Hydro Annual Report 2011b

Change in pension plan assets
Amounts in NOK million 2011 2010
Fair value of plan assets at beginning of year 12 536 12 234
Actual return on plan assets 349 1 045
Company contributions 166 132
Plan participants' contributions 5 5
Benefits paid (525) (525)
Settlements ­ (308)
Divestments ­ (5)
Foreign currency translation 51 (41)
Fair value of plan assets at end of year 12 582 12 536
Status of pension plans reconciled to balance sheet
Defined benefit plans
Funded status of the plans at end of year (7 904) (5 820)
Unrecognized net (gain) loss 864 (1 191)
Unrecognized past service cost 6 11
Net accrued pension recognized (7 033) (7 000)
Termination benefits and other (470) (607)
Total net accrued pension recognized (7 503) (7 607)
Amounts recognized in the balance sheet consist of
Prepaid pension 1 596 1 481
Accrued pension liabilities (9 099) (9 088)
Net amount recognized (7 503) (7 607)
Weighted­average assumptions used to determine net periodic pension cost
Discount rate 4.1% 4.8%
Expected return on plan assets 5.3% 6.0%
Rate of compensation increase 2.7% 3.0%
Weighted­average assumptions used to determine pension obligation at end of year
Discount rate 3.2% 4.1%
Rate of compensation increase 2.5% 2.7%
Analysis of projected benefit obligation (PBO)
PBO arising from plans that are wholly or partly funded (12 983) (11 407)
PBO arising from plans that are unfunded (7 503) (6 949)
Total PBO (20 486) (18 356)
Weighted­average investment profile plan assets at end of year 1) allocation 2011 2010
Asset category
Equity securities 22­31% 27% 31%
Debt securities 34­56% 38% 34%
Real estate 21% 21% 21%
Other 7­14% 14% 14%
Total 100% 100%
1) Property used by Hydro represents 20 percent of total plan assets at the end of 2011 and 2010.
FINANCIAL STATEMENTS
Note 32 - Employee retirement plans F47