Baker Hughes 2015 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2015 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 104

  • 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

Baker Hughes Incorporated
Notes to Consolidated Financial Statements
72
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
2015 2014 2015 2014 2015 2014
Projected benefit obligation $ 735 $ 19 $ 149 $ 164 n/a n/a
Accumulated benefit obligation $ 681 $ 18 $ 114 $ 125 $ 107 $ 122
Fair value of plan assets $ 595 $ — $ 12 $ 17 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
2015 2014 2015 2014 2015 2014
Discount rate 4.2% 3.8% 3.7% 3.5% 3.7% 3.4%
Rate of compensation increase 5.9% 5.8% 4.1% 4.1% n/a n/a
Social security increase 2.8% 2.8% 2.2% 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.
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
2015 2014 2015 2014 2015 2014
Net actuarial loss $ 191 $ 174 $ 229 $ 231 $ 10 $ 25
Net prior service cost (credit) — 1 — — (54) (83)
Total $ 191 $ 175 $ 229 $ 231 $ (44) $ (58)
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 2016 are $17
million and $0.3 million, respectively. The estimated 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 2016 is $9
million. No amortization of the net actuarial loss for the other postretirement benefits from accumulated other
comprehensive loss is expected in 2016.