275
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
Assumptions used in accounting for the pension benefits, by country
United States
United Kingdom
Germany
France
2013
2012
2013
2012
2013
2012
2013
2012
Discount rate
4.50% 3.50% 4.50% 4.25% 3.00% 3.25% 3.00% 3.25%
Rate of compensation increase
(weighted average)
na
na 5.00% 4.50% 2.00% 2.00% 3.36% 3.41%
na: not applicable.
Assumptions used in accounting for post-retirement benefits, by country
United States
Canada
2013
2012
2013
2012
Discount rate
4.50%
3.50%
4.50%
4.00%
Rate of compensation increase
3.50%
3.50%
na
na
na: not applicable.
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Allocation of pension plan assets
December 31, 2013
(a)
December 31, 2012
(a)
Equity securities
4%
6%
Debt securities
48%
57%
Diversified funds
28%
16%
Insurance contracts
5%
5%
Real estate
1%
1%
Cash and other
14%
15%
Total
100%
100%
(a)
Pension plan assets are mainly financial assets actively traded in organized financial markets.
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.
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■
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 2013, to 4.5% in 2022 for these categories.
In 2013, a one-percentage-point increase in the assumed cost evolution
rates would have increased post-retirement benefit obligations by
€10 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 €8 million and the
pre-tax expense by €1 million.
