2013-vinci-annual-report

The retirement benefit obligations covered by provisions recognised in the balance sheet are calculated using the following assumptions:
Eurozone United Kingdom Switzerland
Plan 31/12/2013 31/12/2012 31/12/2013 31/12/2012 31/12/2013 31/12/2012
Discount rate 3.4% 3.5% 4.4% 4.4% 2.2% 1.8%
Inflation rate 2.0% 2.0% 2.5% – 3.4% 1.8% – 2.6% 1.5% 1.5%
Rate of salary increases 0.0% – 4.0% 0.0% – 4.0% 3.0% – 4.4% (*) 2.6% – 4.0% 2.0% 2.0%
Rate of pension increases 2.0% 2.0% 2.5% – 5.0% 2.5% – 3.6% NA NA
(*) Inflation rates: CPI 2.5%; RPI 3.4%.
Discount rates have been determined by geographical area on the basis of the yields on private-sector bonds with a rating of AA and whose
maturities correspond to the plans’ expected cash flows. The discount rates finally adopted are the rates equivalent to the application of the
various rates depending on maturities.
The other local actuarial assumptions (economic and demographic assumptions) are set on the basis of the specific features of each of the
countries in question.
Plan assets are valued at their fair value at 31 December 2013. The book value at 31 December 2013 is used for assets invested with insurance
companies.
On the basis of the actuarial assumptions referred to above, details of the retirement benefit obligations, provisions recognised in the balance
sheet, and the retirement benefit expenses recognised in 2013 are provided below.
Result of actuarial valuations in the period
Breakdown by type of obligation
31/12/2013 31/12/2012
Lump sums Pensions,
Lump sums Pensions,
paid on supplementary
paid on supplementary
(in € millions)
retirement
in France
pensions
and other
Total
retirement
in France
pensions
and other
Total
Actuarial liability from retirement benefit obligations 632 1,552 2,184 589 1,510 2,099
Plan assets at fair value 52 864 916 52 853 905
Deficit (or surplus) 579 689 1,268 537 657 1,195
Provision recognised under liabilities on the balance
sheet
I 579 692 1,271 537 661 1,198
Overfunded plans recognised under assets on the
balance sheet
II – 1 1 – 3 3
Asset ceiling effect (IFRIC 14) III – 2 2 – 1 1
Total I–II–III 579 689 1,268 537 657 1,195
(*) Amounts adjusted in line with the change in accounting method arising from the application of IAS 19 Amended “Employee Benefits”, described in Note A.4.
At 31 December 2013, the proportion of obligations relating to retired beneficiaries was around 30%.
Breakdown by country
31/12/2013
(in € millions) France Germany
United
Kingdom Switzerland Other countries Total
Actuarial liability from retirement benefit obligations 857 431 643 223 30 2,184
Plan assets at fair value 134 4 544 219 15 916
Deficit (or surplus) 723 427 98 4 16 1,268
Provision recognised under liabilities on
the balance sheet
I 724 427 100 4 16 1,271
Overfunded plans recognised under assets
on the balance sheet
II 1 – – – – 1
Asset ceiling effect (IFRIC 14) III – – 2 – – 2
Total I–II–III 723 427 98 4 16 1,268
CONSOLIDATED FINANCIAL STATEMENTS 251