Rendering

Component: (Network and Table)
Network
2314301 - Disclosure - Employee Benefit Plans (Tables)
(http://www.bakerhughes.com/role/EmployeeBenefitPlansTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Compensation and Retirement Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Compensation and Retirement Disclosure [Abstract]
 
Defined benefit plan funded status of plan
Below is the reconciliation of the beginning and ending balances of benefit obligations, fair value of plan assets and the funded status of our plans.

 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Other Postretirement
Benefits
  
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Change in benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
735

 
$
728

 
$
798

 
$
872

 
$
107

 
$
122

Service cost
52

 
64

 
14

 
15

 
4

 
5

Interest cost
29

 
26

 
27

 
30

 
4

 
4

Actuarial loss (gain)
(13
)
 
(4
)
 
165

 
(23
)
 

 
(10
)
Benefits paid
(63
)
 
(59
)
 
(38
)
 
(35
)
 
(14
)
 
(11
)
Curtailment
(12
)
 
(24
)
 
(2
)
 
(2
)
 
(4
)
 
(2
)
Other
(2
)
 
4

 

 
(6
)
 

 
(1
)
Foreign currency translation adjustments

 

 
(118
)
 
(53
)
 

 

Benefit obligation at end of year
726

 
735

 
846

 
798

 
97

 
107

 
 
 
 
 
 
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
595

 
648

 
713

 
767

 

 

Actual return on plan assets
29

 
(5
)
 
118

 
4

 

 

Employer contributions
44

 
16

 
24

 
28

 
14

 
11

Benefits paid
(63
)
 
(59
)
 
(38
)
 
(35
)
 
(14
)
 
(11
)
Other
(5
)
 
(5
)
 

 
(6
)
 

 

Foreign currency translation adjustments

 

 
(118
)
 
(45
)
 

 

Fair value of plan assets at end of year
600

 
595

 
699

 
713

 

 

 
 
 
 
 
 
 
 
 
 
 
 
Funded status - underfunded at end of year
$
(126
)
 
$
(140
)
 
$
(147
)
 
$
(85
)
 
$
(97
)
 
$
(107
)
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated benefit obligation
$
682

 
$
681

 
$
810

 
$
763

 
$
97

 
$
107

 
 
Amounts recognized in the consolidated balance sheets
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
  
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Noncurrent assets
$

 
$

 
$
3

 
$
51

 
$

 
$

Current liabilities
(1
)
 
(2
)
 
(6
)
 
(6
)
 
(16
)
 
(16
)
Noncurrent liabilities
(125
)
 
(138
)
 
(144
)
 
(130
)
 
(81
)
 
(91
)
Net amount recognized
$
(126
)
 
$
(140
)
 
$
(147
)
 
$
(85
)
 
$
(97
)
 
$
(107
)
 
 
Accumulated benefit obligations in excess of plan assets
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
  
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Projected benefit obligation
$
725

 
$
735

 
$
821

 
$
149

 
n/a

 
n/a

Accumulated benefit obligation
$
682

 
$
681

 
$
786

 
$
114

 
$
97

 
$
107

Fair value of plan assets
$
600

 
$
595

 
$
672

 
$
12

 
n/a

 
n/a

 
 
Weighted average assumptions used to determine benefit obligations
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
  
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Discount rate
4.0
%
 
4.2
%
 
2.6
%
 
3.7
%
 
3.6
%
 
3.7
%
Rate of compensation increase
5.5
%
 
5.9
%
 
4.2
%
 
4.1
%
 
n/a

 
n/a

Social security increase
2.8
%
 
2.8
%
 
2.0
%
 
2.2
%
 
n/a

 
n/a

 
 
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
  
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Net actuarial loss
$
166

 
$
191

 
$
266

 
$
229

 
$
6

 
$
10

Net prior service cost (credit)

 

 

 

 
(37
)
 
(54
)
Total
$
166

 
$
191

 
$
266

 
$
229

 
$
(31
)
 
$
(44
)
 
 
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
  
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost
$
52

 
$
64

 
$
70

 
$
14

 
$
15

 
$
11

 
$
4

 
$
5

 
$
6

Interest cost
29

 
26

 
28

 
27

 
30

 
34

 
4

 
4

 
5

Expected return on plan assets
(41
)
 
(49
)
 
(44
)
 
(33
)
 
(47
)
 
(41
)
 

 

 

Amortization of prior service credit

 
1

 

 

 

 

 
(9
)
 
(11
)
 
(11
)
Amortization of net actuarial loss
11

 
9

 
8

 
6

 
6

 
5

 

 
1

 
1

Curtailment gain

 

 

 
(2
)
 
(1
)
 

 
(7
)
 
(17
)
 

Other
3

 
8

 

 

 

 

 

 

 
(3
)
Net periodic cost
$
54

 
$
59

 
$
62

 
$
12

 
$
3

 
$
9

 
$
(8
)
 
$
(18
)
 
$
(2
)
 
 
Weighted average assumptions used to determine net periodic cost
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
  
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Discount rate
4.2
%
 
3.7
%
 
4.5
%
 
3.7
%
 
3.5
%
 
4.4
%
 
3.7
%
 
3.3
%
 
4.0
%
Expected long-term return on plan assets
7.0
%
 
7.6
%
 
7.3
%
 
5.0
%
 
6.3
%
 
6.1
%
 
n/a

 
n/a

 
n/a

Rate of compensation increase
5.7
%
 
5.8
%
 
5.6
%
 
4.1
%
 
4.1
%
 
4.4
%
 
n/a

 
n/a

 
n/a

Social security increase
2.8
%
 
2.8
%
 
2.8
%
 
2.1
%
 
2.1
%
 
2.4
%
 
n/a

 
n/a

 
n/a

 
 
Effect of one-percentage point change in assumed health care cost trend rates
A one percentage point change in assumed health care cost trend rates would have had the following effects on 2016:

 
One Percentage
Point Increase
 
One Percentage
Point Decrease
Effect on total of service and interest cost components
$
0.1

 
$
(0.1
)
Effect on postretirement welfare benefit obligation
$
0.9

 
$
(1.2
)
 
 
Fair values of the assets in U.S. Plan
The table below presents the fair value of the assets in the U.S. Pension Plan by asset category and by valuation technique at December 31:

 
2016
 
2015
Asset Category
Total
Asset
Value
 
Level
One
 
Level
Two
 
Level
Three
 
Total
Asset
Value
 
Level
One
 
Level
Two
 
Level
Three
Cash and Cash Equivalents
$
2

 
$

 
$
2

 
$

 
$
16

 
$
12

 
$
4

 
$

Fixed Income (1)
120

 

 
120

 

 
109

 

 
109

 

Non-U.S. Equity (2)
126

 
31

 
95

 

 
129

 
31

 
98

 

U.S. Equity (3)
131

 

 
131

 

 
129

 

 
129

 

Hedge Funds (4)
150

 

 

 
150

 
152

 

 

 
152

Real Estate Funds (5)
8

 

 

 
8

 
10

 

 

 
10

Real Estate Investment Trust Equity
12

 

 
12

 

 
9

 

 
9

 

Private Equity Fund (6)
51

 

 

 
51

 
41

 

 

 
41

Total
$
600

 
$
31

 
$
360

 
$
209

 
$
595

 
$
43

 
$
349

 
$
203

(1) 
A multi-manager strategy investing in fixed income securities and funds. The current allocation includes: 39% in unconstrained bond funds; 25% in government bonds; 12% in corporate bonds; 10% in government mortgage-backed securities; 6% in a passive index bond; 1% in commercial mortgage-backed securities; 1% in short-term bills and notes; 1% in asset-backed securities; and 5% in cash and other securities.
(2) 
Multi-manager strategy investing in common stocks of non-U.S. listed companies using both value and growth approaches.
(3) 
Multi-manager strategy investing in common stocks of U.S. listed companies using value and growth approaches.
(4) 
Strategies taking long and short positions in equities, fixed income securities, currencies and derivative contracts.
(5) 
Strategy investing in the global private real estate secondary market using a value-based investment approach.
(6) 
Partnership making opportunistic investments on a global basis across asset classes, capital structures and geographies.
 
 
Fair values of the assets in our Non-U.S Plans by asset category and by levels of fair value
The table below presents the fair value of the assets in our Non-U.S. Plans by asset category and by valuation technique at December 31:

 
2016
 
2015
Asset Category
Total
Asset
Value
 
Level
One
 
Level
Two
 
Level
Three
 
Total
Asset
Value
 
Level
One
 
Level
Two
 
Level
Three
Cash and Cash Equivalents
$
5

 
$
5

 
$

 
$

 
$
5

 
$
5

 
$

 
$

Asset Allocation (1)
122

 

 
122

 

 
152

 

 
152

 

Bonds - Canada - Corporate (2)
6

 

 
6

 

 
6

 

 
6

 

Bonds - Canada - Government (3)
17

 

 
17

 

 
19

 

 
19

 

Bonds - U.K. - Corporate (4)
8

 

 
8

 

 
8

 

 
8

 

Bonds - U.K. - Government (5)
225

 

 
225

 

 
211

 

 
211

 

Bonds - Global - Corporate (6)
57

 

 
57

 

 
64

 

 
64

 

Equities (7)
122

 

 
122

 

 
128

 

 
128

 

Real Estate Fund (8)
19

 

 

 
19

 
23

 

 

 
23

Pooled Swap Funds (9)
106

 

 
106

 

 
85

 

 
85

 

Insurance contracts
12

 

 

 
12

 
12

 

 

 
12

Total
$
699

 
$
5

 
$
663

 
$
31

 
$
713

 
$
5

 
$
673

 
$
35

(1) 
Invests in mixes of global common stocks and bonds to achieve broad diversification.
(2) 
Invests in Canadian Dollar-denominated high quality corporate bonds.
(3) 
Invests in Canadian Dollar-denominated government issued bonds intended to match the duration of plan liabilities.
(4) 
Invests passively in British Pound Sterling-denominated investment grade corporate bonds.
(5) 
Invests passively in British Pound Sterling-denominated government issued bonds.
(6) 
Invests globally in high quality corporate bonds.
(7) 
Invests in broad equity funds based on securities offered in various regions or countries. Equity funds are allocated by region as follows: 47% Global; 32% U.K.; 7% Emerging Markets; 5% North America; 5% Asia Pacific; and 4% Europe.
(8) 
Invests in a diversified range of property throughout the U.K., principally in the retail, office and industrial/warehouse sectors.
(9) 
Invests in a range of pooled funds which include positions in swap contracts and U.K. sovereign bonds; pooled funds are categorized by maturities of underlying positions. Pooled funds employ leverage in order to match the U.K. Plan's duration and inflation.
 
 
Changes in the fair value of assets
The following table presents the changes in the fair value of assets determined using level 3 unobservable inputs:

 
U.S.
Private Equity
Fund
 
U.S.
Real Estate
Fund
 
U.S.
Hedge
Funds
 
Non-U.S.
Real Estate
Fund
 
Non-U.S.
Insurance
Contracts
 
Total
Balance at December 31, 2013
$
16

 
$
9

 
$
190

 
$
21

 
$
18

 
$
254

Unrealized gains (losses)

 
1

 
6

 
1

 
(1
)
 
7

Realized gains
1

 

 
7

 

 

 
8

Sales
(4
)
 

 
(85
)
 

 

 
(89
)
Purchases
8

 

 
46

 

 

 
54

Balance at December 31, 2014
21

 
10

 
164

 
22

 
17

 
234

Unrealized gains (losses)

 

 
(6
)
 

 
(2
)
 
(8
)
Realized gains

 
1

 
1

 

 

 
2

Sales
(4
)
 
(2
)
 
(15
)
 

 
(5
)
 
(26
)
Purchases
24

 
1

 
8

 
1

 
2

 
36

Balance at December 31, 2015
41

 
10

 
152

 
23

 
12

 
238

Unrealized gains (losses)
3

 
1

 

 
(5
)
 

 
(1
)
Realized losses

 

 
(1
)
 

 

 
(1
)
Sales
(5
)
 
(3
)
 
(22
)
 

 
(3
)
 
(33
)
Purchases
12

 

 
21

 
1

 
3

 
37

Balance at December 31, 2016
$
51

 
$
8

 
$
150

 
$
19

 
$
12

 
$
240

 
 
Expected future benefit payments
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
2017
 
$
46

 
 
$
22

 
 
$
16

 
2018
 
$
44

 
 
$
24

 
 
$
12

 
2019
 
$
46

 
 
$
29

 
 
$
10

 
2020
 
$
47

 
 
$
27

 
 
$
9

 
2021
 
$
48

 
 
$
32

 
 
$
9

 
2022-2026
 
$
264

 
 
$
182

 
 
$
37