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Baker Hughes Incorporated69
Baker Hughes Incorporated
Notes to Consolidated Financial Statements
The amounts recognized in the consolidated balance sheets consist of the following at December 31:
U.S. Pension Benefits
Non-U.S.
Pension Benefits
Other Postretirement
Benefits
2013 2012 2013 2012 2013 2012
Noncurrent assets $ — $ — $ 12 $ 2 $ — $ —
Current liabilities (2) (2) (7) (8) (14) (15)
Noncurrent liabilities (30) (63) (159) (142) (114) (133)
Net amount recognized $ (32) $ (65) $ (154) $ (148) $ (128) $ (148)
The funded status position represents the difference between the benefit obligation and the plan assets. The
projected benefit obligation (“PBO”) for pension benefits represents the actuarial present value of benefits attributed
to employee services and compensation and includes an assumption about future compensation levels. The
accumulated benefit obligation (“ABO”) is the actuarial present value of pension benefits attributed to employee
service to date and present compensation levels. The ABO differs from the PBO in that the ABO does not include
any assumptions about future compensation levels.
Information for the plans with ABOs in excess of plan assets is as follows at December 31:
U.S. Pension Benefits
Non-U.S.
Pension Benefits
Other Postretirement
Benefits
2013 2012 2013 2012 2013 2012
Projected benefit obligation $18 $ 19 $ 399 $ 395 n/a n/a
Accumulated benefit obligation $17 $ 19 $ 371 $ 366 $ 128 $ 148
Fair value of plan assets $ — $ — $ 237 $ 255 n/a n/a
Weighted average assumptions used to determine benefit obligations 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 2013 2012 2013 2012
Discount rate 4.5% 3.6% 4.4% 4.4% 4.0% 3.2%
Rate of compensation increase 5.6% 5.6% 4.4% 4.4% n/a n/a
Social security increase 2.8% 2.8% 2.4% 2.1% n/a n/a
The development of the discount rate for our U.S. plans and substantially all non-U.S. plans was based on a
bond matching model, whereby a hypothetical bond portfolio of high-quality, fixed-income securities is selected that
will match the cash flows underlying the projected benefit obligation.