2012 Registration document and annual financial report - BNP Paribas

4CONSOLIDATEDFINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2012Notes to the financial statementsPrincipal actuarial assumptions used to calculate postemploymentbenefit obligations (excluding post-employmenthealthcare benefits)The Group discounts its obligations using the yields of high qualitycorporate bonds issued in the relevant currency zone, with a termconsistent with the duration of the obligations. Until 31 December2011, the Group used the sovereign bonds yields for the E uro zone(iBoxx Eurozone index). In 2012, this index was higher than the AA ratedcorporate bonds yields, prompting the Group to adopt the generally usedAA rated corporate bonds benchmark (iBoxx Euro index). The change ofbenchmark led to an increase of EUR 238 million in the Group obligations,with no impact on the financial statements at 31 December 2012, giventhe mechanism for deferred recognition of actuarial gains and lossesdescribed below.The rates used are as follows:In %France31 December 2012 31 December 2011Eurozoneexcl. France UK USA FranceE uro zoneexcl. France UK USADiscount rate 1.42%-2.69% 2.03%-2.69% 4.00% 3.90% 3.14%-4.64% 3.30%-4.70% 3.50% 4.50%Rate of compensationincrease (1) 2.60%-3.60% 2.00%-3.90% 2.00%-4.25% 4.00% 3.00%-4.50% 2.00%-4.65% 2.00%-4.50% 4.00%(1) Including price increases (inflation ).4Actual rate of return on plan assets and reimbursement rights over the periodThe expected return on plan assets is determined by weighting the expected return on each asset class by its respective contribution to the fair valueof total plan assets.In %FranceYear to 31 Dec. 2012 Year to 31 Dec. 2011Eurozoneexcl. France UK USA FranceE uro zoneexcl. France UK USAExpected return on planassets and reimbursementrights (1) 3.55% 2.27%-3.92% 3.40%-6.10% 3.00%-6.00% 3.90% 3.25%-4.70% 3.00%-6.20% 4.50%-6.00%Actual return on planassets and reimbursementrights (1) 3.70% 2.00%-19.00% 4.78%-10.00% 8.00%-14.00% 3.68% 1.00%-6.40% 2.80%-7.40% 1.00%-5.00%(1) Range of values, reflecting the existence of several plans within a single country or geographical or monetary zone .Actuarial gains and lossesActuarial gains and losses reflect increases or decreases in thepresent value of a defined benefit obligation or in the fair value of thecorresponding plan assets. Actuarial gains and losses resulting from thechange in the present value of a defined benefit plan obligation arethe cumulative effect of experience adjustments (differences betweenprevious actuarial assumptions and actual occurrences) and the effectsof changing actuarial assumptions.BNP Paribas applies the “corridor” approach permitted in IAS 19, whichspecifies that recognition of actuarial gains and losses is deferred whenthey do not exceed 10% of the greater of the i) obligation and ii) value ofthe plan assets. The “corridor” is calculated separately for each definedbenefitplan. Where this limit is breached, the exceeding portion ofcumulative actuarial gains and losses is amortised in the profit and lossaccount over the remaining life of the plan.1702012 Registration document and annual financial report - BNP PARIBAS