MICHELIN - 2008 ANNUAL REPORT

Movement of defined benefit net liabilities recognized in the balance sheet:
(in EUR million)
Defined benefit
pension plans
Other defined benefit
plans (including
healthcare)
2008 2007
At 1 January 904 1,659 2,563 2,727
Exchange differences
Expenses recognized in the income statement (recurring items)
Contributions paid to the funds
Benefits directly paid to the beneficiaries
Portion of benefit expenses recognized within the non recurring restructuring expenses
Changes in the scope of consolidation
At 31 December 802 1,641 2,443 2,563
(50)
55
(86)
(21)
–
–
1
115
–
(134)
–
–
(49)
170
(86)
(155)
0
0
(124)
230
(93)
(144)
(20)
(13)
In 2008, the net amount recognized in the consolidated income statement is an expense of EUR 174 million (2007: EUR 212 million), broken down as follows:
Net amount recorded in the consolidated
income statement
(in EUR million)
Cost of service rendered during the year
Interest cost
Expected return on plan assets
Amortization of actuarial gain/loss during the year
Past service cost recognized during the year
Effect of reductions or liquidations of benefit plans
Effect of asset ceiling limitation
Portion of benefit expenses recognized within the non recurring restructuring expenses
Defined benefit
pension plans
Other defined benefit
plans (including
healthcare)
38
90
–
(3)
(10)
–
–
–
Year ended
31 December 2008
Year ended
31 December 2007
77
302
(330)
–
–
8
2
–
115
392
(330)
(3)
(10)
8
2
–
147
404
(356)
7
59
(31)
2
(20)
Total recorded in the income statement 59 115 174 212
Annual charges are determined by independent actuaries at the beginning of each financial year based on the following factors:
charge corresponding to acquisition of an additional year of rights (“cost of services rendered during the year”),
charge corresponding to annual discount (“interest cost”),
income corresponding to estimated return on assets (“expected return on plan assets”),
income or charge from annual amortization of actuarial gain or loss (“amortization of actuarial gain/loss during the year”),
gain/loss resulting from changes in plan benefits (“past service cost recognized during the year”),
gain/loss resulting from any reduction or liquidation of plans (curtailments and settlements),
gain/loss resulting from the effect of the asset ceiling limitation.
122 2008 Consolidated Financial Statements of Michelin Group