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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
2015 2014 2015 2014 2015 2014
Change in benefit obligation:
Benefit obligation at beginning of year $ 728 $ 649 $ 872 $ 799 $ 122 $ 128
Service cost 64 70 15 11 5 6
Interest cost 26 28 30 34 4 5
Actuarial loss (gain) (4) 21 (23) 120 (10) 1
Benefits paid (59) (35) (35) (29) (11) (7)
Plan amendments — — — — — (11)
Curtailment (24) — (2) — (2) —
Other 4(5) (6) (3) (1) —
Foreign currency translation adjustments — — (53) (60) — —
Benefit obligation at end of year 735 728 798 872 107 122
Change in plan assets:
Fair value of plan assets at beginning of year 648 617 767 645 — —
Actual return on plan assets (5) 39 4 122 — —
Employer contributions 16 32 28 78 11 7
Benefits paid (59) (35) (35) (29) (11) (7)
Other (5) (5) (6) — — —
Foreign currency translation adjustments — — (45) (49) — —
Fair value of plan assets at end of year 595 648 713 767 — —
Funded status - underfunded at end of year $ (140) $ (80) $ (85) $ (105) $ (107) $ (122)
Accumulated benefit obligation $ 681 $ 662 $ 763 $ 832 $ 107 $ 122
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
2015 2014 2015 2014 2015 2014
Noncurrent assets $ — $ — $ 51 $ 42 $ — $ —
Current liabilities (2) (2) (6) (7) (16) (13)
Noncurrent liabilities (138) (78) (130) (140) (91) (109)
Net amount recognized $ (140) $ (80) $ (85) $ (105) $ (107) $ (122)
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.