Page 272 - 2012 Annual Report
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272
VIVENDI
l
2012
l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS
4
4
III - CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2012
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 20 Employee benefits
Note 20.
Employee benefits
20.1. ANALYSIS OF EXPENSES RELATED TO EMPLOYEE BENEFIT PLANS
The following table provides information about the cost of employee benefit plans excluding its financial component. The total cost of defined benefit plans
is set forth in Note 20.2.2 below.
(in millions of euros)
Note
Year ended December 31,
2012
2011
Employee defined contribution plans
57
55
Employee defined benefit plans
20.2.2
16
16
Employee benefit plans
73
71
20.2. EMPLOYEE DEFINED BENEFIT PLANS
20.2.1.
Assumptions used in the evaluation and sensitivity analysis
DISCOUNT RATE, EXPECTED RETURN ON PLAN ASSETS,
AND RATE OF COMPENSATION INCREASE
The assumptions underlying the valuation of defined benefit plans were
made in compliance with accounting policies presented in Note 1.3.8
and have been applied consistently for several years. Demographic
assumptions (including notably the rate of compensation increase) are
company specific. Financial assumptions (notably including the discount
rate and the expected rate of return on investments) are made as follows:
✱
determination by independent actuaries and other independent
advisors of the discount rate for each country by reference to yields
on notes issued by investment grade companies having a credit rating
of AA and maturities identical to that of the valued plans, generally
based on relevant rate indices, and as reviewed by Vivendi’s Finance
department, representing, at year-end, the best estimate of expected
trends in future payments from the first benefit payments; and
✱
the expected return on plan assets is determined for each plan
according to the portfolio composition and the expected performance
of each component.
Pension benefits
Post-retirement benefits
2012
2011
2012
2011
Discount rate
(a)
3.6%
4.6%
3.6%
4.3%
Expected return on plan assets
(b)
3.6%
3.7%
na*
na*
Rate of compensation increase
2.0%
1.9%
3.1%
3.0%
Expected average working life (in years)
10.3
9.8
4.8
5.3
Weighted average duration of the benefit obligation (in years)
14.2
14.6
10.5
10.1
na*: not applicable.
(a)
A 50 basis point increase (or a 50 basis point decrease, respectively) in the 2012 discount rate would have led to a decrease of €1 million in pre-tax
expense (or an increase of €2 million, respectively) and would have led to a decrease in the obligations of pension and post-retirement benefits of
€65 million (or an increase of €71 million, respectively).
(b)
A 50 basis point increase (or a 50 basis point decrease, respectively) in the expected return on plan assets for 2012 would have led to a decrease of
€1 million in pre-tax expense (or an increase of €1 million, respectively).
