2012 Registration document and annual financial report - BNP Paribas

4CONSOLIDATEDFINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2012Notes to the financial statements➤ FINANCIAL INSTRUMENTS RECEIVED AS COLLATERALIn millions of euros 31 December 2012 31 December 2011Financial instruments received as collateral (excluding repurchase agreements) 71,671 68,705of which instruments that the Group is authorised to sell and reuse as collateral 32,140 30,509Securities received under repurchase agreements 174,474 195,530The financial instruments received as collateral or under repurchase agreements that the Group effectively sold or reused as collateral amounted toEUR 156, 718 million at 31 December 2012 (compared with EUR 144, 791 million at 31 December 2011).Note 7SALARIES AND EMPLOYEE BENEFITS47.a SALARY AND EMPLOYEE BENEFIT EXPENSESIn millions of euros Year to 31 Dec. 2012 Year to 31 Dec. 2011Fixed and variable remuneration, incentive bonuses and profit-sharing 11,209 10,844Retirement bonuses, pension costs and social security taxes 3,563 3,724Payroll taxes 483 435TOTAL SALARY AND EMPLOYEE BENEFIT EXPENSES 15,255 15,0037.b POST-EMPLOYMENT BENEFITSIAS 19 distinguishes between two categories of plans, each handleddifferently depending on the risk incurred by the entity. When the entityis committed to paying a fixed amount, stated as a percentage of thebeneficiary’s annual salary, for example, to an external entity handlingpayment of the benefits based on the assets available for each planmember, it is described as a defined contribution plan. Conversely, whenthe entity’s obligation is to manage the financial assets funded throughthe collection of contributions from employees and to bear the cost ofbenefits itself or to guarantee the final amount subject to future events,it is described as a defined-benefit plan. The same applies, if the entityentrusts management of the collection of premiums and payment ofbenefits to a separate entity, but retains the risk arising from managementof the assets and from future changes in the benefits.Pension plans and other post-employmentbenefitsThe BNP Paribas Group has implemented over the past few years a widecampaign of converting defined-benefit plans into defined -contributionplans.In France, for example, the BNP Paribas Group pays contributions tovarious nationwide basic and top-up pension schemes. BNP Paribas SAand certain subsidiaries have set up a funded pension plan under acompany-wide agreement. Under this plan, employees will receive anannuity on retirement in addition to the pension paid by nationwideschemes.In addition, since defined benefit plans have been closed to newemployees in most countries outside France, they are offered the benefitof joining defined contribution pension plans.The amount paid into defined-contribution post-employment plansin France and other countries for the year to 31 December 2012was EUR 531 million, compared with EUR 511 million for the year to31 December 2011.Defined-benefit pension plans for Group entitiesIn France, BNP Paribas pays a top-up banking industry pension arisingfrom rights acquired to 31 December 1993 by retired employees at thatdate and active employees in service at that date. The residual pensionobligations are covered by a provision in the consolidated financialstatements or are transferred to an insurance company outside theGroup. The defined-benefit plans previously granted to Group executivesformerly employed by BNP, Paribas or Compagnie Bancaire have all beenclosed and converted into top-up type schemes. The amounts allocated tothe beneficiaries, subject to their presence within the Group at retirement,were fixed when the previous schemes were closed. These pension planshave been funded through insurance companies. The fair value of therelated plan assets in these companies’ balance sheets breaks down as83.7% bonds, 6.8% equities and 9.5% property assets.1662012 Registration document and annual financial report - BNP PARIBAS