferred taxes and other tax liabilities at fair value			1,262
Adjustment related to notes at fair value			34
Adjustment related to noncontrolling interests			202
Adjustment related to liabilities for pension and other post retirement benefits			32
5.75% senior notes maturing on June 2011 [Member]
Debt Instrument (Textuals) [Abstract]
Obligations of principal amount			$ 250
Interest rate on Senior notes sold			5.75%
6.00% senior notes maturing on June 2018 [Member]
Debt Instrument (Textuals) [Abstract]
Obligations of principal amount			$ 250
Interest rate on Senior notes sold			6.00%
BJ Services [Member]
Acqusition (Additional) (Textuals) [Abstract]
Goodwill recorded as the excess of consideration transferred		$ 4,406

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
Segment Information (Details) - USD ($) $ in Millions	Mar. 31, 2011	Mar. 31, 2010
Summarized financial information
Revenues, Total Oilfield Operations	$ 4,525	$ 2,539
Total revenues	4,525	2,539
Profit (loss), Total Oilfield Operations	707	277
Profit (loss), Corporate and Other	(119)	(83)
Profit (loss), Total	588	194
North America [Member]
Summarized financial information
Revenues, Total Oilfield Operations	2,352	919
Profit (loss), Total Oilfield Operations	460	141
Latin America [Member]
Summarized financial information
Revenues, Total Oilfield Operations	473	272
Profit (loss), Total Oilfield Operations	63	9
Europe Africa Russia Caspian [Member]
Summarized financial information
Revenues, Total Oilfield Operations	771	720
Profit (loss), Total Oilfield Operations	91	80
Middle East / Asia Pacific [Member]
Summarized financial information
Revenues, Total Oilfield Operations	659	439
Profit (loss), Total Oilfield Operations	79	30
Industrial Services and Other [Member]
Summarized financial information
Revenues, Total Oilfield Operations	270	189
Profit (loss), Total Oilfield Operations	$ 14	$ 17

Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Millions	Mar. 31, 2011	Mar. 31, 2010
Stock-based compensation expense recognized in consolidated condensed statements of operations
Stock Options	$ 10	$ 7
Restricted Stock Awards and Units	14	10
ESPP	5	2
Total	$ 29	$ 19
Stock Based Compensation (Textuals) [Abstract]
Discount rate on fair market vaue of common stock at prescribed measurement date under Eployee stock purchase plan	15.00%

Earnings Per Share (Details) - shares shares in Millions	3 Months Ended
Earnings Per Share (Details) - shares shares in Millions	Mar. 31, 2011	Mar. 31, 2010
Net income attributable to Baker Hughes per share:
Weighted average common shares outstanding for basic EPS	435	313
Effect of dilutive securities - stock plans	2
Adjusted weighted average common shares outstanding for diluted EPS	437	313
Future potentially dilutive shares excluded from diluted EPS:
Options with an exercise price greater than average market price for the period	3	2

Property, Plant and Equipment (Details) - USD ($) $ in Millions	Mar. 31, 2011	Dec. 31, 2010
Property, plant and equipment
Land	$ 191	$ 191
Buildings and improvements	1,673	1,605
Machinery and equipment	6,600	6,409
Rental tools and equipment	2,568	2,472
Subtotal	11,032	10,677
Less: Accumulated depreciation	4,600	4,367
Total	$ 6,432	$ 6,310

Goodwill and Intangible Assets (Details) $ in Millions	3 Months Ended
Goodwill and Intangible Assets (Details) $ in Millions	Mar. 31, 2011 USD ($)
Changes in carrying amount of goodwill
Balance as of December 31,2010	$ 5,869
Purchase price adjustments for previous acquisitions	72
Other adjustments	2
Balance as of march 31, 2011	$ 5,943
Goodwill and Intangible Assets (Textuals) [Abstract]
Minimum estimated useful lives of intangible assets	1
Maximum estimated useful lives of intangible assets	20
Minimum economic benefits of intangible assets are expected to be realized	15 years
Maximum economic benefits of intangible assets are expected to be realized	30 years
Amortization expense for intangible assets included in net income	$ 22
Estimated amortization expense for the remaining of year 2011	98
Estimated amortization expense for the year 2012	106
Estimated amortization expense for the year 2013	107
Estimated amortization expense for the year 2014	106
Estimated amortization expense for the year 2015	98
Estimated amortization expense for the year 2016	95
North America [Member]
Changes in carrying amount of goodwill
Balance as of December 31,2010	2,731
Purchase price adjustments for previous acquisitions	313
Other adjustments	1
Balance as of march 31, 2011	3,045
Latin America [Member]
Changes in carrying amount of goodwill
Balance as of December 31,2010	879
Purchase price adjustments for previous acquisitions	(293)
Balance as of march 31, 2011	586
Europe Africa Russia Caspian [Member]
Changes in carrying amount of goodwill
Balance as of December 31,2010	936
Purchase price adjustments for previous acquisitions	86
Other adjustments	1
Balance as of march 31, 2011	1,023
Middle East / Asia Pacific [Member]
Changes in carrying amount of goodwill
Balance as of December 31,2010	895
Purchase price adjustments for previous acquisitions	(42)
Balance as of march 31, 2011	853
Industrial & Other [Member]
Changes in carrying amount of goodwill
Balance as of December 31,2010	428
Purchase price adjustments for previous acquisitions	8
Balance as of march 31, 2011	$ 436

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Millions	Mar. 31, 2011	Dec. 31, 2010
Intangible assets description
Intangible assets, Gross carrying amount	$ 1,356	$ 1,359
Intangible assets, Less: Accumulated Amortization	271	249
Intangible assets, Subtotal	1,085	1,110
Indefinite lived intangibles:
Total	1,812	1,818
Intangible assets, net, total	1,541	1,569
IPRD [Member]
Intangible assets description
Intangible assets, Gross carrying amount	758	760
Intangible assets, Less: Accumulated Amortization	193	181
Intangible assets, Subtotal	565	579
Contract-based [Member]
Intangible assets description
Intangible assets, Gross carrying amount	19	20
Intangible assets, Less: Accumulated Amortization	12	11
Intangible assets, Subtotal	7	9
Trade Name [Member]
Intangible assets description
Intangible assets, Gross carrying amount	84	84
Intangible assets, Less: Accumulated Amortization	20	18
Intangible assets, Subtotal	64	66
Customer relationships [Member]
Intangible assets description
Intangible assets, Gross carrying amount	495	495
Intangible assets, Less: Accumulated Amortization	46	39
Intangible assets, Subtotal	449	456
Trade Name [Member]
Indefinite lived intangibles:
Intangible assets, Gross carrying amount	360	360
IPR&D [Member]
Indefinite lived intangibles:
Intangible assets, Gross carrying amount	$ 96	99
Total		$ 99

Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2011	Mar. 31, 2010	Dec. 31, 2010
Additional Financial Instruments (Textuals) [Abstract]
Short-term investments Balances	$ 251		$ 250
Maturities of US T-bill			May, 2011
Debt, fair value	4,255		$ 4,298
Debt, carrying amount	$ 3,841		3,885
Operation of business	Over 80 countries
Maximum maturity period for foreign currency forward contracts	90 days
Aggregate amount of foreign currency forward contracts outstanding	$ 156		156
Interest Rate Swaps [Member] \| Other Assets [Member]
Fair value of derivative instruments included in our consolidated condensed balance sheet
Derivative Asset Designated as Hedging Instrument, Fair Value	20		$ 24
Marketing general and administrative [Member] \| Foreign Currency Forward Contracts [Member]
Effects of derivative instruments in our consolidated condensed statement of operations
Amount of Gain/(Loss) Recognized in Income	(1)	$ (5)
Interest Expense [Member] \| Interest Rate Swaps [Member]
Effects of derivative instruments in our consolidated condensed statement of operations
Amount of Gain/(Loss) Recognized in Income	$ 3	$ 7

Indebtedness (Details) $ in Millions	3 Months Ended
Indebtedness (Details) $ in Millions	Mar. 31, 2011 USD ($)
Indebtedness (Textuals) [Abstract]
Commercial paper can be issued under commercial paper program	$ 1,000
Maximum maturity of commercial paper issued	270 days
Commercial paper outstanding	$ 0
Revolving Credit Facility with commercial bank [Member]
Additional Indebtedness (Textuals) [Abstract]
Committed revolving credit facilities	$ 1,700

Employee Benefit Plans (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Jan. 31, 2011	Mar. 31, 2011	Mar. 31, 2010
Fair value of the assets
Level 3 Plan Assets at beginning of year	$ 49	$ 49
Unrealized (losses) gains on Level 3 Plan Assets		3
Transfers from Level 2 to Level 3 Plan Assets		96
Level 3 Plan Assets at end of year		148
U.S. Property Fund [Member]
Fair value of the assets
Level 3 Plan Assets at beginning of year	14	14
Level 3 Plan Assets at end of year		14
Hedge Funds [Member]
Fair value of the assets
Level 3 Plan Assets at beginning of year	0	0
Unrealized (losses) gains on Level 3 Plan Assets		2
Transfers from Level 2 to Level 3 Plan Assets		96
Level 3 Plan Assets at end of year		98
Non-U.S. Property Fund [Member]
Fair value of the assets
Level 3 Plan Assets at beginning of year	19	19
Unrealized (losses) gains on Level 3 Plan Assets		1
Level 3 Plan Assets at end of year		20
Non-U.S. Insurance Contracts [Member]
Fair value of the assets
Level 3 Plan Assets at beginning of year	16	16
Level 3 Plan Assets at end of year		16
U.S. Pension Benefits [Member]
Components of net periodic benefit cost
Service cost		9	$ 8
Interest cost		5	6
Expected return on plan assets		(8)	(7)
Amortization of net loss		2	3
Net periodic benefit cost (benefit)		8	10
U.S. Pension Benefits [Member] \| Hedge Funds [Member]
Employee Benefit Plans (Textuals) [Abstract]
Shares purchased under Level 3 investments	$ 96
Non-U.S. Pension Benefits [Member]
Components of net periodic benefit cost
Service cost		2	1
Interest cost		8	5
Expected return on plan assets		(8)	(4)
Amortization of net loss		1	1
Net periodic benefit cost (benefit)		3	3
Other Postretirement Benefits Plan [Member]
Components of net periodic benefit cost
Service cost		2	2
Interest cost		2	3
Amortization of prior service cost (benefit)		(1)	1
Net periodic benefit cost (benefit)		$ 3	$ 6

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
Stockholders' Equity
Beginning Balance	$ 14,286	$ 7,284
Purchase of subsidiary shares for noncontrolling interests	(1)
Comprehensive income:
Net income	384	129
Total comprehensive income	449	94
Issuance of common stock, pursuant to employee stock plans	54	(5)
Tax provision on stock plans	5	2
Stock-based compensation	29	19
Cash dividends	(65)	(47)
Change in noncontrolling interest associated with purchase price adjustment	66
Ending Balance	$ 14,823	$ 7,347
Stockholders' Equity (Textual) [Abstract]
Cash dividend per share	$ 0.15	$ 0.15
Defined benefit pension plans, tax	$ 2	$ 3
Common Stock
Stockholders' Equity
Beginning Balance	432	312
Comprehensive income:
Issuance of common stock, pursuant to employee stock plans	2
Ending Balance	434	312
Capital in Excess of Par Value
Stockholders' Equity
Beginning Balance	7,005	874
Purchase of subsidiary shares for noncontrolling interests	(1)
Comprehensive income:
Issuance of common stock, pursuant to employee stock plans	52	(5)
Tax provision on stock plans	5	2
Stock-based compensation	29	19
Ending Balance	7,090	890
Retained Earnings
Stockholders' Equity
Beginning Balance	7,083	6,512
Comprehensive income:
Net income	381	129
Cash dividends	(65)	(47)
Ending Balance	7,399	6,594
Accumulated Other Comprehensive Loss
Stockholders' Equity
Beginning Balance	(420)	(414)
Comprehensive income:
Foreign currency translation adjustments	66	(44)
Defined benefit pension plans	(1)	9
Ending Balance	(355)	(449)
Noncontrolling Interest
Stockholders' Equity
Beginning Balance	186	0
Comprehensive income:
Net income	3
Change in noncontrolling interest associated with purchase price adjustment	66
Ending Balance	$ 255	$ 0

Indebtedness	3 Months Ended
Indebtedness	Mar. 31, 2011
Indebtedness [Abstract]
INDEBTEDNESS	NOTE 10. INDEBTEDNESS At March 31, 2011, we had $1.7 billion of committed revolving credit facilities with commercial banks. These facilities contain certain covenants which, among other things, require the maintenance of a funded indebtedness to total capitalization ratio (a defined formula per each agreement), restrict certain merger transactions or the sale of all or substantially all of our assets or a significant subsidiary and limit the amount of subsidiary indebtedness. Upon the occurrence of certain events of default, our obligations under the facilities may be accelerated. Such events of default include payment defaults to lenders under the facilities, covenant defaults and other customary defaults. At March 31, 2011, we were in compliance with all of the facilities’ covenants. There were no direct borrowings under the committed credit facilities during the quarter ended March 31, 2011. We also have a commercial paper program under which we may issue up to $1.0 billion in commercial paper with maturity of no more than 270 days. To the extent we have outstanding commercial paper, our ability to borrow under the facilities is reduced. At March 31, 2011, we had no outstanding commercial paper.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2011
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12. COMMITMENTS AND CONTINGENCIES LITIGATION We are involved in litigation or proceedings that have arisen in our ordinary business activities. We insure against these risks to the extent deemed prudent by our management and to the extent insurance is available, but no assurance can be given that the nature and amount of that insurance will be sufficient to fully indemnify us against liabilities arising out of pending and future legal proceedings. Many of these insurance policies contain deductibles or self-insured retentions in amounts we deem prudent and for which we are responsible for payment. In determining the amount of self-insurance, it is our policy to self-insure those losses that are predictable, measurable and recurring in nature, such as claims for automobile liability, general liability and workers compensation. The accruals for losses are calculated by estimating losses for claims using historical claim data, specific loss development factors and other information as necessary. OTHER In the normal course of business with customers, vendors and others, we have entered into off-balance sheet arrangements, such as surety bonds for performance, letters of credit and other bank issued guarantees, which totaled approximately $1.21 billion at March 31, 2011. None of the off-balance sheet arrangements either has, or is likely to have, a material effect on our consolidated condensed financial statements.

Acquisitions (Details 2) $ / shares in Units, $ in Millions	3 Months Ended
Acquisitions (Details 2) $ / shares in Units, $ in Millions	Mar. 31, 2010 USD ($) $ / shares
Pro Forma Impact of the Acquisition
Revenues \| $	$ 3,657
Net income \| $	$ 139
Basic net income per share \| $ / shares	$ 0.32
Diluted net income per share \| $ / shares	$ 0.32

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2011	Dec. 31, 2010
Inventories, net of reserves
Finished goods	$ 2,466	$ 2,283
Work in process	199	181
Raw materials	140	130
Total	$ 2,805	$ 2,594

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2011 USD ($)
Commitments and Contingencies (Textuals) [Abstract]
Off-balance sheet arrangements related to letters of credit and other bank issued guarantees, total	$ 1,210

Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2011	Dec. 31, 2010
Current Assets:
Allowance for doubtful accounts	$ 174	$ 162

Stockholders' Equity (Details 1) - USD ($) $ in Millions	Mar. 31, 2011	Dec. 31, 2010
Total accumulated other comprehensive loss
Foreign currency translation adjustments	$ (195)	$ (261)
Pension and other postretirement benefits	(160)	(159)
Accumulated other comprehensive loss	$ (355)	$ (420)