We make our customers successful. - Oerlikon Barmag

Notes to the consolidated financial statements
Expense in income statement 2003 2002
Current service cost 12 220 10 893
Interest cost 17 997 18 508
Expected net return on plan assets –11 749 –12 972
Actuarial (gains) losses recognized in period 679 –469
Employee contributions –1 344 –1 932
Change in pension surplus not capitalized 672 2 415
Total charged to income 18 475 16 443
Service cost for defined contribution plans 944 1 332
Actual return on plan assets 20 097 14 938
Development of balance sheet obligations 2003 2002
Balance as at January 1 156 909 130 267
Transfer from other long-term employee benefits (“TFR”) – 30 375
Curtailments and settlements – –7 240
Total pension expense as above 18 475 16 443
Employer’s contributions –5 833 –3 778
Pensions paid from unfunded plans –9 854 –9 121
Foreign currency translation 34 –37
Balance as at December 31 159 731 156 909
Assumptions used in actuarial calculations (weighted average)
Discount rate 4.8% 4.7%
Expected return on plan assets 4.6% 4.7%
Future salary increases 2.6% 2.6%
Future pension increases 1.3% 1.3%
Other long-term employee benefits 2003 2002
Balance as at January 1 18 182 48 142
Transfer to post-employment benefits (“TFR”) – –30 375
Service cost 8 545 5 229
Benefits paid –6 315 –3 934
Curtailments and settlements –1 930 –
Reclassification from other liabilities 326 –
Foreign currency translation –483 –880
Balance as at December 31 18 325 18 182
Pension costs are included with personnel costs in the relevant income
statement captions. The interest cost from unfunded pension
plans and certain funded pension plans is shown as a financial
expense (Note 5). In 2002 the Italian accounting profession deter-
mined that the ‘Trattamento di fine rapporto’ (“TFR”) – the staff
leaving indemnity – should be treated as a post-employment
benefit; it was therefore reclassified accordingly in that year.
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