Values

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Report Statements Supervisory
Board
Income Statement
Statement of Comprehensive Income
Balance Sheet
Cash Flow Statement
Statement of Changes in Equity
Notes
Th e following table shows the portion of new actuarial gains
and losses resulting from experience adjustments:
in € millions
Experience adjustments occurred
2009 2008 2007 2006 2005
(Gains)/losses on defi ned benefi t obligation 9 (72) (12) (4) 6
Gains/(losses) on plan assets 58 (227) (57) 9 31
Th e changes in the defi ned benefi t obligation and plan assets
over the past fi ve years were as follows:
in € millions 2009 2008 2007 2006 2005
Defi ned benefi t obligation 2,298 2,206 2,695 2,995 3,053
Plan assets 1,020 930 1,282 1,217 969
Funded status 1,278 1,276 1,413 1,778 2,084
Th e U.S. subsidiaries’ obligations for post-retirement employee
healthcare costs constitute defi ned benefi t obligations and
are included in the provisions recognized in the amount of
€60 million (previous year: €52 million).
Th ese obligations have also been calculated using international
standards as described above. Scaled annual increases
Bertelsmann Annual Report 2009
of 8.6 to 9.1 percent were assumed for healthcare costs (previous
year 9.1 percent). An increase or decrease of 1 percentage
point in the assumptions for cost increases compared with the
assumptions actually applied would have the following eff ects
on pension cost and the defi ned benefi t obligation:
in € millions 12/31/2009 12/31/2008
Effect of 1 percentage point increase on pension cost – –
Effect of 1 percentage point increase on defi ned benefi t obligation 3 4
Effect of 1 percentage point decrease on pension cost – –
Effect of 1 percentage point decrease on defi ned benefi t obligation (2) (3)
Similar obligations include provisions for bonuses for employee
service anniversaries, partial retirement programs, amounts
due but not yet paid to defi ned contribution plans, and severance
payments at retirement. Severance payments at retirement
are made when employees leave the company and are based on
statutory obligations, primarily in Italy and Austria. Provisions
for employee service anniversary bonuses and severance payments
at retirement are recognized in the same way as defi ned
benefi t plans but with actuarial gains and losses recognized in
profi t or loss.
Employees in Germany who are at least 55 years old and
have an unlimited employment contract with the company
qualify for the partial retirement program. Th e partial retirement
phase lasts two to fi ve years.
Bertelsmann AG introduced a model for deferred compensation
accounts in 2006. Under this model, employees defer
part of their gross salary, which is then credited to deferred
compensation accounts held by a trustee. Th e aim of this deferred
compensation is to enable staff to take early retirement.
Th e period of early retirement depends on the balance in the
deferred compensation account. Th e balance in the deferred
compensation accounts meets the defi nition of plan assets as
set out in IAS 19.7, and the company’s obligation at any given
time corresponds to the fair value of the deferred compensation
accounts. Th e deferred compensation account model has no
eff ect on the balance sheet or income statement. Outsourced
assets totaled €4 million at December 31, 2009 (previous year:
€3 million).
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