APC 2009 Annual Report Download - page 155

2009 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 153
CONSOLIDATED FINANCIAL STATEMENTS
5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
External funds are invested in equities (around 52%), bonds (around
35%) and real estate or cash (around 13%).
Contributions amounted to EUR 18million in 2009 and are estimated
at EUR 16million for 2010.
At December 31, 2009, provisions for pensions and termination
benefi ts totalled EUR 944million, compared with EUR 1,027million in
2008. These provisions have been included in non-current liabilities,
as the current portion was not considered material in relation to the
total liability.
Payments made under defi ned contribution plans are recorded in the
income statement in the year of payment and are in full settlement
of the Group’s liability. Defi ned contribution plan payments totalled
EUR 39million in 2009 and EUR 42million in 2008.
Other post-employment benefits, including
healthcare and life insurance, and other long-term
benefits
The North American subsidiaries pay certain healthcare costs and
provide life insurance benefi ts to retired employees who fulfi ll certain
criteria in terms of age and years of service. These post-employment
benefi t obligations are unfunded.
Healthcare coverage for North American employees represents 82%
of this obligation.
The assumptions used to determine post-employment benefit
obligations related to healthcare and life insurance are the same as
those used to estimate pension benefi t obligations in the country
concerned.
Other benefit obligations include healthcare coverage plans
in Europe, for EUR 47million, and long-service awards due by
subsidiaries in France, for EUR 10million.
At December 31, 2009, provisions for these benefi t obligations
totalled EUR 435million, compared with EUR 436million in 2008.
These provisions have been included in non-current liabilities, as
the current portion was not considered material in relation to the
total liability.
22.1 - Changes in provisions for pensions and other post-employment benefit obligations
Changes in provisions for pensions and other post-employment benefi t obligations (net of plan assets) were as follows:
Pensions and
termination
benefi ts Of which USplans
Other
post-employment
and long-term
benefi ts Of which USplans
Provisions
for pensions
and other
post-employment
benefi ts
Dec. 31, 2007 * 565
58 399 343 964
Net cost recognised in the statement
ofincome 55 121 15 76
Benefi ts paid (35) 0 (24) (19) (59)
Plan participants’ contributions 28 (1) 00 28
Actuarial items recognised in equity 415 321 21 10 436
Translation adjustment 7 21 17 18 24
Changes in the scope of consolidation - - - - -
Other changes (8) 123(6)
Dec. 31, 2008 1,027
401 436 370 1,463
Net cost recognised in the statement
ofincome (2) (66) 22 18 20
Benefi ts paid (64) 0 (25) (21) (89)
Plan participants’ contributions (18) (1) 0 - (18)
Actuarial items recognised in equity ** 5 (31) 11 216
Translation adjustment (2) (11) (9) (12) (11)
Changes in the scope of consolidation - - 0 - -
Other changes (2) 101(2)
DEC. 31, 2009 944
293 435 358 1,379
* Including EUR 32million in pension assets recognised under “Other fi nancial assets” in 2007.
** Including a negative EUR 7million and a positive EUR 2million of asset ceiling in 2008 and 2009.