Annual Report 2010 - SBM Offshore

Financial Review / Financial Statements 2010
The other movements of 2009 were related mainly to a
newly included defined benefit plan as sufficient information
to prepare the calculations became available at
that date.
The major categories of plan assets as a percentage of
the fair value of total plan assets are as follows:
2010 2009
% %
Cash 10.2 2.9
Equities 24.0 18.1
Bonds 65.8 79.0
100.0 100.0
The principal assumptions used in determining pension
benefit obligations for the Company’s plans are shown
below:
2010 2009
% %
Discount rate 2.75 3.50
Expected rate of return on assets 3.20 3.20
Future salary increases 4.00 4.00
Future pension increases - -
The overall expected rate of return on assets is determined
on the market prices prevailing on that date,
applicable to the period over which the obligation is to
be settled.
The Company expects to contribute US$ 1.6 million
to its defined benefit pension plans in 2011. As regard
to the other employee benefits provision, expected
outflow is US$ 0.2 million within one year (2009: US$
0.3 million), US$ 1.2 million between one and five years
(2009: US$ 1.5 million) and US$ 4 million after five
years (2009: US$ 4 million).
134 SBM Offshore – Annual Report 2010