Company: BKR
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001701605-25-000035
Chunk: 30

Company: Baker Hughes Co
Filing Date: 2025-02-04
Form: 10-K
Item: Item 8
Chunk 30
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 will grow. If the rate of growth assumed increases, the size of the pension obligations will increase.The expected return on plan assets is the estimated long-term rate of return that will be earned on the investments used to fund the pension obligations. To determine this rate, the Company considers the current and target composition of plan investments, our historical returns earned, and our expectations about the future.Accumulated Other Comprehensive LossThe amount recorded before-tax in accumulated other comprehensive loss related to the Company's defined benefit plans consists of the following at December 31: Pension Benefits20242023Net actuarial loss$338 $333 Net prior service cost14 15 Total$352 $348 Plan AssetsThe Company has an investment committee that meets regularly to review portfolio returns and to determine asset-mix targets based on asset/liability studies. Third-party investment consultants assist the committee in developing asset allocation strategies to determine the Company's expected rates of return and expected risk for various investment portfolios. The investment committee considered these strategies in the formal establishment of the current asset-mix targets based on the projected risk and return levels for all major asset classes.

Baker Hughes Company 2024 Form 10-K | 75

Baker Hughes CompanyNotes to Consolidated Financial Statements

The table below presents the fair value of the plan assets at December 31:20242023Debt securitiesFixed income and cash investment funds$1,253 $1,122 Equity securitiesGlobal equity securities (1)73 227 U.S. equity securities (1)107 157 Insurance contracts92 103 Real estate3 34 Private equities45 35 Other investments (2)135 402 Total plan assets$1,708 $2,080 (1)Include direct investments and investment funds.(2)Consists primarily of asset allocation fund investments.Plan assets valued using Net Asset Value ("NAV") as a practical expedient amounted to $1,557 million and $1,967 million as of December 31, 2024 and 2023, respectively. The percentages of plan assets valued using NAV by investment fund type for equity securities, fixed income and cash, and alternative investments were 12%, 80%, and 8% as of December 31, 2024, respectively, and 20%, 57%, and 23% as of December 31, 2023, respectively. Those investments that were measured at fair value using NAV as a practical expedient were