Form 20-F 2005

At December 31,
(%) 2005 2004
Weighted average assumptions used to determine
the pension and retirement benefit obligations at year end:
Discount rates 4.7 5.4
Rates of compensation increases 3.5 3.4
Weighted average assumptions used to determine
the other post-retirement benefit obligations at year end:
Discount rates 4.7 5.6
Rates of compensation increases 3.0 2.3
Year Ended December 31,
(%) 2005 2004
Weighted average assumptions used to determine
the net periodic pension and retirement costs for the year:
Discount rates 5.4 5.5
Expected long-term returns on plans’ assets 7.7 8.1
Rates of compensation increases 3.4 3.3
Weighted average assumptions used to determine
the net periodic other post-employment costs for the year:
Discount rates 5.6 6.0
Rates of compensation increases 2.3 3.3
Rhodia’s expected benefit payments for pension and retirement benefits from plans’ assets in 2006, 2007, 2008, 2009, 2010
and in the five year-period 2011-2015 are €92 million, €93 million, €94 million, €94 million, €95 million and €510 million, respectively.
Rhodia’s expected directly funded benefit payments for pension and retirement benefits in 2006, 2007, 2008, 2009, 2010 and in the
five year-period 2011-2015 are €48 million, €55 million, €57 million, €56 million, €63 million and €295 million, respectively. Rhodia’s
expected directly funded benefit payments for other post-employment benefits in 2006, 2007, 2008, 2009, 2010 and in the five
year-period 2011-2015 are €4 million, €4 million, €4 million, €4 million, €4 million and €16 million, respectively.
(ix) Restructuring reserves—additional disclosures
The following tables reflect the changes in the restructuring reserves for the two years ended December 31, 2005 (See
Note 29.3). In addition, Rhodia records asset write downs resulting from impairments directly to the carrying values of the related
assets. These write downs totaled €6 million and €36 million in 2005 and 2004, respectively. Rhodia estimates that most of the
remaining employee termination benefits and closure costs will be incurred in 2006 and 2007.
(in millions of euros)
2005 Restructuring Plan
Employee termination
benefits Closure costs Total
Charged to operations 51 2 53
Expenditures charged to the reserve (16) (4) (20)
Effect of changes in structure/exchange rates (2) 2 —
Balance, December 31, 2005 33 — 33
Form 20 - F 2005 - Rhodia
F-97