HSBC 2008 Annual Report Download - page 375

373
Changes in the present value of defined benefit obligations
2008 2007
US$m US$m
At 1 January ....................................................................................................................................... 1,038 1,106
Current service cost ........................................................................................................................... 19 25
Interest cost ........................................................................................................................................ 65 67
Contributions by employees .............................................................................................................. 2 2
Actuarial (gains)/losses ...................................................................................................................... 2 (109)
Benefits paid ...................................................................................................................................... (76) (54)
Past service cost:
– vested immediately ..................................................................................................................... – (2)
– unvested benefits ........................................................................................................................ – (2)
Reduction in liabilities resulting from curtailments .......................................................................... (31) (42)
Liabilities extinguished on settlements ............................................................................................. (38) (2)
Exchange differences ......................................................................................................................... (142) 49
At 31 December ................................................................................................................................. 839 1,038
Changes in the fair value of plan assets
2008 2007
US$m US$m
At 1 January ....................................................................................................................................... 146 133
Expected return on plan assets .......................................................................................................... 12 13
Contributions by HSBC ..................................................................................................................... 19 19
Experience losses ............................................................................................................................... (14) (6)
Benefits paid ...................................................................................................................................... (9) (11)
Assets distributed on settlements........................................................................................................ (12) (2)
Exchange differences ......................................................................................................................... (14) –
At 31 December ................................................................................................................................. 128 146
The actual return on plan assets for the year ended 31 December 2008 was a negative return of US$2 million (2007:
positive US$7 million).
HSBC expects to make US$4 million (2007: US$18 million) of contributions to post-employment healthcare benefit
plans during 2009. Benefits expected to be paid from the plans to retirees over each of the next five years, and in
aggregate for the five years thereafter, are:
2009 2010 2011 2012 2013 2014-2018
US$m US$m US$m US$m US$m US$m
Significant plans ................................................. 44 48 50 52 54 294
Total expense recognised in the income statement in ‘Employee compensation and benefits’
2008 2007 2006
US$m US$m US$m
Current service cost ......................................................................................... 19 25 19
Interest cost ...................................................................................................... 65 67 64
Expected return on plan assets ........................................................................ (12) (13) (11)
Past service cost ............................................................................................... (2) (4) (1)
Losses on curtailments ..................................................................................... (31) (42) (8)
Losses on settlements ...................................................................................... (26) – (1)
Total expense ................................................................................................... 13 33 62