Baker Hughes 2010 Annual Report Download - page 136

Download and view the complete annual report

Please find page 136 of the 2010 Baker Hughes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 158

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158

54 B a k e r H u g h e s I n c o r p o r a t e d
Funded Status
Below is the reconciliation of the beginning and ending balances of benefit obligations, fair value of plan assets and the funded
status of our plans. For our pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and for our other post-
retirement benefit plan, the benefit obligation is the accumulated postretirement benefit obligation (“APBO”).
U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits
2010 2009 2010 2009 2010 2009
Change in benefit obligation:
Benefit obligation at beginning of year $ 375 $ 303 $ 327 $ 227 $ 157 $ 158
Service cost 32 29 8 3 10 8
Interest cost 22 20 26 15 9 10
Actuarial loss (gain) 31 51 4 49 10 (1)
Benefits paid (47) (19) (12) (7) (15) (13)
Curtailment – (9) (1) (1) – (5)
Acquisitions of businesses 34 – 253 – 27 –
Plan amendments – – – – (32) –
Other (3) – 2 18 – –
Exchange rate adjustments – – (14) 23 – –
Benefit obligation at end of year 444 375 593 327 166 157
Change in plan assets:
Fair value of plan assets at beginning of year 346 290 248 197 – –
Actual return on plan assets 48 77 36 24 – –
Employer contributions 72 2 52 13 15 13
Benefits paid (47) (19) (12) (7) (15) (13)
Acquisitions of businesses – – 160 – – –
Other (3) (4) 1 (1) – –
Exchange rate adjustments – – (11) 22 – –
Fair value of plan assets at end of year 416 346 474 248 – –
Funded status – underfunded at end of year $ (28) $ (29) $ (119) $ (79) $ (166) $ (157)
Accumulated benefit obligation $ 421 $ 366 $ 553 $ 313 $ 166 $ 157
The amounts recognized in the consolidated balance sheet consist of the following as of December 31:
U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits
2010 2009 2010 2009 2010 2009
Noncurrent assets $ – $ – $ 10 $ – $ – $ –
Current liabilities (3) (2) (5) (4) (16) (18)
Noncurrent liabilities (25) (27) (124) (75) (150) (139)
Net amount recognized $ (28) $ (29) $ (119) $ (79) $ (166) $ (157)
The funded status position represents the difference between the benefit obligation and the plan assets. The PBO for pension
benefits represents the actuarial present value of benefits attributed to employee services and compensation and includes an
assumption about future compensation levels. The accumulated benefit obligation (“ABO”) is the actuarial present value of pension
benefits attributed to employee service to date and present compensation levels. The ABO differs from the PBO in that the ABO
does not include any assumptions about future compensation levels.
Information for the plans with ABOs in excess of plan assets is as follows at December 31:
U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits
2010 2009 2010 2009 2010 2009
Projected benefit obligation $ 20 $ 375 $ 331 $ 327 n/a n/a
Accumulated benefit obligation 20 366 294 313 $ 166 $ 157
Fair value of plan assets – 346 203 248 n/a n/a