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Spanish plans, as well as payment of retiree leave benefits in
France and retiree healthcare costs in the US and Canada.
They account for most of the sums recognized in the balance sheet,
under provisions for a gross amount of €2,278 million (Note 11).
Benefits paid under these plans in the last three years were as
follows:
Payments
(in € million)
2002 2003 2004
195.0 186.9 164.1
In light of the demographics of the personnel involved and of
improved management of health cost increases, through
introduction in particular of a cap on reimbursements
for the American pension funds, and barring changes in local
regulations, such payments should grow by a few per cent
each year quite regularly. Over three years they account on average
for 17.1% of Group cash flow.
Strategy • Fundamentals • Businesses • Résultats Earnings
Impact of periodic
pension costs
on operating income
Benefits
Excluding exceptional items, benefit charges are recognized
under “Payroll costs” in operating expenses.
In € million
2002 2003 2004
Operating income
before impact of “benefits” 1,565.8 1,510.9 1,645.6
Impact of “benefits” 340.6 367.8 346.5
Published operating income 1,225.2 1,143.1 1,299.1
An analysis of note 13 shows that discounting costs (interest
charges), that are not actual cash payments, account for the bulk
of these charges.
118•119