|        |
|--------|
|        |  |  |
| 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 |
|                           |   | (Do not check if a smaller reporting company) |

----

|           |
|-----------|
|           |  |  |
|      |   | Page No. |
| PART I -  | FINANCIAL INFORMATION |   |
|      |   |   |
| Item 1.   | Financial Statements (Unaudited) |   |
|      |   |   |
|      | Consolidated Condensed Statements of Income (Loss) (Unaudited) - Three and nine months ended September 30, 2015 and 2014 | 2 |
|      |   |   |
|      | Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) - Three and nine months ended September 30, 2015 and 2014 | 3 |
|      |   |   |
|      | Consolidated Condensed Balance Sheets (Unaudited) - September 30, 2015 and December 31, 2014 | 4 |
|      |   |   |
|      | Consolidated Condensed Statements of Changes in Equity (Unaudited) - Nine months ended September 30, 2015 and 2014 | 5 |
|      |   |   |
|      | Consolidated Condensed Statements of Cash Flows (Unaudited) - Three and nine months ended September 30, 2015 and 2014 | 6 |
|      |   |   |
|      | Notes to Unaudited Consolidated Condensed Financial Statements | 7 |
|      |   |   |
| Item 2.   | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 18 |
|      |   |   |
| Item 3.   | Quantitative and Qualitative Disclosures About Market Risk | 28 |
|      |   |   |
| Item 4.   | Controls and Procedures | 29 |
|      |   |   |
| PART II - | OTHER INFORMATION |   |
|      |   |   |
| Item 1.   | Legal Proceedings | 30 |
|      |   |   |
| Item 1A.  | Risk Factors | 30 |
|      |   |   |
| Item 2.   | Unregistered Sales of Equity Securities and Use of Proceeds | 30 |
|      |   |   |
| Item 3.   | Defaults Upon Senior Securities | 30 |
|      |   |   |
| Item 4.   | Mine Safety Disclosures | 30 |
|      |   |   |
| Item 5.   | Other Information | 31 |
|      |   |   |
| Item 6.   | Exhibits | 31 |
|      |   |   |
|      | Signatures | 32 |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                           | Three Months Ended September 30, |   | Nine Months Ended September 30, |
| (In millions, except per share amounts)                        | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Revenue:                                                       |   |   |   |   |   |   |   |
| Sales                                                          | $ | 1,363 |  |   | $ | 2,013 |  |   | $ | 4,322 |  |   | $ | 5,845 |  |
| Services                                                       | 2,423 |  |   | 4,237 |  |   | 8,026 |  |   | 12,071 |  |
| Total revenue                                                  | 3,786 |  |   | 6,250 |  |   | 12,348 |  |   | 17,916 |  |
| Costs and expenses:                                            |   |   |   |   |   |   |   |
| Cost of sales                                                  | 1,148 |  |   | 1,620 |  |   | 3,723 |  |   | 4,651 |  |
| Cost of services                                               | 2,255 |  |   | 3,487 |  |   | 7,637 |  |   | 9,921 |  |
| Research and engineering                                       | 115 |  |   | 159 |  |   | 377 |  |   | 461 |  |
| Marketing, general and administrative                          | 271 |  |   | 323 |  |   | 896 |  |   | 977 |  |
| Restructuring charges                                          | 98 |  |   | — |  |   | 747 |  |   | — |  |
| Litigation settlements                                         | — |  |   | — |  |   | (13 | ) |   | 62 |  |
| Total costs and expenses                                       | 3,887 |  |   | 5,589 |  |   | 13,367 |  |   | 16,072 |  |
| Operating (loss) income                                        | (101 | ) |   | 661 |  |   | (1,019 | ) |   | 1,844 |  |
| Interest expense, net                                          | (55 | ) |   | (59 | ) |   | (162 | ) |   | (175 | ) |
| (Loss) income before income taxes                              | (156 | ) |   | 602 |  |   | (1,181 | ) |   | 1,669 |  |
| Income taxes                                                   | — |  |   | (233 | ) |   | 242 |  |   | (605 | ) |
| Net (loss) income                                              | (156 | ) |   | 369 |  |   | (939 | ) |   | 1,064 |  |
| Net (income) loss attributable to noncontrolling interests     | (3 | ) |   | 6 |  |   | 3 |  |   | (8 | ) |
| Net (loss) income attributable to Baker Hughes                 | $ | (159 | ) |   | $ | 375 |  |   | $ | (936 | ) |   | $ | 1,056 |  |
|                                                           |   |   |   |   |   |   |   |
| Basic (loss) earnings per share attributable to Baker Hughes   | $ | (0.36 | ) |   | $ | 0.86 |  |   | $ | (2.13 | ) |   | $ | 2.42 |  |
|                                                           |   |   |   |   |   |   |   |
| Diluted (loss) earnings per share attributable to Baker Hughes | $ | (0.36 | ) |   | $ | 0.86 |  |   | $ | (2.13 | ) |   | $ | 2.40 |  |
|                                                           |   |   |   |   |   |   |   |
| Cash dividends per share                                       | $ | 0.17 |  |   | $ | 0.17 |  |   | $ | 0.51 |  |   | $ | 0.47 |  |

----

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                 | Three Months Ended September 30, |   | Nine Months Ended September 30, |
| (In millions)                                                        | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Net (loss) income                                                    | $ | (156 | ) |   | $ | 369 |  |   | $ | (939 | ) |   | $ | 1,064 |  |
| Other comprehensive (loss) income:                                   |   |   |   |   |   |   |   |
| Foreign currency translation adjustments during the period           | (91 | ) |   | (111 | ) |   | (182 | ) |   | (108 | ) |
| Pension and other postretirement benefits, net of tax                | 5 |  |   | 4 |  |   | 6 |  |   | (4 | ) |
| Other comprehensive (loss) income                                    | (86 | ) |   | (107 | ) |   | (176 | ) |   | (112 | ) |
| Comprehensive (loss) income                                          | (242 | ) |   | 262 |  |   | (1,115 | ) |   | 952 |  |
| Comprehensive (income) loss attributable to noncontrolling interests | (3 | ) |   | 6 |  |   | 3 |  |   | (8 | ) |
| Comprehensive (loss) income attributable to Baker Hughes             | $ | (245 | ) |   | $ | 268 |  |   | $ | (1,112 | ) |   | $ | 944 |  |

----

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |
| (In millions)                                                                               | September 30, 2015 |   | December 31, 2014 |
| ASSETS                                                                                      |
| Current assets:                                                                             |   |   |   |
| Cash and cash equivalents                                                                   | $ | 2,043 |  |   | $ | 1,740 |  |
| Accounts receivable - less allowance for doubtful accounts(2015 - $366; 2014 - $224)        | 3,518 |  |   | 5,418 |  |
| Inventories, net                                                                            | 3,262 |  |   | 4,074 |  |
| Deferred income taxes                                                                       | 332 |  |   | 418 |  |
| Other current assets                                                                        | 431 |  |   | 395 |  |
| Total current assets                                                                        | 9,586 |  |   | 12,045 |  |
| Property, plant and equipment - less accumulated depreciation(2015 - $8,721; 2014 - $8,215) | 8,026 |  |   | 9,063 |  |
| Goodwill                                                                                    | 6,075 |  |   | 6,081 |  |
| Intangible assets, net                                                                      | 729 |  |   | 812 |  |
| Other assets                                                                                | 1,000 |  |   | 826 |  |
| Total assets                                                                                | $ | 25,416 |  |   | $ | 28,827 |  |
| LIABILITIES AND EQUITY                                                                      |
| Current liabilities:                                                                        |   |   |   |
| Accounts payable                                                                            | $ | 1,480 |  |   | $ | 2,807 |  |
| Short-term debt and current portion of long-term debt                                       | 156 |  |   | 220 |  |
| Accrued employee compensation                                                               | 795 |  |   | 782 |  |
| Income taxes payable                                                                        | 50 |  |   | 265 |  |
| Other accrued liabilities                                                                   | 437 |  |   | 563 |  |
| Total current liabilities                                                                   | 2,918 |  |   | 4,637 |  |
| Long-term debt                                                                              | 3,896 |  |   | 3,913 |  |
| Deferred income taxes and other tax liabilities                                             | 324 |  |   | 740 |  |
| Liabilities for pensions and other postretirement benefits                                  | 624 |  |   | 629 |  |
| Other liabilities                                                                           | 149 |  |   | 178 |  |
| Commitments and contingencies                                                               |  |  |   |  |  |
| Equity:                                                                                     |   |   |   |
| Common stock                                                                                | 436 |  |   | 434 |  |
| Capital in excess of par value                                                              | 7,192 |  |   | 7,062 |  |
| Retained earnings                                                                           | 10,720 |  |   | 11,878 |  |
| Accumulated other comprehensive loss                                                        | (925 | ) |   | (749 | ) |
| Treasury stock                                                                              | (9 | ) |   | — |  |
| Baker Hughes stockholders’ equity                                                     | 17,414 |  |   | 18,625 |  |
| Noncontrolling interests                                                                    | 91 |  |   | 105 |  |
| Total equity                                                                                | 17,505 |  |   | 18,730 |  |
| Total liabilities and equity                                                                | $ | 25,416 |  |   | $ | 28,827 |  |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                             | Baker Hughes Stockholders' Equity |   |   |   |   |
| (In millions, except per share amounts)          | Common Stock |   | Capitalin ExcessofPar Value |   | RetainedEarnings |   | AccumulatedOtherComprehensiveLoss |   | Treasury Stock |   | Non-controllingInterests |   | Total Equity |
| Balance at December 31, 2014                     | $ | 434 |  |   | $ | 7,062 |  |   | $ | 11,878 |  |   | $ | (749 | ) |   | $ | — |  |   | $ | 105 |  |   | $ | 18,730 |  |
| Comprehensive loss:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                         |   |   |   |   | (936 | ) |   |   |   |   |   | (3 | ) |   | (939 | ) |
| Other comprehensive loss                         |   |   |   |   |   |   | (176 | ) |   |   |   |   |   | (176 | ) |
| Activity related to stock plans                  | 2 |  |   | 62 |  |   |   |   |   |   | (9 | ) |   |   |   | 55 |  |
| Stock-based compensation                         |   |   | 92 |  |   |   |   |   |   |   |   |   |   | 92 |  |
| Cash dividends ($0.51 per share)                 |   |   |   |   | (222 | ) |   |   |   |   |   |   |   | (222 | ) |
| Net activity related to noncontrolling interests |   |   | (24 | ) |   |   |   |   |   |   |   | (11 | ) |   | (35 | ) |
| Balance at September 30, 2015                    | $ | 436 |  |   | $ | 7,192 |  |   | $ | 10,720 |  |   | $ | (925 | ) |   | $ | (9 | ) |   | $ | 91 |  |   | $ | 17,505 |  |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                             | Baker Hughes Stockholders' Equity |   |   |   |
| (In millions, except per share amounts)          | Common Stock |   | Capitalin ExcessofPar Value |   | RetainedEarnings |   | AccumulatedOtherComprehensiveLoss |   | Non-controllingInterests |   | Total Equity |
| Balance at December 31, 2013                     | $ | 438 |  |   | $ | 7,341 |  |   | $ | 10,438 |  |   | $ | (504 | ) |   | $ | 199 |  |   | $ | 17,912 |  |
| Comprehensive income:                            |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                       |   |   |   |   | 1,056 |  |   |   |   | 8 |  |   | 1,064 |  |
| Other comprehensive loss                         |   |   |   |   |   |   | (112 | ) |   |   |   | (112 | ) |
| Activity related to stock plans                  | 4 |  |   | 134 |  |   |   |   |   |   |   |   | 138 |  |
| Repurchase and retirement of common stock        | (9 | ) |   | (591 | ) |   |   |   |   |   |   |   | (600 | ) |
| Stock-based compensation                         |   |   | 93 |  |   |   |   |   |   |   |   | 93 |  |
| Cash dividends ($0.47 per share)                 |   |   |   |   | (205 | ) |   |   |   |   |   | (205 | ) |
| Net activity related to noncontrolling interests |   |   |   |   |   |   |   |   | (6 | ) |   | (6 | ) |
| Balance at September 30, 2014                    | $ | 433 |  |   | $ | 6,977 |  |   | $ | 11,289 |  |   | $ | (616 | ) |   | $ | 201 |  |   | $ | 18,284 |  |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |
|                                                                                    | Nine Months Ended September 30, |
| (In millions)                                                                           | 2015 |   | 2014 |
| Cash flows from operating activities:                                                   |   |   |   |
| Net (loss) income                                                                       | $ | (939 | ) |   | $ | 1,064 |  |
| Adjustments to reconcile net (loss) income to net cash flows from operating activities: |   |   |   |
| Depreciation and amortization                                                           | 1,326 |  |   | 1,346 |  |
| Impairment of assets                                                                    | 265 |  |   | — |  |
| Benefit for deferred income taxes                                                       | (359 | ) |   | (99 | ) |
| Provision for doubtful accounts                                                         | 160 |  |   | 86 |  |
| Other noncash items                                                                     | (3 | ) |   | (89 | ) |
| Changes in operating assets and liabilities:                                            |   |   |   |
| Accounts receivable                                                                     | 1,692 |  |   | (572 | ) |
| Inventories                                                                             | 764 |  |   | (280 | ) |
| Accounts payable                                                                        | (1,289 | ) |   | 186 |  |
| Income taxes payable                                                                    | (263 | ) |   | 133 |  |
| Other operating items, net                                                              | (89 | ) |   | (21 | ) |
| Net cash flows provided by operating activities                                         | 1,265 |  |   | 1,754 |  |
| Cash flows from investing activities:                                                   |   |   |   |
| Expenditures for capital assets                                                         | (751 | ) |   | (1,288 | ) |
| Proceeds from disposal of assets                                                        | 269 |  |   | 295 |  |
| Acquisition of businesses, net of cash acquired                                         | — |  |   | (313 | ) |
| Other investing items, net                                                              | (231 | ) |   | — |  |
| Net cash flows used in investing activities                                             | (713 | ) |   | (1,306 | ) |
| Cash flows from financing activities:                                                   |   |   |   |
| Net (repayments) proceeds of short-term debt and other borrowings                       | (38 | ) |   | 51 |  |
| Repurchase of common stock                                                              | — |  |   | (600 | ) |
| Dividends paid                                                                          | (222 | ) |   | (205 | ) |
| Other financing items, net                                                              | 21 |  |   | 120 |  |
| Net cash flows used in financing activities                                             | (239 | ) |   | (634 | ) |
| Effect of foreign exchange rate changes on cash and cash equivalents                    | (10 | ) |   | (4 | ) |
| Increase (decrease) in cash and cash equivalents                                        | 303 |  |   | (190 | ) |
| Cash and cash equivalents, beginning of period                                          | 1,740 |  |   | 1,399 |  |
| Cash and cash equivalents, end of period                                                | $ | 2,043 |  |   | $ | 1,209 |  |
| Supplemental cash flows disclosures:                                                    |   |   |   |
| Income taxes paid, net of refunds                                                       | $ | 395 |  |   | $ | 571 |  |
| Interest paid                                                                           | $ | 192 |  |   | $ | 199 |  |
| Supplemental disclosure of noncash investing activities:                                |   |   |   |
| Capital expenditures included in accounts payable                                       | $ | 52 |  |   | $ | 123 |  |

----

----

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |
|                                                 | Three Months Ended |   | Nine Months Ended |
| Restructuring Charges                                | September 30, 2015 |   | September 30, 2015 |
|   Workforce reductions                     | $ | 108 |  |   | $ | 416 |  |
|   Contract terminations                    | — |  |   | 83 |  |
|   Impairment of buildings and improvements | — |  |   | 82 |  |
|   Impairment of machinery and equipment    | (10 | ) |   | 166 |  |
| Total restructuring charges                          | $ | 98 |  |   | $ | 747 |  |

----

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         | Three Months Ended |   | Three Months Ended |
|                         | September 30, 2015 |   | September 30, 2014 |
| Segments                     | Revenue |   | Profit (Loss) Before Taxes |   | Revenue |   | Profit (Loss) Before Taxes |
| North America                | $ | 1,368 |  |   | $ | (169 | ) |   | $ | 3,155 |  |   | $ | 380 |  |
| Latin America                | 439 |  |   | 48 |  |   | 571 |  |   | 71 |  |
| Europe/Africa/Russia Caspian | 791 |  |   | 90 |  |   | 1,114 |  |   | 91 |  |
| Middle East/Asia Pacific     | 849 |  |   | 69 |  |   | 1,077 |  |   | 155 |  |
| Industrial Services          | 339 |  |   | 40 |  |   | 333 |  |   | 35 |  |
| Total Operations             | 3,786 |  |   | 78 |  |   | 6,250 |  |   | 732 |  |
| Corporate and other          | — |  |   | (81 | ) |   | — |  |   | (71 | ) |
| Interest expense, net        | — |  |   | (55 | ) |   | — |  |   | (59 | ) |
| Restructuring charges        | — |  |   | (98 | ) |   | — |  |   | — |  |
| Total                        | $ | 3,786 |  |   | $ | (156 | ) |   | $ | 6,250 |  |   | $ | 602 |  |

----

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         | Nine Months Ended |   | Nine Months Ended |
|                         | September 30, 2015 |   | September 30, 2014 |
| Segments                     | Revenue |   | Profit (Loss) Before Taxes |   | Revenue |   | Profit (Loss) Before Taxes |
| North America                | $ | 4,872 |  |   | $ | (545 | ) |   | $ | 8,774 |  |   | $ | 978 |  |
| Latin America                | 1,371 |  |   | 122 |  |   | 1,645 |  |   | 172 |  |
| Europe/Africa/Russia Caspian | 2,555 |  |   | 117 |  |   | 3,269 |  |   | 421 |  |
| Middle East/Asia Pacific     | 2,621 |  |   | 182 |  |   | 3,241 |  |   | 448 |  |
| Industrial Services          | 929 |  |   | 79 |  |   | 987 |  |   | 96 |  |
| Total Operations             | 12,348 |  |   | (45 | ) |   | 17,916 |  |   | 2,115 |  |
| Corporate and other          | — |  |   | (240 | ) |   | — |  |   | (209 | ) |
| Interest expense, net        | — |  |   | (162 | ) |   | — |  |   | (175 | ) |
| Restructuring charges        | — |  |   | (747 | ) |   | — |  |   | — |  |
| Litigation settlements       | — |  |   | 13 |  |   | — |  |   | (62 | ) |
| Total                        | $ | 12,348 |  |   | $ | (1,181 | ) |   | $ | 17,916 |  |   | $ | 1,669 |  |

----

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                             | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Weighted average common shares outstanding for basic EPS         | 439 |  |   | 436 |  |   | 438 |  |   | 437 |  |
| Adjustment for effect of dilutive securities - stock plans       | — |  |   | 2 |  |   | — |  |   | 3 |  |
| Weighted average common shares outstanding for diluted EPS       | 439 |  |   | 438 |  |   | 438 |  |   | 440 |  |
|                                                             |   |   |   |   |   |   |   |
| Anti-dilutive shares excluded from diluted EPS (1)               | 1 |  |   | — |  |   | 2 |  |   | — |  |
| Future potentially dilutive shares excluded from diluted EPS (2) | 3 |  |   | 2 |  |   | 3 |  |   | 2 |  |

|           |                                                                                                                                                                                                                                                                                                   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | The calculation of diluted net loss per share for both the three and nine months ended September 30, 2015, excludes shares potentially issuable under stock-based incentive compensation plans and the employee stock purchase plan, as their effect, if included, would have been anti-dilutive. |

|           |                                                                                                                                                                                            |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Options where the exercise price exceeds the average market price are excluded from the calculation of diluted net loss or earnings per share because their effect would be anti-dilutive. |

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
|              | September 30, 2015 |   | December 31, 2014 |
| Finished goods    | $ | 2,928 |  |   | $ | 3,644 |  |
| Work in process   | 188 |  |   | 227 |  |
| Raw materials     | 146 |  |   | 203 |  |
| Total inventories | $ | 3,262 |  |   | $ | 4,074 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | September 30, 2015 |   | December 31, 2014 |
|                    | GrossCarryingAmount |   | Less:AccumulatedAmortization |   | Net |   | GrossCarryingAmount |   | Less:AccumulatedAmortization |   | Net |
| Technology              | $ | 872 |  |   | $ | 438 |  |   | $ | 434 |  |   | $ | 870 |  |   | $ | 393 |  |   | $ | 477 |  |
| Customer relationships  | 487 |  |   | 221 |  |   | 266 |  |   | 488 |  |   | 191 |  |   | 297 |  |
| Trade names             | 119 |  |   | 95 |  |   | 24 |  |   | 120 |  |   | 92 |  |   | 28 |  |
| Other                   | 18 |  |   | 13 |  |   | 5 |  |   | 23 |  |   | 13 |  |   | 10 |  |
| Total intangible assets | $ | 1,496 |  |   | $ | 767 |  |   | $ | 729 |  |   | $ | 1,501 |  |   | $ | 689 |  |   | $ | 812 |  |

----

|                   |
|-------------------|
|                   |  |  |  |
| Year              | Estimated Amortization Expense |
| Remainder of 2015 | $ | 26 |  |
| 2016              | 101 |  |
| 2017              | 98 |  |
| 2018              | 92 |  |
| 2019              | 88 |  |
| 2020              | 78 |  |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | U.S. Pension Benefits |   | Non-U.S. Pension Benefits |   | Other Postretirement Benefits |
|                                 | 2015 |   | 2014 |   | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Service cost                         | $ | 15 |  |   | $ | 17 |  |   | $ | 4 |  |   | $ | 3 |  |   | $ | 1 |  |   | $ | 1 |  |
| Interest cost                        | 6 |  |   | 7 |  |   | 7 |  |   | 8 |  |   | 1 |  |   | 1 |  |
| Expected return on plan assets       | (12 | ) |   | (11 | ) |   | (12 | ) |   | (9 | ) |   | — |  |   | — |  |
| Amortization of prior service credit | — |  |   | — |  |   | — |  |   | — |  |   | (2 | ) |   | (2 | ) |
| Amortization of net actuarial loss   | 3 |  |   | 2 |  |   | 2 |  |   | 1 |  |   | — |  |   | 1 |  |
| Curtailment gain                     | — |  |   | — |  |   | — |  |   | — |  |   | (2 | ) |   | — |  |
| Other                                | 8 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Net periodic cost (benefit)          | $ | 20 |  |   | $ | 15 |  |   | $ | 1 |  |   | $ | 3 |  |   | $ | (2 | ) |   | $ | 1 |  |

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | U.S. Pension Benefits |   | Non-U.S. Pension Benefits |   | Other Postretirement Benefits |
|                                 | 2015 |   | 2014 |   | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Service cost                         | $ | 49 |  |   | $ | 52 |  |   | $ | 12 |  |   | $ | 10 |  |   | $ | 3 |  |   | $ | 4 |  |
| Interest cost                        | 20 |  |   | 21 |  |   | 23 |  |   | 26 |  |   | 3 |  |   | 4 |  |
| Expected return on plan assets       | (37 | ) |   | (33 | ) |   | (36 | ) |   | (29 | ) |   | — |  |   | — |  |
| Amortization of prior service credit | — |  |   | — |  |   | — |  |   | — |  |   | (8 | ) |   | (5 | ) |
| Amortization of net actuarial loss   | 7 |  |   | 6 |  |   | 4 |  |   | 3 |  |   | 2 |  |   | 2 |  |
| Curtailment gain                     | — |  |   | — |  |   | — |  |   | — |  |   | (11 | ) |   | — |  |
| Other                                | 8 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (3 | ) |
| Net periodic cost (benefit)          | $ | 47 |  |   | $ | 46 |  |   | $ | 3 |  |   | $ | 10 |  |   | $ | (11 | ) |   | $ | 2 |  |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | On November 24, 2014, Gary Molenda, a purported shareholder of the Company, filed a class action lawsuit in the Court of Chancery of the State of Delaware ("Delaware Chancery Court") against Baker Hughes, the Company’s Board of Directors, Halliburton, and Red Tiger LLC, a wholly owned subsidiary of Halliburton (“Red Tiger” and together with all defendants, “Defendants”) styled Gary R. Molenda v. Baker Hughes, Inc., et al., Case No. 10390-CB. |

|         |                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | On November 26, 2014, a second purported shareholder of the Company, Booth Family Trust, filed a substantially similar class action lawsuit in Delaware Chancery Court. |

|         |                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | On December 1, 2014, New Jersey Building Laborers Annuity Fund and James Rice, two additional purported shareholders of the Company, filed substantially similar class action lawsuits in Delaware Chancery Court. |

|         |                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | On December 10, 2014, a fifth purported shareholder of the Company, Iron Workers Mid-South Pension Fund, filed another substantially similar class action lawsuit in the Delaware Chancery Court. |

|         |                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | On December 24, 2014, a sixth purported shareholder of the Company, Annette Shipp, filed another substantially similar class action lawsuit in the Delaware Chancery Court. |

----

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | On April 28, 2014, a collective action lawsuit alleging that we failed to pay a class of workers overtime in compliance with the Fair Labor Standards Act ("FLSA") was filed titled Michael Ciamillo, individually, etc., et al. vs. Baker Hughes Incorporated in the U.S. District Court for the District of Alaska (“Ciamillo”).  During the fourth quarter of 2014, the parties agreed to settle the Ciamillo lawsuit, including certain state law claims, for $5 million.  The court granted final approval of that settlement on June 19, 2015. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | On December 10, 2013, a class and collective action lawsuit alleging that we failed to pay a nationwide class of workers overtime in compliance with the FLSA and certain state laws was filed titled Lea et al. v. Baker Hughes, Inc. in the U.S. District Court for the Southern District of Texas, Galveston Division ("Lea").  During the second quarter of 2014, the parties agreed to settle the Lea lawsuit, subject to final court approval, and we recorded a charge of $62 million, which included an estimate of the Lea settlement amount and associated costs and an amount for settlement of another wage and hour lawsuit.  A portion of this settlement was to be paid on a claims made basis and during the second quarter of 2015, the date passed by which the class members could file a claim under this provision of the settlement agreement.  The amount of claims made was less than estimated and accordingly, we reduced the accrual by approximately $13 million, which was recorded as an adjustment of litigation settlements during the second quarter of 2015. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | On April 30, 2015, a class and collective action lawsuit alleging that we failed to pay a nationwide class of workers overtime in compliance with the FLSA and North Dakota law was filed titled Williams et al. v. Baker Hughes Oilfield Operations, Inc. in the U.S. District Court for the District of North Dakota.  We are evaluating the background facts and at this time cannot predict the outcome of this lawsuit and are not able to reasonably estimate the potential impact, if any, such outcome would have on our financial position, results of operations or cash flows. |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                           | Pensions and Other Postretirement Benefits | Foreign Currency Translation Adjustments | Accumulated Other Comprehensive Loss |
| Balance at December 31, 2014                                   |   | $ | (246 | ) |   |   | $ | (503 | ) |   |   | $ | (749 | ) |   |
| Other comprehensive income (loss) before reclassifications     |   | 9 |  |   |   | (182 | ) |   |   | (173 | ) |   |
| Amounts reclassified from accumulated other comprehensive loss |   | (6 | ) |   |   | — |  |   |   | (6 | ) |   |
| Deferred taxes                                                 |   | 3 |  |   |   | — |  |   |   | 3 |  |   |
| Balance at September 30, 2015                                  |   | $ | (240 | ) |   |   | $ | (685 | ) |   |   | $ | (925 | ) |   |

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                           | Pensions and Other Postretirement Benefits | Foreign Currency Translation Adjustments | Accumulated Other Comprehensive Loss |
| Balance at December 31, 2013                                   |   | $ | (217 | ) |   |   | $ | (287 | ) |   |   | $ | (504 | ) |   |
| Other comprehensive (loss) income before reclassifications     |   | (5 | ) |   |   | (108 | ) |   |   | (113 | ) |   |
| Amounts reclassified from accumulated other comprehensive loss |   | 3 |  |   |   | — |  |   |   | 3 |  |   |
| Deferred taxes                                                 |   | (2 | ) |   |   | — |  |   |   | (2 | ) |   |
| Balance at September 30, 2014                                  |   | $ | (221 | ) |   |   | $ | (395 | ) |   |   | $ | (616 | ) |   |

----

----

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                            | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Brent oil price ($/Bbl) (1)     | $ | 50.17 |  |   | $ | 102.16 |  |   | $ | 55.36 |  |   | $ | 106.58 |  |
| WTI oil price ($/Bbl) (2)       | 46.48 |  |   | 97.70 |  |   | 50.94 |  |   | 99.81 |  |
| Natural gas price ($/mmBtu) (3) | 2.75 |  |   | 3.94 |  |   | 2.78 |  |   | 4.55 |  |

|           |                                                                       |
|-----------|-----------------------------------------------------------------------|
| (1)  | Bloomberg Dated Brent (“Brent”) Oil Spot Price per Barrel |

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

|           |                                                                             |
|-----------|-----------------------------------------------------------------------------|
| (3)  | Bloomberg Henry Hub Natural Gas Spot Price per million British Thermal Unit |

----

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |
|                          | Three Months Ended September 30, |   | Nine Months Ended September 30, |   |
|                          | 2015 | 2014 | % Change | 2015 | 2014 | % Change |
| U.S. - land and inland waters | 833 |  | 1,842 |  | (55 | %) | 1,021 |  | 1,787 |  | (43 | %) |
| U.S. - offshore               | 32 |  | 61 |  | (48 | %) | 38 |  | 58 |  | (34 | %) |
| Canada                        | 190 |  | 386 |  | (51 | %) | 200 |  | 370 |  | (46 | %) |
| North America                 | 1,055 |  | 2,289 |  | (54 | %) | 1,259 |  | 2,215 |  | (43 | %) |
| Latin America                 | 318 |  | 406 |  | (22 | %) | 331 |  | 403 |  | (18 | %) |
| North Sea                     | 37 |  | 35 |  | 6 | % | 39 |  | 39 |  | — | % |
| Continental Europe            | 72 |  | 113 |  | (36 | %) | 80 |  | 105 |  | (24 | %) |
| Africa                        | 95 |  | 126 |  | (25 | %) | 111 |  | 134 |  | (17 | %) |
| Middle East                   | 393 |  | 411 |  | (4 | %) | 403 |  | 409 |  | (1 | %) |
| Asia Pacific                  | 217 |  | 256 |  | (15 | %) | 224 |  | 254 |  | (12 | %) |
| Outside North America         | 1,132 |  | 1,347 |  | (16 | %) | 1,188 |  | 1,344 |  | (12 | %) |
| Worldwide                     | 2,187 |  | 3,636 |  | (40 | %) | 2,447 |  | 3,559 |  | (31 | %) |

----

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         | Three Months Ended September 30, |   | $Change |   | %Change |   | Nine Months Ended September 30, |   | $Change |   | %Change |
|                         | 2015 |   | 2014 |   |   | 2015 |   | 2014 |   |
| Revenue:                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| North America                | $ | 1,368 |  |   | $ | 3,155 |  |   | $ | (1,787 | ) |   | (57 | %) |   | $ | 4,872 |  |   | $ | 8,774 |  |   | $ | (3,902 | ) |   | (44 | %) |
| Latin America                | 439 |  |   | 571 |  |   | (132 | ) |   | (23 | %) |   | 1,371 |  |   | 1,645 |  |   | (274 | ) |   | (17 | %) |
| Europe/Africa/Russia Caspian | 791 |  |   | 1,114 |  |   | (323 | ) |   | (29 | %) |   | 2,555 |  |   | 3,269 |  |   | (714 | ) |   | (22 | %) |
| Middle East/Asia Pacific     | 849 |  |   | 1,077 |  |   | (228 | ) |   | (21 | %) |   | 2,621 |  |   | 3,241 |  |   | (620 | ) |   | (19 | %) |
| Industrial Services          | 339 |  |   | 333 |  |   | 6 |  |   | 2 | % |   | 929 |  |   | 987 |  |   | (58 | ) |   | (6 | %) |
| Total                        | $ | 3,786 |  |   | $ | 6,250 |  |   | $ | (2,464 | ) |   | (39 | %) |   | $ | 12,348 |  |   | $ | 17,916 |  |   | $ | (5,568 | ) |   | (31 | %) |

----

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         | Three Months Ended September 30, |   | $Change |   | %Change |   | Nine Months Ended September 30, |   | $Change |   | %Change |
|                         | 2015 |   | 2014 |   |   | 2015 |   | 2014 |   |
| Profit (Loss) Before Taxes:  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| North America                | $ | (169 | ) |   | $ | 380 |  |   | $ | (549 | ) |   | (144 | %) |   | $ | (545 | ) |   | $ | 978 |  |   | $ | (1,523 | ) |   | (156 | %) |
| Latin America                | 48 |  |   | 71 |  |   | (23 | ) |   | (32 | %) |   | 122 |  |   | 172 |  |   | (50 | ) |   | (29 | %) |
| Europe/Africa/Russia Caspian | 90 |  |   | 91 |  |   | (1 | ) |   | (1 | %) |   | 117 |  |   | 421 |  |   | (304 | ) |   | (72 | %) |
| Middle East/Asia Pacific     | 69 |  |   | 155 |  |   | (86 | ) |   | (55 | %) |   | 182 |  |   | 448 |  |   | (266 | ) |   | (59 | %) |
| Industrial Services          | 40 |  |   | 35 |  |   | 5 |  |   | 14 | % |   | 79 |  |   | 96 |  |   | (17 | ) |   | (18 | %) |
| Total Operations             | 78 |  |   | 732 |  |   | (654 | ) |   | (89 | %) |   | (45 | ) |   | 2,115 |  |   | (2,160 | ) |   | (102 | %) |
| Corporate and other          | (81 | ) |   | (71 | ) |   | (10 | ) |   | 14 | % |   | (240 | ) |   | (209 | ) |   | (31 | ) |   | 15 | % |
| Interest expense, net        | (55 | ) |   | (59 | ) |   | 4 |  |   | (7 | %) |   | (162 | ) |   | (175 | ) |   | 13 |  |   | (7 | %) |
| Restructuring charges        | (98 | ) |   | — |  |   | (98 | ) |   | N/M |  |   | (747 | ) |   | — |  |   | (747 | ) |   | N/M |  |
| Litigation settlements       | — |  |   | — |  |   | — |  |   | — | % |   | 13 |  |   | (62 | ) |   | 75 |  |   | N/M |  |
| Total                        | $ | (156 | ) |   | $ | 602 |  |   | $ | (758 | ) |   | (126 | %) |   | $ | (1,181 | ) |   | $ | 1,669 |  |   | $ | (2,850 | ) |   | (171 | %) |

----

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                  | 2015 |   | 2014 |   | 2015 |   | 2014 |
|                                  | $ |   | % |   | $ |   | % |   | $ |   | % |   | $ |   | % |
| Revenue                               | $ | 3,786 |  |   | 100 | % |   | $ | 6,250 |  |   | 100 | % |   | $ | 12,348 |  |   | 100 | % |   | $ | 17,916 |  |   | 100 | % |
| Cost of revenue                       | 3,403 |  |   | 90 | % |   | 5,107 |  |   | 82 | % |   | 11,360 |  |   | 92 | % |   | 14,572 |  |   | 81 | % |
| Research and engineering              | 115 |  |   | 3 | % |   | 159 |  |   | 3 | % |   | 377 |  |   | 3 | % |   | 461 |  |   | 3 | % |
| Marketing, general and administrative | 271 |  |   | 7 | % |   | 323 |  |   | 5 | % |   | 896 |  |   | 7 | % |   | 977 |  |   | 5 | % |

----

|                      |
|----------------------|
|                      |  |  |  |  |  |  |  |
| (In millions)        | 2015 |   | 2014 |
| Operating activities | $ | 1,265 |  |   | $ | 1,754 |  |
| Investing activities | (713 | ) |   | (1,306 | ) |
| Financing activities | (239 | ) |   | (634 | ) |

----

----

----

----

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |
| Period                         | Total Number of Shares Purchased (1) |   | Average Price Paid Per Share |   | Total Number of Shares Purchased as Part of a Publicly Announced Program (2) |   | Maximum Number(or Approximate Dollar Value)of Shares that May Yet BePurchased Under the Program (3) |
| July 1-31, 2015           | 20,761 |  |   | $ | 59.77 |  |   | — |   | $ | 1,049,832,435 |  |
| August 1-31, 2015    | 5,512 |  |   | $ | 50.06 |  |   | — |   | $ | 1,049,832,435 |  |
| September 1-30, 2015 | — |  |   | $ | — |  |   | — |   | $ | 1,049,832,435 |  |
| Total                          | 26,273 |  |   | $ | 57.74 |  |   | — |   |  |  |

|           |                                                                                                                                                                             |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | Represents shares purchased from employees to satisfy the tax withholding obligations in connection with the vesting of restricted stock awards and restricted stock units. |

|           |                                                                                                             |
|-----------|-------------------------------------------------------------------------------------------------------------|
| (2)  | There were no repurchases during the third quarter of 2015 under our previously announced purchase program. |

|           |                                                                                                                                                                                                                                                                                                               |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)  | Under the merger agreement with Halliburton, as described in Note 2.  "Halliburton Merger Agreement" of the Notes to Unaudited Consolidated Condensed Financial Statements in Item 1 of Part I herein, we have generally agreed not to repurchase any shares of our common stock while the merger is pending. |

----

|          |
|----------|
|          |  |  |
| 31.1*    |   | Certification of Martin S. Craighead, Chairman and Chief Executive Officer, furnished pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. |
| 31.2*    |   | Certification of Kimberly A. Ross, 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, Chairman and Chief Executive Officer, and Kimberly A. Ross, Chief Financial Officer, furnished pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. |
| 95*      |   | Mine Safety Disclosure. |
| 99.1*    |   | Notice of Extension dated July 10, 2015 of the Agreement and Plan of Merger among Halliburton Company, Red Tiger LLC and Baker Hughes Incorporated dated November 16, 2014, extending the termination date to December 1, 2015. |
| 99.2*    |   | Notice of Extension dated September 25, 2015 of the Agreement and Plan of Merger among Halliburton Company, Red Tiger LLC and Baker Hughes Incorporated dated November 16, 2014, extending the termination date to December 16, 2015. |
| 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 |

----

|        |
|--------|
|        |  |  |  |
|   |   | BAKER HUGHES INCORPORATED(Registrant) |
|   |   |   |   |
| Date:  | October 21, 2015 | By: | /s/ KIMBERLY A. ROSS  |
|   |   | Kimberly A. Ross |
|   |   | Senior Vice President and Chief Financial Officer |
|   |   |   |   |
| Date:  | October 21, 2015 | By: | /s/ ALAN J. KEIFER  |
|   |   | Alan J. Keifer |
|   |   | Vice President and Controller |