Form 20-F 2005

More documents

Recommendations

Info

28. Retirement benefits and similar obligations At December 31, 2005, these obligations were measured in accordance with IAS 19 Employee benefits, as amended. The obligations recognized in the balance sheet break down as follows: (in millions of euros) At December 31, 2005 At December 31, 2004 Obligations recognized under liabilities in the balance sheet: Retirement benefits 1,241 998 Other employee benefits 109 114 Total 1,350 1,112 Of which: Non-Current 1,269 1,038 Current 81 74 Expenses recognized in profit or loss: Retirement benefits 68 39 Other employee benefits (3) 6 Total 65 45 28.1. Retirement benefits Description of obligations in connection with defined benefit plans Retirement obligations include retirement and other post-employment benefits, including termination benefits. The corresponding obligations mainly concern employees working in the United States, the United Kingdom and France. These three countries represent 87% of the Group’s total obligations. In France, these obligations mainly include termination benefits, a closed IRP RP defined benefit plan, and an “ARS” supplementary retirement plan. The main characteristics of these plans are as follows: the IRP RP plan is for all current and retired employees who contributed to the plan prior to its closure. It offers a full benefit guarantee compared with the end-of-career salary, and has no longer applied since the 1970s; the ARS plan is for executives. It sets a level of benefits independently of the change in mandatory plan benefits and is subject to conditions, end-of-career salary, retirement age and seniority in the Group. This plan is supplemented depending on the vested rights of executive managers. In the U.S., they are mainly related to defined benefit plans: the “Pension Equity Plan” enabling the acquisition of increasing capital according to age brackets. This plan was closed in 2003 and replaced by a defined contribution plan; the “Hourly Plan” providing for the acquisition of a percentage of salary by year of service (resulting from negotiations with trade unions); the “Restoration Plan” covering the portion of salary exceeding the limits of the “Pension Equity Plan” or granting specific guarantees to a very small group of senior executives. In the United Kingdom, there is mainly a defined benefit plan setting a salary percentage acquisition rate per year of service. This plan was closed in 2003 and replaced by a defined contribution plan which provides for a contribution rate according to age brackets. An actuarial valuation of defined benefit obligations is performed at least once a year at the balance sheet date by independent actuaries. Form 20 - F 2005 - Rhodia F-55
Actuarial assumptions These calculations include the following assumptions: probability of retaining employees in the Group, future salary increases and a retirement age of between 60 and 65 years old depending on location and applicable laws. The main actuarial assumptions used to measure defined benefit plan obligations are as follows: At December 31, 2005 At December 31, 2004 France U.S. UK France U.S. UK Discount rate 4.00% 5.50% 4.90% 5.00% 5.75% 5.80% Salary increase rate 3.00% 3.50% 3.25% 2.80% 3.50% 4.15% Retirement pension increase rate 2.00% 2.50% 2.75% 1.80% 2.50% 2.55% Mortality table INSEE TV/TD 2002 “1983 Group Annuity Mortality Tables” “PA90 rated down 2 years” INSEE TV/TD 1998 “1983 Group Annuity Mortality Tables” Assumptions relating to mortality tables are based on published statistical and historical data for each country. Rate of return on plan assets Plan assets are comprised of the following: “PA90 rated down 2 years” (in percentage) 2005 2004 Shares 61.7% 58.0% Bonds 30.1% 24.2% Other 8.2% 17.8% These plan assets do not include any Rhodia financial instruments or real estate assets owned by the Group. The expected rate of return is determined based on the allocation of assets and expected yield projections given past trends. At December 31, 2005 At December 31, 2004 France U.S. UK France U.S. UK Expected rate of return on assets N/A 7.50% 8.00% N/A 7.50% 8.00% In France, retirement benefit obligations are not invested in funds and Rhodia is therefore totally responsible for making these payments. Obligations recognized in the balance sheet Obligations recognized in the balance sheet break down as follows: (in millions of euros) At December 31, 2005 At December 31, 2004 Present value of unfunded obligations 928 816 Present value of funded obligations 1,639 1,368 Present value of total obligations 2,567 2,184 Fair value of plan assets (1,327) (1,186) Net value of obligations 1,240 998 Unrecognized past service cost (5) - Net present value of recognized obligations 1,235 998 Balance sheet amounts: Assets (6) - Liabilities 1,241 998 During fiscal year 2005, the French termination benefits plan was amended for certain employees as a result of the classification of the Pont-de-Claix site as being eligible for the early retirement benefits paid to asbestos workers. F-56 Form 20 - F 2005 - Rhodia
Page 1 and 2:
Form 20-F 2005
Page 3 and 4:
As filed with the Securities and Ex
Page 5 and 6:
- We calculate the impact of “cha
Page 7 and 8:
(in millions, except for per share
Page 9 and 10:
Exchange Rate Information Fluctuati
Page 11 and 12:
decrease in demand in certain secto
Page 13 and 14:
We cannot assure you that we will n
Page 15 and 16:
Our public debt ratings can affect
Page 17 and 18:
Changes in these laws and regulatio
Page 19 and 20:
subscription rights cannot be exerc
Page 21 and 22:
Main Businesses This section gives
Page 23 and 24:
Products Markets Brand names Compet
Page 25 and 26:
Polyamide Polyamide recorded sales
Page 27 and 28:
Engineering plastics are used for t
Page 29 and 30:
It is expected that Eco Services’
Page 31 and 32:
Furthermore, the synthesis business
Page 33 and 34:
Any significant change in raw mater
Page 35 and 36:
We remain dedicated to our zero-acc
Page 37 and 38:
Property, Plant and Equipment The t
Page 39 and 40:
The table below sets forth average
Page 41 and 42:
The following paragraphs list the c
Page 43 and 44:
The table below sets forth an analy
Page 45 and 46:
Coatis Coatis net sales totaled €
Page 47 and 48:
Abroad: closure of unprofitable pr
Page 49 and 50:
Acetow Operating profit totaled €
Page 51 and 52:
Profit/(loss) from discontinued ope
Page 53 and 54:
High yield notes In order to extend
Page 55 and 56:
Consolidated Balance Sheet Working
Page 57 and 58:
The table below sets forth the matu
Page 59 and 60:
Net loss: A reconciliation of the n
Page 61 and 62:
Item 6. Directors, Senior Managemen
Page 63 and 64:
Michel de Fabiani was named a Direc
Page 65 and 66:
agreement to be authorized by the B
Page 67 and 68:
our Company and the related compens
Page 69 and 70:
Name (Age) Jean-Pierre Clamadieu (4
Page 71 and 72:
Compensation According to French la
Page 73 and 74:
The table below sets forth the tota
Page 75 and 76:
Employee and Director share ownersh
Page 77 and 78:
Options The table below sets forth
Page 79 and 80:
On December 22, 2005, Sanofi-Aventi
Page 81 and 82:
Item 8. Financial Information Finan
Page 83 and 84:
Commercial Litigation Adisséo Arbi
Page 85 and 86:
Protection Agency regarding future
Page 87 and 88:
Item 9. The Offer and Listing Tradi
Page 89 and 90:
Euronext Paris may temporarily rese
Page 91 and 92:
However, these requirements do not
Page 93 and 94:
In addition to rights to certain in
Page 95 and 96:
Financial Statements and Other Comm
Page 97 and 98:
Decreases in Share Capital Accordin
Page 99 and 100:
Identification of shareholders Our
Page 101 and 102:
French Insolvency Laws Rhodia S.A.
Page 103 and 104:
period, creditors may not pursue an
Page 105 and 106:
The following countries, French ove
Page 107 and 108:
For purposes of the U.S.-France tax
Page 109 and 110:
If you are an accrual method taxpay
Page 111 and 112:
transactions), or at least 50% of t
Page 113 and 114:
Interest Interest on 2003 Notes The
Page 115 and 116:
Market Discount and Bond Premium If
Page 117 and 118:
acquired the Euro Note. In addition
Page 119 and 120:
Even aside from the effect of compe
Page 121 and 122:
PART II Item 13. Defaults, Dividend
Page 123 and 124:
Item 16D. Exemptions from the Listi
Page 125 and 126:
Signature The registrant hereby cer
Page 127 and 128:
RHODIA AND SUBSIDIARIES REPORT OF I
Page 129 and 130: RHODIA GROUP CONSOLIDATED BALANCE S
Page 131 and 132: RHODIA GROUP CONSOLIDATED STATEMENT
Page 133 and 134: RHODIA GROUP CONSOLIDATED STATEMENT
Page 135 and 136: RHODIA GROUP NOTES TO THE CONSOLIDA
Page 137 and 138: Associates The companies over which
Page 139 and 140: Dismantling costs Dismantling and r
Page 141 and 142: subsequent recognition: The allowan
Page 143 and 144: For quoted securities, fair value r
Page 145 and 146: 3.13. Borrowings All borrowings are
Page 147 and 148: The fair value of the options is me
Page 149 and 150: Notes to the consolidated income st
Page 151 and 152: Depreciation, amortization and impa
Page 153 and 154: 7. Depreciation, amortization and i
Page 155 and 156: Restructuring costs by business seg
Page 157 and 158: The effective tax rate for 2005 ref
Page 159 and 160: 12.4 Assets held for sale and assoc
Page 161 and 162: The impairment losses accounted for
Page 163 and 164: price corresponds to the market pri
Page 165 and 166: Available-for-sale assets are inves
Page 167 and 168: 23. Other current financial assets
Page 169 and 170: on June 17, 2005, signature of a ne
Page 171 and 172: Asset securitization programs Rhodi
Page 173 and 174: In addition, as from June 1, 2007,
Page 175 and 176: 27. Risk management and derivative
Page 177 and 178: At December 31, 2005 At December 31
Page 179: 27.3. Management of risk related to
Page 183 and 184: The actual rate of return on plan a
Page 185 and 186: The cumulative effect on ordinary c
Page 187 and 188: Evolution in 2004 Charges for new m
Page 189 and 190: Estimated contingent liabilities be
Page 191 and 192: sought to exercise its call option,
Page 193 and 194: In 2004, in accordance with the aut
Page 195 and 196: Stock Option Plan 1998 Plan 1999/1
Page 197 and 198: 36. Use of estimates In order to pr
Page 199 and 200: Subsidiaries Country % RHODIA PPMC
Page 201 and 202: 38. Note on transition to IFRS 2004
Page 203 and 204: At January 1, 2004 At December 31,
Page 205 and 206: ) Operating profit/(loss) The follo
Page 207 and 208: Financial instruments Rhodia choose
Page 209 and 210: Cash flow provided from investing a
Page 211 and 212: Recognition of past service costs r
Page 213 and 214: Primester, a 50%-owned cellulose ac
Page 215 and 216: (xv) Recent accounting pronouncemen
Page 217 and 218: (ii) Shareholders’ deficit A reco
Page 219 and 220: (v) Discontinued operations—FAS 1
Page 221 and 222: (viii) Pension and retirement plans
Page 223 and 224: (in millions of euros) 2004 Restruc
Page 225 and 226: Printed on environmentally friendly
Page 227: Financial Communication Department
show all

Form 20-F 2005

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?