Baker Hughes 2004 Annual Report Download - page 108

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฀ U.S.฀Pension฀Benefits฀ Non-U.S.฀Pension฀Benefits
฀ 2004฀ 2003฀ 2004฀ 2003
Change฀in฀projected฀benefit฀obligation:฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀
฀ Projected฀benefit฀obligation฀at฀beginning฀of฀year฀ $฀ 175.6฀ $฀ 138.9฀ $฀ 269.2฀ $฀ 205.1
฀ Service฀cost฀ ฀ 20.6฀ ฀ 16.6฀ ฀ 2.1฀ ฀ 5.4
฀ Interest฀cost฀ ฀ 10.6฀ ฀ 9.1฀ ฀ 12.7฀ ฀ 12.1
฀ Plan฀amendments฀ ฀ –฀ ฀ 0.2฀ ฀ –฀ ฀ –
฀ Actuarial฀loss฀ ฀ 6.7฀ ฀ 19.6฀ ฀ 7.9฀ ฀ 22.9
฀ Benefits฀paid฀ ฀ (9.7)฀ ฀ (8.8)฀ ฀ (5.8)฀ ฀ (3.2)
฀ Curtailments/settlements฀ ฀ –฀ ฀ –฀ ฀ (42.2)฀ ฀ –
฀ Exchange฀rate฀adjustments฀ ฀ –฀ ฀ –฀ ฀ 17.1฀ ฀ 26.9
Projected฀benefit฀obligation฀at฀end฀of฀year฀ ฀ 203.8฀ ฀ 175.6฀ ฀ 261.0฀ ฀ 269.2
Change฀in฀plan฀assets:฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀
฀ Fair฀value฀of฀plan฀assets฀at฀beginning฀of฀year฀ ฀ 237.9฀ ฀ 179.7฀ ฀ 135.2฀ ฀ 107.9
฀ Actual฀gain฀on฀plan฀assets฀ ฀ 33.4฀ ฀ 44.6฀ ฀ 18.3฀ ฀ 10.9
฀ Employer฀contributions฀ ฀ 23.3฀ ฀ 22.4฀ ฀ 18.4฀ ฀ 6.3
฀ Benefits฀paid฀ ฀ (9.7)฀ ฀ (8.8)฀ ฀ (5.8)฀ ฀ (3.2)
฀ Settlements฀ ฀ –฀ ฀ –฀ ฀ (17.6)฀ ฀ –
฀ Exchange฀rate฀adjustments฀ ฀ –฀ ฀ –฀ ฀ 9.8฀ ฀ 13.3
Fair฀value฀of฀plan฀assets฀at฀end฀of฀year฀ ฀ 284.9฀ ฀ 237.9฀ ฀ 158.3฀ ฀ 135.2
Funded฀status฀–฀over฀(under)฀ ฀ 81.1฀ ฀ 62.3฀ ฀ (102.7)฀ ฀ (134.0)
Unrecognized฀actuarial฀loss฀ ฀ 59.5฀ ฀ 69.4฀ ฀ 77.0฀ ฀ 98.5
Unrecognized฀prior฀service฀cost฀ ฀ 0.3฀ ฀ 0.4฀ ฀ 0.2฀ ฀ 0.8
Net฀amount฀recognized฀ ฀ 140.9฀ ฀ 132.1฀ ฀ (25.5)฀ ฀ (34.7)
Employer฀contributions/benefits฀paid฀–฀
฀ October฀to฀December฀ ฀ 32.5฀ ฀ 0.6฀ ฀ 36.1฀ ฀ 2.0
Net฀amount฀recognized฀ $฀ 173.4฀ $฀ 132.7฀ $฀ 10.6฀ $฀ (32.7)
Note฀15.฀Employee฀Benefit฀Plans
Defined฀Benefit฀Pension฀Plans
We฀have฀noncontributory฀defined฀benefit฀pension฀plans฀
(“Pension฀Benefits”)฀covering฀employees฀primarily฀in฀the฀U.S.,฀
the฀U.K.฀and฀Germany.฀During฀2004,฀we฀converted฀our฀plan฀in฀
Norway฀from฀a฀defined฀benefit฀plan฀to฀a฀defined฀contribution฀
plan,฀resulting฀in฀a฀settlement฀and฀curtailment฀of฀benefits฀on฀
conversion.฀Generally,฀we฀make฀annual฀contributions฀to฀the฀
plans฀in฀amounts฀necessary฀to฀meet฀minimum฀governmental฀
funding฀requirements;฀however,฀during฀the฀fourth฀quarter฀of฀
2004,฀we฀contributed฀$68.6฀million฀to฀our฀pension฀plans฀in฀
order฀to฀improve฀the฀funded฀status฀of฀certain฀pension฀plans฀
and฀to฀provide฀us฀with฀increased฀flexibility฀on฀the฀future฀fund-
ing฀of฀these฀pension฀plans.฀The฀measurements฀of฀plan฀assets฀
and฀obligations฀are฀as฀of฀October฀1฀of฀each฀year฀presented.
The฀reconciliation฀of฀the฀beginning฀and฀ending฀balances฀of฀
the฀projected฀benefit฀obligations฀(“PBO”)฀and฀fair฀value฀of฀
plan฀assets฀and฀the฀funded฀status฀of฀the฀plans฀are฀as฀follows฀
for฀the฀years฀ended฀December฀31:
We฀report฀prepaid฀benefit฀cost฀in฀other฀assets฀and฀accrued฀benefit฀and฀minimum฀liabilities฀in฀pensions฀and฀postretirement฀bene-
fit฀obligations฀in฀the฀consolidated฀balance฀sheet.฀The฀amounts฀recognized฀in฀the฀consolidated฀balance฀sheet฀are฀as฀follows฀at฀
December฀31:
฀ ฀U.S.฀Pension฀Benefits฀ Non-U.S.฀Pension฀Benefits
฀ 2004฀ 2003฀ 2004฀ 2003
Prepaid฀benefit฀cost฀ $฀ 185.0฀ $฀ 154.8฀ $฀ 33.8฀ $฀ 1.3฀
Accrued฀benefit฀liability฀ ฀ (11.6)฀ ฀ (22.1)฀ ฀ (23.2)฀ ฀ (34.0)฀
Minimum฀liability฀ ฀ (14.9)฀ ฀ (13.9)฀ ฀ (68.3)฀ ฀ (75.7)฀
Intangible฀asset฀ ฀ 0.1฀ ฀ 0.2฀ ฀ –฀ ฀ 0.5฀
Accumulated฀other฀comprehensive฀loss฀ ฀ 14.8฀ ฀ 13.7฀ ฀ 68.3฀ ฀ 75.2
Net฀amount฀recognized฀฀ $฀ 173.4฀ $฀ 132.7฀ $฀ 10.6฀ $฀ (32.7)
58฀฀฀฀฀Baker฀Hughes฀Incorporated