Values

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Income Statement
Statement of Comprehensive Income
Balance Sheet
Cash Flow Statement
Statement of Changes in Equity
Notes
Th e Bertelsmann Group operates various pension plans for
current and former employees and their surviving dependents.
Th e model of such plans varies according to the legal, fi scal
and economic environment of the country concerned. Th ese
company pension plans include both defi ned contribution and
defi ned benefi t plans.
In the case of defi ned contribution plans, the company
makes payments into an external pension fund or another welfare
fund through a statutory, contractual or voluntary model.
Th e company has no obligation to provide further benefi ts once
it has made these payments, so no provisions are recognized.
Expenses for defi ned contribution plans in the amount of
€23 million were recognized in the year under review (previous
year: €33 million).
All other pension plans are defi ned benefi t plans. Some are
fi nanced through an external investment fund (plan assets),
Actuarial Assumptions
Bertelsmann Annual Report 2009
while others are unfunded. Provisions are recognized for these
pension plans, most of which are fi nal salary-type plans.
Th e provisions are calculated using actuarial formulas in
accordance with IAS 19. Th e amount of provisions depends
on employees’ length of service with the company and their
pensionable salary. Provisions are computed using the projected
unit credit method, in which increasing salary costs are
assumed over the period of service, in contrast to the entry-age
normal method. Th e computation also involves using biometric
calculations, prevailing long-term capital market interest rates
and assumptions about future salary and pension increases. In
Germany, the biometric calculations are based on the 2005 G
mortality tables issued by Prof. Klaus Heubeck. Th e following
actuarial assumed weightings have been applied:
12/31/2009
Germany
12/31/2009
Foreign
12/31/2008
Germany
12/31/2008
Foreign
Discount rate 5.99% 5.62% 6.00% 5.78%
Expected return on plan assets 3.57% 6.08% 5.41% 5.82%
Rate of salary increase 1.92% 3.80% 2.50% 4.18%
Rate of pension increase 1.74% 1.11% 1.90% 0.89%
Fluctuation Experience values Experience values
Projected returns on plan assets are based exclusively on
projections for the respective asset classes held. Historical
data, economic forecasts, the interest rate outlook, infl ation
rates and stock market expectations are factored into expected
plan returns. Th e majority of plan assets are managed by
Bertelsmann Pension Trust e. V. under a contractual trust arrangement
(CTA) for pension commitments of Bertelsmann
AG and some German subsidiaries. Projected CTA plan returns
are determined on the basis of the strategic asset allocation
maintained in diff erent asset classes. Projected plan returns
are determined applying a risk-free rate of return for total plan
assets based on current long-term government bond yields.
A risk premium return is also calculated for each asset class
based on historical market returns and economic forecasting.
Th e market indices applied refl ect the plan assets classifi ed
by region, asset class and industry. Projected plan returns are
reviewed regularly – annually at a minimum – and factor in
projected contributions and distributions of plan assets.
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