Baker Hughes 2013 Annual Report Download - page 104

2013 Annual Report 74
Baker Hughes Incorporated
Notes to Consolidated Financial Statements
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 2014, we expect to contribute between $30
million and $34 million to our U.S. pension plans and between $72 million and $80 million to the non-U.S. pension
plans. In 2014, we also expect to make benefit payments related to other postretirement benefits of between $13
million and $15 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
2014 $ 36 $ 20 $ 14
2015 $ 40 $ 20 $ 14
2016 $ 43 $ 23 $ 13
2017 $ 48 $ 28 $ 13
2018 $ 51 $ 30 $ 13
2019-2023 $ 308 $ 190 $ 61
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
the employee’s age. Such contributions are fully vested to the employee after three years of employment. The
Thrift Plan provides several investment options, for which the employee has sole investment discretion. The Thrift
Plan does not offer the Company's common stock as an investment option. Our contributions to the Thrift Plan and
several other non-U.S. defined contribution plans amounted to $240 million, $232 million and $189 million in 2013,
2012 and 2011, respectively.
For certain non-U.S. employees who are not eligible to participate in the Thrift Plan, we provide a non-qualified
defined contribution international retirement plan that provides basically the same benefits as those provided in the
Thrift Plan. In addition, we provide a non-qualified supplemental retirement plan (“SRP”) for certain officers and
employees whose benefits under the Thrift Plans and/or the U.S. qualified pension plan are limited by federal tax
law. The SRP also allows eligible employees to defer a portion of their eligible compensation and provides for
employer matching and base contributions pursuant to limitations. Both non-qualified plans are invested through
trusts, and the assets and corresponding liabilities are included in our consolidated balance sheets. Our
contributions to these non-qualified plans amounted to $15 million, $17 million and $11 million in 2013, 2012 and
2011, respectively. In 2014, we estimate we will contribute between $270 million and $293 million to all of our
defined contribution plans.
POSTEMPLOYMENT BENEFITS
We provide certain postemployment disability income, medical and other benefits to substantially all qualifying
former or inactive U.S. employees. Income benefits for long-term disability are provided through a fully-insured
plan. The continuation of medical and other benefits while on disability (“Continuation Benefits”) are provided
through a qualified self-insured plan. The accrued postemployment liability for Continuation Benefits at
December 31, 2013 and 2012 was $23 million and $26 million, respectively, and is included in other liabilities in our
consolidated balance sheets.