BMW 2013 Annual Report Download - page 140

140
88 GROUP FINANCIAL STATEMENTS
88 Income Statements
88 Statement of
Comprehensive Income
90 Balance Sheets
92 Cash Flow Statements
94 Group Statement of Changes in
Equity
96 Notes
96 Accounting Principles and
Policies
114 Notes to the Income Statement
121 Notes to the Statement
of Comprehensive Income
122
Notes to the Balance Sheet
145 Other Disclosures
161 Segment Information
calculation were kept constant. As permitted in
IAS 19.173(b), disclosures for the comparative period
are not provided. The defined benefit obligation
amounted to € 15,758 million at 31 December 2013.
The weighted duration of all pension obligations in Ger-
many, the UK and other countries (based on present values
of the defined benefit obligation) developed as follows:
to measure the level of funding. In conjunction with
these valuations, funding plans are drawn up and the
amount of any special allocations determined.
The sensitivity analysis provided below shows the ex-
tent to which the defined benefit obligation would
have been affected by changes in the relevant assump-
tions that were reasonably possible at the end of the
reporting period, if the other assumptions used in the
In the UK, the sensitivity analysis for the pension level
trend also takes account of restrictions due to caps and
floors.
Statutory minimum funding and recovery requirements
apply in the UK and the USA which may have an effect
on future amounts. Valuations are performed regularly
the expected pattern of pension obligations. In their own
way, each of these measures helps to reduce fluctuations
in pension funding shortfalls.
Most of the BMW Group’s pension assets are adminis-
tered separately and kept legally segregated from com-
pany assets using trust fund arrangements. As a conse-
quence, the level of funds required to finance pension
payments out of operations will be substantially re-
duced in the future, since most of the Group’s pension
obligations are settled out of the assets of pension
funds / trust fund arrangements.
The defined benefit obligation relates to current em-
ployees, former employees with vested benefits and
pensioners as follows:
31 December Germany United Kingdom Other
in € million 2013 2012 2013 2012* 2013 2012*
Current employees 4,715 5,157 1,604 1,344 723 872
Pensioners 2,297 2,384 3,651 3,752 141 176
Former employees with vested benefits 388 433 2,154 2,041 85 96
Defined benefit obligation 7,400 7,974 7,409 7,137 949 1,144
* Prior year figures have been adjusted in accordance with the revised version of IAS 19, see note 7.
31 December 2013 Change in defined Change in defined
benefit obligation benefit obligation
in € million in %
Discount rate increase of 0.75 % – 2,028 – 12.9
decrease of 0.75 % 2,528 16.0
Pension level trend increase of 0.25 % 506 3.2
decrease of 0.25 % – 479 – 3.0
Average life expectancy increase of 1 year 510 3.2
decrease of 1 year – 514 – 3.3
Pension entitlement trend increase of 0.25 % 101 0.6
decrease of 0.25 % – 97 – 0.6
31 December Germany United Kingdom Other
in years 2013 2012 2013 2012 2013 2012
Weighted duration of all pension obligations 19.6 21.0 18.3 18.4 14.9 18.8