Panalpina Annual Report 2006

Consolidated and Annual Financial Statements 2006
23
100 Panalpina Annual Report 2006
Derivative financial instruments are spread over the following currencies:
Forward foreign
exchange contracts
in thousand CHF 2006 2005
USD 446,553 597,260
EUR 186,510 234,260
GBP 62,514 36,133
HKD 34,152 89,599
AUD 20,956 16,120
CAD 18,046 12,290
SEK 16,114 6,147
SGD 10,322 56,600
JPY 8,530 12,707
NZD 1,014 418
Other 8,198 11,760
Total 812,909 1,073,294
Employee benefit obligations
The Group has numerous pension funds. Retirement benefits vary from plan to plan, reflecting applicable local practices
and legal requirements. Defined benefit pension plans are predominantly in Switzerland and Germany. The cost of the
defined contribution plans is charged to personnel expenses. For defined benefit plans, the plans domiciled in Switzerland
have an excess of assets over liabilities. The part of the surplus that the management estimates to generate an economic
benefit to the Group in form of reductions in future contributions is capitalized. The amounts recognized in the balance sheet
are determined as follows:
in thousand CHF 2006 2005
Fair value of plan assets 266,449 261,744
Defined benefit obligation (DBO) funded (224,170) (216,412)
(Deficit) surplus 42,279 45,332
Unrecognized surplus due to paragraph 58b (33,398) (35,925)
Defined benefit obligation (DBO) unfunded (38,981) (25,725)
(Liability) / asset recognized in balance sheet (30,100) (16,318)
The following amounts were recorded in the income statement relating to defined benefit plans:
in thousand CHF 2006 2005
Net pension cost for year ending
Current service cost (13,507) (14,432)
Recognized past service cost 0 2,729
Interest cost (8,582) (9,068)
Expected return on assets 11,764 10,660
Member contributions 5,180 5,568
Settlements / curtailments 707 667
Net periodic pensions (cost) credit (4,438) (3,876)