274
Annual Report -
2013
-
Vivendi
4
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Note 21. Employee benefits
Note 21.
Employee benefits
21.1.
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 21.2.2 below.
(in millions of euros)
Note
Year ended December 31,
2013
2012
Employee defined contribution plans
50
46
Employee defined benefit plans
21.2.2
(4)
(1)
Employee benefit plans
46
45
21.2.
Employee defined benefit plans
21.2.1.
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 the 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 the
discount rate) are determined by independent actuaries and other
independent advisors and reviewed by Vivendi’s Finance department.
The discount rate is thus determined 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. The discount rates selected
are thus used, at year-end, to determine the best estimate by Vivendi’s
Finance department of expected trends in future payments from the first
benefit payments.
In accordance with amended IAS 19, the expected return on plan assets
is estimated using the discount rate used to value the obligations of the
previous year.
In weighted average
Pension benefits
Post-retirement benefits
2013
2012
2013
2012
Discount rate
(a)
3.6%
3.6%
4.5%
3.6%
Rate of compensation increase
2.0%
2.0%
2.9%
3.1%
Duration of the benefit obligation
(in years)
14.2
14.2
10.0
10.5
(a)
A 50 basis point increase (or a 50 basis point decrease, respectively) in the 2013 discount rate would have led to a decrease of €2 million in pre-tax
expense (or an increase of €1 million, respectively) and would have led to a decrease in the obligations of pension and post-retirement benefits
of €60 million (or an increase of €64 million, respectively).
