Halliburton 2009 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 of the 2009 Halliburton 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 122

  • 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
  • 122

79
Note 13. Retirement Plans
Our company and subsidiaries have various plans that cover a significant number of our
employees. These plans include defined contribution plans, defined benefit plans, and other postretirement
plans:
- our defined contribution plans provide retirement benefits in return for services rendered.
These plans provide an individual account for each participant and have terms that
specify how contributions to the participant’s account are to be determined rather than the
amount of pension benefits the participant is to receive. Contributions to these plans are
based on pretax income and/or discretionary amounts determined on an annual basis.
Our expense for the defined contribution plans for continuing operations totaled $186
million in 2009, $178 million in 2008, and $162 million in 2007;
- our defined benefit plans include both funded and unfunded pension plans, which define
an amount of pension benefit to be provided, usually as a function of age, years of
service, and/or compensation; and
- our postretirement medical plans are offered to specific eligible employees. These plans
are contributory. For some plans, our liability is limited to a fixed contribution amount
for each participant or dependent. Plan participants share the total cost for all benefits
provided above our fixed contributions. Participants’ contributions are adjusted as
required to cover benefit payments. We have made no commitment to adjust the amount
of our contributions; therefore, the computed accumulated postretirement benefit
obligation amount for these plans is not affected by the expected future health care cost
inflation rate. The liability at the balance sheet dates presented and the annual cost for
these plans are not material.
Effective for our fiscal year ended December 31, 2009, we adopted an update to existing
accounting standards that amends the requirements for employers’ disclosures about plan assets for defined
benefit pension and other postretirement plans. The objectives of this update are to provide users of
financial statements with an understanding of how investment allocation decisions are made, the major
categories of assets held by the plans, the inputs and valuation techniques used to measure the fair value of
plan assets, significant concentration of risk within the company’s plan assets, and, for fair value
measurements determined using significant unobservable inputs, a reconciliation of changes between the
beginning and ending balances.
Effective for our fiscal year ended December 31, 2008, we adopted the requirements of a new
accounting standard to measure plan assets and benefit obligations as of the date of the employer’s fiscal
year-end.
The discontinued operations of KBR have been excluded from all of the following tables and
disclosures.