PDF (2.63 MB) - Geberit International AG

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Pension assets and obligations are predominately non-current. Prepaid pension assets include
the overfunded part of the Swiss pension plans, adjusted for unrecognized prior service cost
as well as unrecognized net gains and losses. The legal context relating to pension plans in
Switzerland limits the company’s control of the surplus in the pension fund. The pension obligations
of MCHF 2.9 in the USA are covered by insurance policies the cash surrender value of
which is recognized as a financial asset in the amount of MCHF 3.0.
The projected benefit obligation of unfunded defined benefit plans is MCHF 123.4 at 31 December
2004 (2003: MCHF 95.8) and is included, net of unrecognized items, in the accrued pension
obligation in the consolidated balance sheets.
The figures are based on the following assumptions (weighted average) in %:
The consolidated income statements also include expenses for defined contribution plans of
MCHF 2.8 in 2004 and MCHF 2.6 in 2003, respectively.
15. Share participation plans
Share plans
In 2004, the employees could purchase a limited number of shares at a discount of 45 %
(2003: 30 %) to the market price (“Employee share plan 2004”). In 2004 separate plans were
offered to the Geberit management and the management of the acquired Mapress group.
(“Management share plans 2004”). The plan for the Geberit Management entitled the participants
to draw the previous year’s bonus partly or wholly in shares at the market price. Each of
these shares provided the participants with one additional option (see part 2: “Option plans”).
The management of the Mapress group could acquire shares and options of Geberit AG.
The purchase price for the shares was CHF 472.50. The options were granted free of charge.
As part of the Directors Program 2004 the non-executive members of the Board of Directors
received their annual compensation in shares of Geberit AG at a discount of 45%. All share
plans are subject to blocking periods which are valid beyond the period of employment.
The share plans introduced in 2004 are summarised below:
Geberit Group
2004 2003
MCHF MCHF
Discount rate used in determining present values 3.75–5.5 4.0–6.0
Annual rate of increase in future compensation levels 2.5–4.0 2.5–5.0
Expected rate of future increases in pension benefits 0.0–4.0 0.0–5.0
Expected long-term rate of return on plan assets 4.5 5.0
End of Number Number Average
blocking of partici- of shares issuing price
period pants issued CHF
Employee share plan 2004 2006 908 4,966 364.93
Management share plans 2004 2006–2007 68 11,832 579.33
Directors Program 2004 2006 4 910 364.93