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88 Notes to the consolidated fi nancial statements 27 Post employment benefi ts continued Actual returns and history of actuarial gains and losses The actual returns on pension scheme assets are as follows: Kingfi sher plc Annual Report and Accounts 2009/10 2009/10 2008/09 £ millions UK Other Total UK Other Total Actual return/(loss) on pension scheme assets 150 (2) 148 (114) – (114) The history of actuarial gains and losses is as follows: £ millions 2009/10 2008/09 2007/08 2006/07 2005/06 Present value of defi ned benefi t obligations (1,716) (1,437) (1,395) (1,432) (1,459) Fair value of scheme assets 1,518 1,363 1,472 1,377 1,220 (Defi cit)/surplus in scheme (198) (74) 77 (55) (239) Changes in assumptions underlying present value of defi ned benefi t obligations (226) 21 116 91 (173) Percentage of defi ned benefi t obligations 13% (1%) (8%) (6%) 12% Experience gains/(losses) arising on defi ned benefi t obligations – (1) (12) – – Percentage of defi ned benefi t obligations – – 1% – – Actual return less expected return on pension scheme assets 61 (211) (57) 4 127 Percentage of scheme assets 4% (15%) (4%) – 10% Total (losses)/gains recognised in the statement of comprehensive income in the year (165) (191) 47 95 (46) Cumulative losses recognised in the statement of comprehensive income (339) (174) The estimated amount of total contributions expected to be paid to the UK, France and other pension schemes by the Group during the next fi nancial year is £45m. Principal actuarial valuation assumptions The assumptions used in calculating the costs and obligations of the Group’s defi ned benefi t pension schemes are set by the directors after consultation with independent professionally qualifi ed actuaries. The assumptions are based on the conditions at the time and changes in these assumptions can lead to signifi cant movements in the estimated obligations, as illustrated in the sensitivity analysis. The UK scheme discount rate is based on the yield on the iBoxx over 15 year AA-rated Sterling corporate bond index adjusted for the difference in term between iBoxx and scheme liabilities. The overall expected rate of return on scheme assets refl ects market expectations at the valuation date of long term asset returns and the mix of assets in the schemes. 2009/10 2008/09 Annual % rate UK Other UK Other Discount rate 5.5 5.3 6.5 5.3 to 5.5 Salary escalation 4.2 2.0 to 6.6 4.3 2.0 to 6.6 Rate of pension increases 3.4 – 3.5 – Price infl ation 3.4 2.0 3.5 2.0 to 2.5 2009/10 2008/09 % rate of return UK Other UK Other Equities 7.9 – 8.7 – Bonds 4.7 – 5.6 – Property 6.4 – 7.1 – Other 4.2 3.5 4.3 3.5 Overall expected rate of return 5.9 3.5 6.7 3.5
Kingfi sher plc Annual Report and Accounts 2009/10 89 For the UK scheme, the mortality assumptions used in the actuarial valuations have been selected with regard to the characteristics and experience of the membership of the scheme from 2004 to 2007. The base mortality assumptions have been derived by adjusting standard mortality tables (PA 92 tables) projected forward to 2007 with the medium cohort improvement factors for males and with the standard improvement factors for females. In addition, allowance has been made for future increases in life expectancy. For males, the allowance is in line with medium cohort improvements subject to a minimum rate of improvement of 1% pa, and for females, the allowance is in line with the standard improvements, subject to a minimum of 0.5% pa. These improvements have been set with regard to trends observed within the scheme over the past decade. The assumptions for life expectancy of UK scheme members are as follows: Years 2009/10 2008/09 Age to which current pensioners are expected to live (60 now) – Male 87.2 87.2 – Female 85.9 85.9 Age to which future pensioners are expected to live (60 in 15 years’ time) – Male 88.8 88.8 – Female 87.1 87.1 The following sensitivity analysis for the UK scheme shows the estimated impact on obligations resulting from changes to key actuarial assumptions, whilst holding all other assumptions constant. Assumption Change in assumption Impact on defi ned benefi t obligation Discount rate Increase/decrease by 0.1% Decrease/increase by £31m Salary escalation Increase/decrease by 0.1% Increase/decrease by £3m Rate of pension increases Increase/decrease by 0.1% Increase/decrease by £17m Price infl ation Increase/decrease by 0.1% Increase/decrease by £28m Mortality Increase in life expectancy by one year Increase by £48m 28 Share capital Number of Ordinary ordinary shares share capital millions £ millions At 1 February 2009 2,361 371 Shares issued under share schemes 1 – At 30 January 2010 2,362 371 At 3 February 2008 2,361 371 At 31 January 2009 2,361 371 The total number of authorised ordinary shares is 3,023m shares (2008/09: 3,023m shares) with a par value of 15 5 /7p per share. All issued shares are fully paid and represent a single class of ordinary shares.
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