Baker Hughes 2013 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2013 Baker Hughes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 121

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121

2013 Annual Report 70
Baker Hughes Incorporated
Notes to Consolidated Financial Statements
Accumulated Other Comprehensive Loss
The amount recorded before-tax in accumulated other comprehensive loss related to employee benefit plans
consists of the following at December 31:
U.S. Pension Benefits
Non-U.S.
Pension Benefits
Other Postretirement
Benefits
2013 2012 2013 2012 2013 2012
Net actuarial loss $ 156 $ 205 $ 209 $ 193 $ 27 $ 53
Net prior service cost (credit) 12 3 9 (87) (95)
Total $ 157 $ 207 $ 212 $ 202 $ (60) $ (42)
The estimated net actuarial loss and prior service cost for the defined benefit pension plans that will be
amortized from accumulated other comprehensive loss and included in net periodic benefit cost in 2014 are $13
million and $1 million, respectively. The estimated net actuarial loss and prior service credit for the other
postretirement benefits that will be amortized from accumulated other comprehensive loss and included in net
periodic benefit cost in 2014 are $2 million and $7 million, respectively.
Net Periodic Cost
The components of net periodic cost are as follows for the years ended December 31:
U.S. Pension Benefits
Non-U.S.
Pension Benefits
Other Postretirement
Benefits
2013 2012 2011 2013 2012 2011 2013 2012 2011
Service cost
$65$63$38$12$ 8$ 9$ 6$13$ 8
Interest cost 21 21 21 31 32 33 5 7 8
Expected return on plan assets (39) (35) (31) (37) (36) (33) — — —
Amortization of prior service credit
——————(7)(2)(2)
Amortization of net actuarial loss
13151086421—
Curtailment/settlements
——— 2 4(4)———
Net periodic cost
$60$64$38$16$14$ 9$ 6$19$14
Weighted average assumptions used to determine net periodic cost for these plans are as follows for the years
ended December 31:
U.S. Pension Benefits
Non-U.S.
Pension Benefits
Other Postretirement
Benefits
2013 2012 2011 2013 2012 2011 2013 2012 2011
Discount rate 3.6% 4.2% 4.9% 4.4% 5.0% 5.5% 3.2% 3.8% 4.9%
Expected long-term return on plan assets 7.4% 7.4% 7.8% 6.5% 6.7% 6.7% n/a n/a n/a
Rate of compensation increase 5.6% 5.4% 5.4% 4.4% 4.4% 4.3% n/a n/a n/a
Social security increase 2.8% 2.8% 2.8% 2.1% 2.1% 2.9% n/a n/a n/a
In selecting the expected rate of return on plan assets, we consider the average rate of earnings expected on
the funds invested or to be invested to provide for the benefits of these plans. This includes considering the trusts’
asset allocation and the expected returns likely to be earned over the life of the plans.