Company: BKR
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001701605-25-000035
Chunk: 29

Company: Baker Hughes Co
Filing Date: 2025-02-04
Form: 10-K
Item: Item 8
Chunk 29
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 Amortization of net actuarial loss18 19 27 Curtailment / settlement loss 20 (16)2 Net periodic cost$44 $33 $17 The service cost component of the net periodic cost is included in "Operating income (loss)" and all other components are included in "Other non-operating income (loss), net" in the consolidated statements of income (loss).Assumptions Used in Benefit CalculationsAccounting requirements necessitate the use of assumptions to reflect the uncertainties and the length of time over which the pension obligations will be paid. The actual amount of future benefit payments will depend upon when participants retire, the amount of their benefit at retirement, and how long they live. To reflect the obligation in today's dollars, the Company discounts the future payments using a rate that matches the time frame over which the payments are expected to be made. The Company also needs to assume a long-term rate of return that will be earned on investments used to fund these payments.Another assumption used is the interest crediting rate for the Company's U.S. qualified cash balance plan. Under the provisions of this pension plan, a hypothetical cash balance account has been established for each participant. Such accounts receive quarterly interest credits based on a prescribed formula.Weighted average assumptions used to determine benefit obligations for these plans are as follows: Pension Benefits20242023Discount rate5.22 %4.54 %Rate of compensation increase3.31 %3.26 %Interest crediting rate4.46 %3.98 %

Baker Hughes Company 2024 Form 10-K | 74

Baker Hughes CompanyNotes to Consolidated Financial Statements

Weighted average assumptions used to determine net periodic cost for these plans are as follows:Pension Benefits202420232022Discount rate4.54 %4.89 %2.15 %Expected long-term return on plan assets5.97 %5.05 %3.85 %Interest crediting rate3.98 %4.31 %2.60 %The Company determines the discount rate using a bond matching model, whereby the weighted average yields on high-quality fixed-income securities have maturities consistent with the timing of benefit payments. Lower discount rates increase the size of the benefit obligations while higher discount rates reduce the size of the benefit obligation. The compensation assumption is used in the Company's active plans to estimate the annual rate at which the pay for plan participants