APC 2015 Annual Report Download - page 226

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC224
CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31,2015
5NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 total
EUR93million in2015, compared with EUR83million in2014.
Other post-employment and long-term benefits:
including healthcare, life insurance and long service
awards
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. The average duration of
these North American plans is 10.4 years. These post-employment
benefi t obligations are unfunded.
Healthcare coverage for North American employees represents
67% of this obligation.
The main benefi ts paid in 2015 are primarily for the North American
plans and amount to EUR20 million. They are estimated at
EUR23million in 2016, 2017 and 2018.
Other long-term benefi t obligations include healthcare coverage
plans in Europe, for EUR80million, and long-service awards due by
subsidiaries in France, for EUR13million.
At December31, 2015, provisions for these benefi t obligations total
EUR480million, compared with EUR512million at December31,
2014. 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 SE USA
Other
post-employment
andlong-term
benefi ts Of which SE USA
Provisions
for pensions&other
post-employmentbenefi ts
Dec.31, 2013 1,061 274 424 261 1,485
Net cost recognized inthestatement
of income 46 16 41 13 87
Benefi ts paid (46) 0 (37) (13) (83)
Plan participants’ contributions (10) (47) - - (10)
Actuarial items recognized inequity 337 126 39 21 376
Translation adjustment 62 47 44 38 106
Changes in the scope ofconsolidation 10 - 1 - 11
Other changes (1) (3) - - (1)
Dec. 31, 2014 1,459 413 512 320 1,971
Net cost recognized inthestatement
of income 49 29 36 13 85
Benefi ts paid (29) - (44) (17) (73)
Plan participants’ contributions (153) (56) - - (153)
Actuarial items recognized inequity (303) (55) (72) (39) (375)
Translation adjustment 78 46 37 36 115
Changes in the scope ofconsolidation (10) - - - (10)
Other changes (2) - 11 - 9
Dec . 31, 2015 1,089 377 480 313 1,569
Surplus of plans recognized as assets (456) - - - (456)
Provisions recognized asliabilities 1,545 - 480 - 2,025
Following the agreement reached with the Trustee of the
Invensys Pension scheme in the UK in February2014, Schneider
ElectricSE guaranteed all obligations of the Invensys subsidiaries
which participate in the Scheme, up to a maximum amount of
GBP1.75 billion. At December 31, 2015, plan assets exceed
the value of obligations subject to this guarantee and thus this
guarantee cannot be called.