Baker Hughes 2014 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 of the 2014 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 122

  • 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

Baker Hughes Incorporated
Notes to Consolidated Financial Statements
72
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
2014 2013 2014 2013 2014 2013
Projected benefit obligation $19 $ 18 $ 164 $ 399 n/a n/a
Accumulated benefit obligation $18 $ 17 $ 125 $ 371 $ 122 $ 128
Fair value of plan assets $ — $ — $ 17 $ 237 n/a n/a
Weighted average assumptions used to determine benefit obligations for these plans are as follows for the
years ended December 31:
U.S. Pension Benefits Non-U.S.
Pension Benefits Other Postretirement
Benefits
2014 2013 2014 2013 2014 2013
Discount rate 3.8% 4.5% 3.5% 4.4% 3.4% 4.0%
Rate of compensation increase 5.8% 5.6% 4.1% 4.4% n/a n/a
Social security increase 2.8% 2.8% 2.1% 2.4% n/a n/a
The development of the discount rate for our U.S. plans and substantially all non-U.S. plans was based on a
bond matching model, whereby a hypothetical bond portfolio of high-quality, fixed-income securities is selected that
will match the cash flows underlying the projected benefit obligation.
Accumulated Other Comprehensive Loss
The amount recorded before-tax in accumulated other comprehensive loss related to employee benefit plans
consists of the following at December 31:
U.S. Pension Benefits Non-U.S.
Pension Benefits Other Postretirement
Benefits
2014 2013 2014 2013 2014 2013
Net actuarial loss $ 174 $ 156 $ 231 $ 209 $ 25 $ 27
Net prior service cost (credit) 11 — 3 (83) (87)
Total $ 175 $ 157 $ 231 $ 212 $ (58) $ (60)
The estimated net actuarial loss and prior service cost for the defined benefit pension plans that will be
amortized from accumulated other comprehensive loss and included in net periodic benefit cost in 2015 are $15
million and $0.4 million, respectively. The estimated net actuarial loss and prior service credit for the other
postretirement benefits that will be amortized from accumulated other comprehensive loss and included in net
periodic benefit cost in 2015 are $2 million and $12 million, respectively.