Michelin couv courteGB

13.3. Summary of the financial situation of defined benefit plans
as at December 31, 2004
Strategy • Fundamentals • Businesses • Résultats Earnings
Notes to the Consolidated Financial Statements
(in € thousand)
Pension Other post- Total 2004 Total 2003
plans retirement
benefit plans
(including
healthcare)
Projected benefit obligations 4,870,853 – 4,870,853 4,527,392
Fair value of plan assets (3,965,345) – (3,965,345) (3,761,960)
Funded status 905,508 – 905,508 765,432
Unfunded projected benefit obligations 552,804 1,968,511 2,521,315 2,508,102
Prior service cost 2,889 115,434 118,323 139,771
Unrecognized actuarial gains and losses (1,366,271) (450,214) (1,816,485) (1,610,373)
Net amount recognized 94,930 1,633,731 1,728,661 1,802,932
Amounts recognized in balance sheet:
Prepaid benefit cost (549,073) (489,689)
Accrued benefit cost 2,277,734 2,292,621
Unrecognized actuarial gains or losses (corresponding to changes in the value of the projected benefit obligations or the value of plan
assets) arise primarily from:
• differences between actuarial assumptions and actual experience,
• changes in long-term actuarial assumptions, such as inflation rate, discount rate and future salary levels,
• changes in the benefit formula.
Where actuarial spreads are in excess of 10% of the highest of the PBO and the amount of assets under management, the portion
beyond 10% is accounted as payroll costs and gives rise to an annual allocation over the average length of beneficiaries’ remaining
active life.
At December 31, 2004 actuarial losses amounted to €1,816 million.
84•85