CONTENTS - Capgemini

98 ANNUAL
GROUP CONSOLIDATED FINANCIAL STATEMENTS
Capgemini
NOTE 19 – PROVISIONS FOR PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS
Changes in provisions for pensions and other post-employment benefits can be analyzed as follows:
in millions of euros
Provisions for pensions and other post-employment benefits at
December 31, 2005 have been restated in line with the amendment
to IAS 19 (see Note 2 – “Change in accounting method”).
There are two categories of retirement plans:
Defined contribution plans
Defined contribution plans have been set up in the majority of
European countries (France, Benelux, Germany and Central Europe,
Nordic countries, Italy and Spain) as well as in the United States and
Asia-Pacific countries.
These plans are funded by contributions paid to authorized agencies,
which are expensed as incurred. The Group’s obligation under these
plans is recorded in “Accounts and notes payable”.
I. PROVISIONS FOR FUNDED DEFINED BENEFIT PLANS
A) Analysis of obligation
in millions of euros
REPORT 2006 Capgemini
Defined benefit plans
Two types of defined benefit plans are recognized in provisions for
pensions and other post-employment benefits:
Funded defined benefit plans. These plans exist in the United
Kingdom and Canada, as well as in other regions (the United States,
Ireland, Sweden, Benelux, Germany, Switzerland and France).
Unfunded defined benefit plans. These plans correspond to retirement
bonuses and healthcare coverage and mainly concern Canada,
Germany and Central Europe, France, Italy and Sweden.
2004 2005 2006
United
Kingdom Canada Other Total
United
Kingdom Canada Other Total
United
Kingdom Canada Other Total
Present value of
obligation 993 138 72 1,203 1,572 212 104 1,888 1,647 197 113 1,957
Fair value of plan
assets 673 132 52 857 1,045 182 76 1,303 1,212 193 84 1,489
FUNDING DEFICIT
o/w actuarial gains
and losses recogni-
320 6 20 346 527 30 28 585 435 4 29 468
zed in equity 24 6 3 33 198 33 13 244 75 9 7 91
NET PROVISIONS
IN THE BALANCE
SHEET 320 6 20 346 527 30 28 585 435 4 29 468
Assets (1) - (13) - (13) - - - - - (3) - (3)
Liabilities 320 19 20 359 527 30 28 585 435 7 29 471
(1) These amounts correspond to funding surpluses in one of the Canadian plans.
Provisions for pensions
and other post-employment
benefits
December 31, 2005 696
Translation adjustments 3
Increase – Personnel costs 98
Decrease – Benefits and contributions (61)
Change in actuarial gains and losses recognized in equity (150)
Other movements 5
December 31, 2006 591
At December 31, 2006, the net benefit obligation for other regions, amounting to €29 million, primarily concerns the United States (€18 million),
Germany and Central Europe (€4 million), Ireland (€3 million), Benelux (€1 million) and Nordic countries (€1 million).