Halliburton 2013 Annual Report Download - page 88

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72
Certain weighted-average actuarial assumptions used to determine net periodic benefit cost of our international
pension plans for the years ended December 31 were as follows:
2013
2012
2011
Discount rate
4.8%
5.2%
7.1%
Expected long-term return on plan assets
6.4%
6.5%
5.7%
Rate of compensation increase
5.5%
5.4%
6.2%
Assumed long-term rates of return on plan assets, discount rates for estimating benefit obligations, and rates of
compensation increases vary by plan according to local economic conditions. Discount rates were determined based on the
prevailing market rates of a portfolio of high-quality debt instruments with maturities matching the expected timing of the
payment of the benefit obligations. Expected long-term rates of return on plan assets were determined based upon an evaluation
of our plan assets and historical trends and experience, taking into account current and expected market conditions.
Other information
Contributions. Funding requirements for each plan are determined based on the local laws of the country where such
plan resides. In certain countries the funding requirements are mandatory, while in other countries they are discretionary. We
currently expect to contribute $17 million to our international pension plans in 2014.
Benefit payments. Expected benefit payments over the next 10 years are approximately $40 million annually for our
international pension plans.
Note 15. Accounting Standards Recently Adopted
In February 2013, the Financial Accounting Standards Board issued an update to existing guidance on the presentation
of comprehensive income. This update requires companies to report the effect of significant reclassifications out of
accumulated other comprehensive income (AOCI) by component. For significant items reclassified out of AOCI to net income
in their entirety during the reporting period, companies must report the effect on the line items in the statement where net
income is presented. For significant items not reclassified to net income in their entirety during the period, companies must
provide cross-references in the notes to other disclosures that already provide information about those amounts. We adopted this
update effective January 1, 2013, and it did not have a material impact on our consolidated financial statements.