Financial Statements - Geberit

15. Stock ownership plans
Pension assets and obligations are predominately non-current. Prepaid pension
assets include the overfunded part of the Swiss pension plans, adjusted for unrecognised
prior service cost as well as unrecognised net gains and losses. The
legal context relating to pension plans in Switzerland limits the company’s control
of the surplus in the pension fund.
The Group has unfunded defined benefit plans. The most significant of these
plans are included and analysed above. The projected benefit obligation of
these and other, minor unfunded plans is mchf 81.6 at 31 December 2000 and
mchf 83.0 at 31 December 1999, and is included, net of unrecognised items,
in the accrued pension obligation in the consolidated balance sheets.
Weighted average assumptions are as follows (in %):
Discount rate used in determining present values
Annual rate of increase in future compensation levels
Expected rate of future increases in pension benefits
Expected long-term rate of return on plan assets
The Group has introduced various stock ownership plans since the ipo in 1999.
Stock ownership plans for employees and the management
In connection with the ipo, employees and management could purchase shares
of Geberit ag at a discount of 15% on the public offering price up to 20%
of their annual salary. If, at the end of the two-year blocking period, the market
price of the shares is less than the price per share (less the discount) paid by the
plan participants, the Group will pay an amount equal to this difference so as to
guarantee up to a maximum of chf 10,000 of each employee’s cash investment
(“the Security Payment”).
At the end of the two-year blocking period, the participants still employed by
the Group will be entitled to a cash bonus. At the share price as of 31 December
2000, the cash bonus would amount to mchf 4.3 including social security charges.
This amount is equal to the maximum cash bonus. The consolidated financial
statements 2000 do not contain any provision for this cash bonus.
65
1999
4.0–6.0
2.0–3.0
0.0–3.0
5.5
2000
4.0–6.0
2.0–3.0
0.0–2.5
5.5