ANNUAL REPORT 2011 REGISTRATION DOCUMENT - Saft

Pension and retirement indemnity costs
6
2011 CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements
The table below sets out a breakdown of pension and retirement indemnity expenses for the year:
(in € million) 31/12/2011 31/12/2010 31/12/2009
Cost of services rendered in the year 1.4 1.3 1.2
Interest expense 1.5 1.5 1.8
Expected return on plan assets (0.9) (1.0) (1.0)
Past services costs amortisation 0.2 0.0 0.3
Other 0.2 0.1 0.0
NET EXPENSE FOR THE YEAR 2.4 1.9 2.3
Changes in the provision recognised in the balance sheet are as follows:
(in € million) 31/12/2011 31/12/2010 31/12/2009
Total provision at beginning of year (10.9) (9.5) (9.7)
Net expense for the year (2.4) (1.9) (2.3)
Reclassifi cation of Israeli provisions 0.0 0.0 0.0
Contributions/benefi ts paid 1.5 2.1 2.2
Amount recognised in the consolidated statement of comprehensive income 0.4 (1.6) 0.3
TOTAL PROVISION AT END OF YEAR (11.4) (10.9) (9.5)
Differences between actual and expected fi gures were as follows:
(in € million) 2011 2010 2009
Difference between actual and expected returns on assets 0.3 (0.1) (0.1)
Differences between actual and expected changes in obligations 0.1 (0.2) 0.3
Actuarial assumptions
The basic assumptions used in actuarial calculations under
defi ned-benefi t pension and retirement benefi t plans take
account of conditions in each country, while specifi c
assumptions (staff turnover and salary infl ation) are calculated
separately for each company.
Discount rates
In France, at 31 December 2011, retirement benefi ts are
measured on the main assumption of retirement taking place
at the employee’s initiative, with payment of retirement benefi ts
subject to social security expenses.
The table below shows the rates used in each geographical
area in 2011:
2011 2010 2009
France 4.50% 4.20% 4.60%
4.50 – 4.75%
4.60 – 4.90%
Germany
(depending on duration) 3.90% (depending on duration)
4.05 – 4.90%
Norway 3.30%
3.23 – 5.03%
4.00% (depending on duration)
Israel
(depending on duration) 4.50% 5.80%
Italy 4.75% 3.75% 4.60%
The discount rates used are obtained by reference to the yield on high-quality bonds (listed issuers with minimum AA rating) with a
term equivalent to that of the plan being measured (Bloomberg reference).
SAFT - ANNUAL REPORT 2011 / 167