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96
15.2 - Provisions for pensions and termination benefits
Annual changes in obligations, the market value of plan assets and the corresponding assets and provisions
recognized in the consolidated financial statements can be analyzed as follows:
1. Reconciliation of balance sheet items
Dec. 31, 2005 Dec. 31, 2004
o/w US plans o/w US plans
Pension assets 7.0
7.0
--
P
rovisions for pensions and other post-employment benefits
(607.0)
(59.2)
(521.1)
(8.8)
Net asset/(liability) recognized in the balance sheet (600.0)
(52.2)
(521.1)
(8.8)
2. Components of net cost recognized
Dec. 31, 2005 Dec. 31, 2004
in the statement of income
o/w US plans o/w US plans
Service cost 51.8
15.9
48.5
14.8
Interest cost (impact of discounting) 92.9
50.5
87.9
48.7
Expected return on plan assets (97.1)
(71.8)
(87.4)
(64.6)
Past service cost 5.9
6.9
1.2
2.7
Curtailments and settlements (5.6) - (0.8) -
Net cost recognized in the statement of income 47.9
1.5
49.4
1.6
3. Change in projected benefit obligation
Dec. 31, 2005 Dec. 31, 2004
o/w US plans o/w US plans
Projected benefit obligation at beginning of year 1,665.6
747.5
1,614.9
760.1
Service cost 51.8
15.9
48.5
14.8
Interest cost (impact of discounting) 92.9
50.5
87.9
48.7
Plan participants' contributions 5.5
-
3.3
-
Benefits paid (104.7)
(39.2)
(49.9)
(36.4)
Actuarial (gains)/losses recognized in equity 148.6
70.0
10.0
19.7
Modification of pension plan 6.3
6.0
(0.8) -
Changes in the scope of consolidation 2.4 - 11.6 -
Translation adjustments 139.9
121.4
(59.9)
(59.4)
Other (including curtailments and settlements) (14.8) - - -
Projected benefit obligation at end of year 1,993.5
972.1
1,665.6
747.5
Actuarial gains and losses have been fully recognized in "Other reserves" (see note 14.7).
They stem from changes in actuarial assumptions (primarily the discount rate) used to measure obligations in
the United States, the United Kingdom and Canada.
4. Change in fair value of plan assets
Dec. 31, 2005 Dec. 31, 2004
o/w US plans o/w US plans
Fair value of plan assets at beginning of year 1,143.2
736.8
1,083.3
726.3
Expected return on plan assets 97.1
71.8
87.4
64.6
Plan participants' contributions 5.4 - 3.3 -
Employer contributions 34.4
23.6
18.2
1.0
Benefits paid (55.6)
(39.2)
(46.9)
(36.4)
Actuarial gains/(losses) recognized in equity 31.4
8.2
44.7
40.2
Modification of pension plan - - - -
Changes in the scope of consolidation 0.7 - 0.8 -
Translation adjustments 134.3
117.6
(47.6)
(58.9)
Other (including curtailments and settlements) 4.5 - - -
Fair value of plan assets at end of year 1,395.4
918.8
1,143.2
736.8
Actuarial gains and losses have been fully recognized in “Other reserves” (see note 14.7).
They stem from changes in the effective return on assets in the United States and the United Kingdom.