Baker Hughes 2007 Annual Report Download - page 142

2007 Form 10-K 59
The following table presents consolidated revenues by
country based on the location of the use of the products or
services for the years ended December 31:
2007 2006 2005
United States $ 3,803.1 $ 3,392.5 $ 2,576.1
United Kingdom 602.6 514.8 402.9
Canada 554.9 607.1 472.8
Norway 518.2 438.4 376.1
Saudi Arabia 481.4 391.3 170.6
Russia 428.5 237.6 168.6
Brazil 219.4 133.0 98.4
Other countries 3,820.1 3,312.7 2,920.0
Total $ 10,428.2 $ 9,027.4 $ 7,185.5
The following table presents net property, plant and
equipment by country based on the location of the asset at
December 31:
2007 2006 2005
United States $ 1,127.6 $ 927.8 $ 734.4
United Kingdom 226.5 188.8 133.2
Germany 85.0 51.7 49.4
Canada 84.9 78.8 67.9
Norway 66.6 50.7 43.8
Brazil 64.5 34.3 21.0
Russia 58.5 24.8 13.5
Other countries 631.0 443.6 292.3
Total $ 2,344.6 $ 1,800.5 $ 1,355.5
NOTE 14. EMPLOYEE BENEFIT PLANS
Defined Benefit Plans
We have noncontributory defined benefit pension plans
(“Pension Benefits”) covering employees primarily in the U.S.,
the U.K. and Germany. In the U.S., we merged two pension
plans effective January 1, 2007, resulting in one tax-qualified
U.S. pension plan, the Baker Hughes Incorporated Pension Plan
(“BHIPP”). Under the provisions of BHIPP, a hypothetical cash
balance account is established for each participant. Such
accounts receive pay credits on a quarterly basis. The quar-
terly pay credit is based on a percentage according to the
employee’s age on the last day of the quarter applied to quar-
terly eligible compensation. In addition to quarterly pay credits,
a cash balance account receives interest credits based on the
balance in the account on the last day of the quarter. The BHIPP
also includes frozen accrued benefits for participants in legacy
defined benefit plans. For the majority of the participants in
the U.K. pension plans, we do not accrue benefits as the plans
are frozen; however, there are a limited number of members
who still accrue future benefits on a defined benefit basis. The
Germany pension plan is an unfunded plan where benefits are
based on creditable years of service, creditable pay and accrual
rates. We also provide certain postretirement health care ben-
efits (“other postretirement benefits”), through an unfunded
plan, to substantially all U.S. employees who retire and have
met certain age and service requirements.
We adopted SFAS 158 effective December 31, 2006.
SFAS 158 requires an employer to recognize the overfunded or
underfunded status of its defined pension and postretirement
benefit plans as a net asset or liability in its statement of finan-
cial position and to recognize changes in that funded status in
the year in which the changes occur through comprehensive
income. Additionally, SFAS 158 requires an employer to mea-
sure the funded status of each of its plans as of the date of
its year end statement of financial position. We will adopt this
provision on December 31, 2008, as allowed under SFAS 158,
using the Alternative Method to transition to a fiscal year-end
measurement date. The funded status of all our pension and
other postretirement benefit plans are currently measured as
of October 1 of each year presented.