Page 273 - 2012 Annual Report

273
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
Assumptions used in accounting for the pension benefits, by country
United States United Kingdom Germany France
2012 2011 2012 2011 2012 2011 2012 2011
Discount rate 3.50% 4.25% 4.25% 5.00% 3.25% 4.50% 3.25% 4.50%
Expected return on plan assets 3.50% 4.25% 4.25% 3.36% 3.25% na* 3.25% 4.55%
Rate of compensation increase na* na* 4.50% 5.00% 2.00% 2.00% 3.41% 3.47%
na*: not applicable.
Assumptions used in accounting for post-retirement benefits, by country
United States Canada
2012 2011 2012 2011
Discount rate 3.50% 4.25% 4.00% 4.75%
Rate of compensation increase 3.50% 3.50% na* na*
na*: not applicable.
PENSION PLAN ASSETS
Weighted-average range of investment allocation by asset category for each major plan
Minimum Maximum
Equity securities 6% 6%
Real estate 1% 1%
Debt securities 57% 57%
Diversified funds 16% 16%
Cash and other 20% 20%
Allocation of pension plan assets
December 31, 2012 December 31, 2011
Equity securities 6% 6%
Real estate 1% 1%
Debt securities 57% 67%
Diversified funds 16% 17%
Cash and other 20% 9%
Total 100% 100%
Pension plan assets which were not transferred have a limited exposure to
stock market fluctuations. These assets do not include occupied buildings
or assets used by Vivendi nor shares or debt instruments of Vivendi.
COST EVOLUTION OF POST-RETIREMENT BENEFITS
For the purpose of measuring post-retirement benefits, Vivendi assumed
the annual growth in the per capita cost of covered health care
benefits would slow down from 7.3% for categories under 65 years old
and 65 years old and over in 2012, to 4.5% in 2021 for these categories. In
2012, a one-percentage-point increase in the assumed cost evolution rates
would have increased post-retirement benefit obligations by €12 million
and the pre-tax expense by €1 million. Conversely, a one-percentage-point
decrease in the assumed cost evolution rates would have decreased post-
retirement benefit obligations by €10 million and the pre-tax expense by
less than €1 million.