BMW 2009 Annual Report Download - page 113

111 Group Financial Statements
Germany United Kingdom Other Total
in euro million 2009 2008 2009 2008 2009 2008 2009 2008
Balance sheet amounts at 1 January 2,693 3,849 345 647 273 127 3,311 4,623
Deconsolidation effects – – 4 – 4 – – – –
Expense from pension obligations 237 293 7 7 7 6 43 30 357 399
Pension payments or transfers to external funds –1,746 –1,471 – 99 – 98 – 58 –14 –1,903 –1,583
Actuarial gains (–) and losses (+)
on defined benefit obligations 522 – 271 946 – 647 – 4 –1 1,464 – 919
Actuarial gains (–) and losses (+) on plan assets – 234 278 – 40 486 –15 104 – 289 868
Employee contributions 2 20 – – – – 2 20
Translation differences and other changes 1 –1 30 –123 – 5 27 26 – 97
Balance sheet amounts at 31 December 1,475 2,693 1,259 345 234 273 2,968 3,311
thereof pension provision 1,475 2,693 1,259 345 238 276 2,972 3,314
thereof pension assets (–) – – – – – 4 – 3 – 4 – 3
Germany United Kingdom Other Total
in euro million 2009 2008 2009 2008 2009 2008 2009 2008
Current service cost 103 117 52 59 33 31 188 207
Expense from reversing the discounting of pension obligations 228 209 275 316 29 25 532 550
Past service cost – –1 7 4 – –1 7 2
Expected return on plan assets (–) – 94 – 32 – 257 – 303 –19 – 25 – 370 – 360
Expense from pension obligations 237 293 7 7 7 6 4 3 3 0 357 399
Pension provisions relating to pension plans in other coun-
tries amounted to euro 238 million (2008: euro 276 mil-
lion). This includes euro 168 million (2008: euro 145 million)
relating to externally funded plans.
The change in the defined benefit obligations was attribut-
able mainly to changes in the discount rates used in the
actuarial computation. Changes in exchange rates, in par-
ticular the gain in value of the British pound, had a signifi-
cant impact on the present value of pension obligations
and fund assets.
The changes in the pension provision and the pension
asset (reimbursement claims or right to reduce future con-
tributions to the funds) as disclosed in the balance sheet
can be derived as follows:
The defined benefit plans of the BMW Group give rise to
an expense from pension obligations in the financial year
The expense from reversing the discounting of pension
obligations and the income from the expected return on
plan assets are reported as part of the financial result. All
other components of pension expense are included in the
relevant income statement under costs by function.
Depending on the risk structure of the pension obligations
involved, pension plan assets are invested in various in-
2009 of euro 357 million (2008: euro 399 million), com-
prising
the following components:
vestment classes, the most predominant one being bonds.
Other equity instruments, property and alternative invest-
ments are also considered. The expected rate of return is
derived on the basis of the specific investment strategy
applied to each individual pension fund. This is determined
on the basis of the rates of return from the individual in-
vestment classes taking account of costs and unplanned
risks.