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|        |
|--------|
|        |  |  |
| þ |   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|   |
|---|
|   |  |  |
| o |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|                                                     |
|-----------------------------------------------------|
|                                                     |  |
|                                                |   |
| Delaware                                            | 76-0207995 |
| (State or other jurisdiction                        | (I.R.S. Employer Identification No.) |
| of incorporation or organization)                   |   |
|                                                |   |
| 2929 Allen Parkway, Suite 2100, Houston, Texas | 77019-2118 |
| (Address of principal executive offices)            | (Zip Code) |

|                                |
|--------------------------------|
|                                |  |  |  |
| Large accelerated filer þ |     Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |

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|           |
|-----------|
|           |  |  |
|      |   | Page No. |
| PART I -  | FINANCIAL INFORMATION |   |
|      |   |   |
| Item 1.   | Financial Statements (Unaudited) |   |
|      |   |   |
|      | Consolidated Condensed Statements of Income (Unaudited) - Three months and six months ended June 30, 2012 and 2011 | 2 |
|      |   |   |
|      | Consolidated Condensed Statements of Comprehensive Income (Unaudited) - Three months and six months ended June 30, 2012 and 2011 | 3 |
|      |   |   |
|      | Consolidated Condensed Balance Sheets (Unaudited) - June 30, 2012 and December 31, 2011 | 4 |
|      |   |   |
|      | Consolidated Condensed Statements of Equity (Unaudited) - Six months ended June 30, 2012 and 2011 | 5 |
|      |   |   |
|      | Consolidated Condensed Statements of Cash Flows (Unaudited) - Six months ended June 30, 2012 and 2011 | 6 |
|      |   |   |
|      | Notes to Unaudited Consolidated Condensed Financial Statements | 7 |
|      |   |   |
| Item 2.   | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 13 |
|      |   |   |
| Item 3.   | Quantitative and Qualitative Disclosures About Market Risk | 24 |
|      |   |   |
| Item 4.   | Controls and Procedures | 24 |
|      |   |   |
| PART II - | OTHER INFORMATION |   |
|      |   |   |
| Item 1.   | Legal Proceedings | 25 |
|      |   |   |
| Item 1A.  | Risk Factors | 25 |
|      |   |   |
| Item 2.   | Unregistered Sales of Equity Securities and Use of Proceeds | 25 |
|      |   |   |
| Item 3.   | Defaults Upon Senior Securities | 25 |
|      |   |   |
| Item 4.   | Mine Safety Disclosures | 25 |
|      |   |   |
| Item 5.   | Other Information | 26 |
|      |   |   |
| Item 6.   | Exhibits | 26 |
|      |   |   |
|      | Signatures | 27 |

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|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                    | 2012 | 2011 |   | 2012 | 2011 |
| Revenue:                                                |   |   |   |   |   |
| Sales                                                   | $ | 1,811 |  | $ | 1,557 |  |   | $ | 3,540 |  | $ | 2,990 |  |
| Services                                                | 3,515 |  | 3,184 |  |   | 7,141 |  | 6,276 |  |
| Total revenue                                           | 5,326 |  | 4,741 |  |   | 10,681 |  | 9,266 |  |
| Costs and expenses:                                     |   |   |   |   |   |
| Cost of sales                                           | 1,404 |  | 1,266 |  |   | 2,772 |  | 2,432 |  |
| Cost of services                                        | 2,850 |  | 2,452 |  |   | 5,747 |  | 4,783 |  |
| Research and engineering                                | 128 |  | 114 |  |   | 252 |  | 220 |  |
| Marketing, general and administrative                   | 305 |  | 292 |  |   | 644 |  | 574 |  |
| Total costs and expenses                                | 4,687 |  | 4,124 |  |   | 9,415 |  | 8,009 |  |
| Operating income                                        | 639 |  | 617 |  |   | 1,266 |  | 1,257 |  |
| Interest expense, net                                   | (50 | ) | (54 | ) |   | (104 | ) | (106 | ) |
| Income before income taxes                              | 589 |  | 563 |  |   | 1,162 |  | 1,151 |  |
| Income taxes                                            | (151 | ) | (228 | ) |   | (344 | ) | (432 | ) |
| Net income                                              | 438 |  | 335 |  |   | 818 |  | 719 |  |
| Net loss attributable to noncontrolling interests       | 1 |  | 3 |  |   | — |  | — |  |
| Net income attributable to Baker Hughes                 | $ | 439 |  | $ | 338 |  |   | $ | 818 |  | $ | 719 |  |
|                                                    |   |   |   |   |   |
| Basic earnings per share attributable to Baker Hughes   | $ | 1.00 |  | $ | 0.78 |  |   | $ | 1.86 |  | $ | 1.65 |  |
| Diluted earnings per share attributable to Baker Hughes | $ | 1.00 |  | $ | 0.77 |  |   | $ | 1.86 |  | $ | 1.64 |  |
| Cash dividends per share                                | $ | 0.15 |  | $ | 0.15 |  |   | $ | 0.30 |  | $ | 0.30 |  |

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|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                 | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                                                 | 2012 | 2011 |   | 2012 | 2011 |
| Net Income                                                                                           | $ | 438 |  | $ | 335 |  |   | $ | 818 |  | $ | 719 |  |
| Other comprehensive income (loss), net of tax:                                                       |   |   |   |   |   |
| Foreign currency translation adjustments during the      period        | (57 | ) | 17 |  |   | (2 | ) | 83 |  |
| Pension and other postretirement benefits                                                            | 6 |  | 1 |  |   | 19 |  | — |  |
|  Net gain on hedge transactions                                                                 | 1 |  | — |  |   | 1 |  | — |  |
| Other comprehensive income (loss), net of tax                                                        | (50 | ) | 18 |  |   | 18 |  | 83 |  |
| Comprehensive income                                                                                 | 388 |  | 353 |  |   | 836 |  | 802 |  |
| Comprehensive loss attributable to noncontrolling       interests | 1 |  | 3 |  |   | — |  | — |  |
| Comprehensive income attributable to Baker Hughes                                                    | $ | 389 |  | $ | 356 |  |   | $ | 836 |  | $ | 802 |  |

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|                                                                                                                                 |
|---------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                 |  |  |  |  |  |  |
|                                                                                                                            | June 30, 2012 | December 31, 2011 |
| ASSETS                                                                                                                          |
| Current Assets:                                                                                                                 |   |   |
| Cash and cash equivalents                                                                                                       | $ | 792 |  | $ | 1,050 |  |
| Accounts receivable - less allowance for doubtful accounts (2012 - $223;     2011 - $229)              | 4,985 |  | 4,878 |  |
| Inventories, net                                                                                                                | 3,811 |  | 3,222 |  |
| Deferred income taxes                                                                                                           | 265 |  | 251 |  |
| Other current assets                                                                                                            | 594 |  | 396 |  |
| Total current assets                                                                                                            | 10,447 |  | 9,797 |  |
|                                                                                                                            |   |   |
| Property, plant and equipment - less accumulated depreciation (2012 - $5,733;      2011 - $5,251) | 8,111 |  | 7,415 |  |
| Goodwill                                                                                                                        | 5,957 |  | 5,956 |  |
| Intangible assets, net                                                                                                          | 1,076 |  | 1,143 |  |
| Other assets                                                                                                                    | 597 |  | 536 |  |
| Total assets                                                                                                                    | $ | 26,188 |  | $ | 24,847 |  |
|                                                                                                                            |   |   |
| LIABILITIES AND EQUITY                                                                                                          |
| Current Liabilities:                                                                                                            |   |   |
| Accounts payable                                                                                                                | $ | 1,859 |  | $ | 1,810 |  |
| Short-term debt and current portion of long-term debt                                                                           | 1,191 |  | 224 |  |
| Accrued employee compensation                                                                                                   | 535 |  | 704 |  |
| Income taxes payable                                                                                                            | 232 |  | 289 |  |
| Other accrued liabilities                                                                                                       | 420 |  | 475 |  |
| Total current liabilities                                                                                                       | 4,237 |  | 3,502 |  |
|                                                                                                                            |   |   |
| Long-term debt                                                                                                                  | 3,841 |  | 3,845 |  |
| Deferred income taxes and other tax liabilities                                                                                 | 667 |  | 810 |  |
| Liabilities for pensions and other postretirement benefits                                                                      | 550 |  | 578 |  |
| Other liabilities                                                                                                               | 134 |  | 148 |  |
| Commitments and contingencies                                                                                                   |  |  |  |  |
|                                                                                                                            |   |   |
| Equity:                                                                                                                         |   |   |
| Common stock                                                                                                                    | 439 |  | 437 |  |
| Capital in excess of par value                                                                                                  | 7,415 |  | 7,303 |  |
| Retained earnings                                                                                                               | 9,248 |  | 8,561 |  |
| Accumulated other comprehensive loss                                                                                            | (537 | ) | (555 | ) |
| Baker Hughes stockholders’ equity                                                                                         | 16,565 |  | 15,746 |  |
| Noncontrolling interests                                                                                                        | 194 |  | 218 |  |
| Total equity                                                                                                                    | 16,759 |  | 15,964 |  |
| Total liabilities and equity                                                                                                    | $ | 26,188 |  | $ | 24,847 |  |

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|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                          | Common Stock | Capitalin ExcessofPar Value | RetainedEarnings | AccumulatedOtherComprehensiveLoss | NoncontrollingInterests | Total |
| Balance at December 31, 2011                                                  | $ | 437 |  | $ | 7,303 |  | $ | 8,561 |  | $ | (555 | ) | $ | 218 |  | $ | 15,964 |  |
| Comprehensive income:                                                         |   |   |   |   |   |   |
| Net income                                                                    |   |   | 818 |  |   |   | 818 |  |
| Other comprehensive income                                                    |   |   |   | 18 |  |   | 18 |  |
| Activity related to stock plans                                               | 2 |  | 29 |  |   |   |   | 31 |  |
| Stock-based compensation cost                                                 |   | 61 |  |   |   |   | 61 |  |
| Cash dividends ($0.30 per share)                                              |   |   | (131 | ) |   |   | (131 | ) |
| Net activity related to noncontrolling     interests |   | 22 |  |   |   | (24 | ) | (2 | ) |
| Balance at June 30, 2012                                                      | $ | 439 |  | $ | 7,415 |  | $ | 9,248 |  | $ | (537 | ) | $ | 194 |  | $ | 16,759 |  |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                | Common Stock | Capitalin ExcessofPar Value | RetainedEarnings | AccumulatedOtherComprehensiveLoss | NoncontrollingInterests | Total |
| Balance at December 31, 2010                                                        | $ | 432 |  | $ | 7,005 |  | $ | 7,083 |  | $ | (420 | ) | $ | 186 |  | $ | 14,286 |  |
| Comprehensive income:                                                               |   |   |   |   |   |   |
| Net income                                                                          |   |   | 719 |  |   |   | 719 |  |
| Other comprehensive income                                                          |   |   |   | 83 |  |   | 83 |  |
| Activity related to stock plans                                                     | 4 |  | 110 |  |   |   |   | 114 |  |
| Stock-based compensation cost                                                       |   | 53 |  |   |   |   | 53 |  |
| Cash dividends ($0.30 per share)                                                    |   |   | (130 | ) |   |   | (130 | ) |
| Net activity related to noncontrolling      interests |   | (1 | ) |   |   | 66 |  | 65 |  |
| Balance at June 30, 2011                                                            | $ | 436 |  | $ | 7,167 |  | $ | 7,672 |  | $ | (337 | ) | $ | 252 |  | $ | 15,190 |  |

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|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |
|                                                                             | Six Months Ended June 30, |
|                                                                             | 2012 | 2011 |
| Cash flows from operating activities:                                            |   |   |
| Net income                                                                       | $ | 818 |  | $ | 719 |  |
| Adjustments to reconcile net income to net cash flows from operating activities: |   |   |
| Depreciation and amortization                                                    | 743 |  | 646 |  |
| Benefit for deferred income taxes                                           | (147 | ) | (52 | ) |
| Gain on disposal of assets                                                       | (115 | ) | (90 | ) |
| Stock-based compensation cost                                                    | 61 |  | 53 |  |
| Provision for doubtful accounts                                                  | 1 |  | 76 |  |
| Changes in operating assets and liabilities:                                     |   |   |
| Accounts receivable                                                              | (130 | ) | (512 | ) |
| Inventories                                                                      | (597 | ) | (314 | ) |
| Accounts payable                                                                 | 60 |  | 57 |  |
| Accrued employee compensation and other accrued liabilities                      | (178 | ) | (25 | ) |
| Income taxes payable                                                             | (84 | ) | (160 | ) |
| Other operating items, net                                                       | (308 | ) | (1 | ) |
| Net cash flows from operating activities                                         | 124 |  | 397 |  |
| Cash flows from investing activities:                                            |   |   |
| Expenditures for capital assets                                                  | (1,442 | ) | (1,023 | ) |
| Proceeds from maturities of short-term investments                               | — |  | 250 |  |
| Proceeds from disposal of assets                                                 | 203 |  | 142 |  |
| Acquisition of businesses, net of cash acquired                                  | — |  | (5 | ) |
| Net cash flows from investing activities                                         | (1,239 | ) | (636 | ) |
| Cash flows from financing activities:                                            |   |   |
| Net proceeds (payments) of commercial paper and other short-term debt       | 962 |  | (21 | ) |
| Repayment of long-term debt                                                      | — |  | (250 | ) |
| Proceeds from issuance of common stock                                           | 39 |  | 115 |  |
| Dividends paid                                                                   | (131 | ) | (130 | ) |
| Other financing items, net                                                       | (15 | ) | (9 | ) |
| Net cash flows from financing activities                                         | 855 |  | (295 | ) |
| Effect of foreign exchange rate changes on cash                                  | 2 |  | 15 |  |
| Decrease in cash and cash equivalents                                            | (258 | ) | (519 | ) |
| Cash and cash equivalents, beginning of period                                   | 1,050 |  | 1,456 |  |
| Cash and cash equivalents, end of period                                         | $ | 792 |  | $ | 937 |  |
| Supplemental cash flows disclosures:                                             |   |   |
| Income taxes paid, net of refunds                                                | $ | 697 |  | $ | 647 |  |
| Interest paid                                                                    | $ | 119 |  | $ | 121 |  |
| Supplemental disclosure of noncash investing activities:                         |   |   |
| Capital expenditures included in accounts payable                                | $ | 146 |  | $ | 33 |  |

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|------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  |  |  |  |  |  |  |  |  |  |
|                                                                                                             | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                                                             | 2012 | 2011 |   | 2012 | 2011 |
| Weighted average common shares outstanding for basic EPS                                                         | 439 |  | 436 |  |   | 439 |  | 435 |  |
| Effect of dilutive securities - stock plans                                                                      | 1 |  | 2 |  |   | 1 |  | 3 |  |
| Adjusted weighted average common shares outstanding for     diluted EPS                 | 440 |  | 438 |  |   | 440 |  | 438 |  |
| Future potentially dilutive shares excluded from diluted     EPS:                       |   |   |   |   |   |
| Options with an exercise price greater than the average     market price for the period | 8 |  | 2 |  |   | 8 |  | 3 |  |

|                 |
|-----------------|
|                 |  |  |  |  |  |  |
|            | June 30, 2012 | December 31, 2011 |
| Finished goods  | $ | 3,385 |  | $ | 2,830 |  |
| Work in process | 242 |  | 231 |  |
| Raw materials   | 184 |  | 161 |  |
| Total           | $ | 3,811 |  | $ | 3,222 |  |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | June 30, 2012 |   | December 31, 2011 |
|                                                             | GrossCarryingAmount | Less:AccumulatedAmortization | Net |   | GrossCarryingAmount | Less:AccumulatedAmortization | Net |
| Definite lived intangibles:                                      |   |   |   |   |   |   |   |
| Technology                                                       | $ | 760 |  | $ | 253 |  | $ | 507 |  |   | $ | 755 |  | $ | 231 |  | $ | 524 |  |
| Contract-based                                                   | 16 |  | 9 |  | 7 |  |   | 17 |  | 9 |  | 8 |  |
| Trade names                                                      | 121 |  | 38 |  | 83 |  |   | 121 |  | 16 |  | 105 |  |
| Customer relationships                                           | 497 |  | 97 |  | 400 |  |   | 497 |  | 77 |  | 420 |  |
| Subtotal                                                         | 1,394 |  | 397 |  | 997 |  |   | 1,390 |  | 333 |  | 1,057 |  |
| Indefinite lived intangibles:                                    |   |   |   |   |   |   |   |
| In-process research and     development | 79 |  | — |  | 79 |  |   | 86 |  | — |  | 86 |  |
| Total                                                            | $ | 1,473 |  | $ | 397 |  | $ | 1,076 |  |   | $ | 1,476 |  | $ | 333 |  | $ | 1,143 |  |

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|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         | Three Months Ended |   | Three Months Ended |
|                         | June 30, 2012 |   | June 30, 2011 |
| Segments                     | Revenue | Profit (Loss) |   | Revenue | Profit (Loss) |
| North America                | $ | 2,672 |  | $ | 357 |  |   | $ | 2,372 |  | $ | 434 |  |
| Latin America                | 604 |  | 77 |  |   | 544 |  | 71 |  |
| Europe/Africa/Russia Caspian | 925 |  | 156 |  |   | 817 |  | 44 |  |
| Middle East/Asia Pacific     | 804 |  | 87 |  |   | 713 |  | 87 |  |
| Industrial Services          | 321 |  | 44 |  |   | 295 |  | 44 |  |
| Total Operations             | 5,326 |  | 721 |  |   | 4,741 |  | 680 |  |
| Corporate and Other          | — |  | (82 | ) |   | — |  | (63 | ) |
| Interest Expense, net        | — |  | (50 | ) |   | — |  | (54 | ) |
| Total                        | $ | 5,326 |  | $ | 589 |  |   | $ | 4,741 |  | $ | 563 |  |

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|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         | Six Months Ended |   | Six Months Ended |
|                         | June 30, 2012 |   | June 30, 2011 |
| Segments                     | Revenue |   | Profit (Loss) |   | Revenue |   | Profit (Loss) |
| North America                | $ | 5,535 |  |   | $ | 758 |  |   | $ | 4,730 |  |   | $ | 889 |  |
| Latin America                | 1,177 |  |   | 144 |  |   | 1,018 |  |   | 133 |  |
| Europe/Africa/Russia Caspian | 1,818 |  |   | 309 |  |   | 1,599 |  |   | 132 |  |
| Middle East/Asia Pacific     | 1,549 |  |   | 162 |  |   | 1,377 |  |   | 166 |  |
| Industrial Services          | 602 |  |   | 66 |  |   | 542 |  |   | 67 |  |
| Total Operations             | 10,681 |  |   | 1,439 |  |   | 9,266 |  |   | 1,387 |  |
| Corporate and Other          | — |  |   | (173 | ) |   | — |  |   | (130 | ) |
| Interest Expense, net        | — |  |   | (104 | ) |   | — |  |   | (106 | ) |
| Total                        | $ | 10,681 |  |   | $ | 1,162 |  |   | $ | 9,266 |  |   | $ | 1,151 |  |

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                               | U.S. Pension Plans |   | Non-U.S. Pension Plans |   | Other Postretirement Benefits |
|                                                               | 2012 | 2011 |   | 2012 | 2011 |   | 2012 | 2011 |
| Service cost                                                       | $ | 16 |  | $ | 9 |  |   | $ | 2 |  | $ | 2 |  |   | $ | 3 |  | $ | 2 |  |
| Interest cost                                                      | 5 |  | 5 |  |   | 8 |  | 8 |  |   | 2 |  | 2 |  |
| Expected return on plan assets                                     | (9 | ) | (8 | ) |   | (9 | ) | (8 | ) |   | — |  | — |  |
| Amortization of prior service     benefit | — |  | — |  |   | — |  | — |  |   | (1 | ) | (1 | ) |
| Amortization of net loss                                           | 4 |  | 2 |  |   | 2 |  | 1 |  |   | — |  | — |  |
| Net periodic cost                                                  | $ | 16 |  | $ | 8 |  |   | $ | 3 |  | $ | 3 |  |   | $ | 4 |  | $ | 3 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | U.S. Pension Plans |   | Non-U.S. Pension Plans |   | Other Postretirement Benefits |
|                                                         | 2012 | 2011 |   | 2012 | 2011 |   | 2012 | 2011 |
| Service cost                                                 | $ | 32 |  | $ | 18 |  |   | $ | 4 |  | $ | 4 |  |   | $ | 6 |  | $ | 4 |  |
| Interest cost                                                | 10 |  | 10 |  |   | 16 |  | 16 |  |   | 4 |  | 4 |  |
| Expected return on plan assets                               | (18 | ) | (16 | ) |   | (18 | ) | (16 | ) |   | — |  | — |  |
| Amortization of prior service    benefit | — |  | — |  |   | — |  | — |  |   | (2 | ) | (2 | ) |
| Amortization of net loss                                     | 8 |  | 4 |  |   | 3 |  | 2 |  |   | 1 |  | — |  |
| Benefit settlement                                           | — |  | — |  |   | 6 |  | — |  |   | — |  | — |  |
| Net periodic cost                                            | $ | 32 |  | $ | 16 |  |   | $ | 11 |  | $ | 6 |  |   | $ | 9 |  | $ | 6 |  |

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|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Three Months Ended June 30, 2012 |
|                                  | U.S.PrivateEquityFund | U.S.PropertyFund | U.S.HedgeFunds | Non-U.S.PropertyFund | Non-U.S.InsuranceContracts | Total |
| Ending balance at March 31, 2012 | $ | — |  | $ | 5 |  | $ | 165 |  | $ | 19 |  | $ | 15 |  | $ | 204 |  |
| Unrealized gains                      | — |  | — |  | 1 |  | — |  | — |  | 1 |  |
| Unrealized losses                     | — |  | — |  | (3 | ) | — |  | — |  | (3 | ) |
| Purchases                             | 17 |  | 1 |  | — |  | — |  | — |  | 18 |  |
| Ending balance at June 30, 2012  | $ | 17 |  | $ | 6 |  | $ | 163 |  | $ | 19 |  | $ | 15 |  | $ | 220 |  |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | Six Months Ended June 30, 2012 |
|                                 | U.S.PrivateEquityFund | U.S.PropertyFund | U.S.HedgeFunds | Non-U.S.PropertyFund | Non-U.S.InsuranceContracts | Total |
| Ending balance at December 31, 2011  | $ | — |  | $ | 5 |  | $ | 110 |  | $ | 19 |  | $ | 15 |  | $ | 149 |  |
| Unrealized gains                     | — |  | — |  | 4 |  | — |  | — |  | 4 |  |
| Unrealized losses                    | — |  | — |  | (3 | ) | — |  | — |  | (3 | ) |
| Purchases                            | 17 |  | 1 |  | 52 |  | — |  | — |  | 70 |  |
| Ending balance at June 30, 2012 | $ | 17 |  | $ | 6 |  | $ | 163 |  | $ | 19 |  | $ | 15 |  | $ | 220 |  |

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|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |
|                                       | June 30, 2012 | December 31, 2011 |
| Foreign currency translation adjustments   | $ | (306 | ) | $ | (304 | ) |
| Pension and other postretirement benefits  | (232 | ) | (251 | ) |
| Net gain on hedge transactions             | 1 |  | — |  |
| Total accumulated other comprehensive loss | $ | (537 | ) | $ | (555 | ) |

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|         |                                                       |
|---------|-------------------------------------------------------|
| • | drilling and evaluation of oil and natural gas wells; |

|         |                                                             |
|---------|-------------------------------------------------------------|
| • | completion and production of oil and natural gas wells; and |

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | other industries, including downstream refining and process and pipeline industries. |

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|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                             | 2012 | 2011 |   | 2012 | 2011 |
| Brent oil prices ($/Bbl) (1)     | $ | 108.95 |  | $ | 116.81 |  |   | $ | 113.74 |  | $ | 110.96 |  |
| WTI oil prices ($/Bbl) (2)       | 93.42 |  | 102.34 |  |   | 98.14 |  | 98.50 |  |
| Natural gas prices ($/mmBtu) (3) | 2.29 |  | 4.38 |  |   | 2.37 |  | 4.29 |  |

|     |                                             |
|-----|---------------------------------------------|
| (1) | Bloomberg Dated Brent (“Brent”) |

|     |                                                                                    |
|-----|------------------------------------------------------------------------------------|
| (2) | Bloomberg West Texas Intermediate (“WTI”) Cushing Crude Oil Spot Price |

|     |                                            |
|-----|--------------------------------------------|
| (3) | Bloomberg Henry Hub Natural Gas Spot Price |

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|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |
|                          | Three Months Ended June 30, |   | Six Months EndedJune 30, |   |
|                          | 2012 | 2011 | % Change | 2012 | 2011 | % Change |
| U.S. - land and inland waters | 1,924 |  | 1,795 |  | 7 |  % | 1,935 |  | 1,745 |  | 11 |  % |
| U.S. - offshore               | 47 |  | 31 |  | 52 |  % | 45 |  | 28 |  | 61 |  % |
| Canada                        | 177 |  | 187 |  | (5 | )% | 380 |  | 379 |  | — |  % |
| North America                 | 2,148 |  | 2,013 |  | 7 |  % | 2,360 |  | 2,152 |  | 10 |  % |
| Latin America                 | 438 |  | 417 |  | 5 |  % | 435 |  | 413 |  | 5 |  % |
| North Sea                     | 41 |  | 38 |  | 8 |  % | 39 |  | 41 |  | (5 | )% |
| Continental Europe            | 76 |  | 74 |  | 3 |  % | 76 |  | 74 |  | 3 |  % |
| Africa                        | 90 |  | 76 |  | 18 |  % | 86 |  | 79 |  | 9 |  % |
| Middle East                   | 343 |  | 291 |  | 18 |  % | 327 |  | 287 |  | 14 |  % |
| Asia Pacific                  | 241 |  | 251 |  | (4 | )% | 246 |  | 262 |  | (6 | )% |
| Outside North America         | 1,229 |  | 1,147 |  | 7 |  % | 1,209 |  | 1,156 |  | 5 |  % |
| Worldwide                     | 3,377 |  | 3,160 |  | 7 |  % | 3,569 |  | 3,308 |  | 8 |  % |

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|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                       | Three Months Ended June 30, | $ Change | % Change | Six Months Ended June 30, | $ Change | % Change |
|                                                       | 2012 | 2011 | 2012 | 2011 |
| Revenue:                                                   |   |   |   |   |   |   |   |   |
| North America                                              | $ | 2,672 |  | $ | 2,372 |  | $ | 300 |  | 13 | % | $ | 5,535 |  | $ | 4,730 |  | $ | 805 |  | 17 |  % |
| Latin America                                              | 604 |  | 544 |  | 60 |  | 11 | % | 1,177 |  | 1,018 |  | 159 |  | 16 |  % |
| Europe/Africa/     Russia Caspian | 925 |  | 817 |  | 108 |  | 13 | % | 1,818 |  | 1,599 |  | 219 |  | 14 |  % |
| Middle East/     Asia Pacific     | 804 |  | 713 |  | 91 |  | 13 | % | 1,549 |  | 1,377 |  | 172 |  | 12 |  % |
| Industrial Services                                        | 321 |  | 295 |  | 26 |  | 9 | % | 602 |  | 542 |  | 60 |  | 11 |  % |
| Total                                                      | $ | 5,326 |  | $ | 4,741 |  | $ | 585 |  | 12 | % | $ | 10,681 |  | $ | 9,266 |  | $ | 1,415 |  | 15 |  % |
|                                                       |   |   |   |   |   |   |   |   |
|                                                       | Three Months Ended June 30, | $ Change | % Change | Six Months Ended June 30, | $ Change | % Change |
|                                                       | 2012 | 2011 | 2012 | 2011 |
| Profit Before Tax:                                         |   |   |   |   |   |   |   |   |
| North America                                              | $ | 357 |  | $ | 434 |  | $ | (77 | ) | (18 | %) | $ | 758 |  | $ | 889 |  | $ | (131 | ) | (15 | )% |
| Latin America                                              | 77 |  | 71 |  | 6 |  | 8 | % | 144 |  | 133 |  | 11 |  | 8 |  % |
| Europe/Africa/     Russia Caspian | 156 |  | 44 |  | 112 |  | 255 | % | 309 |  | 132 |  | 177 |  | 134 |  % |
| Middle East/     Asia Pacific     | 87 |  | 87 |  | — |  | — | % | 162 |  | 166 |  | (4 | ) | (2 | )% |
| Industrial Services                                        | 44 |  | 44 |  | — |  | — | % | 66 |  | 67 |  | (1 | ) | (1 | )% |
| Total Operations                                           | 721 |  | 680 |  | 41 |  | 6 | % | 1,439 |  | 1,387 |  | 52 |  | 4 |  % |
| Corporate and Other                                        | (82 | ) | (63 | ) | (19 | ) | 30 | % | (173 | ) | (130 | ) | (43 | ) | 33 |  % |
| Interest Expense, net                                      | (50 | ) | (54 | ) | 4 |  | (7 | %) | (104 | ) | (106 | ) | 2 |  | (2 | )% |
| Total                                                      | $ | 589 |  | $ | 563 |  | $ | 26 |  | 5 | % | $ | 1,162 |  | $ | 1,151 |  | $ | 11 |  | 1 |  % |

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|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                         | 2012 | 2011 |   | 2012 | 2011 |
|                                                         | $ | % | $ | % |   | $ | % | $ | % |
| Revenue                                                      | $ | 5,326 |  | 100 | % | $ | 4,741 |  | 100 | % |   | $ | 10,681 |  | 100 | % | $ | 9,266 |  | 100 | % |
| Cost of revenue                                              | 4,254 |  | 80 | % | 3,718 |  | 78 | % |   | 8,519 |  | 80 | % | 7,215 |  | 78 | % |
| Research and engineering                                     | 128 |  | 2 | % | 114 |  | 2 | % |   | 252 |  | 2 | % | 220 |  | 2 | % |
| Marketing, general and    administrative | 305 |  | 6 | % | 292 |  | 6 | % |   | 644 |  | 6 | % | 574 |  | 6 | % |

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|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Worldwide Economic Growth - In general there is a strong linkage between overall economic activity, growth and the demand for hydrocarbons.  Although we continue to see modest economic growth across the OECD countries and relatively strong growth among many developing economies, there is substantial concern regarding the economic outlook throughout 2012.  These concerns are primarily fueled by a concern over sovereign debt issues in Europe and a slowdown in the Chinese economy.  The European sovereign debt crisis poses substantial risk to the worldwide economy as any substantial reduction in economic activity in Europe is likely to impact other major economies such as China, India and the U.S.  Although steps are being taken to resolve this issue, there is still concern in the financial and equity markets that European economic activity will continue to slow in 2012.  China’s rapid economic growth and industrialization has been a major factor in driving up world-wide economic growth since the recession of 2008/2009.  It is expected that China will continue to grow at a meaningful pace, however, there is concern that the Chinese central bank’s efforts to limit inflation may temper growth prospects.  In the U.S., there has been a slow recovery from the recession of 2008/2009 as the economy continues to deal with the effects of the financial crisis, and the expectation is for modest economic growth in the U.S. throughout 2012.  However, weakness or deterioration of the global economy, particularly in China, India and Europe, could curtail U.S. economic growth from current estimates. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Demand for Hydrocarbons - In its July 2012 Oil Market Report, the IEA maintained its forecasts that it expects global demand for oil to increase 0.8 million barrels per day in 2012 relative to 2011.  The expected increase in demand for hydrocarbons should support increased spending to develop oil.  Natural gas is an increasingly important hydrocarbon to meet the world’s energy needs, and recent innovations in the U.S. have substantially improved the production of natural gas in the U.S.  As a result, natural gas demand remains near all-time highs in the U.S.  Further, Europe and Asia are increasing their demand for natural gas as production from major gas fields in the Middle East, Africa and Asia Pacific are imported into the consuming regions. |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Oil Production - Global spare oil production capacity is relatively limited and is proving to be inadequate to decouple oil prices from geopolitical supply disruptions throughout North Africa and the Middle East.  Several key OPEC countries have announced plans to increase their exploration and development efforts to develop resources to offset reduced supplies from Iran and meet the expected increase in global demand.  Sustained higher oil prices have led non-OPEC producers, particularly in the U.S., to increase capital spending and apply new technology to increase oil production.  Although this is a positive trend for the U.S. that is expected to continue for many years to come, it will provide only a modest offset to any potential supply disruption across the rest of the world. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Natural Gas Production - Worldwide natural gas production continues to grow as a result of the emergence of the unconventional shale plays in North America as well as an abundance of large conventional fields in the Middle East, Asia and Latin America.  Low natural gas prices in the U.S. have driven a reduction in the natural gas-directed rig activity in the U.S., which has begun to impact natural gas production, though not enough to result in a substantial increase in prices.  Worldwide natural gas production will tend to be more stable as high natural gas prices in places such as Europe and Asia encourage natural gas production at current levels. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Oil and Natural Gas Prices - With WTI oil prices trading between $77.69/Bbl and $109.49/Bbl during the first six months of 2012, we believe most unconventional oil plays in the U.S. as well as most conventional oil developments internationally will provide adequate returns to encourage incremental investment.  Internationally, most oil developments are based on Brent oil prices which have also been at a high enough level to justify further investment in field development.  Based on the tightness of the oil supply and the anticipated modest economic growth, we would expect oil prices to remain relatively strong throughout 2012 barring a major macro-economic event.  Currently oil prices are somewhat elevated from levels seen early in the second quarter 2012 due to concern over geopolitical uncertainty in Iran and labor disputes in the North Sea.  In North America, natural gas prices are particularly low when compared to oil on a BTU equivalent basis.  This low price is driven by a combination of far more efficient production from the unconventional plays in the U.S. as well as a particularly warm winter.  Although industrial demand, a warm summer in the U.S. thus far, and power generation are gradually increasing and demanding more natural gas, it is not enough to offset the increase in production from the unconventional plays.  As a result, the expectation is that natural gas prices will remain particularly low throughout 2012. |

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|----------------------|
|                      |  |  |  |  |  |  |
| (In millions)        | 2012 | 2011 |
| Operating activities | $ | 124 |  | $ | 397 |  |
| Investing activities | (1,239 | ) | (636 | ) |
| Financing activities | 855 |  | (295 | ) |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | An increase in accounts receivable used cash of $130 million and $512 million in the six months ended June 30, 2012 and 2011, respectively.  The change in accounts receivable was primarily due to an increase in activity and an increase in days sales outstanding (defined as the average number of days our net trade receivables are outstanding based on quarterly revenue) of approximately 2 days and 4 days for the six months ended June 30, 2012 and 2011, respectively. |

|         |                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | An increase in inventory used cash of $597 million and $314 million in the six months ended June 30, 2012 and 2011, respectively, driven by an increase in production of finished goods due to continued high activity levels. |

|         |                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Accrued employee compensation and other accrued liabilities used $178 million and $25 million in cash in the six months ended June 30, 2012 and 2011, respectively.  The increase in cash used was due primarily to an increase in payments in 2012 compared to 2011 related to employee bonuses earned in 2011 but paid in 2012. |

|         |                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Other operating items used cash of $308 million and $1 million in the six months ended June 30, 2012 and 2011, respectively.  The increase was primarily due to an increase in payments for pensions and other postretirement benefits and an increase in prepaid assets. |

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|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Period                     | Total Numberof SharesPurchased (1) | Average PricePaid Per Share (1) | Total Numberof SharesPurchased asPart of aPubliclyAnnouncedProgram (2) | AveragePrice PaidPer Share (2) | Total Numberof SharesPurchased inthe Aggregate | Maximum Number(or ApproximateDollar Value) ofShares that May YetBe Purchased Under the Program (3) |
| April 1-30, 2012 | 31,615 |  | $ | 41.67 |  | — |  | $ | — |  | 31,615 |  | $ | — |  |
| May 1-31, 2012   | 2,093 |  | 43.85 |  | — |  | — |  | 2,093 |  | — |  |
| June 1-30, 2012  | — |  | — |  | — |  | — |  | — |  | — |  |
| Total                      | 33,708 |  | $ | 41.81 |  | — |  | $ | — |  | 33,708 |  | $ | 1,197,127,803 |  |

|     |                                                                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Represents shares purchased from employees to pay the option exercise price related to stock-for-stock exchanges in option exercises or to satisfy the tax withholding obligations in connection with the vesting of restricted stock awards and restricted stock units. |

|     |                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------|
| (2) | There were no share repurchases during the three months ended June 30, 2012 as part of a publicly announced program. |

|     |                                                                                                                                                                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Our Board of Directors has authorized a program to repurchase our common stock from time to time.  During the three months ended June 30, 2012, we did not repurchase any shares of our common stock under the program.  We had authorization remaining to repurchase up to a total of approximately $1.2 billion of our common stock. |

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|          |
|----------|
|          |  |  |
| 3.1      |   | Restated Bylaws of Baker Hughes Incorporated effective as of May 21, 2012 (filed as Exhibit 3.1 to Current Report of Baker Hughes Incorporated on Form 8-K filed May 21, 2012). |
|     |   |   |
| 10.1* +  |   | Form of Change in Control Agreement between Baker Hughes Incorporated and certain of its executive officers effective July 16, 2012. |
|     |   |   |
| 31.1*    |   | Certification of Martin S. Craighead, President and Chief Executive Officer, furnished pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. |
|     |   |   |
| 31.2*    |   | Certification of Peter A. Ragauss, Chief Financial Officer, furnished pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. |
|     |   |   |
| 32*      |   | Statement of Martin S. Craighead, President and Chief Executive Officer, and Peter A. Ragauss, Chief Financial Officer, furnished pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. |
|     |   |   |
| 95*      |   | Mine Safety Disclosure. |
|     |   |   |
| 101.INS* |   | XBRL Instance Document |
|     |   |   |
| 101.SCH* |   | XBRL Schema Document |
|     |   |   |
| 101.CAL* |   | XBRL Calculation Linkbase Document |
|     |   |   |
| 101.LAB* |   | XBRL Label Linkbase Document |
|     |   |   |
| 101.PRE* |   | XBRL Presentation Linkbase Document |
|     |   |   |
| 101.DEF* |   | XBRL Definition Linkbase Document |

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|--------|
|        |  |  |  |
|   |   | BAKER HUGHES INCORPORATED(Registrant) |
|   |   |   |   |
| Date:  | July 26, 2012 | By: | /s/ PETER A. RAGAUSS  |
|   |   | Peter A. Ragauss |
|   |   | Senior Vice President and Chief Financial Officer |
|   |   |   |   |
| Date:  | July 26, 2012 | By: | /s/ ALAN J. KEIFER  |
|   |   | Alan J. Keifer |
|   |   | Vice President and Controller |