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Baker Hughes Incorporated
Notes to Consolidated Financial Statements
71
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.
U.S. Pension Benefits Non-U.S.
Pension Benefits Other Postretirement
Benefits
2014 2013 2014 2013 2014 2013
Change in benefit obligation:
Benefit obligation at beginning of year $ 649 $ 589 $ 799 $ 740 $ 128 $ 148
Service cost 70 65 11 12 6 6
Interest cost 28 21 34 31 5 5
Actuarial loss (gain) 21 2 120 36 1 (22)
Benefits paid (35) (24) (29) (24) (7) (9)
Plan amendments — — — — (11) —
Other (5) (4) (3) (3) — —
Foreign currency translation adjustments — — (60) 7 — —
Benefit obligation at end of year 728 649 872 799 122 128
Change in plan assets:
Fair value of plan assets at beginning of year 617 524 645 592 — —
Actual return on plan assets 39 78 122 52 — —
Employer contributions 32 43 78 18 7 9
Benefits paid (35) (24) (29) (24) (7) (9)
Other (5) (4) — (2) — —
Foreign currency translation adjustments — — (49) 9 — —
Fair value of plan assets at end of year 648 617 767 645 — —
Funded status - underfunded at end of year $ (80) $ (32) $ (105) $ (154) $ (122) $ (128)
Accumulated benefit obligation $ 662 $ 599 $ 832 $ 767 $ 122 $ 128
The amounts recognized in the consolidated balance sheets consist of the following at December 31:
U.S. Pension Benefits Non-U.S.
Pension Benefits Other Postretirement
Benefits
2014 2013 2014 2013 2014 2013
Noncurrent assets $ — $ — $ 42 $ 12 $ — $ —
Current liabilities (2) (2) (7) (7) (13) (14)
Noncurrent liabilities (78) (30) (140) (159) (109) (114)
Net amount recognized $ (80) $ (32) $ (105) $ (154) $ (122) $ (128)
The funded status position represents the difference between the benefit obligation and the plan assets. The
projected benefit obligation (“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.