APC 2014 Annual Report Download - page 222

5CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31,2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Pensions and termination benefits
Payments made under defined contribution plans are recorded in
the income statement in the year of payment and are in full
Pension obligations primarily concern the Group’s North American settlement of the Group’s liability. Defined contribution plan
and European subsidiaries. These plans feature either a lump-sum payments total EUR83million in2014, compared with
payment on the employee’s retirement or regular pension EUR62million in2013.
payments after retirement. The amount is based on years of
Other post-employment and long-term benefits:
service, grade and end-of-career salary. The average duration of
the North American plans is 13.5 years.
including healthcare, life insurance and long service
awards
Pension obligations also include top-hat payments granted to
certain senior executives guaranteeing supplementary retirement The North American subsidiaries pay certain healthcare costs and
income beyond that provided by general, mandatory pension provide life insurance benefits to retired employees who fulfill
schemes. certain criteria in terms of age and years of service. The average
The majority of benefit obligations under these plans, which duration of these North American plans is 11.4 years. These
represent 98% of the Group’s total commitment or post-employment benefit obligations are unfunded.
EUR10,663million at December31, 2014, are partially or fully Healthcare coverage for North American employees represents
funded through payments to external funds. These funds are not 73% of this obligation.
invested in Group assets.
The main benefits paid in 2014 are primarily for the North
External funds are invested in equities (around 10%), bonds American plans and amount to EUR17million. They are estimated
(around74%), real estate (around 2%) and cash and others assets at EUR20million in 2015 and EUR21million for each of the next 2
(around 14%). years.
Main contributions are primarily for the North American plans and Other long-term benefit obligations include healthcare coverage
amount to EUR47million in2014. They are estimated at plans in Europe, for EUR106million, and long-service awards due
EUR41million for2015, EUR54million for2016 and by subsidiaries in France, for EUR13million.
EUR58million for2017.
At December31, 2014, provisions for these benefit obligations
At December31, 2014, provisions for pensions and termination total EUR512million, compared with EUR424million at
benefits total EUR1,459million, compared with EUR1,061million December31, 2013. These provisions have been included in
in2013. These provisions have been included in non-current non-current liabilities, as the current portion was not considered
liabilities, as the current portion was not considered material in material in relation to the total liability.
relation to the total liability.
220 2014 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC