Daimler Annual Report 2011 - Alle jaarverslagen

Composition of plan assets. At December 31, 2011, plan
assets were invested in diversified portfolios that consisted
primarily of debt and equity securities. Plan assets and income
from plan assets are used solely to pay pension benefits and
to administer the plans. The Group’s plan asset allocations are
presented in table 7.54.
Alternative investments consist of private equity and debt
investments as well as investments in commodities and hedge
funds.
Assumptions. The measurement date for the Group’s
defined benefit pension obligations and plan assets is generally
December 31. The measurement date for the Group’s net
periodic pension cost is generally January 1. The assumptions
used to calculate the projected benefit obligations together
with the expectations regarding long-term rates of return on plan
assets vary according to the economic conditions of the
country in which the pension plans are situated.
Table 7.55 shows the weighted average assumptions which
the Group used to determine pension benefit obligations.
Table 7.56 shows the weighted average assumptions
which the Group used to determine net periodic pension cost.
7.54
Composition of plan assets
In % of plan assets
Plan assets
German plans
Plan assets
Non-German plans
At December 31, At December 31,
2011 2010 2011 2010
Equity securities 30 34 31 41
Debt securities 51 46 53 43
Alternative investments 9 11 4 4
Real estate 3 4 3 3
Liquidity and other plan assets 7 5 9 9
7.55
Assumptions used to determine pension benefit obligations
In %
German plans
Non-German plans
At December 31, At December 31,
2011 2010 2011 2010
Discount rates 4.7 5.0 4.3 4.7
Expected long-term remuneration increases 1 – – 3.6 4.1
Expected increase in cost of living 2 1.7 1.7 – –
1 For most German plans, expected increases in long-term remuneration are not a part of the benefit formula.
2 For most non-German plans, expected increases in cost of living are not a part of the benefit formula.
7.56
Assumptions used to determine net periodic pension cost
In %
German plans
Non-German plans
2011 2010 2011 2010
Discount rates 5.0 5.3 4.7 5.1
Expected long-term returns on plan assets 5.4 5.5 6.5 7.0
Expected long-term remuneration increases 1 – – 4.1 3.9
Expected increase in cost of living 2 1.7 1.8 – –
1 For most German plans, expected increases in long-term remuneration are not a part of the benefit formula.
2 For most non-German plans, expected increases in cost of living are not a part of the benefit formula.
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