Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [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.

	Pension Benefits						Other Postretirement Benefits
	2019			2018			2019			2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	2,261		$	2,418		$	107		$	187
Service cost	21			21			1			2
Interest cost	90			71			4			5
Plan amendment	—			20			—			1
Actuarial loss (gain)	301			(93		)	(16		)	(23		)
Benefits paid	(102		)	(67		)	(16		)	(21		)
Curtailments	(21		)	(7		)	—			(5		)
Settlements	(36		)	(59		)	—			—
Transfer from GE - UK Plan	837			—			—			—
Other	15			16			—			(39		)
Foreign currency translation adjustments	85			(59		)	—			—
Benefit obligation at end of year	3,451			2,261			80			107
Change in plan assets:
Fair value of plan assets at beginning of year	1,866			2,059			—			—
Actual return on plan assets	314			(60		)	—			—
Employer contributions	23			51			16			21
Benefits paid	(102		)	(67		)	(16		)	(21		)
Settlements	(36		)	(59		)	—			—
Transfer from GE - UK Plan	851			—			—			—
Other	—			(9		)	—			—
Foreign currency translation adjustments	88			(49		)	—			—
Fair value of plan assets at end of year	3,004			1,866			—			—
Funded status - underfunded at end of year	$	(447	)	$	(395	)	$	(80	)	$	(107	)
Accumulated benefit obligation	$	3,401		$	2,225		$	80		$	107

Amounts recognized in the consolidated balance sheets

The amounts recognized in the consolidated and combined statements of financial position consist of the following at December 31:

	Pension Benefits						Other Postretirement Benefits
	2019			2018			2019			2018
Noncurrent assets	$	78		$	47		$	—		$	—
Current liabilities	(17		)	(13		)	(11		)	(19		)
Noncurrent liabilities	(508		)	(429		)	(69		)	(88		)
Net amount recognized	$	(447	)	$	(395	)	$	(80	)	$	(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:

	Pension Benefits				Other Postretirement Benefits
	2019		2018		2019		2018
Projected benefit obligation	$	1,814	$	1,621	n/a		n/a
Accumulated benefit obligation	$	1,763	$	1,585	$	80	$	107
Fair value of plan assets	$	1,288	$	1,179	n/a		n/a

Schedule of net period costs (income)

The components of net periodic cost (income) are as follows for the years ended December 31:

	Pension Benefits										Other Postretirement Benefits
	2019			2018			2017				2019			2018			2017
Service cost	$	21		$	21		$	37			$	1		$	2		$	2
Interest cost	90			71			51				4			5			6
Expected return on plan assets	(122		)	(121		)	(81		)		—			—			—
Amortization of prior service credit	1			—			—				(3		)	(5		)	(3		)
Amortization of net actuarial loss (gain)	17			10			12				(7		)	(2		)	(2		)
Curtailment / settlement loss (gain)	9			2			(45		)	(1)	—			(5		)	2
Net periodic cost (income)	$	16		$	(17	)	$	(26	)		$	(5	)	$	(5	)	$	5

⁽¹⁾ 

As a result of the acquisition of BHI, we obtained a non-contributory pension plan (the Baker Hughes Incorporated Pension Plan or BHIPP). In 2017, the Compensation Committee of the Board of Directors approved amendments to the BHIPP to close the plan to new participants and freeze accruals of future service-related benefits effective as of December 31, 2017. As a result of these actions, the Company recorded a curtailment gain of $45 million. The curtailment was recorded by the Company during the fourth quarter of 2017 and included in the “Other non operating income (loss), net” caption of the consolidated and combined statements of income (loss).

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:

	Pension Benefits				Other Postretirement Benefits
	2019		2018		2019		2018
Discount rate	2.34	%	3.43	%	2.89	%	3.92	%
Rate of compensation increase	3.11	%	3.78	%	n/a		n/a

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:

	Pension Benefits						Other Postretirement  Benefits
	2019		2018		2017		2019		2018		2017
Discount rate	3.43	%	2.99	%	3.24	%	3.92	%	3.32	%	3.72	%
Expected long-term return on plan assets	5.48	%	5.94	%	6.26	%	n/a		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:

	Pension Benefits				Other Postretirement Benefits
	2019		2018		2019			2018
Net actuarial loss (gain)	$	395	$	177	$	(38	)	$	(29	)
Net prior service cost (credit)	19		20		(15		)	(18		)
Total	$	414	$	197	$	(53	)	$	(47	)

Fair values of the assets in U.S. Plan

The table below presents the fair value of the pension assets at December 31:

	2019		2018
Equity securities
U.S. equity securities (1)	$	258	$	215
Global equity securities (1)	333		338
Debt securities
Fixed income and cash investment funds	1,858		937
Other debt securities	3		4
Private equities	51		60
Real estate	84		35
Other investments (2)	417		277
Total plan assets	$	3,004	$	1,866

⁽¹⁾  Include direct investments and investment funds.

⁽²⁾ 

Consists primarily of asset allocation fund investments.

Expected future benefit payments

The following table presents the expected benefit payments over the next 10 years. The U.S. and non-U.S. pension benefit payments are made by the respective pension trust funds.

Year	Pension Benefits			Other Postretirement Benefits
2020		$	136		$	11
2021		134			9
2022		136			7
2023		137			6
2024		142			6
2025-2029		749			24