Baker Hughes 2014 Annual Report Download - page 105

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Baker Hughes Incorporated
Notes to Consolidated Financial Statements
80
above our volumetric share is remote. We believe there are other PRPs who have greater involvement on a
volumetric calculation basis, who have substantial assets and who may be reasonably expected to pay their share
of the cost of remediation. For those Superfund sites where we are a significant PRP, remediation costs are
estimated to include recalcitrant parties. In some cases, we have insurance coverage or contractual indemnities
from third parties to cover a portion of the ultimate liability.
Our total accrual for environmental remediation is $35 million and $34 million, which includes accruals of $3
million and $4 million for the various Superfund sites, at December 31, 2014 and 2013, respectively. The
determination of the required accruals for remediation costs is subject to uncertainty, including the evolving nature
of environmental regulations and the difficulty in estimating the extent and type of remediation activity that is
necessary.
OTHER
In the normal course of business with customers, vendors and others, we have entered into off-balance sheet
arrangements, such as surety bonds for performance, letters of credit and other bank issued guarantees, which
totaled approximately $1.3 billion at December 31, 2014. It is not practicable to estimate the fair value of these
financial instruments. None of the off-balance sheet arrangements either has, or is likely to have, a material effect
on our consolidated financial statements. We also had commitments outstanding for purchase obligations related to
capital expenditures, inventory and services under contracts, for each of the five years in the period ending
December 31, 2019 of $532 million, $312 million, $256 million, $156 million and $72 million, respectively, and $99
million in the aggregate thereafter.