form11-k.htm
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT
     
þ
  
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended December 31, 2009
OR
     
o
  
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-13884
A.
  
Full title of the Plan and the address of the Plan, if different from that of the issuer named below:
INDIVIDUAL ACCOUNT RETIREMENT PLAN FOR BARGAINING
UNIT EMPLOYEES AT THE CAMERON INTERNATIONAL CORPORATION
BUFFALO, NEW YORK PLANT
B.
  
Name of issuer of the securities held pursuant to the Plan and the address of the principal executive office:
CAMERON INTERNATIONAL CORPORATION
1333 West Loop South, Suite 1700
Houston, Texas 77027

 























 

 
 
 

Financial Statements
 
Individual Account Retirement Plan for Bargaining Unit Employees at the
    Cameron International Corporation Buffalo, New York Plant
As of December 31, 2009 and 2008 and for the year ended December 31, 2009
 
 
 

 
2
 

Individual Account Retirement Plan for Bargaining Unit Employees at the Cameron International Corporation Buffalo, New York Plant
 
 
Financial Statements
 
As of December 31, 2009 and 2008 and for the year ended December 31, 2009
 
 
Contents
 

Report of Independent Registered Public Accounting Firm – MFR, P.C. 
     4  
         
Audited Financial Statements
        
         
Statements of Net Assets Available for Benefits 
     5  
Statement of Changes in Net Assets Available for Benefits 
     6  
Notes to Financial Statements 
     7  
         
Signature 
     19  
Consent of Independent Registered Public Accounting Firm - MFR, P.C. 
     21  
         
         
Schedules not listed above are omitted because of the absence of conditions under which they are required under the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act.
  




 

 
3
 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 
To Participants and Plans Administration Committee
Individual Account Retirement Plan for Bargaining Unit Employees at the
Cameron International Corporation Buffalo, New York Plant:

We have audited the accompanying statements of net assets available for benefits of the Individual Account Retirement Plan for Bargaining Unit Employees at the Cameron International Corporation Buffalo, New York Plant (the “Plan”) as of December 31, 2009 and 2008, and the related statement of changes in net assets available for benefits for the year ended December 31, 2009. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2009 and 2008, and the changes in its net assets available for benefits for the year ended December 31, 2009, in conformity with U.S. generally accepted accounting principles.
 
/s/ MFR, P.C.
 
Houston, Texas
June 29, 2010
 

 


 
4
 


 
Individual Account Retirement Plan for Bargaining Unit Employees at the Cameron International Corporation Buffalo, New York Plant
 
Statements of Net Assets Available for Benefits
 
   
December 31,
  
   
2009
    
2008
  
Assets
            
Employer contributions receivable
   $ 65,937     $ 71,515  
Plan interest in the Cameron International Corporation Master Trust
     23,560,834       16,692,351  
Net assets reflecting all investments at fair value
     23,626,771       16,763,866  
                 
Adjustment from fair value to contract value for interest in Cameron International Corporation Master Trust relating to fully benefit-responsive investment contracts
     (134,079 )     34,977  
Net assets available for benefits
   $ 23,492,692     $ 16,798,843  

The accompanying notes are an integral part of these statements.
 

 
5
 

Individual Account Retirement Plan for Bargaining Unit Employees at the Cameron International Corporation Buffalo, New York Plant
 
Statement of Changes in Net Assets Available for Benefits
 
Year Ended December 31, 2009
Additions:
      
Employer contributions
   $ 851,862  
Employee contributions
     1,044,476  
Net investment income from the Cameron International Corporation Master Trust
     4,931,381  
    Other     15,567  
Total additions
     6,843,286  
         
Deductions:
        
Administrative fees
     (769 )
Benefits paid to participants
     (148,668 )
Total deductions
     (149,437 )
         
Net increase in net assets available for benefits
     6,693,849  
         
Net assets available for benefits at:
        
Beginning of year
     16,798,843  
End of year
   $ 23,492,692  
 
The accompanying notes are an integral part of these statements.

 
6
 

Individual Account Retirement Plan for Bargaining Unit Employees at the Cameron International Corporation Buffalo, New York Plant
 
Notes to Financial Statements
 
 
 
1. Description of the Plan

The Individual Account Retirement Plan for Bargaining Unit Employees at the Cameron International Corporation Buffalo, New York Plant (the “Plan”) is a profit-sharing plan which provides payments to eligible employees of Cameron International Corporation and certain subsidiaries (the “Company”) at termination, retirement, death or disability. All union employees of the Company belonging to Local Lodge No. 330, District 76 of the International Association of Machinists and Aerospace Workers, are eligible for participation. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).
 
The Company contributes to each participant’s account monthly based on hours actively worked and specific contribution rates as defined in the Plan document. Contributions are also made for each hour incurred for overtime, vacations or holidays, but excludes sick time for which the employee may be paid. Company contributions are allocated among the investment fund options that have been selected by each employee.  All active participants in the Plan are 100% vested in the employer contributions upon completion of three years of service (three-year cliff vesting).

Amounts which are forfeited due to a participant’s termination of employment prior to vesting in employer contributions made on the participant’s behalf are used to reduce the required Company contribution in subsequent periods.  Upon termination of the Plan, all remaining forfeitures are to be allocated to the participant accounts.  There were no forfeitures used to reduce employer contributions for the year ended December 31, 2009.

The Plan allows for employee contributions based on hours actively worked and elected contribution rates. Electing to contribute is voluntary, and these contributions are immediately 100% vested. Participants may elect to have their contributions allocated in 1% increments to one or more of the investment fund options offered by the Plan. Allocations among the investment accounts may be changed at the participant’s discretion on a daily basis.
 
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants would become 100% vested in their employer contributions.

More detailed information about the Plan, including the funding, vesting and benefit provisions, is contained in the Summary Plan Description. A copy of this pamphlet is available at the Company’s corporate office.

2. Significant Accounting Policies

Accounting Principles

The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.


 
7
 

2. Significant Accounting Policies (continued)

Accounting Principles (continued)

As required under generally accepted accounting principles, the statements of net assets available for benefits present investment contracts at fair value as well as an additional line item showing an adjustment of fully benefit-responsive investment contracts from fair value to contract value.  The statement of changes in net assets available for benefits is prepared on a contract value basis for the fully benefit-responsive investment contracts.
 
Employer profit-sharing contributions and employee contributions are recorded in the period in which the related employee services are rendered.

Benefit payments to participants are recorded upon distribution.

Investments

The Plan’s investments are held in the Cameron International Corporation Master Trust (“Master Trust”). The Charles Schwab Company serves as trustee of the Master Trust.  The Plan participates in only certain investment accounts of the Master Trust. The fair value of the Plan’s interest in the Master Trust is based on the specific interests that it has in each of the underlying participant-directed investment accounts.

The following is a summary of those investment accounts and the Plan’s beneficial interest in those investment accounts as of December 31, 2009 and 2008.
   
Beneficial Interest at
December 31,
  
   
2009
    
2008
  
             
Cameron International Stock Fund
     1.24 %     1.10 %
Fidelity Growth Company Fund
     100.00       100.00  
PRIMCO Stable Value Fund
     4.09       3.63  
PIMCO Total Return Administrative Shares Fund
     3.90       4.10  
American Funds Washington Mutual Investors Fund /A
     4.12       4.22  
Franklin Balance Sheet Investment Fund/A
     3.77       3.77  
Lord Abbett Developing Growth Fund/A
     5.12       4.92  
American Funds EuroPacific Growth Fund/A
     5.25       5.27  
State Street S&P 500 Flagship Series Fund
     2.03       2.60  
American Funds Growth Fund of America/A
     3.13       3.01  

Purchases and sales of securities by the Master Trust are recorded on a trade-date basis. Interest income is recorded as earned. Dividends are recorded as of the ex-dividend date.

The Plan adopted the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic No. 820, Fair Value Measurements, effective January 1, 2008.  This guidance establishes a framework for measuring fair value.  That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  Level 2 measurements include observable inputs other than quoted prices in active markets for identical assets and liabilities.

Common stocks are valued at the closing price reported on the active market on which the individual securities are traded.


 
8
 


2. Significant Accounting Policies (continued)

Investments (continued)

Mutual and money market funds are valued at the net asset value (NAV) of shares held by the Plan at year end.

Collective trusts are valued at the unit of participation value of shares held by the Plan at year end.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.  Futhermore, although management of the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the investments of the Master Trust as of December 31, 2009:
 

   
Investments at Fair Value at
December 31, 2009
  
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Master Trust Investments:
                        
Money market funds
   $ 5,675,382     $ 93,238     $ -     $ 5,768,620  
Mutual funds:
                                
       Equity funds
     254,993,041       -       -       254,993,041  
       Bond fund
     87,953,540       -       -       87,953,540  
Common stocks
     211,395,391       -       -       211,395,391  
Collective trusts:
                                
       Money market fund
     4,607,009       -       -       4,607,009  
   Equity index fund     -       23,782,477       -       23,782,477  
       Bond funds
     -       103,863,654       91,558       103,955,212  
Total Master Trust investments at fair value
    $ 564,624,363      $ 127,739,369      $ 91,558      $ 692,455,290  

 
 
 
 
9
 
 
 
The following table sets forth by level, within the fair value hierarchy, the investments of the Master Trust as of December 31, 2008:

   
Investments at Fair Value at
December 31, 2008
  
   
Level 1
    
Level 2
    
Level 3
    
Total
  
Master Trust Investments:
                        
Money market funds
   $ 8,528,290     $ 146,102     $ -     $ 8,674,392  
Mutual funds
     246,312,814       -       -       246,312,814  
Common stocks
     105,846,256       -       -       105,846,256  
Collective trusts
     -       107,017,862       158,865       107,176,727  
Total Master Trust investments at
fair value
   $ 360,687,360     $ 107,163,964     $ 158,865     $ 468,010,189  


 
10
 


2. Significant Accounting Policies (continued)

Investments (continued)

The table below sets forth a summary of changes in the fair value of the Master Trust's Level 3 investments for the year ended December 31, 2009:
 

   
Wrapper contracts
 in collective trusts
  
Balance at beginning of year
   $ 158,865  
Depreciation/unrealized loss
     (67,307 )
Balance at end of year
   $ 91,558  

The PRIMCO Stable Value Fund (“Stable Value Fund”) is a master trust investment account managed by AMVESCAP National Trust Company, an affiliate of INVESCO Institutional (N.A.), Inc., the trustee of the INVESCO Group Trust for Retirement Savings, a Common Collective Trust, in which the assets of multiple qualified plans are invested. The Stable Value Fund invests in actively managed synthetic bank and insurance company investment contracts (“SICs”) and in guaranteed investment contracts (“GICs”). These contracts have varying yields and maturity dates and are fully benefit responsive. These contracts are stated at contract value which represents cost plus accrued income. The fair value of the GICs has been estimated by discounting the related cash flows based on current yields of similar instruments with comparable durations. Individual assets of the SICs are valued at representative quoted market prices. The fair value of the wrap contracts for the SICs is determined using the market approach discounting methodology which incorporates the difference between current market level rates for contract level wrap fees and the wrap fee being charged. The difference is calculated as a dollar value and discounted by the prevailing interpolated swap rate as of period-end.

Although it is management’s intention to hold the investment contracts until maturity, certain investment contracts provide for adjustments to contract value for withdrawals made prior to maturity.

Risks and Uncertainties

The Master Trust provides for various investments which, in general, are exposed to interest rate, credit and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is likely that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits and individual participant account balances.

3. Separate Investment Accounts of the Cameron International Corporation Master Trust

The purpose of the Master Trust is the collective investment of the assets of participating employee benefit plans of the Company. Master Trust assets are allocated among participating plans by assigning to each plan those transactions (primarily contributions, benefit payments and certain administrative expenses) which can be specifically identified and by allocating among all plans, in proportion to the fair value of the assets assigned to each plan, the income and expenses resulting from the collective investment of the assets. The Master Trust includes assets of other employee benefit plans in addition to this Plan.


 
11
 
 
 

 
3. Separate Investment Accounts of the Cameron International Corporation Master Trust (continued)

The following table presents the fair value of investments for the separate investment accounts of the Master Trust:

 
December 31, 2009
  
Cameron
International
Stock
Fund
    
American Funds Washington Mutual Investors
Fund/A
    
(a)
PRIMCO
Stable Value Fund
    
American Funds Growth Fund of
America /A
    
State Street S&P 500 Index Fund
    
Fidelity Growth Company Fund
    
PIMCO Total Return Administrative Shares Fund
    
Franklin Balance Sheet Investment Fund/A
    
Lord Abbett Developing Growth
Fund/A
    
American Funds EuroPacific Growth Fund/A
    
Total
  
                                                                   
Assets:
                                                                  
Cash
   $ 7,429,602     $ –     $ –     $ –     $ –     $ –     $ –     $ –     $ –     $ –     $ 7,429,602  
Net unsettled sales of investments
     442,227       –       –       –       –       –       –       –       –       –       442,227  
Income receivable
     3,312,222       –       –       –       –       –       –       –       –       –       3,312,222  
Investments at fair value as determined by quoted market prices:
                                                                                        
Money market funds
     93,238       –       –       –       –       –       –       –       –       –       93,238  
Cameron Interna-tional Corpora-tion Common Stock
     211,395,391       –       –       –       –       –       –       –       –       –       211,395,391  
American Funds Washing-ton Mutual Investors
Fund/A
     –       70,555,442       –       –       –       –       –       –       –       –       70,555,442  
American Funds Growth Fund of America/ A
     –       –       –       56,814,629       –       –       –       –       –       –       56,814,629  
Fidelity Institu-tional Money Market
     5,675,382       –       4,607,009       –       –       –       –       –       –       –       10,282,391  
Fidelity Growth Company Fund
     –       –       –       –       –       1,992,613       –       –       –       –       1,992,613  
PIMCO Total Return Admini-strative Shares Fund
     –       –       –       –       –       –       87,953,540       –       –       –       87,953,540  
Franklin Balance Sheet Invest-ment Fund/A
     –       –       –       –       –       –       –       46,663,733       –       –       46,663,733  
Lord Abbett Develop-ing Growth Fund/A
     –       –       –       –       –       –       –       –       29,724,328       –       29,724,328  
American Funds Euro-Pacific Growth Fund/A
     –       –       –       –       –       –       –       –       –       49,242,296       49,242,296  
Investments at estimated fair value:
                                                                                        
State Street S&P 500 Index Fund
     –       –       –       –       23,782,477       –       –       –       –       –       23,782,477  
INVESCO Group Trust for Retire-ment Savings:
                                                                                        
Investments
     –       –       103,863,654               –       –       –       –       –       –       103,863,654  
Wrapper con-tracts
     –       –       91,558       –       –       –       –       –       –       –       91,558  
Total investments
     217,164,011       70,555,442       108,562,221       56,814,629       23,782,477       1,992,613       87,953,540       46,663,733       29,724,328       49,242,296       692,455,290  
Total assets
     228,348,062       70,555,442       108,562,221       56,814,629       23,782,477       1,992,613       87,953,540       46,663,733       29,724,328       49,242,296       703,639,341  
                                                                                         
Liabilities:
                                                                                        
Other payables
     1,273,220       –       –       –       –       –       –       –       –       –       1,273,220  
Net unsettled purchases of investments
     6,838,109       –       –       –       –       –       –       –       –       –       6,838,109  
Net assets reflecting all investments at fair value
     220,236,733       70,555,442       108,562,221       56,814,629       23,782,477       1,992,613       87,953,540       46,663,733       29,724,328       49,242,296       695,528,012  
                                                                                         
Adjustment from fair value to contract value for fully benefit-responsive investment contracts
     –       –       (4,039,011 )     –       –       –       –       –       –       –       (4,039,011 )
Net assets available to participating plans
   $ 220,236,733     $ 70,555,442     $ 104,523,210     $ 56,814,629     $ 23,782,477     $ 1,992,613     $ 87,953,540     $ 46,663,733     $ 29,724,328     $ 49,242,296     $ 691,489,001  

(a)  Includes $208,843 of non-participant directed investments of which $1,507 relates to the Plan.

 
12
 


 
3. Separate Investment Accounts of the Cameron International Corporation Master Trust (continued)

The following table presents the fair value of investments for the separate investment accounts of the Master Trust:


December 31, 2008
  
Cameron
International
Stock
Fund
    
American Funds Washington Mutual Investors
Fund/A
    
 
PRIMCO Stable Value Fund
    
American Funds Growth Fund of
America/A
    
Real Estate
 Fund
    
State Street S&P 500 Index Fund
    
Fidelity Growth Company Fund
    
PIMCO Total Return Administrative Shares Fund
    
Franklin Balance Sheet Investment Fund/A
    
Lord Abbett Developing Growth
Fund/A
    
American Funds EuroPacific Growth Fund/A
    
Total
  
                                                                         
Assets:
                                                                        
Cash
   $ 138,639     $ –     $ –     $ –     $ –     $ –     $ –     $ –     $ –     $ –     $ –     $ 138,639  
Net unsettled sales of investments
     262,531       –       –       –       –       –       –       –       –       –       –       262,531  
Income receivable
     3,370,166       –       –       –       –       –       –       –       –       –       –       3,370,166  
Investments at fair value as determined by quoted market prices:
                                                                                                
Money market funds
     838,686       –       –       –       639,695       –       –       –       –       –       –       1,478,381  
Cash Manage-ment Trust of America
     –       –       7,196,011       –       –       –       –       –       –       –       –       7,196,011  
Cameron Interna-tional Corpora-tion Common Stock
     105,846,256       –       –       –       –       –       –       –       –       –       –       105,846,256  
American Funds Washing-ton Mutual Investors
Fund/A
     –       50,077,617       –       –       –       –       –       –       –       –       –       50,077,617  
American Funds Growth Fund of America/ A
     –       –       –       37,384,953       –       –       –       –       –       –       –       37,384,953  
Fidelity Growth Company Fund
     –       –       –       –       –       –       1,444,468       –       –       –       –       1,444,468  
PIMCO Total Return Adminis-trative Shares Fund
     –       –       –       –       –       –       –       75,561,371       –       –       –       75,561,371  
Franklin Balance Sheet Invest-ment Fund/A
     –       –       –       –       –       –       –       –       31,968,506       –       –       31,968,506  
Lord Abbett Develop-ing Growth Fund/A
     –       –       –       –       –       –       –       –       –       17,882,427       –       17,882,427  
American Funds Euro-Pacific Growth Fund/A
     –       –       –       –       –       –       –       –       –       –       31,993,472       31,993,472  
Investments at estimated fair value:
                                                                                                
State Street S&P 500 Index Fund
     –       –       –       –       –       18,620,246       –       –       –       –       –       18,620,246  
INVESCO Group Trust for Retire-ment Savings:
                                                                                                
Investments
     –       –       88,397,616       –       –       –       –       –       –       –       –       88,397,616  
Wrapper con-tracts
     –       –       158,865       –       –       –       –       –       –       –       –       158,865  
Total investments
     106,684,942       50,077,617       95,752,492       37,384,953       639,695       18,620,246       1,444,468       75,561,371       31,968,506       17,882,427       31,993,472       468,010,189  
Total assets
     110,456,278       50,077,617       95,752,492       37,384,953       639,695       18,620,246       1,444,468       75,561,371       31,968,506       17,882,427       31,993,472       471,781,525  
                                                                                                 
Liabilities:
                                                                                                
Other payables
     55,572       –       –       –       –       –       –       –       –       –       –       55,572  
Net unsettled purchases of investments
     107,811       –       –       –       –       –       –       –       –       –       –       107,811  
Net assets reflecting all investments at fair value
     110,292,895       50,077,617       95,752,492       37,384,953       639,695       18,620,246       1,444,468       75,561,371       31,968,506       17,882,427       31,993,472       471,618,142  
                                                                                                 
Adjustment from fair value to contract value for fully benefit-responsive investment contracts
     –       –       964,019       –       –       –       –       –       –       –       –       964,019  
Net assets available to participating plans
   $ 110,292,895     $ 50,077,617     $ 96,716,511     $ 37,384,953     $ 639,695     $ 18,620,246     $ 1,444,468     $ 75,561,371     $ 31,968,506     $ 17,882,427     $ 31,993,472     $ 472,582,161  

 
13
 


 
3. Separate Investment Accounts of the Cameron International Corporation Master Trust (continued)

Investment income and the net realized and unrealized appreciation in fair value of the investments held throughout the year or bought and sold during the year in the separate investment accounts of the Master Trust are as follows:
 
Year ended December 31, 2009
  
Net Appreciation
    
Interest and Dividends
    
Total
  
                   
Cameron International Stock Fund
   $ 113,624,180     $ 8,225     $ 113,632,405  
Fidelity Growth Company Fund
     543,116       3,557       546,673  
PRIMCO Stable Value Fund
     -       3,735,700       3,735,700  
Fidelity Institutional Money Market Fund     -        136       136  
PIMCO Total Return Administrative Shares Fund
     5,076,012       5,262,030       10,338,042  
American Funds Washington Mutual Investors Fund/A
     9,526,933       1,863,427       11,390,360  
American Funds Growth Fund of America/A
     13,612,456       434,033       14,046,489  
Franklin Balance Sheet Investment Fund/A
     8,183,459       458,354       8,641,813  
Lord Abbett Developing Growth Fund/A
     9,122,567       -       9,122,567  
American Funds EuroPacific Growth Fund/A
     12,603,211       784,985       13,388,196  
Real Estate Fund
     -       186       186  
State Street S&P 500 Index Fund
     5,042,947       -       5,042,947  
    $ 177,334,881     $ 12,550,633     $ 189,885,514  

Administrative expenses paid by the Master Trust for the year ended December 31, 2009 totaled $515,556, of which $769 has been allocated to the Plan.
 
Stable Value Fund

Objectives of the Stable Value Fund

The Stable Value Fund’s key objectives are to provide preservation of principal, maintain a stable interest rate, and provide daily liquidity at contract value for participant withdrawals and transfers in accordance with the provisions of the Plan.

Nature of Investment Contracts

To accomplish the objectives outlined above, the Stable Value Fund invests primarily in investment contracts such as GICs and SICs. In a traditional GIC, the issuer takes a deposit from the Stable Value Fund and purchases investments that are held in the issuer’s general account. The issuer is contractually obligated to repay the principal and a specified rate of interest guaranteed to the Stable Value Fund.

With regard to a SIC, the underlying investments are owned by the Stable Value Fund and held in trust for plan participants. The Stable Value Fund purchases a wrapper contract from an insurance company or bank. The wrapper contract amortizes the realized and unrealized gains and losses on the underlying fixed income investments, typically over the duration of the investments, through adjustments to the future interest crediting rate (which is the rate earned by participants in the Stable Value Fund for the underlying investments). The issuer of the wrapper contract provides assurance that the adjustments to the interest crediting rate do not result in a future interest crediting rate that is less than zero. An interest crediting rate less than zero would result in a loss of principal or accrued interest.

 
14
 

3. Separate Investment Accounts of the Cameron International Corporation Master Trust (continued)

Calculating the Interest Crediting Rate in Wrapper Contracts

The key factors that influence future interest crediting rates for a wrapper contract include:
 
·
The level of market interest rates

·
The amount and timing of participant contributions, transfers and withdrawals into/out of the wrapper contract

·
The investment returns generated by the fixed income investments that back the wrapper contract

·
The duration of the underlying investments backing the wrapper contract
 
Wrapper contracts’ interest crediting rates are typically reset on a monthly or quarterly basis. Over time, the interest crediting rate amortizes the Stable Value Fund’s realized and unrealized market value gains and losses over the duration of the underlying investments.

Because changes in market interest rates affect the yield to maturity and the market value of the underlying investments, they can have a material impact on the wrapper contract’s interest crediting rate. In addition, participant withdrawals and transfers from the Stable Value Fund are paid at contract value but funded through the market value liquidation of the underlying investments, which also impacts the interest crediting rate. The resulting gains and losses in the market value of the underlying investments relative to the wrapper contract value are represented on the Stable Value Fund’s Statement of Net Assets as the “adjustment from fair value to contract value for fully benefit-responsive investment contracts”. If the adjustment from fair value to contract value is positive for a given contract, this indicates that the wrapper contract value is greater than the market value of the underlying investments. The embedded market value losses will be amortized in the future through a lower interest crediting rate than would otherwise be the case. If the adjustment from fair value to contract value figure is negative, this indicates that the wrapper contract value is less than the market value of the underlying investments. The amortization of the embedded market value gains will cause the future interest crediting rate to be higher than it otherwise would have been.

All wrapper contracts provide for a minimum interest crediting rate of zero percent. In the event that the interest crediting rate should fall to zero and the requirements of the wrapper contract are satisfied, the wrapper issuers will pay to the Plan the shortfall needed to maintain the interest crediting rate at zero. This helps to ensure that participants’ principal and accrued interest will be protected.

Events That Limit the Ability of the Stable Value Fund to Transact at Contract Value

In certain circumstances, the amount withdrawn from the wrapper contract would be payable at fair value rather than at contract value. These events include termination of the Plan, a material adverse change to the provisions of the Plan, if the Company elects to withdraw from a wrapper contract in order to switch to a different investment provider, or if the terms of a successor plan (in the event of the spin-off or sale of a division) do not meet the wrapper contract issuer’s underwriting criteria for issuance of a clone wrapper contract.

Issuer-Initiated Contract Termination

Examples of events that would permit a wrapper contract issuer to terminate a wrapper contract upon short notice include the Plan’s loss of its qualified status, uncured material breaches of responsibilities, or material and adverse changes to the provisions of the Plan. If one of these events was to occur, the wrapper contract issuer could terminate the wrapper contract at the market value of the underlying investments (or in the case of a traditional GIC, at the hypothetical market value based upon a contractual formula).




 
15
 

 
3. Separate Investment Accounts of the Cameron International Corporation Master Trust (continued)

Investments in the PRIMCO Stable Value Fund at December 31, 2009 consisted of the following:

Contract Issuer
Security
  
Major Credit Rating
    
Investments at Fair Value
    
Wrapper Contracts
at Fair Value
    
Adjustment to Contract Value
  
                           
Wrapped portfolios:
                          
Bank of America
Wrapper
  
A+/Aa3
           $ –     $ (905,343 )
 
INVESCO Multi-Manager Intermediate
                            
 
Government/Credit Fund
         $ 17,977,319                  
                                 
ING
Wrapper
     A+/A2               24,118       (893,311 )
 
INVESCO Multi-Manager Short-term Bond Fund
             25,447,756                  
                                   
JPMorgan Chase
Wrapper
  
AA-/Aa1
               51,724       (510,213 )
 
INVESCO Multi-Manager Core Fixed
                                
 
Income Fund
             15,909,436                  
                                   
Monumental
Wrapper
  
AA-/A1
               –       (24,435 )
 
INVESCO Multi-Manager Short-term Bond Fund
             2,286,468                  
                                   
Pacific Life Insurance
Wrapper
  
AA-/A1
               15,716       (691,551 )
 
INVESCO Multi-Manager Short-term Bond Fund
             22,030,730                  
                                   
State Street Bank
Wrapper
  
AA-/Aa2
               –       (1,014,158 )
 
INVESCO Multi-Manager Intermediate
                                
 
Government/Credit Fund
             20,211,945                  
                                   
Short-term investments:
                                  
Fidelity Management
Fidelity Money Market Fund
     N/A       4,607,009       -       -  
              $ 108,470,663     $ 91,558     $ (4,039,011 )

The average yield earned by the fund and the average yield based on interest rates credited to participants for the year ended December 31, 2009 was 3.008% and 4.190%, respectively. There was no change in the value of the fund’s investments for the year ended December 31, 2009 due to changes in the fully benefit-responsive status of the Stable Value Fund's investment contracts.


 
16
 


 
3. Separate Investment Accounts of the Cameron International Corporation Master Trust (continued)

Investments in the PRIMCO Stable Value Fund at December 31, 2008 consisted of the following:

Contract Issuer
Security
Major Credit Rating
  
Investments at Fair Value
    
Wrapper Contracts
at Fair Value
    
Adjustment to Contract Value
  
                       
Wrapped portfolios:
                      
Bank of America
Wrapper
AA-/Aaa
         $ 64,138     $ 331,025  
 
INVESCO Multi-Manager Intermediate
                        
 
Government/Credit Fund
     $ 16,318,847                  
                             
ING
Wrapper
AA/Aa3
             18,453       (69,869 )
 
INVESCO Multi-Manager Short-term Bond Fund
       20,802,677                  
                             
JPMorgan Chase
Wrapper
AA-/Aaa
             39,403       407,936  
 
INVESCO Multi-Manager Core Fixed
                          
 
Income Fund
       13,934,537                  
                             
Monumental
Wrapper
AA/Aa3
             2,739       (68,325 )
 
Cash on hand
       51,333                  
 
U.S. Treasury Notes
       2,229,109                  
                             
Pacific Life Insurance
Wrapper
AA/Aa3
             16,626       (20,436 )
 
INVESCO Multi-Manager Short-term Bond Fund
       18,700,255                  
                             
State Street Bank
Wrapper
AA/Aa1
             17,506       383,688  
 
INVESCO Multi-Manager Intermediate
                          
 
Government/Credit Fund
       16,360,858                  
                             
Short-term investments:
                            
American Funds Group
Cash Management Trust of America
N/A
     7,196,011       -       -  
        $ 95,593,627     $ 158,865     $ 964,019  

The average yield earned by the fund and the average yield based on interest rates credited to participants for the year ended December 31, 2008 was 5.235% and 3.574%, respectively. There was no change in the value of the fund’s investments for the year ended December 31, 2008 due to changes in the fully benefit-responsive status of the Stable Value Fund's investment contracts.

 
17
 

4. Income Tax Status

The Plan has been designed to meet the requirements of the Internal Revenue Code (“IRC”) under Section 401(a) and, therefore, the related trust is exempt from taxation. A favorable determination letter was received from the Internal Revenue Service on March 11, 2010. Since receiving the determination letter, the Plan has been amended. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The Plan administrator believes the Plan is being operated in compliance with the applicable requirements of the IRC and, therefore, believes that the Plan, as amended, continues to be qualified and the related trust remains tax exempt.

5. Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2009 and 2008 to the respective Forms 5500:

   
December 31,
  
   
2009
    
2008
  
Net assets available for benefits per the financial statements
   $ 23,492,692     $ 16,798,843  
Amounts allocated to withdrawing participants     (16,787  )     -  
Adjustment from contract value to fair value
     134,079       (34,977 )
Net assets available for benefits per Form 5500
   $ 23,609,984     $ 16,763,866  

The following is a reconciliation of the net investment income from the Cameron International Corporation Master Trust per the financial statements for the year ended December 31, 2009 to Form 5500:

Net investment income from the Cameron International Corporation Master Trust per the financial statements
   $ 4,931,381  
Adjustment from contract value to fair value at December 31, 2008
     34,977  
Adjustment from contract value to fair value at December 31, 2009
     134,079  
Net investment income from the Cameron International Corporation Master Trust per Form 5500
   $ 5,100,437  
 
The following is a reconciliation of benefits paid per the financial statements for the year ended December 31, 2009 to Form 5500:

Benefits paid to participants per the financial statements
   $ 148,668  
Amounts allocated to withdrawing participants at December 31, 2009
     16,787  
Benefits paid to participants per Form 5500
   $ 165,455  

Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, 2009, but not yet paid as of that date.
 
6. Subsequent Events
 
In June 2010, Plan participants were notified that the Plan sponsor has decided to change trustees.  Accordingly, in September 2010, all Plan assets will be transferred to the newly elected trustee.
 
The Plan’s sponsor has evaluated subsequent events through June 29, 2010, which is the date these financial statements were filed with the U.S. Securities and Exchange Commission.
 

 
 
18
 

SIGNATURE

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the members of the Plans Administration Committee have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

INDIVIDUAL ACCOUNT RETIREMENT PLAN FOR BARGAINING
UNIT EMPLOYEES AT THE CAMERON INTERNATIONAL CORPORATION
BUFFALO, NEW YORK PLANT


/s/ Joseph H. Mongrain                         
By:  Joseph H. Mongrain
Member of the Plans Administration
Committee

Date: June 29, 2010 
 

 
19
 

Exhibit Index


Exhibit 23.1 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM – MFR, P.C.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20