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Baker Hughes Incorporated
Notes to Consolidated Financial Statements
76
The following table presents the changes in the fair value of assets determined using level 3 unobservable
inputs:
U.S.
Private
Equity
Fund
U.S.
Real
Estate
Fund
U.S.
Hedge
Funds
Non-U.S.
Real
Estate
Fund
Non-U.S.
Insurance
Contracts Total
Balance at December 31, 2012 $16 $7$ 172 $ 20 $ 16 $ 231
Unrealized gains 2— 12 1 2 17
Realized gains —— 7 — — 7
Sales (10) — (84) — (2) (96)
Purchases 8 2 83 — 2 95
Balance at December 31, 2013 16 9 190 21 18 254
Unrealized gains (losses) — 1 6 1 (1) 7
Realized gains 1— 7 — — 8
Sales (4) — (85) — — (89)
Purchases 8— 46 — — 54
Balance at December 31, 2014 21 10 164 22 17 234
Unrealized losses —— (6) — (2) (8)
Realized gains — 1 1 — — 2
Sales (4) (2) (15) — (5) (26)
Purchases 24 1 8 1 2 36
Balance at December 31, 2015 $41 $ 10 $ 152 $ 23 $ 12 $ 238
Expected Cash Flows
For all pension plans, we make annual contributions to the plans in amounts equal to or greater than amounts
necessary to meet minimum governmental funding requirements. In 2016, we expect to contribute between $65
million and $75 million to our funded and unfunded pension plans. In 2016, we also expect to make benefit
payments related to other postretirement benefits of between $15 million and $20 million.
The following table presents the expected benefit payments over the next ten years. The U.S. and non-U.S.
pension benefit payments are made by the respective pension trust funds.
Year U.S. Pension
Benefits Non-U.S. Pension
Benefits Other Postretirement
Benefits
2016 $47 $ 24 $ 17
2017 $41 $ 25 $ 13
2018 $43 $ 28 $ 11
2019 $46 $ 33 $ 10
2020 $48 $ 32 $ 10
2021-2025 $ 280 $ 204 $ 43
DEFINED CONTRIBUTION PLANS
During the periods reported, generally all of our U.S. employees were eligible to participate in our sponsored
401(k) plan (“Thrift Plan”). The Thrift Plan allows eligible employees to elect to contribute portions of their salaries
to an investment trust. Employee contributions are matched by the Company in cash at the rate of $1.00 per $1.00
employee contribution for the first 5% of the employee’s salary, and such contributions vest immediately. In
addition, we make cash contributions for all eligible employees between 2% and 5% of their salary depending on